Electrolyzer Market Size - By Product (Alkaline, PEM, Solid Oxide), By Capacity (≤500 kW, >500 kW – 2 MW, Above 2 MW), By Application (Power Generation, Transportation, Industry Energy, Industry Feedstock, Building Heat & Power), 2025 – 2034

Electrolyzer Market Size

The global electrolyzer market was valued at USD 8.9 billion in 2024 and is estimated to grow at a CAGR of 44.2% from 2025 to 2034. It is a device that uses electricity to split water into hydrogen and oxygen through a process called electrolysis. It typically consists of an electrolyte, electrodes, and a membrane. Electrolyzers are key components in producing green hydrogen when powered by renewable energy sources, playing a significant role in sustainable energy systems by providing clean fuel for industrial processes, transportation, and energy storage.
 

Increasing adoption of clean hydrogen production technologies will enhance the industry's outlook. Growing consumer focus on environmental sustainability, combined with the widespread integration of renewable energy sources will influence the market trends. Additionally, stringent regulations aimed at reducing carbon emissions and the launch of government-backed initiatives and projects will drive the industry expansion.
 

Rising demand for electricity across industrial and commercial sectors, combined with a growing emphasis on alternative energy sources, will drive growth in the electrolyzer market. However, challenges such as inadequate infrastructure and high upfront costs may hinder progress. Despite these obstacles, supportive government policies, incentives, and regulations aimed at infrastructure development and increasing consumer preference for sustainable energy solutions will further propel the industry advancements.
 

Electrolyzer Market Trends

Rising decarbonization of industries such as steel, chemicals, and transportation driven by the shift toward green hydrogen as a clean energy carrier to meet carbon neutrality targets will boost the product adoption. Growing companies' investments in electrolyzers to align with environmental, social, and governance (ESG) goals, ensuring long-term viability and compliance with sustainability standards will foster the industry outlook.
 

Electrolyzer Market Analysis

Based on product, the PEM segment is anticipated to reach more than USD 28.5 billion by 2034, on account of its high efficiency in converting electricity into hydrogen, with rapid start-up and shut-down capabilities, making them ideal for integrating with intermittent renewable energy sources. Rising investments by manufacturers in R&D and advanced technologies to develop large-scale multi-MW systems will drive the growth of the PEM electrolyzer market. Additionally, increased funding for large-scale on-site hydrogen production for renewable energy storage, hydrogen refueling stations, grid balancing, and power-to-gas applications will create significant opportunities for the product growth.
 

Based on application, the transportation segment is set to grow at a CAGR of over 28% through 2034. Increasing investments in innovation and R&D, coupled with rising demand for fuel cell electric vehicles (FCEVs) as alternatives to conventional cars, will boost the product adoption in transportation. Furthermore, rising supportive regulations for low-emission vehicles aimed to prompt manufacturers to embrace renewable fuels will uplift the business scenario. Growing demand for hydrogen-powered vehicles and zero-carbon mandates will further drive the product deployment.
 

The U.S. electrolyzer market is likely to exceed USD 16 billion by 2034. Growing government support in terms of policies, grants, and tax incentives to promote clean energy and hydrogen production including the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) will improve the business statistics. Increasing industrial sector demand for high volume hydrogen will uplift product demand to produce clean fuel in decarbonizing production processes.
 

In Europe, rising technological advancements and supportive government policies will create a favorable environment for business growth in the hydrogen industry. Increasing investments in electrolyzers for industrial decarbonization coupled with increasing collaboration between governments and private companies to develop and scale hydrogen technologies will complement the product deployment.

 

Electrolyzer Company Market Share

Eminent players are collaborating with companies and governments, as well as with energy companies to expand their footprint. Players are expanding their operations into emerging markets, particularly in Europe and Asia Pacific, where government initiatives and renewable energy projects are driving the demand for electrolyzers. Furthermore, companies are also focusing on large-scale hydrogen production projects to capitalize on economies of scale. This expansion into industrial applications not only broadens the market scope but also ensures stable long-term demand.
 

Electrolyzer Market Companies

Eminent players operating in the electrolyzer industry are:

• Air Liquide
• Asahi Kasei
• Erredue
• Hystar
• IHT
• ITM Power
• McPhy Energy
• Nel
• Plug Power
• Siemens
• Sunfire
• Thyssenkrupp Nucera
• Toshiba

Electrolyzer Industry News

• In September 2024, Asahi Kasei, a Japanese technology firm, entered a memorandum of understanding (MOU) with De Nora, an Italian company specializing in sustainable technologies and manufacturing electrolyzer cells, small-scale electrolyzers, and components for green hydrogen production via water electrolysis. The agreement focuses on the joint development, evaluation, study, and commercialization of small-scale pressurized alkaline water electrolyzers.
   
• In March 2023, Siemens Energy partnered with HIF Global to provide polymer electrolyte membrane (PEM) electrolyzers for the HIF Matagorda eFuels facility in Texas. The electrolyzers will facilitate the production of 300,000 tons of green hydrogen per year. This collaboration highlights Siemens Energy's expertise in electrolyzer design and manufacturing while strengthening its presence in the U.S. market.
   

This electrolyzer market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “USD Billion & MW” from 2021 to 2034, for the following segments:

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Market, By Product

• Alkaline
• PEM
• Solid Oxide
• Others  

Market, By Capacity

• ≤ 500 kW
• > 500 kW – 2 MW
• Above 2 MW

Market, By Application

• Power Generation
• Transportation
• Industry Energy
• Industry Feedstock
• Building Heat & Power
• Others

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

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Netherlands
  • Denmark
  • Spain
  • Norway
• Asia Pacific
  • China
  • Australia
  • Japan
  • India
• Rest of World