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Electrolyzer Market

Electrolyzer Market

Global Industry Analysis (2018 - 2021), Growth Trends, and Market Forecast (2022 - 2029)

Published Date: Upcoming | Format:

Industry: Energy & Natural Resources | Author Name: Harshad

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This study intends to unfurl the multiple facets of global electrolyzer market and thereby examine how the short-term growth of the market will unfold during the stipulated time span.

Electrolyzer Market Receives Tailwinds from Escalating EV Sales

Global demand for clean fuels has significantly increased due to growing environmental concerns among people and a growing understanding of the negative effects of burning fossil fuels. Demand for the electrolyzer economy is anticipated to increase due to favourable government policies supporting the electrolyzer industry and growing environmental concerns about rising carbon emissions from fossil fuels. In addition, increasing sales of electric vehicles are generating demand for hydrogen electrolyzers and refueling stations. This tendency is projected to offer the electrolyzer market a potential growth environment. In addition, they are employed to deliver industrial gas for use in flat glass manufacturing facilities, semiconductor applications, and the steel sector. Additionally, electrolyzers are used to manufacture environmentally friendly chemicals such as methanol, fertilizers, ammonia, and liquid jet fuel. For industries like power production and transportation, the United States is one of the world's early adopters of sustainable energy solutions. According to the Roadmap to a US Hydrogen Economy report, by 2050, hydrogen from low-carbon sources may meet around 14% of the nation's energy requirements, including those of hard-to-electrify industries like high-heat industrial operations and fertilizer manufacturing.

To create new carbon-free goods and encourage the usage of green hydrogen, the top players in the electrolyzer market are making significant investments in research and development. Advancements and technology accelerate the development of the electrolyzer market. The development of the electrolyzer market has been accelerated by new project installations, such as hydrogen fueling stations. In June 2022, GreenZo Energy, a renewable energy consultant based in New Delhi, announced intentions to build a new 250-megawatt (MW) green hydrogen electrolyzer plant by the end of 2025. The company intends to invest between Rs. 300 and Rs. 400 crores in the plant's development.

Electrolyzer Market: COVID-19 Impact

The epidemic's effects have also affected the economies of numerous developing nations with rapid economic growth. The COVID-19 epidemic has had a major impact on the large hydrogen demand experienced by the steel production, chemical, and oil refining industries. A setback brought on by the emergence of lethal diseases has been experienced by various growing economies that place a lot of emphasis on integrating clean power energy-producing technology. However, it is projected that the deployment of electrolysis systems will increase due to economic stimulus programs backed by several state governments along with the persistent operations of industry participants in the post-pandemic period.

Growing Hydrogen Demand as a Green Fuel to Drive Electrolyzer Market Growth

By using hydrogen energy as a replacement for fossil fuels, we can achieve decarbonization and meet the needs of the energy sector. With the fact that hydrogen as a gas emits almost no carbon dioxide, it is seen as a green fuel, and this has prompted numerous governments to concentrate on developing a sustainable hydrogen economy. Manufacturers on the market are working to improve the devices' performance as a catalyst and membranes through research and development operations. These research and development efforts could be a significant step toward making electrolysis more economical. Additionally, the need for hydrogen is growing in the sectors expected to drive the global electrolyzer market throughout the study period: semiconductors, glass, mining, food and beverages, and chemicals.

Peak Energy Demand Growth and a Favourable Policy Environment to Support Electrolyzer Market Outlook

The peak energy demand is a result of the expanding population of the world and growing efforts to electrify more rural areas. The rate of urbanization is increasing, and new, high-value infrastructure projects are emerging, which has raised the demand for power from utilities. The market size has been positively impacted by supportive regulatory policies implemented by various authorities to promote low-carbon technologies. In Japan on April 3, 2020, the Japanese business Asahi Kasei installed an electrolysis system for alkaline water at the Fukushima Hydrogen Energy Research Field (FH2R). The full-fledged operation at the heart of FH2R began in September 2020, while the hydrogen supply operation continues. The system's performance in response to varying power input was successfully evaluated.

High Electricity Requirements for Electrolysis to Hamper Electrolyzer Market Expansion

The most important aspect that raises the price of manufacturing hydrogen using the electrolytic process is the price of electricity. Furthermore, the real and anticipated costs of renewable hydrogen have decreased because of the recent drops in solar and wind energy costs. For instance, utility-scale solar photovoltaic (PV) capital costs are now 75% lower than in 2010, while onshore wind generation is now around 25% less expensive than it was ten years ago. More potential end users are now carefully examining whether renewable hydrogen is developing into a competitive means of satisfying their needs and lessening their environmental effects.s

Alkaline Electrolyzers Spearhead in Electrolyzer Market with their Superior Properties

