Hydrogen Electrolyzer Market Size - By Product Type [Polymer Electrolyte Membrane (PEM) Electrolyzer, Alkaline Water Electrolyzer, Solid Oxide Electrolyzer), By Capacity [Low, Medium, High), By Output Pressure, By Application, By Region & Forecast, 2024 -

Hydrogen Electrolyzer Market Size - By Product Type [Polymer Electrolyte Membrane (PEM) Electrolyzer, Alkaline Water Electrolyzer, Solid Oxide Electrolyzer), By Capacity [Low, Medium, High), By Output Pressure, By Application, By Region & Forecast, 2024 - 2032

Hydrogen Electrolyzer Market size is anticipated to grow at over 26.5% CAGR between 2024 and 2032, driven by the increasing focus on renewable energy sources and the transition towards a low-carbon economy. Electrolyzers help in converting renewable electricity from sources, such as wind and solar into hydrogen through water electrolysis for offering a clean and sustainable energy storage solution. Advancements in electrolyzer technology, including improvements in efficiency, scalability, and cost-effectiveness will also contribute to the product adoption. To cite an instance, in March 2024, Greenzo Energy India, a green hydrogen solutions firm, launched its one-megawatt (MW) alkaline electrolyzer, the first of its kind in India, made indigenously.

As countries strive to achieve their climate targets and reduce greenhouse gas emissions, there is a growing need for hydrogen infrastructure development, including electrolysis plants, hydrogen refueling stations, and hydrogen storage facilities. The rising demand for hydrogen as a feedstock for chemical production, as well as its potential role in energy storage and grid balancing applications will further stimulate the market growth.

The hydrogen electrolyzer industry is classified into product type, capacity, output pressure, application and region.

Based on product type, the market value from solid oxide electrolyzer will gain significant traction at 25.9% CAGR during 2024-2032. These electrolyzers offer higher efficiency and lower operating temperatures compared to other electrolyzer technologies, resulting in reduced energy consumption and lower overall costs of hydrogen production. Solid oxide electrolyzers also have the flexibility to operate using a variety of renewable energy sources, including solar and wind power while enabling the production of green hydrogen with minimal environmental impact.

Hydrogen electrolyzer market share from the refinery industry application is anticipated to witness 26.7% CAGR from 2024 to 2032, due to the growing demand for hydrogen as a clean energy carrier and feedstock for hydrogenation processes. Hydrogen electrolyzers offer a sustainable solution for on-site hydrogen production, enabling refineries to transition away from fossil fuels and integrate renewable hydrogen into their operations. Electrolyzers further facilitate the utilization of surplus renewable energy generated on-site, such as excess electricity from solar or wind power, for hydrogen production for enhancing the energy efficiency and sustainability in refineries.

Europe hydrogen electrolyzer industry is anticipated to grow at 26.7% CAGR over 2024-2032. The stringent environmental regulations and ambitious climate targets set by European governments are stimulating the demand for hydrogen as a clean energy carrier and decarbonization tool. The European Union's hydrogen strategy and funding initiatives aimed at promoting hydrogen infrastructure development and scaling up electrolyzer manufacturing capacity will further drive the market growth in the region.