Hydrogen Economy Boosts Electrolyzer Market Growth with 27.2% CAGR by 2032

🔋 Electrolyzer Market to Surge to $34.4 Billion by 2032 Amid Green Energy Shift 🌱

WILMINGTON, DE, UNITED STATES, July 31, 2025 /EINPresswire.com/ --

Electrolyzer Industry Overview 🌐

The global electrolyzer market size was valued at $3 billion in 2022 and is projected to reach a staggering $34.4 billion by 2032, expanding at a CAGR of 27.2% from 2023 to 2032, according to a recent report by Allied Market Research. This growth is driven by the accelerating push toward green hydrogen production, technological innovation, and a global shift toward renewable energy sources to reduce carbon emissions.

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Electrolyzers play a critical role in the hydrogen economy, splitting water into hydrogen and oxygen through electrolysis. The resulting hydrogen is widely used across multiple sectors like power generation, automotive, chemicals, and industrial feedstocks.

Key Insights 🔍

🌐 The electrolyzer market is gaining momentum across all major regions, led by APAC and Europe.

📈 Solid oxide electrolyzers are forecasted to grow at a CAGR of 28.1%—the highest among product types.

🚗 Transportation applications are expected to expand at a robust pace, driven by hydrogen fuel initiatives for electric vehicles.

💡 Only 10% of future electrolyzer projects have secured final investment—underscoring the need for stronger policy and financial support.

Key Growth Drivers ⚙️

Several factors are catalyzing growth in the electrolyzer market:

✅ Favorable government policies promoting hydrogen infrastructure such as pipelines, refueling stations, and storage systems.

✅ Rapid advancement in electrolyzer technologies including solid oxide and PEM systems.

✅ Increased investments in renewable energy, especially from European and Asia-Pacific countries.

✅ Falling cost of production, making large-scale electrolysis projects more viable.

✅ Rising demand for sustainable solutions in industries like transportation, power, and manufacturing.

Manufacturing Capacity & Global Outlook 🌍

In 2022, the global electrolyzer production capacity surpassed 11 GW, with Europe and China accounting for two-thirds of the total. However, much of this capacity remains underutilized, primarily due to deployment delays and project uncertainties.

Looking ahead, global electrolyzer capacity could exceed 130 GW annually by 2030, supported by national strategies and industrial commitments. While this reflects optimism, only 10% of these projects have reached final investment decisions (FIDs)—highlighting the dependency on supportive policy frameworks for full deployment.

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Segmentation Analysis 📊

🔌 By Product Type

Alkaline Electrolyzer: The most widely used technology due to its maturity and cost-effectiveness.

PEM Electrolyzer: Gaining popularity for faster response times.

Solid Oxide Electrolyzer: Expected to grow rapidly due to higher efficiency and better integration with renewable energy sources.

Anion Exchange Membrane (AEM): Emerging tech with potential in niche applications.

⚡ By Capacity

Less than 500 kW

500 kW to 2 MW (Dominated the market in 2022)

Above 2 MW: Poised for fastest growth due to industrial and transportation applications.

🚚 By Application

Power Generation (2022 leader): Industries are adopting on-site hydrogen generation.

Transportation: Projected to grow rapidly due to hydrogen fuel cell vehicle expansion.

Industry Energy & Feedstock

Building Heat & Power

Others

Regional Insights 🌎

🌏 Asia-Pacific

Expected to be the fastest-growing region, with China, Japan, South Korea, and India leading the demand for green hydrogen, particularly in the EV and manufacturing sectors.

🇪🇺 Europe

Home to several hydrogen-centric projects and strong policy support. Leading in both electrolyzer production and deployment.

🇺🇸 North America

Driven by federal clean energy programs and growing demand for hydrogen-powered heavy transport.

🌍 LAMEA

Emerging opportunities in Brazil, Saudi Arabia, and South Africa as they diversify energy sources.

Competitive Landscape 🏭

Key players in the electrolyzer industry are actively pursuing collaborations, expansions, and technology innovation to expand their market share. Some of the prominent players include:

Cummins Inc.

Nel ASA

Siemens AG

Toshiba Corporation

Air Liquide

Plug Power Inc.

McPhy Energy

ITM Power

Iberdrola S.A.

Bloom Energy

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Conclusion 🌱

As the world pushes for net-zero emissions, the electrolyzer market is positioned at the heart of the energy transition. With hydrogen emerging as a crucial clean fuel, investments and innovations in electrolyzer technologies are scaling up. From power and industrial use to transportation and infrastructure, this market is poised for exponential growth, particularly in Asia-Pacific and Europe. 🔋🌍

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About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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Allied Market Research
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