The global electrolyzer market has witnessed remarkable growth in recent years, driven by several key factors:
However, factors such as high initial investments, a lack of hydrogen infrastructure, including distribution and storage facilities, and competition from other methods such as natural gas reforming are acting as restraints on the growth of the global electrolyzer market.
An electrolyzer is a device that employs electricity to facilitate the process of electrolysis, which involves passing an electric current through a substance to induce its decomposition into its fundamental constituent elements. This commonly involves the separation of water or other compounds into their primary components.
Currently, electrolyzers stand as the pivotal technology for generating hydrogen from water through the electrolysis of water. Water electrolysis is an electrochemical process that splits water (H2O) into hydrogen (H2) and oxygen (O2) using electricity. This process takes place in the electrolyzer.
The primary reason for producing hydrogen using an electrolyzer is to solve the intermittence issue caused by renewable energy sources, as hydrogen can be stored for longer durations when compared to any other energy storage method.
There are four main electrolyzer technologies:
Electrolyzers have several major applications across various industries, primarily centered around the production and utilization of hydrogen. The major applications of electrolyzers include hydrogen production, chemical synthesis, space and aerospace applications, etc.
Governments around the world are increasingly recognizing the importance of hydrogen and electrolyzers in achieving their environmental and energy goals. They are enacting policies that incentivize and promote the use of green hydrogen produced via electrolysis. These policies often involve setting emission reduction targets and mandates for the integration of green hydrogen into various sectors, driving up demand for electrolyzers.
Prominent nations have taken significant steps by unveiling their hydrogen roadmaps as integral components of their energy transition strategies. As an example, in June 2023, the U.S. Department of Energy unveiled the U.S. National Clean Hydrogen Strategy and Roadmap.
The roadmap not only encapsulates the current landscape of hydrogen production, transportation, storage, and utilization in the United States but also adopts a forward-looking perspective in the development of the green hydrogen market. It offers insights into how clean hydrogen will contribute to national decarbonization objectives and presents future demand scenarios for clean hydrogen. This, in turn, has the potential to catalyze increased demand for electrolyzer technology.
In order to achieve their determined emission reduction targets promised in the international forums, governments are implementing incentive programs that offer financial support to companies and industries investing in electrolyzer technology. These incentives can take the form of grants, subsidies, tax credits, or rebates. Such programs reduce the financial burden on businesses looking to adopt or scale up electrolyzer projects.
For instance, the incentives announced in 2022 by the United States government under the Inflation Reduction Act led to an increase in the number of new electrolyzer manufacturing facilities in the nation, making way for the development of the hydrogen market in the nation.
In 2022, the global electrolyzer market exhibited a notable distribution of technology types, with alkaline electrolyzers emerging as the dominant choice, accounting for a significant 60% of the total installed capacity. Proton Exchange Membrane (PEM) electrolyzers, on the other hand, represented a substantial but smaller segment of the market, holding a 30% share of the installed capacity.
(For a much deeper understanding of the market segment analysis, subscribe to the report.)
Progress in electrolyzer development spans across various continents, with China taking the lead in installed capacity, while the European Union and the United States have implemented significant policy initiatives.
Countries and regions that are making noteworthy strides in advancing electrolyzer technology include:
China: China stands at the forefront in both electrolyzer capacity and manufacturing. As of 2022, the country has a cumulative electrolyzer capacity of nearly 220 MW, with an additional 750 MW under construction, scheduled for online activation in 2023. Remarkably, China accounts for 40% of the global electrolyzer manufacturing capacity, highlighting its substantial contribution to the industry's growth.
European Union: In 2022, the European Union took notable steps by installing approximately 80 MW of electrolyzer capacity, more than double the capacity installed in the preceding year. In July 2022, the European Commission gave the green light to EUR 5.4 billion in funding to bolster its inaugural hydrogen-related Important Project of Common European Interest (IPCEI), known as Hy2Tech. This initiative focuses on advancing hydrogen technologies and includes incentives to support electrolyzer manufacturers, further promoting the development of this critical sector.
