Hydrogen Electrolysers Market

According to a new report published by Introspective Market Research, titled, “Hydrogen Electrolysers Market by Type, Capacity, Outlet Pressure, End-User, and Distribution Channel: Global Opportunity Analysis and Industry Forecast, 2024–2032,” 

the global Hydrogen Electrolysers market size was valued at USD 525.06 million in 2023, and is projected to reach USD 3716.50 million by 2032, registering a CAGR of 24.29% from 2024 to 2032.

Hydrogen electrolysisis a process that converts water molecules into hydrogen and oxygen gasses using electricity. This technology is crucial for various industrial applications and energy storage. The demand for high-quality hydrogen is driving significant investments in electrolyser technology by both private and public sectors. Europe aims to produce and import 20 million tons of renewable hydrogen by 2030, requiring a dedicated European infrastructure for hydrogen production, storage, and transport. As 131 countries aim to limit global temperature increase to 1.5°C by 2050, electrolysers are essential for producing low-emission hydrogen from renewable or nuclear electricity. In 2022, new capacity entering operation slowed down by 45%, but manufacturing capacity increased by over 25%, reaching nearly 11 GW per year. The need for hydrogen electrolysers is expected to expand due to global carbon neutrality initiatives, government regulations, and investments.  

The Hydrogen Electrolysers Market is segmented into Type, Capacity, Outlet Pressure, End User, Distribution Channel, and Region. By Type, the market is categorized into Proton Exchange Membrane Electrolysers, Alkaline Electrolysers, and Solid Oxide Electrolysers. By Nature, the market is categorized into Low (<= 150 kW), Medium (150 kW - 1 mW), and High (> 1 mW). By Outlet Pressure, the market is categorized into Low (<= 10 Bar), Medium (150 Bar - 40 Bar), and High (> 40 Bar). By End User, the market is categorized into Methanol, Refining/ Hydrocarbon, Ammonia, Electronics, Food & Beverage, and Others. By Distribution Channel, the market is categorized into Direct Sales and Indirect Sales. By Region, it is analyzed across North America (U.S.; Canada; Mexico), Eastern Europe (Bulgaria; The Czech Republic; Hungary; Poland; Romania; Rest of Eastern Europe), Western Europe (Germany; UK; France; Netherlands; Italy; Russia; Spain; Rest of Western Europe), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).

The market for hydrogen electrolysers is expanding due to the growing demand for green hydrogen, driven by global efforts towards renewable energy sources and decarbonization. The European Union's ambitious hydrogen policy aims to generate 10 million tons of green hydrogen by 2030. The industry has announced over 1,000 large-scale project proposals, with 795 aiming for commissioning by 2030. Green hydrogen is being adopted by industries like steel, chemicals, and transportation to decarbonize operations, with companies like Toyota and Hyundai leading the charge.  

Renewable energy storage technologies like electrolysers and hydrogenation are widely used in industries and public life to achieve carbon neutrality. Electrochemical battery storage and hydrogen energy storage are used in vehicles, community energy supply, and grid stabilization due to their environment-friendly characteristics. Hydrogen storage is a promising solution for decentralized energy systems, allowing local storage and renewable energy usage, reducing the need for costly grid infrastructure upgrades and catering to diverse energy needs.

Global Hydrogen Electrolysers Market, Segmentation

The Hydrogen Electrolysers market is segmented based on Type, Capacity, Outlet Pressure, End-User, and Distribution Channel, and region.

Type:

The Proton Exchange Membrane Electrolysers segment is expected to dominate the hydrogen production market in the forecast period due to their high-purity, cost-effective, and low-maintenance nature. This method is increasingly popular in Europe due to renewable energy penetration. PEM electrolysers are suitable for power generation, natural gas grid supplementation, vehicle fueling, and green fertilizer production. They offer fast response times, are safe, reliable, and low-maintenance, making them ideal for small-scale distributed hydrogen production units. Their modular design allows for easy adaptation to varying production needs, making them a leading choice for hydrogen production.

Capacity:

the low segment of hydrogen electrolysers held the largest share at 53.22%. This segment is expected to dominate the market due to its versatility and compatibility with various applications, including hydrogen refueling stations, industrial processes, and energy storage systems. Demand for low outlet pressure electrolysers, particularly for fuel cell electric vehicles (FCEVs), is driven by the expansion of hydrogen refueling infrastructure. These smaller electrolysers are affordable, versatile, and technologically advanced, making them suitable for residential and commercial use.

Region:

North America is expected to dominate the hydrogen electrolyzers market due to its focus on clean energy initiatives and decarbonization in industries like transportation, power generation, and manufacturing. The US has invested in hydrogen-related projects and partnerships, and its robust technological infrastructure and research and development ecosystem enable continuous innovation and improvement of hydrogen electrolysis technologies. The US government has committed to a carbon-neutral power sector by 2035 and net zero emissions by 2050. The Department of Energy has launched a USD 7 billion program to develop regional clean hydrogen hubs, aiming to reduce costs and establish a sustainable hydrogen market.

Some of The Leading/Active Market Players Are-

• Giner Inc. (U.S.)
• Plug Power Inc. (U.S.)
• Bloom Energy (U.S.)
• Next Hydrogen (Canada)
• Ballard Power Systems (Canada)
• Siemens AG (Germany)
• iGas Energy GmbH (Germany)
• Enapter (Germany)
• ITM Power Plc (UK)
• Pure Energy Centre (UK), and Other Active Players

Key Industry Developments

• In May 2024, Plug Power Inc. a global leader in comprehensive hydrogen solutions for the green hydrogen economy, announced the signing of a memorandum of understanding (MOU) with Allied Green Ammonia (AGA), an Australian Company focused on green ammonia production, to supply up to 3 gigawatts (GW) of Plug Electrolysers capacity for AGA’s upcoming hydrogen to ammonia facility proposed for the Northern Territory of Australia.
• In November 2023, Air Liquide and Siemens Energy officially inaugurated their joint venture gigawatt Electrolysers factory today in Berlin. The mass production of Electrolysers components will allow the manufacturing of low-carbon hydrogen at an industrial scale and competitive cost, and foster an innovative European ecosystem. The state-of-the-art gigawatt factory will ramp up to an annual production capacity of three gigawatts by 2025. With two global leading companies in their field combining their expertise, this Franco-German partnership plays a pivotal role in the emergence of a sustainable hydrogen economy needed to forge the energy transition.

Key Findings of the Study 

• Recycled content Low Segment held the major share in the market accounting near 53.22% of the total Hydrogen Electrolysers market.
• Proton Exchange Membrane Electrolysers (PEM) are anticipated to dominate the market during the forecast period, owing to their high efficiency, scalability, and suitability for various applications such as transportation, power generation, and industrial processes.   
• North America leads the hydrogen electrolyzers market, with the United States at the forefront of clean energy initiatives and substantial investments in hydrogen-related projects and research, aiming for carbon-neutral power sectors and sustainable hydrogen markets by 2035 and 2050, respectively.