Hydrogen Electrolyzer Market

Hydrogen Electrolyzer Market is segmented By Product Type (Alkaline Electrolyser, Proton Exchange Membrane Electrolyser, Solid Oxide Electrolyser), By End-Use Industry (Automotive Industry, Electricity, Pharmaceutical and Biotechnology Industry, Metal Industry, Glass Industry, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

Hydrogen Electrolyzer Market Scope

Metrics	Details
Market CAGR	14.24%
Segments Covered	By Product Type, By End User Industry, and By Region
Report Insights Covered	Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.
Fastest Growing Region	Asia Pacific
Largest Market Share	North America

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Hydrogen electrolyzer market size is projected to reach USD billion by 2029, with growth at a CAGR of 14.24% over the forecast period 2022-2029. 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 electrolyzer's technical and economic advantages include producing pure Hydrogen on-site and the low-cost method for producing highly efficient hydrogen.

Regional Classification:

According to the DataM Intelligence market research report, the global Hydrogen electrolyzer market is divided into North America, South America, Europe, Asia-Pacific, Middle East and Africa. In North America, renewable power generation has a huge market presence and increased disposable income/investments among the respective companies towards future sustainable technologies. Green hydrogen is a potentially significant way for renewable-energy-powered grids to store. Most early-stage work on hydrogen's grid storage potential happens in North American countries like U.S. and Canada. Growing public and private investment in the development of green hydrogen is expected to propel the North American hydrogen electrolyzer market during the forecast period.

In Europe, the production capacity for clean hydrogen continues to grow, driven by increasing government support and new large-scale projects being announced regularly. Germany, Netherlands and Austria are undertaking significant green hydrogen projects with financial support from the European Union's green horizons project. The huge market presence, government support, and increased investments have led major companies to expand, acquire and innovate new launches in the region. It will be a major factor in driving the growth of the European hydrogen electrolyzers market.

Asia-Pacific is a rapidly industrializing region that is experiencing high economic growth. The industrialized countries of the region, such as South Korea, Japan and Australia, are rolling out green hydrogen projects to increase carbon-free energy production and develop alternative energy sources. Due to growing demand from many key regional countries, the Asia-Pacific hydrogen electrolyzer market will likely witness sustained growth in the coming years.

The increasing demand for renewable energy is a major driver for the global hydrogen electrolyzer market:

The tremendously improving demand for renewable energy has positively impacted the hydrogen electrolyzer market in recent times and is expected to grow even further in the forecast period. Increasing investment by the leading players to establish new renewable energy sources for electricity generation to meet the growing global demand for electricity is a major factor in driving the demand for hydrogen electrolyzers. Growing innovation and adoption of hydrogen fuel cell vehicles also create demand for sustainably produced hydrogen.

The easy availability of alternatives is expected to restrain the global hydrogen electrolyzer market:

Over the forecast period, easy availability of other renewable energy sources such as natural gas and electric battery charging stations with growing utilization of these resources may hamper the global hydrogen electrolyzer market's growth. Further increasing consumption of the other resources, such as rising oil consumption and increasing natural gas utilization in various developing countries, may hamper the demand for hydrogen electrolyzers.  

Increasing demand for efficient energy storage systems is expected to generate new opportunities for the global market:

Government initiatives and funding to fulfill the local demand of the electricity and electricity storage systems with post fulfillment of hydrogen storage tanks through Hydrogen electrolyzers and distribution of the electricity to the respective grids. Growing demand for highly efficient and low-space energy storage systems to operate renewable energy sources such as solar and wind has increased public and private investment in developing hydrogen electrolyzers.

The high cost of hydrogen produced through electrolysis is expected to present challenges for the global market:

A large amount of electricity is required to produce hydrogen through electrolysis. Therefore, the hydrogen produced through electrolysis endures high production costs. Major innovation and development of new technologies are required to decrease production costs. The high cost of hydrogen produced through electrolysis will be a major challenge for the growth of the global hydrogen electrolyzers market.

