North America Electrolysis Hydrogen Generation Market - By Application (Petroleum Refining, Chemical, Transportation, Power Generation, Industry Energy) & Forecast, 2024 – 2032

North America Electrolysis Hydrogen Generation Market Size

North America Electrolysis Hydrogen Generation Market Size was valued USD 1.22 billion in 2023 and is anticipated to grow at a CAGR of 6% between 2024 and 2032. Electrolysis is a process that uses electricity to split water (H2O) into hydrogen (H2) and oxygen (O2) gases. It is a key method to produce hydrogen, especially when the electricity used in the process comes from renewable sources like solar or wind power.
 

Rising demand for clean hydrogen produced from renewable energy sources to decarbonize sectors comprising industry energy, power generation and transportation is set to boost the business statistics. Increasing emphasis on energy security along with growing independence to diversify their energy sources and further reduce reliance on fossil fuels, will strengthen the product demand. Furthermore, ongoing technological advancements consisting of improvements in durability, efficiency, and cost effectiveness along with growing technological advancements in design, materials, and manufacturing processes is anticipated to augment the industry landscape.
 

Growing emphasis on renewable energy sources like wind and solar power along with introduction of targets to reduce carbon emissions will drive the product demand. Electrolysis provides a means to store excess energy generated from renewables by converting it into hydrogen and is considered a key component of decarbonization strategies specifically for hard to electrify sectors including long haul transport. Additionally, ongoing advancements in terms of development of more efficient electrolyzers will drive innovation, thereby reducing capital cost, leading to market expansion.
 

North America Electrolysis Hydrogen Generation Market Trends

Governments can provide financial incentives including subsidies, grants, tax credits, low interest loans to support the deployment of electrolysis infrastructure. These further support offset the high upfront capital costs associated with electrolysis systems, making them economically viable for businesses and investors. Further, the feed-in tariffs guarantee a fixed payment for each unit of electricity generated from renewable sources thereby encouraging the government to invest in electrolysis projects, stimulating the growth of the hydrogen economy.
 

North America Electrolysis Hydrogen Generation Market Analysis

Based on application, the market is segmented into chemical, petroleum refining, transportation, industry energy, power generation, and others. Chemical is anticipated to grow by more than USD 440 million by 2032. Chemical companies are increasingly recognizing the importance of reducing their carbon footprint and are thus turning to electrolysis generated hydrogen to align with the set sustainability goals. Many chemical processes rely on hydrogen as a key feedstock or reactant, particularly industries producing methanol, ammonia, and other organic compounds where hydrogen plays a crucial role. Moreover, increasing regulatory pressures and carbon pricing mechanisms are pushing chemical companies to adopt cleaner production methods, thereby driving the business scenario.
 

The U.S. electrolysis hydrogen generation market is anticipated to grow by more than USD 1.6 billion by 2032. Supportive government policies and incentives comprising the U.S. Federal and state level initiatives to incentivize the private sector investment, will boost the deployment for sustainable source infrastructure, leading to technology commercialization. Further, the companies in the region are forming strategic alliances, joint ventures, and research collaborations to develop integrated hydrogen solutions and advance technology thereby strengthening the product adoption.
 

Improved electrolyzer designs, optimized operating parameters  and novel catalyst materials, are driving down the cost of electrolysis and making green hydrogen more competitive with conventional production methods, thereby leading to enhanced product penetration. Public-private partnerships and industry consortia are investing in research, and pilot projects, to stimulate the transition to green hydrogen, contributing to the business momentum.
 

North America Electrolysis Hydrogen Generation Market Share

Collaboration between governments, industry players, research institutions, and other stakeholders is accelerating the development and deployment of electrolysis technologies. Partnerships and initiatives focused on standardization, certification, and knowledge sharing are helping to drive down costs and increase the reliability of electrolysis systems. Companies are investing in research and development activities to develop advanced technologies, comprising alkaline and PEM electrolysis, offering high production capacities, leading to improved performance, and reduced energy consumption.
 

North America Electrolysis Hydrogen Generation Market Companies

Eminent players operating in the industry are:

• Air Liquide
• Cummins Inc.
• HyGear
• ITM Power PLC
• McPhy Energy S.A
• Nel ASA
• Plug Power Inc.
• RESONAC HOLDINGS CORPORATION
• H2B2
• Siemens Energy
• Iwatani Corporation of America
• Hy Stor Energy
   

North America Electrolysis Hydrogen Generation Industry News

• In April 2024, Hy Stor Energy partnered with Nel ASA on the Mississippi Clean Hydrogen Hub. The project will be the largest off grid zero carbon hydrogen production in the U.S. Further, Nel Hydrogen will provide electrolyzer technologies along with an automated manufacturing capability that synergizes with the company’s plans to produce green hydrogen reliably and cost effectively.
   
• In November 2023, H2B2 Electrolysis Technologies introduced SoHyCal, its first green hydrogen plant operational in North America. Further it is a renewable hydrogen production plant equipped with PEM technology, producing up to three tons per day, utilizing the renewable energy from a photovoltaic plant. Additionally, it will contribute to the commitment to developing and promoting clean & sustainable hydrogen fuel technologies.
   

North America electrolysis hydrogen generation market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in “USD Billion” from 2021 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 countries:

• U.S.
• Canada
• Mexico