Electrolyzer Market Analysis

Electrolyzer Market Analysis

Alkaline electrolyzer market is expected to grow at a rate of 20% till 2032. Shifting trends toward development of hydrogen generation capacity addition along with declining product cost will strengthen the business scenario. Furthermore, growing demand of hydrogen as a feedstock across chemical, glass, mining, food & beverage and semiconductor industry will strengthen the industry growth. Also, these systems find wide application across large scale projects owing to their technological superiority and extensive consumer awareness.

Increasing investment by leading manufacturers toward technological advancements and research & development activities to enhance the capacity to large scale multi-MW systems will fuel the PEM electrolyzer industry size. In addition, ongoing investments toward large scale on-site hydrogen production for renewable energy storage, hydrogen refueling stations (HRS), grid balancing and power to gas stations will provide favorable growth opportunities.

≤ 500 kW electrolyzer market is expected to cross a valuation of USD 3.7 billion in 2032. Increasing electricity demand across various industrial establishments will positively influence the product deployment. In addition, growing demand across wide array of applications including small scale CHP plants, mobility and off gird electricity supply will complement the product installation. Furthermore, shifting trends toward sustainable power generation sources along with stringent regulatory policies toward emission reduction will stimulate the industry statistics. The market value of small capacity electrolyzer is likely to cross USD 329.5 million by 2032.

Ongoing research & development activities along with growing demand for large scale hydrogen production systems will boost the above 2 MW capacity. However, this capacity finds wide applications across the chemical industry for processing chemicals and for generating sustainable power in the remote areas. For instance, NEDO, Iwatani Corporation, Toshiba and Tohoku Electric Power Company have opened the Fukushima Hydrogen Energy Research Field in Japan. The project has the capacity of 10 MW and will provide hydrogen for power generation, chemical industry and in powering hydrogen vehicles will further bolster the industry size.

Transportation accounted for more than USD 271 million by 2022. Growing investments toward innovation and research & development activities along with increasing demand for FCEV as an alternative to conventional automobiles will strengthen the electrolyzer market adoption in the transportation applications. In addition, promising regulatory norms toward low carbon emission vehicles have instigated the leading vehicle manufacturers to adopt renewable fuels. The increasing demand of hydrogen driven automobiles followed by zero carbon footprint directives has also favored the product deployment.

Europe electrolyzer industry size is estimated to depict 29% growth between 2023 and 2032. Paradigm shift toward hydrogen economy is being effectively prioritized in Europe, thereby paving the way for wide-scale product adoption. Hydrogen-based technologies are emerging as a key to empower a feasible energy transition enabling zero emissions across power, transport, and heating industry. In addition, technological advancement along with favorable government policies has also paved profitable scenario for the business players.