Electrolyzer Market Size, Growth and Demand

The electrolyzer market promises future growth despite its current size of USD 390.4 million (2021).

News May 9, 2024 22 Add to Reading List

Electrolyzer Market Size, Growth and Demand

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The electrolyzer market promises future growth despite its current size of USD 390.4 million (2021). Fortune Business Insights predicts it will reach $619.6 million by 2029, at a compound annual growth rate (CAGR) of 5.8%. This market offers clean technologies for hydrogen production, which play a key role in the transition to renewable energy.

Market challenges:

COVID-19 Impact: Supply chain disruptions during the pandemic have disrupted markets, impacting industries such as oil refining and steel manufacturing that rely on hydrogen.
High electricity costs: Electrolysis is currently facing competition from falling costs of solar and wind power, which affects the economics of hydrogen production.

Market Drivers:

Asia-Pacific's drive for green hydrogen: Governments in the region, such as India and China, are investing heavily in hydrogen production and storage technologies for power generation and transportation.
Large-scale projects: Developments such as Asahi Kasei's 10 MW alkaline water electrolysis system for the Fukushima Hydrogen Research Field in Japan represent advances in large-scale, efficient hydrogen production.
Government support: Initiatives such as NEDO’s Hydrogen in Renewable Energy project demonstrate government support for research and development in this area.

Competitive Landscape:

Strategic Acquisitions: Companies such as Man Energy Solutions are investing heavily in subsidiaries such as H-Tec Systems to increase production of their core technology, PEM electrolysers.
Focus on Innovation: Leading companies are constantly innovating. Green Hydrogen Systems and Next Hydrogen are examples of companies pushing the boundaries of this technology.

Regional analysis:

North America Dominance: This region currently holds the largest market share due to high demand for hydrogen in various sectors such as manufacturing and power generation.
Power Plant Key Application: Power Plant was the primary application for electrolyzers in 2021, accounting for over 26% of the market share. This highlights the role hydrogen can play in clean energy production.

Beyond the report:

Although current growth prospects may seem modest, the electrolyzer market is at a turning point. As environmental concerns increase and technology advances, demand for clean hydrogen production is expected to surge. This market has the potential to be a significant driver of the global shift towards renewable energy sources.

Additional things to consider:

The report highlights two main types of electrolyzers: alkaline and PEM. Exploring the advantages and limitations of each type adds value.
Discussing the role of electrolysers in sectors such as transportation (fuel cell vehicles) and energy storage (power-to-gas) can provide a broader market perspective.
Citing the environmental benefits of hydrogen over traditional fossil fuels will further highlight the potential impact of the market.

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