NEWARK, Del, Sept. 04, 2024 (GLOBE NEWSWIRE) -- According to Future Market Insights (FMI), the global electrolyzer market is projected to grow from USD 4.7 billion in 2024 to USD 42.4 billion by 2034, with a CAGR of 24.6%. This rapid expansion is fueled by the rising demand for green hydrogen as a renewable energy source and global efforts to reduce carbon emissions, leading to increased investments in electrolysis technology by governments and industries worldwide.
Understanding the Electrolyzer Market:
The global electrolyzer market is witnessing a period of rapid expansion, driven by the growing global emphasis on green energy solutions and the increasing adoption of hydrogen as a key energy carrier. Electrolyzers, which are devices that use electricity to split water into hydrogen and oxygen, are central to the production of green hydrogen—a critical component in the transition towards a more sustainable energy system.
Electrolyzers come in several types, including Proton Exchange Membrane (PEM), Alkaline, and Solid Oxide Electrolyzers (SOE), each with distinct advantages and applications. These technologies are now being deployed at scale in various sectors, supporting everything from grid balancing to fuel cell vehicles and industrial hydrogen applications. The drive towards carbon neutrality and the global agenda to curb greenhouse gas emissions have positioned electrolyzers as a cornerstone technology in achieving these goals.
Market Value and Growth Projections:
As of 2024, the global electrolyzer market is valued at approximately USD 4.7 billion. With the increasing focus on decarbonization, supportive government policies, and continuous advancements in electrolyzer technologies, the market is poised for exponential growth. Projections indicate that the market will expand at a compound annual growth rate (CAGR) of 24.6% from 2024 to 2034, reaching a staggering USD 42.4 billion by 2034.
This robust growth is fueled by the increasing demand for green hydrogen, which is expected to play a crucial role in the global energy mix. The expanding application of electrolyzers in sectors such as transportation, industrial processing, and power generation, coupled with significant investments in hydrogen infrastructure, are key factors driving this market expansion.
Growth Outlook of Electrolyzer Market by Country:
| Country | CAGR from 2024 to 2034 | |
| United States | 25.0% | |
| Japan | 25.9% | |
| United Kingdom | 26.2% | |
| South Korea | 26.9% | |
| China | 23.8% | |
“Electrolyzers are emerging as a cornerstone in the clean energy shift, driven by their essential role in green hydrogen production. With increasing investments and strong governmental support, their integration with renewable energy sources is accelerating, highlighting their pivotal position in the future of sustainable energy," – opines Nikhil Kaitwade, Associate Vice President at Future Market Insights (FMI).
Prominent Drivers of the Electrolyzer Market:
Several key drivers are propelling the electrolyzer market growth:
- Green Energy Transition: As countries worldwide commit to reducing carbon emissions, there is a growing shift towards renewable energy sources. Green hydrogen, produced via electrolyzers powered by renewable energy, is emerging as a vital component in achieving these decarbonization goals.
- Technological Advancements: Continuous innovations in electrolyzer technology are enhancing efficiency and reducing costs. The development of more efficient PEM and alkaline electrolyzers, along with advancements in SOE technology, is making green hydrogen production more economically viable.
- Industrial Demand: The industrial sector, particularly in chemicals and refining, is a major consumer of hydrogen. The push for cleaner production processes is driving the adoption of green hydrogen, further boosting demand for electrolyzers.
- Energy Storage and Grid Balancing: Electrolyzers play a critical role in energy storage solutions, particularly in balancing grids with a high penetration of renewable energy sources like wind and solar. This application is becoming increasingly important as more renewable energy projects come online.
Challenges Faced by the Electrolyzer Market:
Despite the promising growth outlook, the electrolyzer market faces several challenges:
- High Capital Costs: The initial investment required for setting up electrolyzer facilities remains high, which can be a barrier to entry for many potential players in the market.
- Infrastructure Limitations: The current hydrogen infrastructure is underdeveloped, particularly in terms of storage and distribution. Significant investments are needed to build a robust supply chain that can support large-scale hydrogen deployment.
- Energy Source Dependency: The viability of green hydrogen is heavily dependent on the availability of low-cost renewable energy. In regions where renewable energy is not abundantly available or remains costly, the economics of green hydrogen production can be challenging.
- Technological Hurdles: While advancements are being made, there are still technological challenges related to the efficiency and longevity of electrolyzers, particularly in harsh industrial environments.
Explore the Detailed Report for Full Industry Insights! https://www.futuremarketinsights.com/reports/electrolyzer-market
Key Players:
- Nel Hydrogen (Norway)
- Asahi Kasei (Japan)
- Hydrogenics (Canada)
- Shandong Saikesaisi Hydrogen Energy Co., Ltd. (China)
- Teledyne Energy Systems (United States)
- Siemens Energy (Germany)
- Kobelco Eco-Solutions (United States)
- ITM Power (United Kingdom)
- Ballard Power Systems (Canada)
- McPhy Energy (France)
- Plug Power (United States)
- ABB (Switzerland)
- De Nora (Italy)
- Green Hydrogen Systems (Denmark)
Regional Analysis:
The USA electrolyzer market is set to grow at 25% CAGR, reaching USD 7.6 Billion by 2034, driven by eco-friendly energy demands. The UK, China, Japan, and South Korea also see significant growth, fueled by investments, clean energy needs, and tech advancements.
Electrolyzer Market Segmentation Analysis:
By Type:
- PEM Electrolyzer
- Alkaline Electrolyzer
- Solid Oxide Electrolyzer
By Capacity:
- ≤ 500 kW
- 500 kW to 2 MW
- Above 2 MW
By Application:
- Steel plant
- Power plants
- Electronics and photovoltaics
- Energy storage for fuel cells
- Industrial gases
- Power to gas
- Others
By Region:
- North America
- Latin America
- Europe
- East Asia
- South Asia
- Oceania
- The Middle East and Africa
Browse FMI’s Electrolyzer Market Report Coverage from Different Publications:
Electrolyzer Market from USD 4.7 Billion to USD 42.4 Billion by 2034, Fueled by Green Hydrogen Revolution | Future Market Insights, Inc.
Electrolyzer Market Projected to Reach at USD 159.74 Billion by 2033 with a 32.21% CAGR | Future Market Insights, Inc.
About the Industrial Automation Domain at Future Market Insights:
The Industrial Automation team at Future Market Insights offers expert analysis, time-efficient research, and strategic recommendations with an objective to provide authentic insights and accurate results to help clients worldwide. With a repertoire of over 100+ reports and 1 Billion+ data points, the team has been analyzing the industry lucidly in 50+ countries for over a decade. The team provides a brief analysis of key trends including competitive landscape, profit margin, and research development efforts.
Author:
Nikhil Kaitwade (Associate Vice President at Future Market Insights, Inc.) has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.
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