Electrolyzers Market is expected to reach USD 57.2 billion by 2030 from USD 0.5 billion in 2023 at a CAGR of 97.7% during the 2023–2030 period according to a new report by MarketsandMarkets™.
The growing demand for cleaner fuels is one of the major factors driving the Electrolyzers Market. Global electrolyzers demand has been increasing gradually due to goals set to achieve net zero emissions in recent years. Governments worldwide are taking proactive measures to establish the necessary infrastructure for the development of green hydrogen, with a notable focus in Asia and the European Union, alongside select American and Middle Eastern nations.
The increasing investment and funding landscape have emerged as formidable catalysts propelling the electrolyzer market into a phase of rapid expansion and technological evolution. Nations have incorporated electrolyzer targets into their hydrogen strategies.
With the spotlight on green hydrogen intensifying as a linchpin in the roadmap toward a net-zero future which presents a significant opportunity for the Electrolyzers Market. However, the risks associated with high initial investment for setting up hydrogen production plants and lack of hydrogen infrastructure have hindered the growth of the market in recent years and are expected to restrain the market’s growth during the forecast period.
The alkaline electrolyzer, by technology, is expected to be the largest segment during the forecast period.
Based on technology, the Electrolyzers Market has been split into alkaline electrolyzers (AE), proton exchange membrane (PEM), solid oxide electrolyzers (SOE), and anion exchange membrane (AEM). The Electrolyzers Market for alkaline electrolyzers is anticipated to have the biggest market share over the forecast period. Alkaline electrolyzers is established and mature electrolysis technologies. As the need for green hydrogen grows, there is a rising emphasis on lowering the cost of electrolyzers. Alkaline electrolyzers are becoming more appealing for large-scale hydrogen generation due to their relatively simple design and lower capital costs compared to other technologies.
The grid injection segment, by application, is expected to grow at the highest CAGR during the forecast period.
This report segments the Electrolyzers Market based on application into four segments: energy, mobility, industrial, and grid injection. The grid injection segment is expected to grow at the highest CAGR during the forecasted period, owing to the extensive decarbonization efforts in North America, Europe, and Asia Pacific. Green hydrogen can be transported using grids. Renewable energy plants produce varying amounts of energy depending on the day and season. The extra electricity produced can be converted into green hydrogen and fed back into the system. This enables solar and wind power plants to operate at full capacity. Additionally, the penetration of renewables in the energy system presents significant opportunities. Even the pipe system, which is part of the grid system, serves as a storage vessel. Hydrogen may be transported by grid injection for lower cost and is suitable for various purposes.
Asia Pacific is expected to be the fastest growing region in the Electrolyzers Industry.
Asia Pacific is expected to be the fastest growing region in the Electrolyzers Market during the forecast period. The Asia Pacific region comprises major economies such as China, Japan, and Australia. The Electrolyzers Market in Asia Pacific is primarily fueled by the increasing foreign investments in green hydrogen projects. According to IEA, China is estimated to account for nearly half of global electrolyzers manufacturing capacity by the end of 2023. Asia Pacific is one of the leading markets for adopting green technologies to meet the government targets for reducing GHG emissions. It aims to deploy green hydrogen on a large scale. The country plans to have 200,00 green hydrogen fuel cell vehicles and 320 hydrogen refueling stations by 2025 to meet the global carbon emission standards.
