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Electrolyzer Market: A Modest Spark with Potential to Ignite

Bharat Jagtap
3 min readMay 8, 2024
Electrolyzer Market: A Modest Spark with Potential to Ignite

The electrolyzer market, despite its current size of USD 390.4 million (2021), holds promise for future growth. Fortune Business Insights predicts a CAGR of 5.8% by 2029, reaching USD 619.6 million. This market offers a clean technology for hydrogen production, a key player in the transition to renewable energy.

Market Challenges:

  • COVID-19 Impact: Supply chain disruptions during the pandemic hampered the market, impacting industries like oil refining and steel manufacturing that rely on hydrogen.
  • High Electricity Costs: Electrolysis currently faces competition from declining costs of solar and wind power, impacting the perceived affordability of hydrogen production.

Market Drivers:

  • Green Hydrogen Push in Asia Pacific: Governments in this region, like India and China, are investing heavily in hydrogen production and storage technologies for power generation and transportation.
  • Large-Scale Projects: Developments like Asahi Kasei’s 10 MW alkaline water electrolysis system for Japan’s Fukushima Hydrogen Research Field showcase advancements in large-scale, efficient hydrogen production.
  • Government Support: Initiatives like NEDO’s Hydrogen from Renewable Energy Project demonstrate government backing for research and development in this field.

Competitive Landscape:

  • Strategic Acquisitions: Companies like Man Energy Solutions are investing heavily in subsidiaries like H-Tec Systems to ramp up production of PEM electrolyzers, a key technology.
  • Focus on Innovation: Leading players are constantly innovating. Green Hydrogen Systems and Next Hydrogen are examples of companies pushing the boundaries of this technology.

Regional Breakdown:

  • North American Dominance: The region currently holds the largest market share due to high hydrogen demand in various sectors like manufacturing and power generation.
  • Power Plants Leading Application: In 2021, power plants were the primary application for electrolyzers, accounting for over 26% of the market share. This highlights the role hydrogen can play in clean energy production.

Beyond the Report:

While the current growth forecast might seem modest, the electrolyzer market is at a tipping point. With increasing environmental concerns and advancements in technology, the demand for clean hydrogen production is expected to surge. This market has the potential to become a crucial driver in the global shift towards renewable energy sources.

Additional Points to Consider:

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Bharat Jagtap

Written by Bharat Jagtap

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