Hydrogen Electrolyzer Market: Current Analysis and Forecast (2023-2030)

Hydrogen electrolyser is an apparatus that generates hydrogen using a chemical process (electrolysis). It is capable of splitting oxygen and hydrogen molecules with the use of electricity. By using a hydrogen electrolyzer, hydrogen may be created sustainably without releasing carbon dioxide into the atmosphere. This supports the establishment of a decarbonized economy and stimulates market growth. The market for hydrogen electrolysers is being boosted by the increase in demand for methanol in a variety of applications, including biofuel, windshield washer fluid, formaldehyde, acetic acid, and fuel cells. Methanol is produced using a hydrogen electrolyzer, which is also being used more frequently to produce ammonia and refine oil. This fuels the expansion of the market progress.

Global hydrogen electrolyzer market is expected to grow at a significant growth rate of 8% during the forecast period (2023-2030). The power generation units across the globe shifting from traditional battery-based systems for power storage to novel technologies such as hydrogen electrolyzers are driving the market outlook. In addition, surging need for highly efficient and low-space utilizing energy storage systems to handle the electricity produced from solar, wind, and hydropower generation units are primary factors driving the global hydrogen electrolyzers market during the forecast period. In additional in January 2023, Enapter S.r.l received a contract from Adsensys, one of the leading suppliers of fuels, for supplying an AEM Multicore electrolyzer. This electrolyzer can produce about 450 kilograms of green hydrogen per day.

Based on product, the market is classified into Alkaline Electrolyzer, PEM Electrolyzer and Solid Oxide Electrolyzer. Currently, PEM electrolyzer captured substantial share in the global hydrogen electrolyzer market. It is mainly owing to its high current densities, compact system design, and rapid response toward current fluctuations. The ongoing adoption of various policies and norms by developing nations to increase the share of renewables in the overall energy mix is set to boost the product adoption.

Based on capacity, the market is segmented into ≤ 500 kW, > 500 kW - 2 MW, above 2 MW. Currently > 500 kW - 2 MW segment acquired considerable market share in hydrogen electrolyzer market owing to ongoing electrification programs across off grid/rural areas along with growing industrialization will fuel the market outlook. However, the electrolyzer with capacity above 2 MW are expected to grow at a higher pace during the forecast period.

Based on application, the market is segmented Power Generation, Transportation, Industry Energy, Industry Feedstock, Building Heating & Power and Others. Currently power generation segment caters considerable growth. It is mainly owing to an increasing proportion of renewables coupled with increasing infrastructural investments across the commercial sector and the growing need for energy imports will energize the industry dynamics.

For a better understanding of the market adoption of the hydrogen electrolyzer, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. The Europe region emerged as the most significant global hydrogen electrolyzer market, with a 44.11% market revenue share in 2022. Due to the increased adoption of hydrogen electrolyzer the purification of atmosphere, Europe now dominates the hydrogen electrolyzer. The region's expanding hydrogen electrolyzer market results from the rising prevalence of decarbonisation is anticipated to fuel the market growth. During the anticipated period, Europe is anticipated to hold the greatest market share in the hydrogen electrolyzers sector. Germany, the UK, France, Denmark, Austria, Spain, the Netherlands, Norway, and the rest of Europe's markets have all been researched. Currently, fewer than 2% of Europe's energy needs are met by hydrogen, which is mostly used in the production of fertilizers and plastics. The remaining 96% of the continent's energy needs are met by natural gas.

Some of the major players operating in the market include: Green Hydrogen Systems A/S, Areva H2gen Inc., Giner Inc., Enapter S.r.l., MVS Engineering Pvt. Ltd, Pure Energy Centre, Cummins Inc, ITM Power plc, McPhy Energy S.A, Siemens AG.