The hydrogen electrolyzer market plays a vital role in the production of hydrogen from water. Electrolyzers use electricity to split water into hydrogen and oxygen and are used in various applications such as transportation, power generation, and industrial processes. Proton exchange membrane (PEM) electrolyzers dominate the market, providing efficient and cost-competitive solutions for small to large-scale hydrogen production.
The global hydrogen electrolyzer market is estimated to be valued at USD 1.12 Bn in 2024 and is expected to reach USD 25.45 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 56.2% from 2024 to 2031.
Key Takeaways
Key players operating in the hydrogen electrolyzer market are Siemens Energy AG, ITM Power plc, Nel ASA, Air Products and Chemicals, Inc., McPhy Energy S.A., Cummins Inc., Plug Power Inc., Thyssenkrupp AG, Ballard Power Systems Inc., Enel Green Power S.p.A., Hydrogenics (a Cummins Inc. company), Proton OnSite (a Nel ASA company), H2B2 Electrolysis Technologies, Green Hydrogen Systems A/S, and Anovion Battery Materials
The growing demand for clean energy, coupled with supportive government policies, is driving significant growth in the Hydrogen electrolyzer market share across Europe, North America, and Asia Pacific are formulating favorable regulations to boost hydrogen adoption and reduce dependence on fossil fuels.
Major electrolyzer manufacturers are expanding globally to cater to the growing demand. Companies are strengthening their presence in high-growth regions through new product launches, partnerships, and mergers and acquisitions. Consolidation activities are expected to intensify in the coming years.
Market Key Trends
One of the major trends enabling growth in the hydrogen electrolyzer market is the increasing focus on renewable hydrogen production. Electrolyzers play a vital role in the efficient and cost-effective generation of hydrogen from renewable power sources like solar and wind. This helps decarbonize various application industries and support the energy transition. Several governments are providing subsidies and incentives for electrolyzer-based green hydrogen production using clean electricity. This will boost the adoption of electrolyzers globally.
Porter’s Analysis
Threat of new entrants: High capital requirements and need to deal with established players in this industry segment make entry quite difficult for new players.
Bargaining power of buyers: Buyers have low bargaining power as there are only a few established players in the market controlling majority of the total supply.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to limited availability of raw materials and components required for manufacturing hydrogen electrolyzers.
Threat of new substitutes: Opportunity for substitutes is low as hydrogen electrolyzers have few alternatives for large-scale green hydrogen production.
Competitive rivalry: Intense competition exists among the key industry players to gain higher market share through capacity expansions and technological innovations.
Geographical Regions
Hydrogen Electrolyzer Market Regional Analysis currently holds the largest share of the global hydrogen electrolyzer market in terms of value due to increasing investment towards developing hydrogen infrastructure and fuel cell vehicles.
Asia Pacific is poised to witness the fastest growth during the forecast period owing to strong government support for hydrogen economy and presence of emerging economies like China and Japan rapidly focusing on clean energy.
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About Author:
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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