Electrolyzers Market Analysis

Capacity Segment Analysis

The large-scale (>10 MW) sub-segment, which is part of the capacity segment, is anticipated to hold the highest share of 76.8% by the end of 2035. The sub-segment’s upliftment is extremely attributed to its direct reflection of national energy and industrial priorities, which is fueling the hydrogen economy globally. In addition, the pursuit of economies of scale, along with large-scale electrolyzer plants, is also driving the sub-segment, and these can significantly diminish the levelized expense of hydrogen. These projects are not designed for niche applications, but are considered foundational to decarbonize power generation and heavy industry. These are increasingly deployed as core Hydrogen Valleys or are readily integrated with chemical complexes, steel plants, and refineries. Therefore, with all these factors, the sub-segment is continuously gaining increased exposure.

Application Segment Analysis

The power-to-x (green hydrogen production) segment, part of the application, is projected to account for the second-highest share in the electrolyzers market during the stipulated period. The segment’s growth is highly driven by its ability to convert renewable electricity into carbon-neutral energy carriers, such as hydrogen. This enables the storage of intermittent renewable energy and decarbonizes hard-to-electrify sectors, including industry and heavy transport. According to an article published by the IEA Organization in 2024, the hydrogen production has reached 97 million tons as of 2023, of which less than 1% caters to low-emissions. In this regard, low-emissions hydrogen can reach 49 million tons per annum by the end of 2030. Meanwhile, installed water electrolyzer capacity has reached 1.4 GW by the end of 2023, and further reached 5 GW in 2024, thereby denoting a huge growth opportunity for the overall segment.

Product Segment Analysis

Based on the product, the modular stack segment is predicted to cater to the third-highest share in the electrolyzers market by the end of the forecast duration. The segment’s development is effectively fueled by its role as the technological incentive and high-value aspect of the electrolyzer system. While the balance of plant (BoP) comprises crucial components, such as safety systems, gas processing, and power conversion, the stack itself is considered the primary determinant and core IP of system efficiency, performance, and longevity. This particular segment’s high valuation is significantly driven by precision engineering and innovative materials, such as specialized catalysts, porous transport layers, and membranes. Besides, manufacturers are relentlessly making advancements in stack design to enhance the present density, expand operational lifespan, and diminish the utilization of precious metals, thereby uplifting the segment internationally.

Our in-depth analysis of the market includes the following segments: