The Global Electrolyzer Market Size was valued at USD 5.6 billion in 2021 and is expected to reach at a CAGR of 32.21% from 2021 to 2030. Due to the growing use of these tools in end-use industries such power plants, chemical, and petrochemical production, the market for hydrogen electrolyzers is anticipated to grow during the forecast period of 2021–2031, according to a report by Spherical Insights.
Due to the expansion of the need for green energy and the creation of green hydrogen, the market for hydrogen electrolyzers has simultaneously been presented with a wide range of potential for income generation. The market will grow as a result of continued research into dependable, state-of-the-art power solutions and the rising adoption of clean hydrogen generating technologies. The growing consumer shift toward environmental security and the broad adoption of renewable energy sources will affect the industrial trend.
The challenges of carbon emissions and global warming have come to light. Governments all around the world have implemented numerous laws and regulations requiring a decrease in carbon emissions from diverse sectors. Electrolyzers create hydrogen by using electricity to split water into hydrogen and oxygen. The electricity was generated using either renewable or nonrenewable resources. In addition, hydrogen can be produced using an electrolyzer that uses wind or sun energy. This approach promotes the production of carbon-neutral green hydrogen. In order to reduce their carbon footprint, many companies choose to build on-site electrolyzers with 1 to 5 MW of capacity, which has a significant impact on the expansion of the global electrolyzer sector.
As a result of concerns over climate change, the increase in earth’s temperature, and the worrying development in carbon emissions, renewable energy sources have witnessed a spike in popularity. To be more responsible, many businesses have opted to use abundant natural resources like solar, wind, natural gas, and water instead of the traditional technique of producing electricity from fossil fuels. However, there was a high initial expense associated with creating such programmes. On the other hand, a number of helpful government policies have been implemented as a result of technology developments and ardent support for the benefits of renewable energy. With the added benefit of leaving a significantly smaller carbon footprint, the cost of renewable energy has decreased. These declining costs are increasing the demand for electrolyzers.
For electrolysis, alkaline electrolyzers have been around for a while. Alkaline electrolyzers are unstable because they are susceptible to erratic power fluctuations. The market growth of electrolyzers was constrained by the availability of alternative hydrogen generation methods, which slowed the development of new technologies. Delays in the equipment supply are another key barrier to the global market for electrolyzers.
Covid 19 Impact on Global Electrolyzer Market
Globally, the sector has been shut down by the COVID-19 outbreak, which has resulted in severe regulatory restrictions and limited labour management. But because of declining incidents and the reopening of major industrial operations, the market is ready to recoup its lost vigour. A growing trend toward the utilisation of renewable resources and large government investments in various initiatives will further enhance market demand.
Global Electrolyzer Market, By Product
The alkaline electrolyzer market is expected to grow at a 33% yearly rate until 2030. Several qualities of the product, including long-term stability, low installation and operation costs, high efficiency and durability, and advanced technology, have a positive impact on demand. The market will expand as a result of continued product improvements and expanding system installations in a variety of locales. Increasing feedstock demand for hydrogen across a number of industries as well as continuous infrastructural upgrades would both benefit the industry scenario.
Global Electrolyzer Market, By Application
The transportation sector is anticipated to increase significantly over the forecasted period. This rise is associated with a development in the adoption of FCEVs, which is compatible with a favourable outlook for a clean environment. Strict government rules and policies that promote a sustainable environment in line with the expanding consumer trend toward hydrogen-powered cars would improve the market outlook. The expansion of uses for trams, forklift trucks, light vehicles, buses, and other vehicles will also improve the economic potential.
Global Electrolyzer Market, By Capacity
The industry with less than ≤ 500 kW of power is anticipated to bring in USD 276 million by 2030. Expanding public and private sector investments in hydrogen infrastructure development will support the industry’s dynamics as many ongoing projects, particularly those involving industrial & mobility applications, continue to advance. In order to address growing concerns about carbon emissions, there is a growing tendency toward the usage of ecologically friendly energy sources, which will increase market demand.
Global Electrolyzer Market, By Region
The Europe electrolyzer market is expected to expand significantly over the course of the forecast period due to favourable government incentives, laws, and standards for infrastructure growth as well as expanding customer preferences for using renewable energy sources. Additionally, a rise in the demand for electricity across a variety of commercial and industrial structures as well as a greater focus on alternative energy sources will hasten market expansion.