Global Electrolyzer Market Revenue Projections and Growth Drivers from 2024 to 2029 by Type, Application, Region, and Player

1. Global Electrolyzer Market Definition

The global electrolyzer market is poised for significant growth, with a projected revenue of $3,148.46 million in 2024 with a CAGR of 13.77% from 2024 to 2029.

An electrolyzer is a critical component in the production of hydrogen through the process of electrolysis. It is the primary site where the electrolytic reaction occurs, primarily producing hydrogen by electrolyzing water. The process involves the use of an electrolytic cell, which is composed of several electrolytic chambers. Each chamber consists of electrodes, diaphragms, and electrolytes. Oxygen is produced at the anode through an oxidation reaction, while hydrogen is generated at the cathode through a reduction reaction. This method of hydrogen production is considered ideal for future applications due to its lack of carbon dioxide emissions.

Global Electrolyzer Market Revenue (M USD) in 2024

2. Driving Factors of Electrolyzer Market

The growth of the global electrolyzer market is driven by several key factors. Firstly, the increasing demand for low-emission hydrogen from renewable energy or nuclear power is a significant driver. As the world moves towards decarbonization, industries are seeking cleaner and more sustainable sources of energy, and electrolyzers offer a viable solution for producing hydrogen with minimal environmental impact.

Secondly, advancements in production, transportation, and distribution technologies have made electrolyzers more efficient and cost-effective. This has led to a reduction in manufacturing costs, making the technology more accessible to a wider range of industries. For example, the development of more efficient PEM electrolyzers has allowed for flexible operation and better compatibility with renewable energy sources, such as wind and solar power.

Thirdly, government policies and incentives play a crucial role in promoting the adoption of electrolyzers. Many countries are offering subsidies, tax breaks, and other forms of support to encourage the development and use of hydrogen technologies. These policies not only help to reduce the initial investment costs for businesses but also create a more favorable market environment for the growth of the electrolyzer industry.

3. Limiting Factors of Electrolyzer Market

However, several limiting factors could hinder the growth of the electrolyzer market. One of the main challenges is the high cost of hydrogen production. Despite advancements in technology, the cost of producing hydrogen through electrolysis is still relatively high compared to traditional methods, such as steam methane reforming. This cost barrier can make it difficult for some industries to justify the investment in electrolyzer technology.

Another limiting factor is the infrastructure requirements for hydrogen distribution and storage. The lack of a well-developed hydrogen infrastructure can make it challenging to transport and store hydrogen efficiently, which in turn can limit the widespread adoption of electrolyzers. Additionally, the safety concerns associated with hydrogen storage and transportation need to be addressed to ensure public acceptance and regulatory compliance.

Furthermore, the market is still in the early stages of development, and there is a need for further research and development to improve the performance and durability of electrolyzers. This includes addressing issues such as the degradation of catalysts and the need for more efficient electrolyte materials. Until these technical challenges are overcome, the full potential of the electrolyzer market may not be realized.

4. Global Electrolyzer Market Segment

Product Types Analysis

The global electrolyzer market is characterized by a variety of product types, each with its own market dynamics and growth trajectories. In 2025, the market is expected to see significant revenue contributions from different types of electrolyzers, reflecting the diverse needs of various industries and applications.

Alkaline Water Electrolyzer (AWE): AWE electrolyzers are projected to generate a revenue of $721.94 million in 2024. This type of electrolyzer is well-established and has been the workhorse of the hydrogen production industry for many years. Its reliability and ability to produce hydrogen at scale make it a preferred choice for industrial applications where large volumes of hydrogen are required.

Proton Exchange Membrane (PEM) Electrolyzer: PEM electrolyzers are expected to have a market revenue of $1771.01 million in 2024. PEM technology has gained significant traction due to its high efficiency, compact design, and ability to respond quickly to changes in power input. This makes it particularly suitable for applications where space is limited and the hydrogen production needs to be flexible, such as in fuel cell vehicles and distributed power generation.

Other Types: Other types of electrolyzers, which include emerging technologies such as Anion Exchange Membrane (AEM) electrolyzers and Solid Oxide Electrolyzers (SOEC), are anticipated to contribute $655.51 million to the market revenue in 2024. These technologies are still in the development phase but show great promise in terms of efficiency and cost-effectiveness, especially for renewable energy integration and high-temperature applications.

In 2024, PEM electrolyzers are expected to hold the largest market share, accounting for approximately 56.25% of the total market revenue. This is due to the increasing demand for high-purity hydrogen in applications such as fuel cells and the automotive industry, where PEM electrolyzers excel. AWE electrolyzers follow with a market share of 22.93%, leveraging their established position in large-scale industrial hydrogen production.

Applications Analysis

Industry: The industrial sector is expected to generate a revenue of $1037.66 million in 2024. Industries such as chemicals, petrochemicals, and steel manufacturing have long relied on hydrogen for various processes, and the demand for clean hydrogen is growing as these industries aim to reduce their carbon footprints.

Power Plants and Energy Storage: This application is projected to have a market revenue of $956.35 million in 2024. The integration of electrolyzers with power plants and energy storage systems is becoming increasingly important as the world transitions to renewable energy sources. Electrolyzers can store excess renewable energy as hydrogen, which can then be used to generate electricity during periods of high demand or low renewable energy production.

