Home Energy And Power Electrolyzer Market Size, Growth & Trends by 2033

Electrolyzer Market Size, Share & Trends Analysis Report By Product  (Alkaline Electrolyzer, PEM Electrolyzer, Solid Oxide Electrolyzer), By Capacity  (Less Than 500 kW, 500 kW To 2 MW, Above 2 MW), By Application  (Power Generation, Transportation, Industry Energy, Industry Feedstock, Building Heat & Power, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Report Code: SREP2182DR
Last Updated : Oct 23, 2024
Author : Straits Research
Starting From
USD 1850
Buy Now

Electrolyzer Market Size

The global electrolyzer market size was valued at USD 467.8 million in 2024 and is expected to reach USD 2515.2 million by 2033 with a CAGR of 23.4% during the forecast period (2025-2033). 

The growing demand for green hydrogen, supportive government initiatives, and advancements in electrolysis technology are driving the market.

Electrolysis is a promising method for creating carbon-free hydrogen from renewable and nuclear sources. Electrolysis is the process of splitting water into hydrogen and oxygen using electricity. This reaction occurs in a device known as an electrolyzer. Electrolysis is utilized by electrolyzer devices to separate water into hydrogen and oxygen. Cathode, anode, and a membrane make up the electrolyzers.

The cathode side collects hydrogen, which is then preserved for use in many industries. Either oxygen is discharged into the atmosphere or captured for use in subsequent industrial processes. Electrolyzers can come in various sizes, from tiny, appliance-sized equipment well-suited for small-scale dispersed hydrogen production to big, central manufacturing plants that might be directly connected to renewable or other non-greenhouse gas generating sources of energy generation.

According to estimates, approximately 95% of the hydrogen produced is derived from fossil fuels. 1% to 4% of hydrogen is created by electrolysis. With increased emphasis on lowering carbon footprint, using hydrogen as a fuel in industrial applications like locomotive, manufacturing, and chemistry stimulates the use of hydrogen derived from renewable sources, including electrolyzers. This catalyzes the market expansion of electrolyzers. The expanding market for fuel cell vehicles also drives the market for electrolyzers, increasing demand for hydrogen fuel cells.

Additionally, favorable government policies that provide subsidies and other benefits serve as market drivers for electrolyzers. However, equipment supply limits impede the expansion of the market. In addition, the delay in granting permissions by local or national government bodies hinders the expansion of the electrolyzer business.

Due to the small number of manufacturers in the electrolyzer market, competition is mild. High investments are made in research and development to improve current properties. The market is somewhat competitive due to the field's lack of innovation and the significant capital expenditures required to enter it. Therefore, competitive rivalry in this market is mild.

Electrolyzer Market

Electrolyzer Market Growth Factors

Increased Concern Towards Lowering Carbon Emission

Concerns regarding carbon emissions and global warming have been brought to light. Governments across the globe have enacted numerous measures and regulations mandating a decrease in carbon emissions from diverse sectors. Electrolyzers create hydrogen by splitting water into hydrogen and oxygen using electricity. The electricity consumed is derived from either renewable or nonrenewable sources. In addition, hydrogen can be produced using an electrolyzer in conjunction with solar or wind energy sources. This approach promotes the production of carbon-neutral green hydrogen. To reduce their carbon footprint, many enterprises opt for on-site electrolyzers of 1-5 MW capacity, which significantly contributes to the expansion of the global electrolyzer market.

Declined Cost of Renewable Energy

Concerns about climate change, the increase in earth's temperature, and the worrisome rise in carbon emissions have led to a spike in the popularity of renewable energy sources. To act responsibly, many businesses have shifted from the traditional technique of generating power from fossil fuels to utilizing abundant natural resources such as solar, wind, natural gas, and water. However, creating such initiatives was accompanied by a significant initial expense. In contrast, many favorable government regulations have been enacted due to technology developments and strong advocacy for the benefits of renewable energy. Renewable energy costs have decreased with the added benefit of a more negligible carbon impact. These declining costs fuel the demand for electrolyzers. This is because electricity will be derived from renewable sources to develop green hydrogen.

