Hydrogen Electrolyzer Market Analysis and Forecast to 2033: By Type (Proton Exchange Membrane (PEM) Electrolyzer, Alkaline Electrolyzer, Solid Oxide Electrolyzer), Capacity (Below 500 kW, 500 kW - 2 mW, Above 2 mW), End-user (Ammonia, Methanol, Refineries

Hydrogen Electrolyzer Market Analysis and Forecast to 2033: By Type (Proton Exchange Membrane (PEM) Electrolyzer, Alkaline Electrolyzer, Solid Oxide Electrolyzer), Capacity (Below 500 kW, 500 kW - 2 mW, Above 2 mW), End-user (Ammonia, Methanol, Refineries, Transport, Others), and Region

The hydrogen electrolyzer market size was USD 1.15 billion in 2023 and is anticipated to reach over USD 12.7 billion in 2033, growing at a rate of over 25.1% from 2024 to 2033.

A hydrogen electrolyzer is an apparatus that produces hydrogen through a chemical process (electrolysis) capable of separating the hydrogen and oxygen molecules of which water is composed using electricity. Through electrolysis, the hydrogen electrolyzer system creates hydrogen gas. The oxygen left over is released into the atmosphere or can be captured or stored to supply other industrial processes or even medical gases in some cases. The hydrogen gas can either be stored as a compressed gas or liquefied since hydrogen is an energy carrier and can be used to power any hydrogen fuel cell electric application, such as trains, buses, and trucks.

Global Hydrogen Electrolyzer Market Scope and Report Structure

Hydrogen Electrolyzer Market Trends

Some of the key trends in the hydrogen electrolyzer market are:

1. Increased Efficiency: Newer electrolyzers are able to operate at up to 80% efficiency, compared to the 60-70% efficiency of older models. This improved efficiency means that more hydrogen can be produced from a given amount of electrical energy.

2. Increased Durability: Newer electrolyzers are made with more durable materials that can withstand higher temperatures and pressures. This means that they can operate for longer periods of time without needing to be replaced.

3. Increased Capacity: Newer electrolyzers are being designed with larger capacities, meaning that they can produce more hydrogen per unit of time. This is important for commercial applications where large quantities of hydrogen are required.

4. Lower Cost: The cost of hydrogen electrolyzers has been falling in recent years, making them more affordable for a wider range of applications.

Hydrogen Electrolyzer Market Drivers

The key drivers of the hydrogen electrolyzer market are the growing demand for clean energy, the declining cost of electrolyzers, and the increasing government support for hydrogen fuel cell technology.

The demand for clean energy is increasing as the world becomes more aware of the impact of greenhouse gas emissions on the environment. Hydrogen is a clean energy source that can be used to power fuel cells, which produce no emissions.

Government support for hydrogen fuel cell technology has been increasing in recent years as countries recognize the potential of this clean energy source. Incentives and subsidies are being offered to encourage the development and use of hydrogen fuel cells.

The cost of electrolyzers has been declining as the technology has become more efficient. The cost of hydrogen fuel cells has also been declining, making them more attractive as an alternative to traditional fossil fuel-powered vehicles. In addition, the green hydrogen cost development by technology is declining year-on-year. This is further expected to lead to the demand for hydrogen electrolyzer market.

Hydrogen Electrolyzer Market Restraints & Challenges

The key restraints and challenges in Hydrogen Electrolyzer market are as follows:

1. High cost of electrolyzers: The high cost of electrolyzers is one of the key restraints in the hydrogen electrolyzer market. The cost of electrolyzers can range from $500/kW to $3,000/kW, depending on the type and size of the electrolyzer.

2. Lack of infrastructure: The lack of infrastructure is another key challenge in the hydrogen electrolyzer market. There is a lack of hydrogen refueling stations and pipelines, which makes it difficult to transport hydrogen.

3. Limited storage capacity: The limited storage capacity of hydrogen is another challenge in the hydrogen electrolyzer market. Hydrogen can only be stored in pressurized tanks or pipelines, which limits its storage capacity.

4. Fluctuating demand: The demand for hydrogen is highly fluctuating, which makes it difficult to maintain a stable supply. The demand for hydrogen depends on the availability of renewable energy, which can fluctuate due to weather conditions.

Hydrogen Electrolyzer Market Segmental Overview

The Hydrogen Electrolyzer Market is segmented by type, capacity, end-user and region.

Hydrogen Electrolyzer Market by Type

By type, the market is classified into proton exchange membrane (PEM) electrolyzer, alkaline electrolyzer, and solid oxide electrolyzer. The alkaline electrolyzer segment accounted for over three-fifths hydrogen electrolyzer market share in 2022, and the proton exchange membrane (PEM) electrolyzer segment is expected to be the fastest-growing segment during the forecast period. In addition, the alkaline electrolyzers are significantly less expensive than PEM electrolyzers. As a result, this type of electrolyzer is commonly used for on-site hydrogen production. The main benefit of alkaline electrolyzers is that they can sustain greater megawatt (MW) range stacks, resulting in increased capacity and a more stable working environment for hydrogen electrolyzers.

