Electrolyzer Market

Electrolyzers Market Outlook 2027

Global electrolyzer market was valued at $0.2 billion in 2019, and is anticipated to generate $0.9 billion by 2027.The market is projected to experience growth at a CAGR of 24.6% from 2020 to 2027. The electrolyzers are used for electrolysis of water. Through electrolysis, water is split into hydrogen and oxygen, which are further collected separately for use in industrial process, automotive, power and chemical industries. The electrolyzers are available in various sizes and have different methods of electrolysis. Most of the electrolyzers used are alkaline electrolyzers. 

The electrolyzer market saw a dip owing to the pandemic outbreak as the supply demand gap for the equipment increased.

Favorable regulatory policies toward development of hydrogen infrastructure coupled with increasing use as an industrial feedstock will propel the industry growth. Ongoing technological development along with declining product cost will favor the product adoption. Furthermore, accelerating investments toward renewable energy technologies to reduce carbon emissions will positively influence the business outlook.

The electrolyzer market is segmented on the basis of product, capacity, application, and region. Depending on product, the market is segmented into alkaline electrolyzer, PEM electrolyzer and solid oxide electrolyzer. By capacity, the market is categorized into less than 500 kW, 500 kW to 2 MW, and above 2 MW. Based on application, the market is divided into power generation, transportation, industry energy, industry feedstock, building heat & power, and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA (Latin America, Middle East, and Africa).

The key players operating in the market are Hydrogenics, Nel ASA, Siemens Energy Global GmbH, Co. KG. AG, Toshiba, Air Liquide, Plug Power, McPhy Energy, ITM Power, Idroenergy, and Next Hydrogen. The players in the market have adopted several strategies, such as product launch and business expansion, to sustain the market competition.  

Electrolyzers Market, by Product 

By product, electrolyzers are divided into alkaline electrolyzer, PEM electrolyzer, and solid oxide electrolyzer. Alkaline electrolyzer dominated the market share for 2019 as it has been the oldest form of electrolysis method. However, PEM electrolyzers are expected to witness rapid growth during the forecast period, owing to technological advancement and higher stability offered by them.

Electrolyzers Market, by Capacity

By capacity, the market is categorized into less than 500 kW, 500 kW to 2 MW, and above 2 MW. In 2019, the electrolyzer with capacity kW to 2MW dominated the market share owing to limited stability and advancement in the industry. However, the electrolyzers with capacity above 2 MW are expected to grow at a higher pace during the forecast period, owing to increased demand from automotive and industrial applications.

Electrolyzers Market, by Application

By application, the market is segmented into power generation, transportation, industry energy, industry feedstock, building heat & power, and others. The power generation segment dominated the market share for 2019 owing to demand from industrial sector for on-site electrolyzer setup. However, the transportation application is expected to grow at a higher CAGR during the forecast period owing to increased investment in electrolyzer technology for fuel cells to be used in electric vehicles. 

Electrolyzers Market, by Region

By region, the electrolyzer market analysis is done across North America, Europe, Asia-Pacific, and LAMEA. The Europe region dominated the market share for 2019, owing to several initiatives from the European government for encouraging decarbonization. However, Asia-Pacific is expected to witness the fastest growth during the forecast period, owing to increased electric vehicle market in China, Japan, South Korea, and India markets. 

Key Benefits For Stakeholders

• The report provides an in-depth analysis and electrolyzers market forecast along with the current and future market trends.
• This report highlights the key drivers, opportunities, and restraints of the electrolyzers market along with the impact analyses during the forecast period.
• Porter’s five forces analysis helps analyze the potential of the buyers & suppliers and the competitive scenario of the electrolyzers industry for strategy building.
• A comprehensive analysis of the factors that drive and restrain the market growth is provided.
• The qualitative data in this report aims on electrolyzers market trends, dynamics, and developments.
• The electrolyzers market size is provided in terms of revenue.

 Electrolyzer Market Report Highlights