Italy Electrolyzer Market Outlook to 2030

The Italy electrolyzer market was valued at EUR 12 million in 2023 and is expected to reach around EUR 271 million by 2030. The major factors contributing to this growth are favorable government policies, ambitious green hydrogen production targets, carbon taxation, energy security issues, and the demand from hard-to-abate industries to substitute conventional hydrogen with green hydrogen.

However, the slow rate of renewable energy deployments, high capital requirements, and competition from alternative technologies are some of the factors restraining the growth of Italy electrolyzer market.

Drivers

Supportive Government Policies and Incentives

The Italian government is proactively promoting green hydrogen as a key component of its energy transition owing to green hydrogen’s potential to decarbonize hard-to-abate industries such as refining, steel manufacturing, chemical production, etc. In line with this, the nation’s hydrogen strategy outlined strategies for the development of hydrogen technologies, including electrolyzers, to achieve its emission reduction targets.

The country is a part of numerous hydrogen initiatives under the European Commission, developing indigenous green hydrogen markets. For instance, Italy is a part of Important Projects of Common European Interest (IPCEIs), which are significant transnational projects that are strategically crucial for the economic growth, competitiveness, and sustainability of the European Union. There are four major projects under IPCEIs that are focused on hydrogen, its related technologies and infrastructure, namely, Hy2Tech, Hy2Use, Hy2Infra, and Hy2Move. 

Italy has accelerated its funding for developing hydrogen infrastructure, and among them are some major announcements that provide financial aid to the electrolyzer manufacturing industry in the nation. For example, in October 2023, the European Commission approved a EUR 100 million Italian scheme to support the production of electrolyzers. 

Similarly, in March 2024, the European Commission approved direct grants of up to EUR 350 million for producers of green hydrogen, which includes funds for setting up new electrolyzer manufacturing facilities.

Italy's Current Electrolyzer Market Scenario

By the end of 2023, the nation had an installed electrolysis capacity of around 12 MW. Italy is taking active steps to increase its electrolysis capacity to meet the future demand for green hydrogen.

According to its new draft National Energy and Climate Plans (NECPs), Italy plans to achieve 250,000 tons of green hydrogen annual production and 3 GW of electrolysis capacity by 2030.

Italy, known for its strong export-oriented economy and substantial manufacturing base, currently utilizes approximately 480,000 tons of hydrogen annually, primarily for ammonia. production and hydrocracking in the refining industry. The chemical and refining sectors, already significant markets for predominantly grey hydrogen, are well-positioned to initiate the transition to clean hydrogen.

Market Segmentation

The Italian electrolyzer market is segmented into industry, mobility, and energy production and storage, based on application sector.

According to Blackridge's comprehensive study of the Italian electrolyzer market, the industrial sector currently leads the market and is expected to maintain this dominance. The market size for electrolyzers in the industrial segment is projected to reach approximately 570 MW by 2030 in Italy, significantly surpassing the mobility segment, which is forecasted to reach 170 MW by the same year. 

Within the industrial segment, chemical production and metal processing are the most potential customers, which are expected to dominate the electrolyzer market in Italy.

Recent Trends and Developments

• A notable trend in the electrolyzer industry is the consensus among manufacturers on the potential for significant capital cost reductions through economies of scale. Many companies are focusing on developing larger electrolyzer units, while others are prioritizing increasing production quantities over unit size.
• In July 2024, the European Commission approved more than EUR 700 million in hydrogen investments from the governments of Italy (EUR 400 million), Finland (EUR 200 m) and Lithuania (EUR 122 million). Italy will be using the fund to offer direct grants and subsidized loans to companies that undertake investments for switching to renewable hydrogen, or renewable hydrogen-derived fuels.
• De Nora Italy Hydrogen Technologies S.r.l. (a subsidiary company of Industrie De Nora S.p.A.) started the construction works of the Gigafactory in June 2024, which will become Italy’s largest electrolyzer production hub with a projected capacity of 2 GW equivalent by 2030.

Blackridge Research's Italy electrolyzer market report provides insights into the current Italy market demand scenario and its outlook.

The new report from Blackridge Research on the Italy electrolyzer market provides comprehensive qualitative and quantitative analyses along with a deep insight into the current and future of the market.

(You can access a comprehensive list of both existing and upcoming renewable hydrogen projects, along with their current status, through our extensive Green Hydrogen Projects Database.)

What Do We Cover in the Report?

Electrolyzer Market Drivers & Restraints

The study covers all the major underlying market dynamics that help the market develop and grow, as well as the factors that constrain Italy market 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 function as a guide for you to analyze the degree of impact.

Electrolyzer Market Analysis

This report discusses the market overview, the latest updates, critical commercial developments and structural trends, and government policies and regulations. 

Electrolyzer Market Size and Demand Forecast

The report provides the Italy hydrogen electrolyzers market size and demand forecast until 2029, including year-on-year (YoY) growth rates and CAGR.

Electrolyzer Industry Analysis

The report examines the critical elements of the electrolyzer industry supply chain, its structure, and the participants.

Using Porter's five forces framework, the report covers an assessment of the electrolyzer industry's state of competition and profitability.

Electrolyzer Market Segmentation & Forecast

The report dissects the Italy hydrogen electrolyzer market into various segments based on electrolyzer product type ( Alkaline Electrolyzer (AE), PEM Electrolyzer (Proton Exchange Membrane), and others (SOEC, AEM)), and by application (industry, mobility, and energy generation and storage).

A detailed summary of the current scenario, recent developments, and market outlook will be provided for each market segment.

Further, electrolyzer market share, 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.

Key Company Profiles

This report presents detailed profiles of key companies in the electrolyzer industry, such as McPhy, Plug Power, Nel ASA, etc. In general, each company profile includes an overview of the company, relevant products and services, a financial overview, and recent developments.

Competitive Landscape

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 related to the green hydrogen project.

The study also discusses the strategies adopted by leading renewable hydrogen players and electrolyzer manufacturing companies.

Executive Summary

The executive summary will be packed with charts, infographics, and forecasts. This chapter summarizes the report's findings crisply and clearly.

The report begins with an executive summary chapter and ends with conclusions and recommendations.