The Hydrogen Electrolyzer Market is estimated at USD 365.2 million in 2023. Further, the market is expected to grow from USD 414 million in 2024 to USD 1,431.6 million in 2030 at a CAGR of 18.6%.
Hydrogen Electrolyzer Market Market Overview
Hydrogen is the most abundant element and can become the perfect fuel. Electrolysis is an effective option for carbon-free hydrogen production from renewable and nuclear resources. In the electrolysis process, an electrolyzer uses electrical energy to convert water into its composite parts – hydrogen and oxygen. The oxygen is returned to the air, and the hydrogen is stored in pipeline assets for use. Hydrogen produced in this sustainable way, i.e. without emitting carbon dioxide into the atmosphere, can be the basis for a decarbonized economy.
Efficient electrolyzers will be key to the penetration of hydrogen in end-user industries and the adoption of hydrogen fuel cells. The different types of electrolyzers depend on their size and function, including alkaline electrolyzer, proton exchange membrane electrolyzer, and solid oxide electrolysis cell. Other electrolyzers are not yet as efficient or cost-effective as the above but have much potential for development. One example is photo electrolysis, which uses only sunlight to separate water molecules without electricity. There is no single electrolyzer technology that performs better across all dimensions. The future technology mix will depend on innovation, leading to technological improvements and a better fit for each application's different technologies and system designs.
Latest Trends in Hydrogen Electrolyzer Market
RISING FOCUS ON ACHIEVING NET ZERO EMISSION TARGET BY 2050:
Hydrogen is an essential success factor for the transition to a net-zero world by 2050. However, it is not scaling fast enough to deliver on that promise. Clean hydrogen (made through electrolysis) is vital in a net-zero emissions economy because it is one of the only clean tools for hard-to-electrify—applications that require high temperatures, high energy density, or where hydrogen is needed as a chemical feedstock. Clean hydrogen is likely the primary decarbonization solution for hydrogen applications.
In the net zero emissions scenario, strong hydrogen demand growth and the adoption of cleaner technologies for its production will allow hydrogen and hydrogen-based fuels to prevent up to 60 Gt of CO2 emissions in 2021–2050, or 6.5% of all cumulative emissions reductions. Energy efficiency, behavioral modification, electrification, renewable energy, hydrogen and hydrogen-based fuels, and carbon, capture, utilization, and storage (CCUS) are likely to be the major pillars for decarbonizing the world’s energy system. Hydrogen has become an important part of the clean energy mix needed to ensure a sustainable future. Falling costs for hydrogen produced with renewable energy and the urgency of cutting greenhouse gas emissions have given clean hydrogen unprecedented political and business momentum. Nevertheless, green hydrogen production technologies are seeing a renewed wave of interest. This is because the possible uses for hydrogen are expanding across multiple sectors. The U.S has thousands of fuel cells used for backup power, forklifts, proton exchange membrane (PEM) electrolyzers, fuel-cell buses, and fuel-cell cars.
Driving Factors
GROWING DEMAND FOR GREEN HYDROGEN
Green hydrogen is produced through electrolysis, which separates water into hydrogen and oxygen using electricity generated from renewable sources. Green hydrogen accounts for just 0.1% of global hydrogen production. However, the declining costs of renewable electricity, which accounts for 70% of the cost of hydrogen production and electrolysis technology, indicate that green hydrogen could be the next best investment in clean energy. For many oil and gas players, large utilities, and industries from steel to fertilizers, green hydrogen is regarded as the best option for harmonizing the intermittency of renewables whilst decarbonizing the energy-hungry industrial, chemical and transportation sectors.
Nearly 25 countries implemented roadmaps for green hydrogen, and nine focused on green hydrogen. Nearly 15-30 Mt estimated green hydrogen demand by 2030, and 104-695 GW capacity is necessary.
Among growing investment, government initiatives, engineering development and a skilled workforce, digital technology is one of the critical levers for boosting the transition to green hydrogen, especially Artificial Intelligence of things (IoT). AIIoT-enabled solutions can reduce CAPEX and OPEX by 15% - 25%, expediting commercially viable green hydrogen scaling by four to seven years. The key industries, planes and vessels could be powered by 100% green hydrogen.
Market Challenges
HIGH COSTS OF HYDROGEN PRODUCTION USING ELECTROLYZERS:
While technological progress has been actively pushing down the costs of renewable electricity for several decades, the full potential for similarly reducing the costs of electrolyzers is yet to be properly estimated. The hydrogen production through electrolysis costs is influenced by the capital costs of the electrolyzer and the average electricity purchase price during the operation.
High electrolyzer utilization minimizes the specific share of electrolyzer capital costs in hydrogen production costs. Hence, electrolyzer utilization has to be balanced with the electricity price to minimize hydrogen costs. Rising stack production with automated processes in gigawatt-scale manufacturing facilities can achieve a step-change cost reduction. Although the Levelized cost of hydrogen produced by water electrolysis is currently greater than that from SMR, the gap is narrowing due to drastic cost reductions in solar and wind electricity production and the capital expenditure of electrolyzers. Hydrogen electrolyzers are priced high as several expensive components are used to manufacture them. Therefore, high costs and technological gaps, which could lead to cost reductions and higher stability of the hydrogen electrolyzer system, negatively affect the growth of the global hydrogen electrolyzer market.
Companies Mentioned
Bloom Energy Corp.
Itm Power Plc.
Nel Asa.
