Electrolyzer Market: How Falling Renewable Energy Costs are Shaping Demand By 2030

The global electrolyzer market size is expected to reach USD 52.32 billion by 2030, registering a CAGR of 95.2% from 2024 to 2030, according to a new report by Grand View Research, Inc. The market is driven primarily by the increasing demand for clean energy solutions and the global push toward decarbonization. As countries and industries strive to reduce their carbon footprint and meet ambitious climate targets, hydrogen produced through electrolysis is emerging as a versatile and environment-friendly energy carrier. 

In addition, advantageous government regulations that provide subsidies and other advantages boost the electrolyzer business. However, the market expansion is hampered by the limited supply of electrolyzers. Furthermore, the expansion of the electrolyzer market is restricted by the tardiness of authorization grants from national or local government bodies. Government policies that encourage the use of electric vehicles are underway, and in the near future, technological advancements may present a profitable opportunity for business expansion.

Gather more insights about the market drivers, restrains and growth of the Electrolyzer Market

The market for electrolyzers is anticipated to expand if the government takes a few steps to encourage healthy energy generation. These include exempting electrolyzers from grid fees, taxes, and levies, granting access to limited electricity and grid service revenues, and acknowledging the value and cost of green hydrogen. Traditionally, electrolyzer for specialized hydrogen production have been constructed in small quantities for specialized markets. However, through economies of scale and automation, it is anticipated that increased production volumes and the corresponding expansion of factory size will lower investment costs for all electrolyzer technologies. Cost savings from the optimization of the supply chains for electrolyzer are also anticipated.

Global warming and carbon emissions are becoming more and more of a concern. Governments everywhere have put in place a number of policies and directives that demand a decrease in carbon emissions from a range of industries. Hydrogen is produced by electrolysis, a process that uses electricity to divide water into hydrogen and oxygen. Electrolyzers are employed in this process. One of two types of resources is used to create electricity: renewable or nonrenewable. Hydrogen can also be produced using an electrolyzer in conjunction with solar or wind power to generate energy. This process promotes the production of green hydrogen that emits no carbon. In order to reduce their carbon footprint, numerous enterprises are choosing on-site electrolyzers with a capacity of 1 to 5 MW, which significantly aids in the expansion of the global market.

Electrolyzer Market Report Highlights:

• Based on the technology, the market is segmented into alkaline electrolyzer, proton exchange membrane (PEM), solid oxide electrolyzer (SOE), and anion exchange membrane (AEM)
•  Alkaline electrolyzers registered the largest market share of over 56.0% in 2023. Alkaline electrolyzers are known for their relatively low cost, long lifetime, and ability to produce large volumes of hydrogen
• North America electrolyzer market dominated the global industry and accounted for the largest revenue share of over 42.0% in 2023. The growing focus on clean energy and decarbonization efforts across the region is triggering the growth of the market

Browse more reports published by Grand View Research.

• Hydrogen Electrolyzer Market Size, Share & Trends Analysis Report By Technology (Alkaline, Solid Oxide Electrolyzer), By Application, By Power Rating, By Region, And Segment Forecasts, 2024 – 2030

• Energy Retrofit Systems Market Size, Share & Trends Analysis Report By Product (Envelope, LED Retrofit Lighting), By Application (Residential, Commercial, Institutional), By Region, And Segment Forecasts, 2024 – 2030

List of Key Players in the Electrolyzer Market

• Siemens AG
• Cummins Inc.
• ITM Power plc
• Nel ASA
• Plug Power Inc.
• John Cockerill Group
• Enapter AG
• Haldor Topsoe A/S
• Bloom Energy Corporation
• thyssenkrupp AG
• Sunfire GmbH
• Electric Hydrogen Co.
• Ecolectro Inc.
• Ohmium International
• ACME Group 

About Grand View Research

Grand View Research is a full-time market research and consulting company registered in San Francisco, California. The company fully offers market reports, both customized and syndicates, based on intense data analysis. It also offers consulting services to business communities and academic institutions and helps them understand the global and business scenario to a significant extent. The company operates across multitude of domains such as Chemicals, Materials, Food and Beverages, Consumer Goods, Healthcare, and Information Technology to offer consulting services.

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