North America: In 2022, the United States introduced pivotal incentives through the Inflation Reduction Act (IRA). These incentives encompassed credits designed to finance manufacturing projects, and their impact is already being realized. There has been a notable uptick in announcements regarding new electrolyzer manufacturing facilities in the country, signaling a burgeoning commitment to electrolyzer technology and its broader implications.
Electrolyzers are already extensively employed within the chlor-alkaline industry to generate chlorine and sodium hydroxide, with a cumulative installed capacity exceeding 20 GW.
Nonetheless, the widespread deployment of electrolyzers specifically for dedicated hydrogen production began to gain momentum only in the latter part of the 2010s. The year 2021 marked a significant turning point, setting a record for deployment with over 200 MW of electrolysis capacity becoming operational, signifying substantial growth in annual capacity additions.
In 2022, there was a modest deceleration in the rate of global electrolyzer capacity additions. However, when taking into account the robust pipeline of projects currently under development and their anticipated operational dates, it is anticipated that global electrolysis capacity will experience a swift and substantial expansion in the near future.
The new report from Blackridge Research on the Global Electrolyzer Market comprehensively analyzes the electrolyzer market and provides deep insight into the current and future state of the industry.
The study examines the drivers, restraints, and regional trends influencing global electrolyzer market demand and growth.
The report also addresses present and future market opportunities, market dynamics, and the impact of COVID-19 on the global electrolyzer market, as well as important commercial developments, trends, regions, and segments poised for the fastest growth, competitive landscape, and market share of key players.
Further, the report will also provide global electrolyzer market size, demand forecast, and growth rates.
The study covers all the major underlying forces that help the market develop and grow and the factors that constrain growth.
The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.
Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and will functions as a guide for you to analyze the degree of impact.
This report discusses an overview of the market, the latest updates, important commercial developments and structural trends, and government policies and regulations.
This section provides an assessment of the COVID-19 impact on global electrolyzers market demand.
The report provides global market size and demand forecasts until 2028, including year-on-year (YoY) growth rates and CAGR.
The report examines the critical elements of the global electrolyzer industry supply chain, its structure, and the participants.
Using Porter's five forces framework, the report covers an assessment of the global electrolyzer industry's state of competition and profitability.
The report dissects the global electrolyzer market into segments based on product type. A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.
Further, market size and demand forecasts will be presented, along with various drivers and barriers for individual market segments.
Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for "bespoke" market segmentation to better align the research report with your requirements.
The report covers detailed profiles of major countries across the world. Each country's analysis covers the current market scenario, market drivers, government policies & regulations, and market outlook.
In addition, market size, demand forecast, and market growth rates will be provided for all regions.
Following are the notable countries covered under each region.
North America - United States, Canada, Mexico, and the Rest of North America
Europe - Germany, France, United Kingdom (UK), Russia, and the Rest of Europe
Asia-Pacific - China, India, Japan, South Korea, Australia, and the Rest of APAC
Rest of the World – South America, the Middle East, and Africa
This report presents detailed profiles of key companies in the global electrolyzer industry, such as Nel ASA, Plug Power Inc., ITM Power plc, Cummins Inc., Siemens Energy AG, etc.
Generally, each company profile includes a company overview, relevant products and services, a financial overview, and recent developments.
The report provides a comprehensive list of notable companies in the market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.
The study also discusses the strategies adopted by leading players in the industry.
The executive summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.
The report begins with an executive summary chapter and ends with conclusions and recommendations.
Get a free sample copy of the global electrolyzer market report by clicking the "Download a Free Sample Now!" button at the top of the page.
Also, check out our latest regional reports on:
1. Executive Summary
2. Research Scope and Methodology
3. Market Analysis
4. Industry Analysis
5. Market Segmentation & Forecast
6. Regional Market Analysis
7. Key Company Profiles
8. Competitive Landscape
9. Conclusions and Recommendations
List of Tables & Figures
More than 70% of our clients seek customized reports. Reach us out to get yours today!