Electrolyzer Market Set to Reach $34.4 Billion by 2032 with Strong Growth in Hydrogen Economy

🌍 Global Electrolyzer Market Surges with Green Hydrogen Demand and Renewable Energy Investments

WILMINGTON, DE, UNITED STATES, August 20, 2025 /EINPresswire.com/ --

The global electrolyzer market is undergoing rapid expansion as hydrogen emerges as a cornerstone of the global clean energy transition. According to a new report published by Allied Market Research, the market was valued at $3 billion in 2022 and is projected to reach $34.4 billion by 2032, growing at an impressive CAGR of 27.2% from 2023 to 2032. This surge is driven by supportive regulatory policies, technological advancements, and large-scale investments in renewable energy.

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📝 Key Takeaways

Electrolyzer market to grow from $3B in 2022 to $34.4B in 2032 at 27.2% CAGR.

Solid oxide electrolyzers expected to be the fastest-growing product segment.

Asia-Pacific to lead growth, while Europe remains a manufacturing hub.

Transportation applications expected to surge with fuel cell EV investments.

🌍 What is an Electrolyzer?

An electrolyzer is a device that splits water into hydrogen and oxygen through electrolysis. The hydrogen produced can be stored and used as a clean fuel or feedstock across multiple industries such as power generation, automotive, chemicals, and industrial applications.

Electrolyzers come in different types, with alkaline electrolyzers being the most widely used. However, advanced technologies like PEM (Proton Exchange Membrane), Solid Oxide, and AEM (Anion Exchange Membrane) electrolyzers are gaining traction due to their efficiency and adaptability in large-scale hydrogen projects.

⚡ Market Drivers and Opportunities

The electrolyzer market is witnessing strong momentum fueled by:

Supportive Government Policies: Global initiatives promoting hydrogen infrastructure—pipelines, storage, refueling stations—are accelerating adoption.

Technological Advancements: Ongoing R&D is driving down costs while improving efficiency and stability of electrolyzers.

Renewable Energy Integration: Rising investments in solar and wind energy are boosting demand for electrolyzers to balance grids and reduce carbon emissions.

Industrial Hydrogen Demand: Expanding use of hydrogen as an industrial feedstock in refineries, fertilizers, and chemical sectors further supports market growth.

In 2022, global electrolyzer production capacity rose by more than 25%, reaching 11 GW annually. Europe and China account for nearly two-thirds of this capacity. However, most of the installed capacity is still underutilized, signaling vast growth potential.

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🔑 Market Segmentation

The electrolyzer market is segmented based on product, capacity, application, and region:

✅ By Product

Alkaline Electrolyzers: Dominated the market in 2022, being the oldest and most widely adopted technology.

Solid Oxide Electrolyzers: Expected to grow at the fastest rate (CAGR 28.1%) due to higher efficiency and stability.

PEM & AEM Electrolyzers: Gaining traction for industrial-scale projects and renewable energy integration.

✅ By Capacity

500 kW to 2 MW: Accounted for the largest market share in 2022.

Above 2 MW: Forecasted to witness the fastest growth, driven by industrial and automotive demand.

Less than 500 kW: Used in niche and small-scale applications.

✅ By Application

Power Generation: Dominated the market in 2022, with strong adoption for on-site hydrogen production.

Transportation: Expected to grow at the highest CAGR, fueled by hydrogen-powered electric vehicles and mobility solutions.

Industry Feedstock & Energy: Key segments where hydrogen is widely used in chemicals, refining, and manufacturing.

✅ By Region

Asia-Pacific: Projected to be the fastest-growing region (CAGR 27.5%), led by strong demand in China, Japan, South Korea, and India.

Europe: Leading in hydrogen innovation and electrolyzer production capacity, supported by aggressive climate policies.

North America: Boosted by U.S. and Canada’s clean hydrogen strategies.

LAMEA: Emerging opportunities in Middle East and Latin America due to green hydrogen projects.

🏭 Key Market Players

Prominent companies in the electrolyzer industry include:

Cummins Inc.

Nel ASA

Siemens AG

Toshiba Corporation

Air Liquide

Plug Power Inc.

McPhy Energy

ITM Power

Iberdrola S.A.

Bloom Energy

These players are focusing on collaborations, partnerships, and capacity expansion to strengthen their market positions.

📈 Market Forecast and Future Trends

By 2030, the global electrolyzer production capacity is expected to surpass 130 GW annually, which would meet nearly one-third of global clean hydrogen demand under national energy transition plans.

However, less than 10% of planned projects have reached a final investment decision (FID), signaling uncertainty. Future capacity deployment will largely depend on supportive policies, cost competitiveness, and large-scale hydrogen adoption.

With hydrogen emerging as a clean alternative to fossil fuels, the electrolyzer market is positioned to play a pivotal role in shaping the energy transition. From powering green mobility to decarbonizing industries, electrolyzers will be at the heart of the global hydrogen economy.

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Conclusion

The electrolyzer market is at the forefront of the global clean energy transition. With supportive policies, declining costs, and growing demand for hydrogen across industries, electrolyzers are set to become a cornerstone of the green hydrogen economy. As manufacturers scale up capacity and technology advances, the industry is positioned for exponential growth, unlocking vast opportunities in power generation, transportation, and industrial applications.

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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.

David Correa
Allied Market Research
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