The electrolyzer market is estimated to grow steadily by 2030 owing to rapid development in sustainable electricity solutions. In addition, growing consumer interest in environmental security along with increasing electricity demand is likely to bolster market growth over the forecast period.
During the COVID-19 outbreak, the industry witnessed a negative impact as a result of stringent lockdowns and disruptions in business operations due to prevalent labor shortages. However, the decline in coronavirus cases, coupled with government investments in several projects in the industrial sector and innovations in the field, has aided the market’s recovery. For instance, in March 2022, Hysata, an electrolyzer manufacturer, introduced its cutting-edge capillary-fed electrolyzer cell that is 95% efficient as well as more affordable to install and operate compared to other commercial electrolyzers.
Moreover, major industry players have been focusing on rigorous research and development to expand their product portfolio in order to maintain a strong position in the electrolyzer market. For instance, in March 2022, Air Products Inc., an industrial chemical firm, announced its plan to build a 10 metric tons per day facility to manufacture green liquid hydrogen using green hydrogen expert thyssenkrupp nucera’s electrolyzers.
In another instance, in January 2022, Linde plc, a multinational chemical company, inked an agreement with Yara, a Norwegian chemical company, to build and deliver a 24 MW green hydrogen pant, its second after the one it built for Leuna Chemical Complex, a German chemical company in 2021. The plant was slated to be based on the proton exchange membrane (PEM) technology, which can create up to 80,000 tons of green fertilizer.
The electrolyzer market has been categorized on the basis of application, product, capacity, and region.
In terms of product, the electrolyzer industry has been bifurcated into solid oxide electrolyzer, alkaline electrolyzer, PEM electrolyzer, and others. The others segment is estimated to progress at a rate of over 51% through the analysis period.
From the application perspective, the market has been segmented into building heating & power, power generation, industry feedback, transportation, industry energy, and others. The industry energy segment surpassed $35 million in revenue in 2021.
The building heating & power segment is expected to depict remarkable growth between 2022 and 2030 as a result of rising adoption of sustainable power generation sources. Meanwhile, the others application segment is projected to grow at a CAGR of over 97% through the review timespan.
In the regional frame of reference, apart from Europe, Asia Pacific, and North America, the Rest of World electrolyzer market is anticipated to showcase sizable growth to reach a valuation of around $6 billion by the end of 2030.