Global Hydrogen Electrolyzer Market Overview
The Hydrogen Electrolyzer market was valued at USD 310.1 MN in 2020 and is predicted to grow at a CAGR of more than 6% during the forecast period. A hydrogen electrolyzer or simply electrolyzer is an assembly that uses electricity to break water into hydrogen and oxygen. It occurs through an electrochemical reaction that does not require external components or moving parts. The assembly consists of an anode, a cathode, and an electrolyte. In this process, the hydrogen is produced through electrolysis and then compressed and stored to power an engine during periods with higher energy requirements. Electrolysis is reliable and can produce ultra-pure hydrogen (> 99.999%) in a non-polluting manner when the electrical source is renewable. Hydrogen from electrolysis is green. Electrolyzer produces very pure hydrogen at a much cheaper rate than gas supplied in high-pressure cylinders. It can be made directly at the location thus, eliminating the need of storage.
According to Value Market Research, the global hydrogen electrolyzer market size was valued at around USD 310.1 million in 2020 and is estimated to grow at a CAGR of about 6% during the forecast period 2021 to 2027.
Hydrogen Electrolyzers are widely being used in a host of industries across a large number of applications. Key applications markets for Hydrogen Electrolyzer include Chemicals, Automobile, Energy, Food and Beverages, Pharmaceutical & Biotechnology, Electronics, Glass and Others (Metal production and Fabrication). Increasing awareness among end-users regarding environmental concerns is expected to bring a major shift towards the installation of Hydrogen Electrolyzer. Moreover, to ensure an uninterrupted and cost-effective supply of hydrogen is also compelling end-user industries to go for the installation of Hydrogen Electrolyzer. Onsite hydrogen generation extends many benefits to the end-user, such as a decrease in transportation cost and just-in-time availability while significantly lowering the carbon footprint. This, in turn, is driving the demand for Hydrogen Electrolyzer across the world. However, the high initial investment is one of the major factors arresting the growth of the global Hydrogen Electrolyzer industry.
Hydrogen produced from the electrolysis process is c
onsidered a green fuel of the future. Governments worldwide are highly focused on creating sustainable hydrogen for which electrolyzers are expected to play a vital role over the coming years. The global hydrogen electrolyzer market is highly fragmented. Acta S.p.A, Ballard Power Systems, HyperSolar, Inc., ITM Power, Kingkar Eco-Technologies Co., Ltd., Plug Power Inc., Proton Power Control Pvt Ltd., and Quantum Fuel Systems Technologies Worldwide, Inc are key players operating in the market. New companies are entering into hydrogen electrolyzer market space through innovative product launches.
In this market research report, the market is segmented by type, end-user and region.
Analysis by Type
By type, the market has been segmented into Polymer Electrolyte Membrane (PEM) Electrolyzer, Alkaline Water Electrolyzer and Solid Oxide Electrolyzer. Alkaline Water Electrolyzer is dominating the segment accounting more than 50% market share in 2020 in terms of revenue. As the name implies, alkaline electrolyzers use the alkaline solution as the electrolyte. More commonly, an aqueous potassium hydroxide (KOH) solution is used. Other prominently used electrolytes include sodium chloride (NaCl), sulphuric acid (H2SO4), potassium hydroxide (KOH), and sodium hydroxide (NaOH). Alkaline is among the prominently used technology for hydrogen production on a commercial scale. It is widely employed attributed to its high purity hydrogen production and low cost. Alkaline produces hydrogen with high purity (above 99.8%) and is relatively low cost. The low cost emanates from the material cost, capital, and energy expenses. However, the technology is a slightly lower lifetime and less efficiency, which hampers segment growth.
Analysis by Application
On the basis of application, the market is segmented into chemicals, automobile, energy, food and beverages, pharmaceutical & biotechnology, electronics, glass and metal production and fabrication. Energy holds the largest market share in 2020 followed by chemical and food and beverages. Hydrogen electrolyzers are majorly consumed in electric power generator in power plants. The rising environmental concern and the growing need to adopt a sustainable approach drives the demand for hydrogen electrolyzers within the energy sector. Hydrogen production through the process of electrolysis can provide synergy opportunities with variable power generation, which is characteristic of some renewable energy technologies.
Analysis by Region
The market has been studied across North America, Europe, Asia Pacific, Latin America and Middle East and Africa.
North America will be dominating the global hydrogen electrolyzer market during the forecast period attributed to a vast end-user market base and presence of large power generation units. Increased investments among the companies towards future sustainable technologies mentioned below also add to the anticipated growth in this region. Plug plans to spend $290 million building the Largest Green Hydrogen Production Facility and an electrical substation in Alabama.
The Asia Pacific is projected to grow at the fastest pace during the forecast period. The region is the second-fastest-growing, with China as the leading contributor. China provides healthy competition for Europe. National hydrogen strategies have been flourishing worldwide, and the Asia Pacific is no exception. As the urgency of greenhouse gas emission mitigation has increased, many countries have begun to take action to decarbonize their economies. China aggressively drives hydrogen and fuel cell development and is on track to outpace expansion in Europe and the US, focusing on hydrogen busses and trucks. China local authorities have actively rolled out plans to boost the sector.
Market Segmentation covered in the Report:
- Polymer Electrolyte Membrane (PEM) Electrolyzer
- Alkaline Water Electrolyzer
- Solid Oxide Electrolyzer
- Food and Beverages
- Pharmaceutical & Biotechnology
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.