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

Electrolysis Hydrogen Generation Market was valued at USD 13.1 billion in 2023 and is estimated to grow at a CAGR of over 7.2% between 2024 and 2032. Electrolysis hydrogen generation is a process that utilizes electrolysis to produce hydrogen from water. This involves the application of an electric current to water, leading to the separation of hydrogen and oxygen molecules.
 

Increasing awareness of the environmental impact of the conventional hydrogen production methods along with growing requirement for sustainable energy solutions will stimulate the product demand. Supportive regulatory frameworks, introduction of subsidies, and financial incentives coupled with rising efforts towards standardization of the electrolysis technologies to ensure reliability, safety, and interoperability will drive the business scenario.
 

COVID- 19 Impact

The COVID- 19 pandemic caused disruption across the overall supply chain of the hydrogen economy. Delay in the project timelines and financing difficulties hampered the development and expansion of the existing electrolysis facilities. Rising uncertainty led to a cautious approach among investors and project developers, impacting the overall pace of hydrogen generation projects. However, growing focus on green hydrogen, technological advancements in electrolysis using renewable energy along with growing importance of resilient and sustainable energy systems will drive the industry scenario.

Electrolysis Hydrogen Generation Market Trends

Growing emphasis on utilizing renewable energy sources along with Increasing efforts to scale up the capacity of electrolyzers, making them more efficient and cost-effective will drive the industry statistics. Ongoing research and development in electrolyzer technologies, with a focus on improving efficiency, durability, and reducing the overall costs of hydrogen production. Increased collaboration between countries, industries, and research institutions to support the hydrogen economy will augment the product penetration.
 

Electrolysis Hydrogen Generation Market Analysis

The transportation application will reach USD 6.9 billion by 2032. Utilization of hydrogen as a fuel across the transportation sector along with rising interest in hydrogen-powered vehicles including trucks and freight transport will propel the product adoption. In addition, growing investments from various automotive manufacturers in hydrogen fuel cell technology in line with introduction of stringent emission reduction targets for the transportation sector will stimulate the product demand.
 

Europe electrolysis hydrogen generation market will grow at a CAGR of more than 7.5% through 2032. Ongoing introduction of policies and mandates, large scale investments by private authorities, and funding programs by major government authorities to bring in the energy transition will sway the business trends. For instance, in November 2023, Siemens Energy, in a joint venture with Air Liquide, started its new gigawatt-scale plant in Berlin to produce electrolyzer modules with high efficiency to produce low carbon hydrogen. Continuous development of projects across various economies along with introduction of hydrogen targets at the state level will accelerate the business trends in the forecasted time.
 

Electrolysis Hydrogen Generation Market Share

Collaboration, agreements, mergers, and acquisitions are essential drivers of growth in electrolysis hydrogen generation. These strategic actions enhance technological capabilities, streamline operations, attract funding, and contribute to the development of a robust and sustainable hydrogen ecosystem. The collective efforts of industry players and stakeholders are pivotal in realizing the full potential of electrolysis as a key contributor to the transition to a hydrogen-based economy.
 

Electrolysis Hydrogen Generation Market Companies

Major players operating in the electrolysis hydrogen generation industry are:

• Cummins Inc.
• Siemens Energy
• Air Liquide
• Plug Power Inc.
• Nel ASA
• TAIYO NIPPON SANSO CORPORATION
• Teledyne Technologies Incorporated
• McPhy Energy S.A
• HyGear
• Claind srl
• RESONAC HOLDINGS CORPORATION
   

Electrolysis Hydrogen Generation Industry News

• In October 2023, Air Liquide established a new gas production platform including hydrogen, argon, oxygen, and nitrogen in Bécancour, Canada. The company will leverage its PEM electrolyzers for the production of these industrial gases. The investment, as a part of the company’s ADVANCE plan to reduce carbon emissions by 33% by 2035, supported the expansion of its presence in the region.
   
• In September 2023, Siemens Energy received an order to supply 12 electrolyzers based on PEM technology to Air Liquide’s plant in Normandy, France, as a part of the Normand'Hy project. The facility will produce 28 thousand tons of hydrogen per year for the industry & mobility sector.  Therefore, the company will be supporting to achieve net zero emission goals and also showcasing its expertise across the market.
   

This electrolysis hydrogen generation market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘USD Billion’ from 2024 to 2032 for the following segments:

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Market, By Application

• Petroleum Refining
• Chemical
• Transportation
• Power Generation
• Industry Energy
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico 
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Netherlands
  • Russia
• Asia Pacific
  • China
  • India
  • Japan 
• Middle East & Africa
  • Saudi Arabia
  • Iran
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina
  • Chile