Electrolyzers Market To Generate $51,992.8 Million Revenue by 2030

The electrolyzers market size is expected to advance at a CAGR of 94.7% during 2024–2030, to reach USD 51,992.8 million by 2030. This would be due to the increasing demand for green ammonia produced via electrolysis for fertilizer manufacturing, rising adoption of fuel-cell electric vehicles, government initiatives for achieving net-zero emissions, and surging number of green hydrogen projects.

According to a government source, ammonia produced through traditional methods, using methane, water, and air, via steam–methane reforming (SMR) and the Haber process, generates around 1.8% of the global carbon dioxide emissions and consumes a lot of energy. Therefore, the demand for green ammonia produced through electrolysis is increasing, which will also help countries achieve their net-zero targets by 2050.

Various large-scale green hydrogen projects, such as HyDeal Ambition (67 GW), Reckaz (30 GW), Western Green Energy Hub (28 GW), and AMAN (16–20 GW), have been initiated around the world.

Additionally, the growth of the electrolyzers market is driven by the government initiatives to achieve sustainability. For instance, in 2021, the U.S. government passed the Bipartisan Infrastructure Law, which aims at providing grants for the creation of hydrogen hubs. Similarly, in 2022, the European Commission approved a funding of around USD 5.8 billion to support its first hydrogen-related project.

Synergy with Renewable Energy Sources

Renewable energy can be used in electrolyzers to generate clean hydrogen. The excess renewable energy, available during periods of low demand or surplus production, can be used to power these devices, to generate clean hydrogen. That hydrogen can be used in various ways, such as providing long-duration energy storage, decarbonizing high-emission industrial activities, and as a fuel for heavy-duty trucks, trains, and ships.

Proton Exchange Membrane (PEM) Electrolyzer Demand To Grow Significantly

The PEM electrolyzer category is expected to witness a CAGR of 94.9% during the forecast period. This is because these variants can use the excess energy from wind turbines and solar plants. Additionally, they are compact compared to alkaline electrolyzers, produce high-purity hydrogen, and are easy to cool.

APAC To Experience Significant Growth

The APAC region is expected to advance at a significant rate, due to the increasing number of green hydrogen projects and the rising demand for fuel-cell electric vehicles in China, South Korea, and Japan.

Moreover, many projects have been initiated for the production of clean energy and green H2, including the 28-GW Western Green Energy Hub, 4-GW HyEnergy Zero Carbon Hydrogen, and 14-GW Asian Renewable Energy Hub in Australia and the 5-GW Beijing Jingneng in China.

The rising demand for fuel-cell electric vehicles is also one of the major factors behind the market growth. According to government sources, Japan is relying on H2 vehicles to become a carbon-neutral economy by 2050, having set a goal of 200,000 FCEVs by 2025, compared to just 3,600 in 2019. Further, China and South Korea are focusing on the development of hydrogen-powered heavy-duty trucks and buses.

The major electrolyzers market players are Nel ASA, Siemens AG, Plug Power Inc., Enapter S.r.l., Cummins Inc., ITM Power PLC, McPhy Energy S.A., Beijing Sinohy Energy Co. Ltd., LONGi Green Energy Technology Co. Ltd., and Bloom Energy Corporation.