The global electrolyzer market was valued at USD 489.1 million in 2023 and is expected to reach USD 52,322.3 million by 2030, growing at an impressive CAGR of 94.9% from 2024 to 2030. This rapid expansion is primarily driven by the increasing global demand for clean energy solutions and the widespread push for decarbonization.
As nations and industries work to reduce their carbon emissions and achieve ambitious climate targets, hydrogen produced via electrolysis is gaining traction as a versatile, environmentally friendly energy carrier. The rising focus on green hydrogen is a key factor fueling the growth of the electrolyzer market.
Government policies and incentives are significantly supporting this market growth. For example, the European Union’s hydrogen strategy plans to install at least 6 GW of renewable hydrogen electrolyzers by 2024, scaling up to 40 GW by 2030. Likewise, countries such as Japan, South Korea, and Australia have implemented national hydrogen strategies that involve substantial investments in electrolyzer technologies. These policies foster a favorable market environment and drive technological progress.
Additionally, declining costs of renewable energy sources—especially solar and wind power—are enhancing the economic feasibility of green hydrogen production. As electricity from these renewable sources becomes cheaper, industries like steel manufacturing, chemical production, and transportation are increasingly adopting hydrogen as a fossil fuel alternative. For instance, ThyssenKrupp in Germany is adopting hydrogen-based steel production, while automakers such as Toyota and Hyundai are investing heavily in fuel cell electric vehicles, further boosting demand for electrolyzers.
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Key Market Trends & Insights
- Regional Leadership: North America dominated the electrolyzer market in 2023, accounting for the largest revenue share of over 42.0%. The region’s strong emphasis on clean energy and decarbonization, along with ambitious greenhouse gas reduction targets set by the U.S. and Canada, are key drivers for market growth. Hydrogen is considered essential for achieving these targets, prompting increased investments in electrolyzer technologies to produce green hydrogen from renewable sources.
- Technology Segment: The alkaline electrolyzers segment held the largest market share at over 56.0% in 2023. These electrolyzers are favored for their relatively low cost, long lifespan, and ability to generate large volumes of hydrogen. However, they exhibit slower response times and lower efficiency compared to some other electrolyzer types.
- Application Segment: The power plant sector accounted for the highest market share of over 27.0% in 2023. Electrolyzers in power plants produce hydrogen that can be used as a clean fuel or energy storage solution, aiding in grid balancing, particularly when integrated with renewable energy sources like wind and solar. Hydrogen generated during low-demand periods can be stored and then used to produce electricity during peak demand.
Market Size & Forecast
- 2023 Market Size: USD 489.1 Million
- 2030 Projected Market Size: USD 52,322.3 Million
- CAGR (2024-2030): 94.9%
- North America: Largest market in 2023
Key Companies & Market Share Insights
The electrolyzer market is highly competitive and marked by rapid technological progress. Leading players include established industrial gas companies, renewable energy firms, and specialized electrolyzer manufacturers, all competing to improve efficiency, reduce costs, and increase production capacity. Strategic partnerships between electrolyzer manufacturers and energy companies are becoming increasingly common, aiming to create integrated hydrogen production systems. Additionally, new entrants with innovative designs and business models are intensifying competition.
- In May 2024, Nel Hydrogen Electrolyzer AS, a subsidiary of Nel ASA, signed a technology licensing agreement with Reliance Industries Limited (RIL). This agreement grants RIL an exclusive license for Nel’s alkaline electrolyzers in India and authorizes RIL to manufacture these electrolyzers globally for captive use.
- Also in May 2024, Japanese company Asahi Kasei launched a new hydrogen pilot plant in Kawasaki, Japan, which began commercial-scale operations in March 2024. This pilot features four 0.8 MW modules and represents a critical step toward developing a commercial multi-module 100 MW-class alkaline water electrolysis system for green hydrogen production. The project is supported by Japan’s New Energy and Industrial Technology Development Organization (NEDO) through the Green Innovation Fund.
Key Players
- Siemens AG
- Cummins Inc.
- ITM Power plc
- Nel ASA
- Plug Power Inc.
- John Cockerill Group
- Enapter AG
- Haldor Topsoe A/S
- Bloom Energy Corporation
- thyssenkrupp AG
- Sunfire GmbH
- Electric Hydrogen Co.
- Ecolectro Inc.
- Ohmium International
- ACME Group
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Conclusion
The electrolyzer market is poised for extraordinary growth through 2030, driven by the increasing global focus on clean energy, decarbonization efforts, and the rising adoption of green hydrogen. Supportive government policies, declining renewable energy costs, and expanding industrial applications are key growth enablers. North America currently leads the market, with alkaline electrolyzers dominating technologically. The competitive landscape is intensifying as established companies and new entrants innovate to improve efficiency and scale production. Overall, electrolyzers will play a critical role in enabling a sustainable hydrogen economy and accelerating the transition to a low-carbon future.
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