Fueling for Vehicle: The market revenue for fueling vehicles is expected to reach $734.30 million in 2024. The growth of the hydrogen fuel cell vehicle market is driving the demand for hydrogen fueling infrastructure, making this application a significant contributor to the electrolyzer market revenue.

Others: Other applications, which include uses in the electronics, pharmaceutical, and food industries, are anticipated to contribute $420.15 million to the market revenue in 2024. These industries have specific requirements for high-purity hydrogen, and the demand is expected to grow as these sectors expand and adopt more sustainable practices.

In 2024, the industrial application is expected to hold the largest market share, accounting for approximately 32.96% of the total market revenue. This is due to the continued reliance on hydrogen in various industrial processes and the ongoing efforts to decarbonize these industries. Power plants and energy storage follow with a market share of 30.38%, reflecting the growing importance of energy storage solutions in the renewable energy transition. Fueling for vehicles is expected to hold a market share of 23.32%, driven by the expansion of the hydrogen fuel cell vehicle market. Other applications are projected to hold a combined market share of 13.34%

Market Revenue and Share by Segment

5. Regional Electrolyzer Market Overview

Asia is projected to lead the global electrolyzer market with a revenue of $1,539.24 million in 2024. This region’s dominance is attributed to its rapid industrialization, growing energy demands, and increasing focus on renewable energy sources. Countries like China and India are at the forefront of this growth, with substantial investments in hydrogen infrastructure and research and development. The region’s large population and expanding economies provide a fertile ground for the adoption of electrolyzer technologies, particularly in the industrial and transportation sectors.

Europe follows closely with a market revenue of $840.80 million in 2024. The region has been a pioneer in the development and deployment of electrolyzer technologies, driven by stringent environmental regulations and a commitment to reducing carbon emissions. European countries, especially Germany and the United Kingdom, have been investing heavily in hydrogen technologies to meet their climate goals and energy security needs. The region’s strong industrial base and advanced research capabilities also contribute to its significant market share.

North America is expected to generate a revenue of $531.19 million in 2024. The United States and Canada are the primary drivers of this market, with a focus on innovation and technological advancements in electrolyzer systems. The region benefits from a robust energy infrastructure and a supportive policy environment, which encourages the adoption of hydrogen technologies in various applications, including power generation and transportation.

South America is anticipated to contribute $48.72 million to the market revenue in 2024. While the region’s market is smaller compared to others, it is growing at a notable pace. Countries like Brazil and Argentina are showing increasing interest in hydrogen technologies, driven by the need to diversify their energy mix and reduce dependence on fossil fuels.

The Middle East is expected to have a market revenue of $36.07 million in 2024. The region’s wealth in natural resources and its strategic location make it an important player in the global energy market. Countries in the Middle East are increasingly looking to diversify their economies and reduce carbon emissions, leading to a growing interest in hydrogen technologies.

Asia is expected to be the largest regional market in 2024. The region’s rapid industrialization, large population, and growing energy demands make it a significant contributor to the global electrolyzer market. Asia’s focus on renewable energy and its investments in hydrogen infrastructure and research and development are key factors driving its market leadership.

Global Electrolyzer Market Share by Region in 2024

6. Top 3 Companies in the Electrolyzer Market

John Cockerill

Company Introduction and Business Overview: John Cockerill, a Belgian company, is a leading provider of efficient and reliable solutions for the production of green hydrogen. The company has a long history dating back to 1817 and is known for its commitment to innovation and sustainability. John Cockerill offers a wide range of products and services, focusing on the industrial, mobility, and energy sectors.

John Cockerill offers a full range of pressurized alkaline electrolyzers, as well as pressurized and gas treatment equipment. Their electrolyzers are designed for friendly operation and maintenance, fast and easy installation, and commissioning. The company’s products are known for their reliability and continuity of service, making them suitable for various industries such as chemicals, glassmaking, and steelmaking.

In 2023, John Cockerill reported a revenue of 81.10 million USD in the electrolyzer market, making it one of the top companies in the industry.

Nel (Proton On-Site)

Nel, a Norwegian company, is a leading manufacturer of on-site hydrogen generators. Founded in 1996, Nel has grown to become a global player in the hydrogen technology market. The company is committed to reducing costs and scaling up product size and volume to meet the growing demand for hydrogen.

Nel offers a range of PEM (Proton Exchange Membrane) electrolyzers, which are known for their high efficiency, flexibility, and compatibility with renewable energy sources. The company’s products include containerized PEM electrolyzers, which are designed for easy outdoor installation and turnkey operation.

In 2023, Nel reported a revenue of 156.66 million USD in the electrolyzer market, reflecting its strong market position and growth potential.

Peric718

Peric718, a Chinese company, is a state-level R&D institute specializing in hydrogen generation engineering. Founded in 1966, Peric718 is located in Handan City, Hebei Province, China, and covers an area of approximately 900,000 square meters. The company is engaged in research, design, manufacture, and technical service, focusing on the development of hydrogen energy technologies.

Peric718 offers a range of PEM-type hydrogen generators, which are designed to produce high-purity hydrogen using pure water electrolysis. These generators are compact, energy-efficient, and environmentally friendly, making them suitable for various applications, including renewable energy storage, hydrogen infrastructure, and industrial processes. The company’s products are known for their high performance, reliability, and low maintenance costs. In 2023, Peric718 reported a revenue of 129.11 million USD in the electrolyzer market, highlighting its growing influence in the global hydrogen technology sector.

Major Players