Alkaline electrolyzers, which are the conventional electrolyzer technology used in green hydrogen projects, accounted for the largest sales share. A few characteristics that benefit the demand for a product are long-term stability, cheap maintenance and installation costs, high efficiency and durability, and mature technology. The alkaline electrolyzer has a longer operating period than PEM electrolyzers and uses a liquid alkaline solution of potassium or sodium hydroxide as its electrolyte. Additionally, the industry scenario will be supported by the rising need for hydrogen as a feedstock across several industries and ongoing infrastructure upgrades. Alkaline electrolyzers have lower power and current densities and a broader working temperature range of 100 to 105 degrees Celsius than PEM electrolyzers, which operate at temperatures between 70 and 90 degrees Celsius. Alkaline electrolyzes are also anticipated to rise in popularity since they are more readily available and less expensive than PEM electrolyzers.

With Increased Demand for Hydrogen Cell, Transport Sector Continues to Dominate Electrolyzer Market

The increased overall demand is expected to come from the transportation sector, which is expected to create the biggest market share for hydrogen electrolyzers during the evaluation period. The demand for hydrogen, which is regarded as a clean alternative fuel, is expected to rise in response to the growing need to reduce carbon emissions in the atmosphere. In 2020, several major European automakers, including CNH, Daimler, DAF, Ford, MAN, Scania, and Volvo, declared their desire to switch their fleets of trucks to hydrogen power by 2040. Airbus is also working on hydrogen-powered aircraft, with plans to use them commercially by 2035. Nations are carrying out R&D activities worldwide to assess how well hydrogen performs as a fuel for transportation and to advance sustainability. Furthermore, it is anticipated that tight regulations governing the use of clean fuel will soon be put into place, and they will cover marine and off-highway fuels. The need for hydrogen electrolyzers in transportation will increase steadily due to the aforementioned considerations.

North America to Acquire a Larger Share in Electrolyzer Market Owing to Increased Awareness About Clean Energy Source

The North American area held the largest share in terms of value and volume in the forecast period due to the rising need for hydrogen in various industries, including the industrial sector, the power industry, and others. With the adoption of clean energy policies, North America is predicted to see a significant CAGR throughout the forecast period, with the US and Canada gradually growing the green hydrogen industry. California currently controls most of the U.S. market thanks to aggressive decarbonization goals like eliminating gas or diesel-powered public transportation by 2040. Air Liquide is constructing a 20 MW large-scale PEM electrolyzer in Canada that will use hydropower to produce green hydrogen. This kind of development and efforts planned for Canada would probably be very beneficial to the growth of the green hydrogen sector there.

Rising investments also favour the size of the European market. Additionally, a promising outlook and a legislative framework that requires energy security across all establishments are expected to contribute toward the expansion of electrolyzer market. For instance, the UK government revealed a US$14.8 Bn investment plan in August 2019 for a project that is anticipated to utilize 4 GW of offshore wind to produce green hydrogen by 2030. The market in Germany is expected to grow significantly over the next few years due to ongoing infrastructural improvements and the integration of renewable energy sources. In the first half of 2022, renewable energy accounted for 49% of German electricity consumption, up 6% percentage points over the prior year thanks to the excellent weather.

Global Electrolyzer Market: Competitive Landscape

In March 2022, Man Energy Solutions said it would invest up to US$500 Mn in its subsidiary, H-Tec Systems, to quickly transform the hydrogen specialist into a mass-producer of PEM systems. H-Tec will benefit from Man Energy Solutions' global sales network and big project experience. It will also directly access the Volkswagen Group's skills and experience, particularly in production scaling and the supplier-based series production sector. In January 2022, Green Hydrogen Systems agreed to supply electrolysis equipment to Logan Energy in Edinburgh for a project in England. The electrolytic devices will be placed in a 40-foot container as a complete green hydrogen plant as part of Dorset, England's aspirations to build a regional hydrogen economy. Logan Energy operates these units, which Green Hydrogen Systems manufacture. The order involves delivering two GHS HyProvide A90 systems with a combined capacity of 0.9 MW for producing green hydrogen from renewable energy.

Few of the players in the electrolyzer market include Nel Hydrogen, Siemens AG, McPhy Energy, TM 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, and SwissHydrogen SA.

Global Electrolyzer Market is Segmented as Below:

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
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • France
    • Germany
    • Russia
    • Rest of Europe
  • Asia Pacific
    • Japan
    • South Korea
    • India
    • China
    • Rest of Asia-Pacific
    • Latin America
    • Middle East
    • Africa

Key Elements Included In The Study: Global Electrolyzer Market

  • Electrolyzer Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value, 2018 - 2021
  • Market Value at Regional and Country Level, 2022 - 2029
  • Market Dynamics and Economic Overview
  • Market Size in Value, Growth Rates, and Forecast Figures, 2022 - 2029
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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