Restraining Factors

Limited Technological Advancements

For many years, alkaline electrolyzers have been used to conduct electrolysis. As a result of their susceptibility to abrupt power surges, alkaline electrolyzers are unstable. Electrolyzers' market growth was hindered by the availability of other methods for producing hydrogen, which slowed the development of new technologies. In addition, equipment supply delays are a significant limitation on the global electrolyzers market.

Market Opportunities

Favorable Government Initiatives 

Hydrogen fuel cells in the battery power electric automobiles. Using electric vehicles limits carbon emissions, reducing air pollution and, to some extent, reducing the consumption of increasingly depleting fossil fuels. To stimulate the usage of electric vehicles, the government offers various programs and subsidies to buyers and producers of such vehicles.

  • For example, governments worldwide are constructing public infrastructure and using electric public transportation options. Increased demand for electric vehicles will increase the need for hydrogen, which is anticipated to increase the demand for electrolyzers. Consequently, these variables will likely provide lucrative prospects for the growth of the global electrolyzer market during the forecast period.
Study Period 2021-2033 CAGR 23.4%
Historical Period 2021-2023 Forecast Period 2025-2033
Base Year 2024 Base Year Market Size USD 467.8 million
Forecast Year 2033 Forecast Year Market Size USD 2515.2 million
Largest Market Asia Pacific Fastest Growing Market Europe
Talk to us
If you have a specific query, feel free to ask our experts.

Regional Insights

Asia-Pacific Dominant region

Asia-Pacific is expected to hold the largest market share among the regions, with a CAGR of 25.3% during the forecast period. In terms of market share, China is the dominant country in the region, followed by India. South Korea holds the smallest market share. Asia-Pacific is a significant electric vehicle market, increasing the demand for hydrogen fuel cells. Increasing demand for electrolyzers in building & construction, manufacturing plants, cars, and electric vehicles is a result of their ability to reduce carbon footprint through the generation of electricity from green hydrogen (electrolysis using renewable sources of energy such as solar and wind power). China and India provided approximately 72.2% of 2019's income, followed by the remainder of Asia-Pacific.

Europe: Fastest growing region

Europe is expected to hold the second-largest share in the market of USD 1,222 million with a CAGR of 25% during the forecast period. In terms of market share, Germany is the dominant country in the region, followed by France. Italy possesses the smallest market share. Europe is a significant commodity user, and most locally manufactured electrolyzers are utilized in the region. The existence of automobile, construction, textiles, and power generation & coatings companies boosts the demand for electrolyzers in the region, as their ability to reduce carbon footprint is advantageous. Germany and the United Kingdom generated approximately 35.0% of 2019 revenue, followed by the rest of Europe.

Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports


Electrolyzer Market Segmentation Analysis

By Product

Based on product, the market is fragmented into Alkaline electrolyzers, PEM Electrolyzer, and Solid Oxide Electrolyzer. The alkaline electrolyzer is expected to hold the largest market share with a CAGR of 24.9% during the forecast period. The electrolysis of alkaline electrolyzers is among the first methods for dividing hydrogen and oxygen. In electrolysis, an alkaline electrolyzer is based on liquid solutions. It contains potassium hydroxide or sodium hydroxide solutions and water. These electrolyzers are less expensive, may be immediately connected to an inconsistent power supply, are user-friendly, and use filtered rainwater. Although alkaline electrolyzers are widely utilized, their stability is inferior. This ultimately results in a shift toward PEM and solid oxide electrolyzers.

PEM electrolyzers are expected to hold the second-largest share. A solid polymer electrolyte is utilized in a proton exchange membrane (PEM) electrolyzer. PEM electrolyzers are capable of operating with high current densities. This decreases the operational costs of water electrolysis. PEM can be utilized by connecting them with wind and solar energy sources. PEM electrolyzers can withstand the intense energy spikes from the two sources. Thus, the many advantages of PEM electrolyzers serve as the primary growth drivers of the global market.