Hydrogen Electrolyzer Market by Capacity

By capacity, the market is bifurcated into below 500 kW, 500 kW - 2 MW, and above 2 MW. The 500 kW - 2 MW segment accounted for the largest market share in 2023, and the above 2 MW segment is expected to be the fastest-growing segment during the forecast period. In addition, the 500 kW - 2 MW capacity of hydrogen electrolyzers are high in demand because they can be deployed on-site and generate adequate amounts of power and hydrogen, which is then used as industrial energy or feedstock. Many businesses prefer to install medium electrolyzers at their plants for hydrogen production and the added benefit of reduced carbon emissions.

Hydrogen Electrolyzer Market by End-user

By end-user, the market is divided into ammonia, methanol, refining/ hydrocarbon, transport, and others. The ammonia segment accounted for the largest market share in 2023, and the transport segment is expected to be the fastest-growing segment during the forecast period. The transportation sector is anticipated to increase significantly over the forecasted period. Hydrogen’s role as a fuel for the transport sector can extend beyond road transport to shipping and aviation. Shipping and aviation sectors use heavy fuel oil and jet fuel, respectively. Moreover, there are few alternatives to decarbonize these sectors, which are less readily available and more expensive than conventional fuels. Hence, hydrogen or hydrogen-based compounds can significantly decarbonize shipping and aviation.

Hydrogen Electrolyzer Market by Region

Region-wise, the market is segmented into North America, Europe, Asia Pacific, and the rest of the World. Europe held majority of the hydrogen electrolyzer market share in 2022. The presence of a large number of hydrogen manufacturers across the region also acts as a favorable factor for the growth of the Europe hydrogen electrolyzer market. Some European manufacturers of hydrogen electrolyzers include Nel ASA, Siemens AG, McPhy Energy S.A., ITM Power PLC, Gaztransport & Technigaz, Green Hydrogen Systems, iGas energy GmbH, thyssenkrupp nucera, John Cockerill, H2Greem S.L., Sunfire GmbH, and Air Liquide, among others. The demand for hydrogen electrolyzers will grow faster during the forecast period in the region owing to the increased demand from automotive and industrial applications. For instance, in July 2021, Royal Dutch Shell inaugurated Europe's largest hydrogen electrolysis facility at its Rheinland refinery in Wesseling. After a two-year construction period, the Refhyne plant, boasting a 10 MW capacity, is now operational. This facility will play a crucial role in producing green fuels and is part of a European Union-funded consortium.

Major Players in the Hydrogen Electrolyzer Market

The key players in the Hydrogen Electrolyzer Market are

Nel Hydrogen,

Siemens AG,

McPhy Energy,

ITM Power Plc,

Gaztransport & Technigaz,

GreenHydrogen Systems,

iGas Energy GmbH,

Next Hydrogen.,

Asahi Kasei,

thyssenkrupp nucera,

Hydrogenics (Cummins),

Toshiba Corporation,

Plug Power,

John Cockerill,

H2Greem,

Sunfire GmbH,

Bloom Energy, Air Liquide, Volkswagen AG (H-TEC SYSTEMS), and Enapter AG. These major players operating in this market have adopted various strategies comprising M&A, investment in R&D, collaborations, partnerships, regional business expansion, and new product launches. For instance, in August 2022, Nel ASA decided to build a new, fully automated production line at Herøya in Norway, doubling its capacity for the production of alkaline electrolyzer stacks to ~1 GW. The growing demand for green hydrogen needs more electrolyzers and in order to match the supply Nel has increased its production sites.

COVID-19 Impact

In 2020, the COVID-19 pandemic resulted in economic challenges owing to subsequent lockdowns. In 2020, the manufacturing industry was severely affected due to a drastic decrease in product demand, falling prices, and storage shortages. A swift decline in manufacturing revenues due to virtually non-existent manufacturing demand and slow production capabilities had limited the expenditure on the production of hydrogen electrolyzers worldwide. Thus, the COVID-19 pandemic negatively affected the global hydrogen electrolyzers market in 2020. However, in 2021, the manufacturing industry started recovering from the significant labor and supply chain challenges that triggered the production of hydrogen electrolyzers.