Hydrogenics Corporation
Linde Ag
Praxair, Inc
Market Segmentation
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TABLE OF CONTENTS
1. GLOBAL HYDROGEN ELECTROLYZER INDUSTRY
1.1. Market Scope and Definition
1.2. Study Assumptions
2. HYDROGEN ELECTROLYZER MARKET LATEST TRENDS, DRIVERS AND CHALLENGES, 2021-2030
2.1. Hydrogen Electrolyzer Market Latest Trends
2.2. Hydrogen Electrolyzer Market Insights, 2021-2030
2.2.1. Leading Hydrogen Electrolyzer Technologies, 2021-2030
2.2.2. Dominant Hydrogen Electrolyzer End-use, 2021-2030
2.2.3. Fast-Growing Geographies for Hydrogen Electrolyzer, 2021-2030
2.3. Hydrogen Electrolyzer Demand Drivers to 2030
2.4. Hydrogen Electrolyzer Challenges to 2030
2.5. Hydrogen Electrolyzer Market-Five Forces Analysis
3. GLOBAL HYDROGEN ELECTROLYZER MARKET VALUE, MARKET SHARE, AND FORECAST TO 2030
3.1. Global Hydrogen Electrolyzer Market Overview, 2021
3.2. Global Hydrogen Electrolyzer Market Size and Share Outlook, By Technology, 2021-2030
3.2.1. Alkaline
3.2.2. PEM
3.2.3. Other Electrolysis
3.3. Global Hydrogen Electrolyzer Market Size and Share Outlook, By End-use, 2021-2030
3.3.1. Refining/ Hydrocarbon
3.3.2. Ammonia & Methanol
3.3.3. Power Generation
3.3.4. Other End-Uses
3.4. Global Hydrogen Electrolyzer Market Size and Share Outlook by Region, 2021-2030
4. NORTH AMERICA HYDROGEN ELECTROLYZER MARKET VALUE, MARKET SHARE, AND FORECAST TO 2030
4.1. North America Hydrogen Electrolyzer Market Overview, 2021
4.2. North America Hydrogen Electrolyzer Market Size and Share Outlook by Technology, 2021-2030
4.3. North America Hydrogen Electrolyzer Market Size and Share Outlook by End-use, 2021-2030
4.4. North America Hydrogen Electrolyzer Market Size and Share Outlook by Country, 2021-2030
4.4.1. United States
4.4.2. Canada
4.4.3. Mexico
5. EUROPE HYDROGEN ELECTROLYZER MARKET VALUE, MARKET SHARE, AND FORECAST TO 2030
5.1. Europe Hydrogen Electrolyzer Market Overview, 2021
5.2. Europe Hydrogen Electrolyzer Market Size and Share Outlook by Technology, 2021-2030
5.3. Europe Hydrogen Electrolyzer Market Size and Share Outlook By End-use, 2021-2030
5.4. Europe Hydrogen Electrolyzer Market Size and Share Outlook by Country, 2021-2030
5.4.1. Germany
5.4.2. UK
5.4.3. France
5.4.4. Netherlands
5.4.5. Spain
5.4.6. Rest of Europe
6. ASIA PACIFIC HYDROGEN ELECTROLYZER MARKET VALUE, MARKET SHARE AND FORECAST TO 2030
6.1. Asia Pacific Hydrogen Electrolyzer Market Overview, 2021
6.2. Asia Pacific Hydrogen Electrolyzer Market Size and Share Outlook by Technology, 2021-2030
6.3. Asia Pacific Hydrogen Electrolyzer Market Size and Share Outlook by End-use, 2021-2030
6.4. Asia Pacific Hydrogen Electrolyzer Market Size and Share Outlook by Country, 2021-2030
6.4.1. China
6.4.2. Japan
6.4.3. Australia
6.4.4. Rest of Asia Pacific
7. SOUTH AND CENTRAL AMERICA HYDROGEN ELECTROLYZER MARKET VALUE, MARKET SHARE AND FORECAST TO 2030
7.1. South and Central America Hydrogen Electrolyzer Market Overview, 2021
7.2. South and Central America Hydrogen Electrolyzer Market Size and Share Outlook by Technology, 2021-2030
7.3. South and Central America Hydrogen Electrolyzer Market Size and Share Outlook by End-use, 2021-2030
7.4. South and Central America Hydrogen Electrolyzer Market Size and Share Outlook by Country, 2021-2030
7.4.1. Brazil
7.4.2. Paraguay
7.4.3. Rest of South and Central America
8. MIDDLE EAST AFRICA HYDROGEN ELECTROLYZER MARKET VALUE, MARKET SHARE, AND FORECAST TO 2030
8.1. Middle East Africa Hydrogen Electrolyzer Market Overview, 2021
8.2. Middle East Africa Hydrogen Electrolyzer Market Size and Share Outlook by Technology, 2021-2030
8.3. Middle East Africa Hydrogen Electrolyzer Market Size and Share Outlook by End-use, 2021-2030
8.4. Middle East Africa Hydrogen Electrolyzer Market Size and Share Outlook by Country, 2021-2030
8.4.1. Middle East
8.4.2. Africa
9. HYDROGEN ELECTROLYZER MARKET STRUCTURE
9.1. BLOOM ENERGY CORP.
9.2. ITM POWER PLC.
9.3. NEL ASA.
9.4. Hydrogenics Corporation
9.5. Linde AG
9.6. Praxair, Inc
10. APPENDIX
10.1. Global Hydrogen Electrolyzer Plants Data
10.1.1. North America Operational and Planned Hydrogen Electrolyzer Plants
10.1.2. Europe Operational and Planned Hydrogen Electrolyzer Plants
10.1.3. Asia-Pacific Operational and Planned Hydrogen Electrolyzer Plants
10.1.4. South and Central America Operational and Planned Hydrogen Electrolyzer Plants
10.1.5. Middle East and Africa Operational and Planned Hydrogen Electrolyzer Plants
10.2. About Us
10.3. Sources
10.4. Research Methodology
10.5. Contact Information
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