Hydrogen Electrolyzer Market

Hydrogen Electrolyzer Market By Product Type (Proton Exchange Membrane (PEM) Electrolyzer, Alkaline Electrolyzer, Solid Oxide Electrolyzer), By Capacity ((Low (<= 150 kW)), (Medium (150kW1mW) 150-400 kW 400-750kW 750-1mW), (High (> 1mW) 1 10 mW 10 20 mW Above 20 mW)), By Outlet Pressure (Low (<= 10 Bar) Medium (150 Bar40 Bar) High (> 40 Bar)), By End Use (Ammonia, Methanol, Refining/ Hydrocarbon, Electronics, Energy, Power to Gas, Transport, Metal Production & Fabrication, Pharma & Biotech, Food & Beverages, Glass Industry, Other Industrial) & Region - Forecast 2023 2031

Machinery & Equipment | May 2022 | Report ID: EMR0041 | Pages: 251

The global hydrogen electrolyzer market stood at US$ 425.6 Mn in 2022. Sales are forecast to grow at a CAGR of 25.2% over the forecast period, pushing the market size to US$ 3.6 Bn by 2031. During the forecast period, the market is expected to benefit from the growing popularity of hydrogen energy. Adoption of hydrogen electrolyzer is expected to grow steadily in the coming years with the implementation of stringent government norms to protect environment by reducing pollution. Also Increasing demand for green energy, stringent regulations associated with a high carbon footprint, and surging investment to develop the industrial sector globally are a few key factors expected to propel growth in the hydrogen electrolyzer market. Also, substantial growth in the adoption of hydrogen fuel in the transportation sector across other regions is estimated to drive growth in the market. 

Growth Factors

The automotive and transportation sectors are experiencing high levels of technological advancement due to various attempts that are being made by governments to reduce carbon emissions from vehicles. Electric and hydrogen fuel cell vehicles require huge investments due to growing environmental concerns and the rapid development of innovative hydrogen fuel stations worldwide. Manufacturers are mainly focusing on developing new products with higher capacities to meet the increasing demand for hydrogen fuel from various end-use sectors, especially the energy and transportation sectors.

The hydrogen electrolyzer market has seen significant growth in recent years due to various factors, including:

  • Increasing demand for clean energy: With a growing concern for the environment, the demand for clean energy has increased. Hydrogen electrolyzers are a clean and renewable source of energy that can be used for various applications, such as fuel cells for transportation and power generation.
  • Government initiatives and subsidies: Governments are promoting the world's use of clean energy sources by offering various incentives, such as tax credits, subsidies, and grants, to support the development and adoption of hydrogen electrolyzers.
  • Technological advancements: In terms of technology, advancements have led to the development of more efficient and cost-effective hydrogen electrolyzers. For example, the development of proton exchange membrane (PEM) electrolyzers has made the production of hydrogen more efficient and affordable.
  • Growing demand for hydrogen fuel cell vehicles: Increasing popularity of the hydrogen fuel cell vehicles, the demand for hydrogen electrolyzers has been increasing. Hydrogen fuel cells offer a clean and efficient alternative to traditional combustion engines.
  • Increasing investment in renewable energy: The growing investment in renewable energy sources, such as wind and solar power, has created a need for energy storage solutions. Hydrogen electrolyzers offer a viable option for energy storage as they can convert excess renewable energy into hydrogen fuel.

Hydrogen Electrolyzer Market REPORT SCOPE & SEGMENTATION

Report Attribute

Details

Projected Market Value (2031)

3.6 Bn

Estimated Market Value (2022)

425.6 Mn

Base Year

2022

Forecast Years

2023 - 2031

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Product Type, By Capacity, By Outlet Pressure, By End Use, & Region

Segments Covered

By Product Type, By Capacity, By Outlet Pressure, By End Use, & Region

Forecast Units

Value (USD Billion), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2023 to 2031

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.

 

Market Dynamics

The rising need for hydrogen as a clean and renewable energy source is the main factor driving the market for hydrogen electrolyzers. Government regulations, concerns about global warming, and the need to lessen reliance on fossil fuels are just a few of the causes that are driving up the demand for hydrogen.

The demand for hydrogen as a fuel is significantly influenced by governmental policies and restrictions. Many nations have established challenging goals for lowering greenhouse gas emissions, and the transition to a low-carbon economy is considered as requiring the usage of hydrogen in particular. Governments are providing subsidies and incentives to encourage the use of hydrogen technologies, such as hydrogen electrolyzers, which use renewable energy sources to create hydrogen from water.

The increased demand for decarbonization across numerous industries, including transportation, power generation, and industrial processes, is another factor driving the market for hydrogen electrolyzers. Since it may be utilized as a clean energy source for power generation, a feedstock for different industrial processes, and a zero-emission fuel for fuel cell cars, hydrogen is regarded as a crucial fuel in these industries.

Restraints:

The cost of hydrogen electrolyzers is a major constraint. Electrolysis requires a significant amount of energy, which means that the electricity used to power the process can be a major cost factor. The materials and components required to build a hydrogen electrolyzer can be expensive, especially for larger-scale systems. As a method of energy storage, hydrogen electrolyzers are currently less effective than batteries. An electrolyzer's overall efficiency can be lowered because a large portion of the energy utilised to power it is wasted as waste heat. Although there is continuous research to increase the effectiveness of hydrogen electrolyzers, the technology is still in its infancy.

