Electrolysis Hydrogen Generation Market Size - By Application (Petroleum Refining, Chemical, Transportation, Power Generation, Industry Energy) Regional Outlook, Competitive Market Share & Global Forecast, 2024 - 2032

Electrolysis Hydrogen Generation Market Size - By Application (Petroleum Refining, Chemical, Transportation, Power Generation, Industry Energy) Regional Outlook, Competitive Market Share & Global Forecast, 2024 - 2032

Electrolysis Hydrogen Generation Market is estimated to expand at 7.2% rate from 2024 to 2032. As governments worldwide implement ambitious renewable energy targets and regulations to reduce carbon emissions, electrolysis hydrogen generation emerges as a crucial technology for producing clean hydrogen at scale. Moreover, advancements in this technology, such as the development of more efficient electrolyzers and the integration of renewable energy sources like solar and wind power, are significantly reducing the cost of hydrogen production.

Additionally, the growing interest in hydrogen from various sectors such as transportation and power generation is further driving the industry expansion. In the transportation sector, hydrogen fuel cell vehicles are growing as a viable zero-emission alternative to traditional internal combustion engines. In July 2023, as per GOV.UK, the UK Emissions Trading Scheme Authority announced a package of reforms aimed at tightening limits on industrial, power, and aviation emissions from 2024. Industries are also increasingly adopting the hydrogen for processes such as refineries, and metal processing, recognizing its potential to decarbonize operations and reduce reliance on fossil fuels.

Electrolysis hydrogen generation industry size is segmented on the basis of application and region.

Chemical segment will witness rapid expansion in the forecast period, due to the crucial role in enabling sustainable and cost-effective hydrogen production for chemical processes. Electrolysis offers a clean and efficient method for generating hydrogen, which is widely used in chemical manufacturing processes such as ammonia production, methanol synthesis, and hydrogenation reactions. As the chemical industry faces increasing pressure to reduce greenhouse gas emissions and transition towards renewable feedstocks, electrolysis hydrogen presents an attractive solution by providing a pathway to produce hydrogen using renewable energy sources.

Power generation segment is projected to witness a strong growth during 2024 and 2032, favored by the storage of excess renewable energy and facilitating grid balancing. As the world shifts towards a renewable energy-dominated grid, intermittent sources like wind and solar power pose challenges related to variability and grid stability. Electrolysis hydrogen generation offers a compelling solution by converting surplus renewable energy into hydrogen through water electrolysis, thereby enabling long-term energy storage.

North America electrolysis hydrogen generation industry share is slated to witness decent growth during 2024-2032, attributed to ambitious government initiatives to achieve carbon neutrality. The well-established automotive sector, coupled with growing investments in hydrogen fuel cell technology, particularly for heavy-duty transportation applications, is creating significant opportunities. Additionally, strategic collaborations between industry stakeholders, research institutions, and government agencies to promote electrolysis technology innovation and infrastructure development will stimulate regional market growth.