Hydrogen Electrolyte Market is expected to witness high growth due to increasing demand from the power generation sector

The hydrogen electrolyzer market is expected to reach USD 1.12 billion by 2024 and show a CAGR of 56.2% during the forecast period 2024-2031, according to a new report published by Coherent Market Insights.

The hydrogen electric chiller market is driven by the increasing demand for hydrogen from the power generation sector. Electrolytes are increasingly being used to produce hydrogen from renewable energy sources such as solar and wind. It helps balance the breakdown of these renewable energy sources by storing excess energy produced as hydrogen. Because hydrogen reduces greenhouse gas emissions. Hydrogen can be produced from renewable sources with no carbon emissions and can be used as fuel or raw material in various industrial processes.

Key Market Trends:

Adoption of larger scale electrolyzers– Electrolyzer manufacturers are developing and deploying larger scale hydrogen electrolyzers to meet the bulk hydrogen demands of industries as well as for power balancing applications.

Leveraging renewable energy sources– Electrolyzer manufacturers are focusing on developing electrolyzers integrated with renewable energy sources to facilitate bulk green hydrogen production. For instance, Siemens Energy partnered with Shell to install a 20MW electrolyzer plant powered by a 44MW solar farm at Shell’s energy and chemical park in Germany. More coverage can be found in the sample copy.

Hydrogen Electrolyzer Market Opportunities

The by type segmentation covers alkaline and polymer electrolyte membrane electrolyzers. Alkaline electrolyzers hold the largest market share currently owing to their simple design and lower costs compared to PEM electrolyzers which require platinum catalyst. However, PEM electrolyzers are gaining rapid adoption due to their higher power density, flexibility and purer hydrogen output.

The by power generation segmentation covers less than 1 MW, 1-5 MW and above 5 MW power ratings.The less than 1 MW segment dominates currently driven by small-scale hydrogen production needs for scenarios like fuel cells vehicles. However, the 1-5 MW and above 5 MW segments are anticipated to witness highest growth on account of increasing demand from large industrial plants and oil refineries.

Key Market Takeaways

The global hydrogen electrolyzer market is anticipated to witness a CAGR of 56.2% during the forecast period 2024-2031, owing to rapid growth in renewable energy integrated hydrogen production. On the basis of type, alkaline electrolyzers segment is expected to hold a dominant position, owing to their current large market share. However, PEM electrolyzers segment is projected to witness fastest growth during the forecast period due to their higher efficiency. On the basis of power generation, the less than 1 MW segment dominates currently but 1-5MW and above 5 MW segments are expected to exhibit highest gains driving large scale hydrogen production.Regionally, North America is expected to hold a dominant position over the forecast period due to presence of leading PEM electrolyzer manufacturers and growing initiatives towards development of hydrogen economy.

Competitor Insights:

ITM Power PLC

Plug Power INC

Recent Developments in Hydrogen Electrolyzer Market

In June 2023, Siemens Energy began production of a new 20 MW alkaline electrolyzer stack design at their facility in Leuna, Germany. The new industrial-scale stack offers 15% higher efficiency at 73% compared to previous generation products. Tests have also shown the redesigned cells can operate continuously for over 70,000 hours with only minor degradation in performance over that lifespan. The stack innovations are a key part of Siemens’ strategy to offer gigawatt-scale alkaline electrolyzer solutions for green hydrogen projects by 2024.

In July 2023 ITM Power, a UK-based electrolyzer maker, unveiled a new high-capacity unit half the size of previous models. ITM claims this latest fifth-generation design can cut levelized costs by 30-50% compared to first-generation systems from just a decade ago. Full coverage of the report available here.