COVID-19 Impact Analysis

The global hydrogen electrolyzers market was affected by the COVID-19 pandemic. The demand for the Hydrogen electrolyzer amid Covid-19 is increasing due to a surge in government funding and investment in cleaner and green energy for an emission-free environment. Hydrogen electrolyzer market demand will increase once the covid-19 situation gets under control due to a surge in demand for Hydrogen by the manufacturing industries, including pharmaceuticals, biotechnology, automotive, metal and glass industries. The pandemic is not expected to impact the long-term growth of the global hydrogen electrolyzer market.

Recent Developments in the Industry:

1. In April 2022, the Government of India announced plans to introduce a production-linked incentive (PLI) for manufacturing hydrogen electrolyzers in India.
2. As per the article published by Maritime, In July 2022, Shell commenced construction of Europe's largest hydrogen electrolyzer plant with a capacity of 200MW at Rotterdam, Netherlands.

Market Segmentation:

The scope of the report covers segmentation based on type, end-user, and region. The global hydrogen electrolyzer market is segmented by type into an alkaline electrolyzer, proton exchange electrolyzer and solid oxide electrolyzer. The global Hydrogen electrolyzer market is segmented by end-user into the automotive industry, electricity, pharmaceutical and biotechnology industry, metal industry, glass industry and others.

1. Alkaline Electrolyzer: The alkaline electrolyzer uses potassium hydroxide and sodium hydroxide solutions as an electrolyte for Hydrogen production. The alkaline electrolyzer consists of the two electrodes inserted in the electrolyte solutions in which chemical reactions occur after a sufficient voltage is supplied. The response separates water molecules into OH⁻ ions and an H2 molecule at the anode and cathode, respectively.
2. Proton Exchange Membrane Electrolyzer: Proton exchange membrane (PEM) electrolysis process involves the electrolysis of water in ionically conductive solid polymer electrolyte (SPE) such as polyether and lithium phosphorus oxy-nitride (LiPON) electrolytes. The electrolyte and two electrodes are sandwiched between two bipolar plates, transporting water and product gases from the cell. When voltage is applied to this electrolyte between two electrodes, negatively charged oxygen emits an electron, proton, and oxygen in the water molecules. The Hydrogen gas is produced at the cathode, whereas protons, electrons and oxygen are at the anode side. The PEM electrolyzer overcomes the issues of low current density, partial load and low-pressure operation.
3. Solid Oxide Electrolyzer: Solid oxide electrolyzer is a regenerative solid oxide fuel cell that produces Hydrogen gas and oxygen by electrolyzing water using a solid oxide, or ceramic, electrolyte. A Solid Oxide Electrolyzer is a reversed version of the related fuel cell (Solid Oxide Fuel Cell, SOFC). The efficiency of such a cell is extremely high since it operates at relatively high temperatures (700-1000 °C). The two electrolysis products, Hydrogen and oxygen, are formed on each side of the cell.

Competitive Analysis:

The global hydrogen electrolyzer market is consolidated, with major international players having a large market share. The major players use project acquisition, partnership, market expansion and product launches to hold their market position.

Major Companies:

Some key companies contributing to the global Hydrogen electrolyzer market growth include Siemens AG, Toshiba Corporation, Cummins Inc., McPhy Energy S.A, Enapter S.r.l., Nel ASA, H-tec Systems, Inc., ITM Power, Amtronics, Green Hydrogen Systems, H2B2 Electrolysis Technologies SL and Plug Power Inc., among others.

Frequently Asked Questions

What is the Projected CAGR value of the Hydrogen Electrolyzer Market?

Hydrogen Electrolyzer Market is expected to grow at a CAGR of 14.24% during the forecasting period 2022-2029.

Which region controlled the global market during 2022-2029?

North America region Controls theHydrogen Electrolyzer Marketduring 2022-2029.

Which is the fastest growing region in the Hydrogen Electrolyzer Market?

Among all regions, Asia Pacific is the fastest growing market share during the forecast period.

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