Hydrogen electrolyzer is a system used for electrolysis of water for hydrogen production. It utilizes electricity to split water into hydrogen and oxygen. Hydrogen produced through electrolysis is considered clean as it does not involve combustion. Electrolytic hydrogen is increasingly being used in various industries as an alternative to fossil fuels.
The global hydrogen electrolyzer market is estimated to be valued at US$ 1.12 billion in 2025 and is expected to exhibit a CAGR of 56% over the forecast period of 2024 to 2031.
Key Takeaways
Key players operating in the hydrogen electrolyzer market are Siemens Energy AG, ITM Power plc, Nel ASA, Tianjin Mainland Hydrogen Equipment Co. Ltd., AREVA H2Gen, McPhy, Idroenergy S.r.l., Teledyne Energy Systems, Suzhou Jingli, GreenHydrogen, and Hydrogenics.
The market offers various growth opportunities such as rising demand from industrial sectors including oil & gas, chemicals, food & beverages and increasing focus on creating hydrogen infrastructure. North America, Europe and Asia Pacific have emerged as major markets for hydrogen electrolyzers due to presence of big industrial sectors and supportive government policies promoting clean hydrogen.
Market Drivers
Rising Hydrogen Electrolyzer Market Demand for clean fuel: Electrolytic hydrogen is increasingly being used as an emission-free fuel in transportation sector especially for heavy duty vehicles like buses and trucks. This is a major driver for electrolyzer market.
Energy storage: Hydrogen produced through electrolysis can be stored and used as an energy carrier. This enables storage of surplus renewable energy. Electrolyzers help in integrating renewables by addressing intermittency issue.
Market Restraints
High initial investment: Production of hydrogen through electrolysis requires huge capital expenditure for setting up electrolyzer plants and associated infrastructure. This high upfront cost acts as a restraint.
Maturity of technology: Although the technology is constantly improving, electrolysis process still remains less efficient than conventional hydrogen production methods like steam methane reforming. This impacts market growth.
Segment Analysis
The global hydrogen electrolyzer market is currently dominated by the alkaline electrolyzer segment. Alkaline electrolyzers hold the largest share mainly because of their simplicity in design and lower capital cost compared to PEM electrolyzers. Within alkaline electrolyzers, the less than 1 MW capacity systems account for the majority of demand currently as they suit small to medium scale hydrogen production needs.
Global Analysis
North America is currently the fastest growing as well as dominating regional market for hydrogen electrolyzers. Abundant presence of electrolyzer manufacturing companies and growing adoption of hydrogen for transportation and power generation applications are some key factors behind North America's leading position. Europe is also witnessing significant growth and is emerging as the second largest regional market. Ongoing research & development towards enhancing efficiency along with favorable government policies supporting renewable energy and green hydrogen production are responsible for Europe's rapid market expansion. Asia Pacific market is estimated to see strong gains over the coming years due to increasing investments into building hydrogen infrastructure and demonstration projects across countries like Japan, South Korea and China.
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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
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