Recent Developments

• In September 2023, Enapter AG strategically expanded its product portfolio with the “AEM Flex 120”. This new AEM electrolyzer is specifically launched for industrial and refuelling pilot projects. This electrolyzer features up to 50 AEM Stack core modules, ensuring flexible operation and high reactivity to fluctuating renewable energy. Besides, it generates nearly 53 kg of hydrogen per day at 99.999 % purity with optional dryer. The first commercial product, created for the ABC-Klinker, a German company was presented to Enapter partners and system integrators in September in Germany. Enapter AG has set up manufacturing capacities so that delivery of further AEM Flex 120 electrolyzers can take place in 2024.
• In May 2023, Bloom Energy began producing hydrogen from the world’s largest solid oxide electrolyzer installation at NASA’s Ames Research Center. This high-efficiency, high-temperature, unit generates 20-25% more hydrogen per MW than commercially demonstrated lower temperature electrolyzers such as alkaline or proton electrolyte membrane (PEM) electrolyzers.
• In November 2022, Bloom Energy Corporation recently launched its high volume commercial electrolyzer line at its Newark plant, boosting the company's electrolyzer producing capacity to two gigatonnes. Bloom may best fulfil market demands by simplifying existing production for larger volume electrolyzer output.
• In June 2022, Plug Power Inc. planned to construct a 35-tonne-per-day green hydrogen producing facility at the Port of Antwerp-Bruges in central Europe. Plug signed a 30-year concession agreement to construct the facility at Belgium's second-largest port in Europe. Plug intends to build a 100-megawatt green hydrogen plant on 28 acres of land leased under the agreement, using its own electrolyzer and liquefaction technology. Plug will generate up to 12,500 tonnes of liquid and gaseous green hydrogen per year for the European market.
• In March 2022, Siemens Energy brought the hub of its hydrogen technology to Berlin by locating the industrial manufacturing of electrolysis modules there. Production is expected to begin in 2023 at the Huttenstrasse site in the Moabit neighborhood of Berlin.
• In March 2022, Greenko ZeroC (GZC), and John Cockerill, have signed an exclusive Framework Agreement to develop market initiatives for green hydrogen electrolyzers in India. GZC and John Cockerill will pool their resources to work together on all aspects of the market evolution for green hydrogen electrolyzers, which transform clean energy into carbon-free hydrogen.

Hydrogen Electrolyzer Market Report Coverage

• The report offers a comprehensive quantitative as well as qualitative analysis of the current Hydrogen Electrolyzer Market outlook and estimations from 2021 to 2032, which helps to recognize the prevalent opportunities.
• The report also covers qualitative as well as quantitative analysis of Hydrogen Electrolyzer Market in terms of revenue ($Million) and Capacity (GW).
• The report includes a list of potential customers of hydrogen electrolyzers.
• Major players in the market are profiled in this report and their key developmental strategies are studied in detail. This will provide an insight into the competitive landscape of the Hydrogen Electrolyzer industry.
• A thorough analysis of market trends and restraints is provided.
• By region as well as country market analysis is also presented in this report.
• Porter’s five forces analysis, SWOT analysis, COVID-19 impact analysis, Russia-Ukraine war impact, and PESTLE analysis of the Hydrogen Electrolyzer Market are also analyzed.
• The report covers market size and forecast for the “Green Hydrogen Market” and a list of green hydrogen projects along with an analysis of the Green Hydrogen Production Costs
• The report includes pricing analysis of Hydrogen Electrolyzer by Technology along with Total Installed Electrolysis Capacity, by Technology

Frequently Asked Questions

Q1.

How big is the Hydrogen Electrolyzer market?

Ans.

The hydrogen electrolyzer market size was USD 1.15 billion in 2023 and is anticipated to reach over USD 12.7 billion in 2033, growing at a rate of over 25.1% from 2024 to 2033.

Q2.

What is the Hydrogen Electrolyzer market growth rate?

Ans.

The growth rate of the Hydrogen Electrolyzer market is 25.1% from 2024 to 2033.

Q3.

Which region holds a major market share for the Hydrogen Electrolyzer market?

Ans.

Europe holds a major market share of the Hydrogen Electrolyzer market in 2023.

Q4.

Which segment accounted for the largest Hydrogen Electrolyzer market share?

Ans.

Based on type, the alkaline segment contributed significant revenue to the Hydrogen Electrolyzer market in 2022, and the PEM segment is expected to be the fastest-growing segment during the forecast period.

Q5.

Who are the key players in the Hydrogen Electrolyzer market?

Ans.

The global Hydrogen Electrolyzer market report includes players such as
Nel Hydrogen,

Siemens AG,

McPhy Energy,

ITM Power Plc,

Gaztransport & Technigaz,

GreenHydrogen Systems,

iGas Energy GmbH,

Next Hydrogen.,

Asahi Kasei,

thyssenkrupp nucera,

Hydrogenics (Cummins),

Toshiba Corporation,

Plug Power,

John Cockerill,

H2Greem,

Sunfire GmbH,

Bloom Energy, Air Liquide, Volkswagen AG (H-TEC SYSTEMS), and Enapter AG.

Q6.

What are the factors driving the Hydrogen Electrolyzer market growth?

Ans.

The major factors driving the growth of the market are the growing demand for clean energy, the declining cost of electrolyzers, and the increasing government support for hydrogen fuel cell technology.

Q7.

What are the key growth strategies of Hydrogen Electrolyzer market players?

Ans.

The key growth strategies of Hydrogen Electrolyzer market players are product launches, acquisitions & mergers, and government initiatives.

Q8.

Which region will provide more business opportunities for the Hydrogen Electrolyzer market during the forecast period?

Ans.

The Asia Pacific region will provide more business opportunities for the Hydrogen Electrolyzer market during the forecast period.

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