By Capacity

Based on capacity, the market is fragmented into Less than 500 kW, 500–2 MW, and Above 2 MW. 500 kW to 2 MW segment is expected to hold the largest market share with a CAGR of 24.8% during the forecast period. 500 kW to 2 MW electrolyzers are in high demand because they can be deployed on-site and generate adequate amounts of power and hydrogen, which is then used as industrial energy or feedstock. Many businesses prefer to install medium electrolyzers at their plants for hydrogen production and the added benefit of reduced carbon emissions.

Less than 500 kW segment is expected to hold the second-largest share in the market. These electrolyzers are typically utilized in places with low demand for power and in small buildings, plants, and industrial facilities.

By Application

Based on application, the global electrolyzer market is fragmented into Power Generation, Transportation, Industry Energy, Industry Feedstock, Building Heat & Power, and Others. The power generation segment is expected to hold the largest market share with a CAGR of 24.9% during the forecast period. Electrolyzers are increasingly becoming a viable option for usage in the power production industry as a source of clean energy. As a result of the hydrogen's reduced carbon footprint than other conventional energy sources, electrolysis-produced hydrogen is increasingly being used as an alternative to traditional sources of power. The power generating segment contributes significantly to the expansion of the electrolyzers market. Hydrogen is being investigated as an alternative to fossil fuels as water reuse continues. The expansion of the market can also be attributed to the utilization of renewable energy sources such as solar and wind power to supply the electricity required for electrolysis. However, substantial investment expenses hinder market expansion.

Industry energy is expected to hold the second-largest market share. Electrolyzers are installed on plants' premises or close to them for businesses to generate energy for manufacturing. The term "industrial energy" refers to using electrolyzers to generate electricity at the plant location. Numerous companies employ electrolyzers with capacities between 1 and 5 MW to generate energy, which is then used for various purposes. This aids in both the resolution of the energy issue and the reduction of carbon footprint. In addition, hydrogen produced by on-site electrolyzers is utilized to power such industrial processes; this is a crucial driver in the industry's growth.

Market Size By Product 

Market Size By Product 
  • Alkaline Electrolyzer
  • PEM Electrolyzer
  • Solid Oxide Electrolyzer


  • List of key players in Electrolyzer Market

    1. Cummins, Inc.
    2. Nel ASA
    3. Siemens Energy Global GmbH, Co. 
    4. KG. AG
    5. Toshiba
    6. Air Liquide
    7. Plug Power
    8. McPhy Energy
    9. ITM Power
    10. Idroenergy 
    11. Next Hydrogen
    Electrolyzer Market Share of Key Players

    Recent Developments


    Electrolyzer Market Segmentations

    By Product  (2021-2033)

    • Alkaline Electrolyzer
    • PEM Electrolyzer
    • Solid Oxide Electrolyzer

    By Capacity  (2021-2033)

    • Less Than 500 kW
    • 500 kW To 2 MW
    • Above 2 MW

    By Application  (2021-2033)

    • Power Generation
    • Transportation
    • Industry Energy
    • Industry Feedstock
    • Building Heat & Power
    • Others

    Frequently Asked Questions (FAQs)

    What is the growth rate for the Electrolyzer Market?
    Electrolyzer Market size will grow at approx. CAGR of 23.4% during the forecast period.
    Some of the top industry players in Electrolyzer Market are, Cummins, Inc., Nel ASA, Siemens Energy Global GmbH, Co. , KG. AG, Toshiba, Air Liquide, Plug Power, McPhy Energy, ITM Power, Idroenergy , Next Hydrogen, etc.
    Asia Pacific has been dominating the market, accounting for the largest share of the market.
    The Electrolyzer Market has seen the most substantial growth rate in Europe.
    The global market report is segmented as follows: By Product, By Capacity, By Application


    We are featured on :