The global Hydrogen electrolyzer market size was worth US$ 86,547.53 Thousand in 2020 and is estimated to reach US$ YY Thousand by 2028, growing at a CAGR of 25.0% during the forecast period (2021-2028).
Electrolysis is the process of utilizing electricity to split water into Hydrogen and oxygen. The different processes used for Hydrogen production include traditional alkaline electrolysis and PEM electrolysis. The systems can produce on-site demand for Hydrogen, pressurized Hydrogen without compressors and 99.999% pure, dry and carbon-free Hydrogen. Hydrogen electrolyzers' technical and economic advantages include producing pure Hydrogen on-site and the low-cost method for producing highly efficient Hydrogen.
By type, the global Hydrogen electrolyzer market is segmented into an alkaline electrolyzer, solid oxide electrolyzer and PEM electrolyzer..
Based on the end-use industry, the market is segmented into automotive, electricity, pharmaceutical and biotechnology, metal, glass and others, out of which the electricity segment had the highest market share in 2019.
The growing launch of different types of Hydrogen electrolyzer by the key players has added great opportunities for the market to proliferate during the forecast period. For example, In March 2019, H-TEC Systems launched Megawatt PEM Electrolyzer ME 450/1400 with the potential of producing 450 kgs of Hydrogen per day.
Market Dynamics
Drivers
- Increasing demand for highly efficient and low-space utilizing energy storage systems coupled with government funding and support
- Growing demand of renewable energy coupled with increasing investment by the leading players
Restraints
- Easy availability of alternatives and high investment cost hampers the market growth
Opportunities
- Growing technological advancements in the Hydrogen electrolyzer design and function
Growing technological advancements in the Hydrogen electrolyzer design and function
Growing technological advancement with the compact design of the Hydrogen electrolyzer for the Hydrogen production and systems required in the end-use industry has created ample opportunity for this market. For instance, on July 11 2019, Nel launched a new A1000 Hydrogen alkaline electrolyzer designed with a new medium-scale capacity of around 2 ton/day solution.
The new technology-based A1000 is made on the A-Range atmospheric alkaline platform with a range of 600 to 970 Nm3/hr, which is flexible in operating and scale-up according to customer demand. In 2018, McPhy launched "Augmented McLyzer" technology with a unique combination of high-pressure alkaline Hydrogen electrolysis's core expertise.
Also, on July 8, 2021, Hyundai Motor, Kia and Next Hydrogen signed an MOU to develop an advanced alkaline water electrolysis system that helps produce green Hydrogen economically.
Growing investments in new technology such as green Hydrogen is another factor that is expected to create immense opportunities for the Hydrogen electrolyzer. Various key players are coming together to accelerate the market share for green Hydrogen in recent times. Green Hydrogen can practically eliminate emissions by powering water electrolysis using renewable energy, becoming increasingly abundant and often generated at less-than-ideal times, accelerating the popularity of the new technology.
Geographical Analysis
The Middle East and Africa Hydrogen electrolyzer market was valued at US$ 2,469.98 Thousand in 2020 and is estimated to grow at a CAGR of 8.9% over the forecast period to reach US$ YY Thousand by 2028.
At the beginning of February 2021, global Hydrogen capacity increased to 26GW, over seven times more than the 3.5GW available one year ago. However, this is still not enough for the world to meet the demand forecasts because over 1000GW of electrolyzer capacity needs to be established by 2050. With demand established and increasing, particularly for green Hydrogen, one of the options being explored is green Hydrogen production in the Middle East. There are several natural advantages to be leveraged, most obviously the reliable access to inexpensive solar energy and wind. In addition to creating green Hydrogen, the Middle East is primed to become more competitive by scaling up and refining its ammonia production capacity and logistical infrastructure.
For instance, In December 2020, the Chairman of Saudi Arabia's ACWA Power announced an indication of the wider region's potential to become a green Hydrogen powerhouse.
Moreover, a new $6 billion Hydrogen project partnership between NEOM and US-based Air Products would establish facilities capable of producing 650 tons of carbon-free Hydrogen per day and 1.2 Million tons of green ammonia per year.
Additionally, in January 2021, Siemens Energy signed MoUs with Masdar City and Mubadala Investment Company to advance the growth of green Hydrogen in the region. The two agreements with renewable energy developer Masdar and Mubadala, the Abu Dhabi state-owned global investment firm and other partners, focus on expediting green Hydrogen development.
Moving to Africa, the economies continue to further their green ambitions; clean Hydrogen is increasingly viewed as a significant pathway to reducing imports of fossil-based fuels and chemicals. Africa is considered well-placed for developing a green Hydrogen economy with a diverse wealth of natural resources.
The region has abundant resources, including extensive solar and wind, which means that electricity through renewable can be produced significantly cheaper than in other parts of the world. In addition, green Hydrogen's capacity to operate as a storage system for excess renewable energy can help subdue the irregularities and gaps in renewable energy supply and provide remote communities with permanent energy access.
Green Hydrogen is growing as a more appealing alternative to fossil fuel-based Hydrogen, improving technology and decreasing electrolyzers and fuel cells costs. Therefore, green Hydrogen is drawing more attention day by day and taking shape in different parts of Africa.
For instance, the establishment of the African Hydrogen Partnership (AHP) has laid out a framework for its vision of the Hydrogen economy in Africa, beginning with the construction of power-to-gas renewable energy hubs in large metropolitan areas, ports and mining centers along important trans-African highways.
Moreover, African governments, including Morocco and South Africa, have voiced support for and actively pursued more environmental policies. For instance, The Moroccan government entered into a partnership with Germany to develop the first green Hydrogen plant in Africa. In addition, The South African government started "Hydrogen South Africa" (HySA), which is working on expanding local knowledge and innovation in Hydrogen technology.
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