The electrolyzer market is expected to witness robust growth by 2030 due to escalating energy demand across the globe. In addition, growing focus on renewable energy generation is likely to fuel market expansion through the forecast period.

Electrolysis is considered a promising alternative for generation of carbon-free hydrogen using renewable and nuclear resources. Electrolysis refers to the process of utilizing electricity to split water into oxygen and hydrogen. This reaction occurs in a unit dubbed ???electrolyzer???, which can be tied to renewable and other non-greenhouse-gas-emitting electricity production processes in facilities.

Recently, key industry players have been expanding their offerings to monetize on the rising demand for green energy, which has been favorable for the global business landscape. For instance, in July 2021, Bloom Energy, a leading green energy company, unveiled its Bloom Electrolyzer as the most energy-efficient electrolyzer for clean hydrogen production. The electrolyzer promises 15-45% better efficiency than other electrolyzers available in the market.

For extensive analysis, the electrolyzer market has been categorized on the basis of product, capacity, application, and region. Based on product, the market has further been divided into PEM, alkaline electrolyzer, and solid oxide electrolyzer.

The PEM sub-segment is estimated to garner a sizable market share by the end of 2030, progressing at a notable CAGR through the assessment period. Favorable regulatory framework supporting the development of hydrogen infrastructure, coupled with prevalent utilization of PEM as an industrial feedstock, is set to propel segmental growth in the coming years.

With respect to capacity, the electrolyzer market has been segregated into ??? 500 kW, > 500 kW - 2 MW, and above 2 MW. The > 500 kW - 2 MW sub-segment is anticipated to see substantial growth by 2030, registering a solid CAGR over the forecast timeline. Soaring electricity demand across various industrial establishments is likely to drive segmental adoption through the following years.

From the application perspective, the market has been segmented into power generation, industry feedstock, industry energy, transportation, and building heating & power. The electrolyzer market from the industry energy sub-segment is calculated to grow at a CAGR of over 115% through the review period.

In the regional landscape, the Europe electrolyzer market is projected to reach a significant valuation by the end of 2030, registering a steady CAGR over the study timeframe. The EU energy transition policy, along with ongoing large-scale electrification programs, is speculated to foster regional market outlook in the future.

The European Commission (EC) considers renewable hydrogen to be vital to the European Union's (EU) aim to become carbon neutral by 2050, for which it would need to decarbonize its energy sector and phase out fossil fuels. In July 2020, the EC announced plans for the EU to install electrolyzer capacity of at least 6 GW for renewable hydrogen generation of up to 1 million mt by the year 2024. The strategy also outlines a longer-term goal to install nearly 40 GW of electrolyzer capacity by 2030, generating about 10 million mt of renewable hydrogen, which is slated to bolster product uptake in the region by the end of the forecast period.