The creation of hydrogen through electrolysis is only environmentally sound if it is driven by renewable energy sources, which are readily available. As a result, the accessibility of renewable energy may significantly limit the utilisation of hydrogen electrolyzers in general. The production of hydrogen might not be profitable in regions with a lack of or high cost of renewable energy sources.

Hydrogen electrolyzers are currently limited in their scale. While small-scale electrolyzers exist, larger systems capable of producing hydrogen at an industrial scale are still in development. This can limit the potential applications of hydrogen electrolyzers and make them less competitive with other forms of energy storage.

 Hydrogen is a highly flammable gas, which means that the production, storage, and transportation of hydrogen can pose safety risks. While these risks can be managed through proper design and handling procedures, they can also be a constraint on the use of hydrogen electrolyzers in certain applications.

Opportunities:

Hydrogen electrolyzers offer several opportunities in the field of energy production and storage.

  • Renewable Energy Storage: Hydrogen Electrolyzers can store renewable energy by converting excess electricity from renewable sources such as solar and wind into hydrogen. The stored hydrogen can be used later to generate electricity through fuel cells, making it an ideal solution for energy storage.
  • Decarbonization of Industries: Hydrogen electrolyzers can play a crucial role in decarbonizing various industries such as steel, chemical, and transportation. By using hydrogen produced from electrolyzers, these industries can significantly reduce their carbon footprint.
  • Grid Balancing: Hydrogen Electrolyzers can help balance the grid by providing a flexible source of energy. During times of low demand, excess electricity can be used to produce hydrogen, which can be stored and used later during peak demand periods.
  • Hydrogen Fueling Stations: Hydrogen Electrolyzers can be used to produce hydrogen for fueling stations, enabling the deployment of hydrogen fuel cell vehicles.
  • Off-grid Energy Generation: Hydrogen Electrolyzers can be used to generate energy off-grid, making it possible to produce energy in remote areas without access to the grid.

Hydrogen Electrolyzer Market, By Geography

One of the markets for hydrogen electrolyzers in North America with the highest growth is predicted to be the United States. In the approaching ten years, the country is anticipated to develop at a respectable rate of 21.4%. The expansion is linked to the U.S. government's expanding initiatives to increase hydrogen production in numerous nations.

Europe is likely to develop at a significant rate throughout the forecast period and is anticipated to dominate the hydrogen electrolyzer market in terms of revenue in 2022. Due to the growing use of hydrogen electrolyzers in the industries of metal production, automotive, biotechnology, energy, and hardware manufacture, Germany is predicted to hold the highest position in the European market.

The market for hydrogen electrolyzers is anticipated to expand significantly in the Asia-Pacific region as a result of rising demand for clean energy and the implementation of government policies and initiatives to minimise carbon emissions. Due to the rising demand for clean energy and the implementation of government policies and measures to reduce carbon emissions, the hydrogen electrolyzer market in the Middle East and Africa area is predicted to have moderate growth.

Competitive Landscape

The global hydrogen electrolyzer market is mainly dominated by a few significant players, who account for more than three-quarters of the revenue. Some of these key players are attempting to carve out a niche for a particular demographic.

  • Nel Hydrogen
  • Siemens AG
  • McPhy Energy
  • ITM Power Plc
  • Tianjin Mainland Hydrogen Equipment Co. Ltd
  • Gaztransport & Technigaz
  • Giner Inc.
  • GreenHydrogen Systems  
  • iGas Energy GmbH
  • Beijing CEI Technology Co., Ltd.
  • Next Hydrogen
  • Air Liquide
  • Ballard Power Systems
  • Enapter
  • Plug Power Inc.
  • Bloom Energy
  • Pure Energy Centre
  • Shandong Saikesaisi Hydrogen Energy Co., Ltd.
  • Idroenergy
  • Erredue SpA
  • SwissHydrogen SA

Segments covered:

By Product Type:

  • Proton Exchange Membrane (PEM) Electrolyzer
  • Alkaline Electrolyzer
  • Solid Oxide Electrolyzer

By Capacity:

  • Low (<= 150 kW)
  • Medium (150kW–1mW)
    • 150-400 kW
    • 400-750kW
    • 750-1mW
  • High (> 1mW)
    • 1 – 10 mW
    • 10 – 20 mW
    • Above 20 mW

By Outlet Pressure:

  • Low (<= 10 Bar)
  • Medium (150 Bar–40 Bar)
  • High (> 40 Bar)

By End Use:

  • Ammonia
  • Methanol
  • Refining/ Hydrocarbon
  • Electronics
  • Energy
  • Power to Gas
  • Transport
  • Metal Production & Fabrication
  • Pharma & Biotech
  • Food & Beverages
  • Glass Industry
  • Other Industrial

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia Pacific
  • Middle East & Africa

Customization Scope

  • Available upon request

Pricing

  • Available upon request

 

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Data Collection

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Primary Research

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Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

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