Electrolysis Stack Market Trends

Growth Drivers

• Rising Requirement of Hydrogen for Homes and Businesses- There is a rising requirement for hydrogen generation for various applications, and it is expected to increase the growth of the market. More than 1 billion scf of hydrogen are used each day to remove sulfur compounds from diesel fuels, gasoline, and other products in the United States.

• Increasing Demand for Hydrogen Fuel Cell Vehicles – There is a surging requirement for hydrogen for the increasing number of hydrogen fuel cell vehicles, and it is predicted to drive the market’ growth in the upcoming years. As of 30 June 2022, there were more than 7,000 fuel cells cars leased and sold in Japan.

• Surging Investment for Generation of Power- Through adding power to water, the water can be separated into oxygen, and hydrogen. Therefore, surging investment for the generation of more power, is further anticipated to rise the growth of the global electrolysis stack market over the forecast period. According to the data reported by the International Energy Agency, the amount of annual global energy investment is anticipated to increase to USD 1.9 trillion in 2021, up over 10% from 2020 and returning the total investment volume to pre-crisis levels.

• Rising Popularity of Green Fertilizers– Green fertilizers are produced with the help of renewable electricity, and have the same chemical and physical composition. In order to prepare green fertilizers, there is a need to make ammonia, that is prepared through the electrolysis of water, supported by renewable electricity, and it is and it is expected to boost the growth of the global electrolysis stack market. – Green fertilizers generally have lower than 80 percent carbon footprint than the fertilizers prepared through natural gas.

• Increasing Electrolysis Capacity- Electrolysis capacity is increasing from a very low base, and it needs to accelerate significantly to meet the Net Zero Emissions by 2050 Scenario, that calls for increasing electrolysis capacity to more than 700 GW by 2030.

Challenges

• High Cost for the Generation of Electricity - The cost of the electrolysis stack is high, leading to a surge in the cost of producing electricity through hydrogen. On the other hand, the production cost of hydrogen from other ways, such as solar, and wind systems, has been reduced. Therefore, this factor is expected to restrain the market’s growth in the upcoming years.

• Presence of Alternative Ways of Hydrogen Production
• Loss of Energy during the Electrolysis Process