An Incisive, In-depth Analysis on the Hydrogen Electrolyzer Market
This study offers a comprehensive, 360 degree analysis on the Hydrogen Electrolyzer market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Hydrogen Electrolyzer market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.
Hydrogen Electrolyzer Market Outlook & Key Findings
- Hydrogen electrolyzer market is set to grow at a CAGR of over 10% during the forecast period 2020-2030
- The global hydrogen electrolyzer market size is projected to witness a substantial 2.5x increase in market size by 2030
- Growing investment in renewable electricity through water electrolysis will continue to drive demand for hydrogen electrolyzers
- China, Germany, Japan, Korea and India will be the key regions adopting hydrogen electrolysis on back of higher gas import prices for hydrogen generation
Hydrogen Electrolyzer Market Analysis
Conventionally, natural gas has been the primary source of hydrogen production. Around 6%-7% of its utilization is channelized towards hydrogen production. Production of hydrogen from natural gas is exorbitant with fuel being the largest cost factor.
With costs of renewable electricity steadily declining, production of hydrogen from water electrolysis will incite demand for hydrogen electrolyzers. Further, a steady dip in prices of solar, wind and PV is being witnessed.
Use of hydrogen electrolyzers at places with abundant supply of natural resources will pave way for a supply option at an affordable cost keeping into account distribution and transmission costs.
Hydrogen Electrolyzer Market Trends
Reducing investment costs is a key focus area for hydrogen electrolyzer manufacturers. Feasible solutions to accomplish this include investment in larger units or using electrolyzers with higher efficiency.
Manufacturers are using the tried-and-tested, as well as novel techniques to maintain the elusive balance between production and cost. For instance,
- Electrolyzers using the proton exchange membrane (PEM) method require no electrolyte and water passes through a polymer membrane and electrodes arranged in stacks for better performance. It gives the electrolyzer the advantage of reacting to fluctuations and has lower maintenance costs
- Novel variants like the anion exchange membrane (AEM) avoids the utilization of exorbitant metals that are used as catalysts in the previous method thus reducing the overall cost of hydrogen production
- Electricity energy requirement is much lower in electrolyzers that use ceramic membranes as the heat is provided by the conduction of ions used in the process leading to higher efficiency yields
In countries such as the US, China and the G4, alkaline hydrolysers are witnessing steady adoption owing to their low-costs. This is followed closely by the PEM electrolysis method as it is highly suitable for distributed systems, has low maintenance equipment and delivers superior quality hydrogen gas.
Hydrogen Electrolyzers with High Capacity Gain Traction for Sustainable Mobility and Energy Generation
In recent years, the demand for high capacity hydrogen electrolyzer has gained momentum, and it is estimated that that the technology development by players such as Siemens is enabling it to capture a sizeable market share for the production of hydrogen by competing with other technologies.
Siemens Gas and Power is working frantically to produce an electrolyzer system to produce hydrogen from renewable feedstock. Towards this, the company is planning to upgrade its SGT-400 industrial gas turbine at one of its plants to produce more hydrogen for power generation. Through this, it plans to increase its overall volume of hydrogen by at least 80%. The project will kick off in 2021.
Nikola Corporation which has recently debuted on NASDAQ has recently concluded a purchase order with Nel ASA for 85 MW alkaline electrolyzers which cumulatively produce more than 40,000 kgs of hydrogen per day. These electrolyzers will lend support to Nikola’s hydrogen fuelling stations on various trucking routes thus paving the way for clean transportation.
Hydrogen Electrolyzer Market Consumption Pattern - On-site Hydrogen Generation Systems Remain Highly Preferred
On-site generation of hydrogen is gaining traction among different end-users owing to various environmental and economic advantages associated with it.
The use of on- site hydrogen electrolyzers leads to overall reduction in transportation costs and reduced CO2 emissions during transportation. Hydrogen as a chemical feedstock has the highest utilization rate. This application is set to account for maximum on-site hydrogen generation to prevent voluminous storage.
Risk of gas handling and storage is also moderated during on-site generation. Capital investment is relatively less while using small scale on-site hydrogen generation systems.
PEM on-site hydrogen electrolyzers which are high in demand are producing hydrogen at a fairly consistent flow at costs that have been factored in at zero inventory.
Scaling, Production and Sourcing Remain Key Challenges in Hydrogen Electrolyzer Market
The Hydrogen Council believes that production of hydrogen through electrolyzers can cater to a substantial chunk of energy demand and reduce nearly one-fifth of carbon emissions. However, scaling up will lead to an overall investment of US$ 20 Bn – US$ 25 Bn every year through 2030.
With 90% of electrolyzed hydrogen being produced on-site, there is little room for trade or price discovery. This will lead to manufacturers incurring a substantial production costs on the facility for installation of electrolyzers
Further, only a small fraction, in the range of 3%–4%, is produced by the electrolysis of water involving zero carbon dioxide. This is due to the fact that the process of electrolysis is relatively more energy intensive and the overall cost of production is higher as compared to other conventional production methods
The use of hydrogen produced through electrolysis has remained limited majorly to energy applications where renewable energy i.e. solar or wind is used for producing feed electricity for electrolyzers. Thus, higher processing cost is expected to impede the growth of the market
Hydrogen Electrolyzer: Regional Analysis
In terms of growth, the US, along with countries in western Europe, Asia Pacific are anticipated to stay apace at a promising rate during the forecast period.
Renewable energy and electric mobility are gaining immense traction in these regions. The production of green hydrogen through thermolysis and water electrolysis is seen as viable solutions in these markets thus reducing the gap between a decarbonized future and cleaner transportation
In regions such as Latin America, a considerable cost reduction in electricity generated through renewable sources such as solar, PV and water has facilitated the setting up of hydrogen electrolysis plants.
Latin America will continue to show significant growth prospects for hydrogen electrolyzers, albeit it will grow from a low base.
Hydrogen Electrolyzer Market: Competitive Landscape
The global hydrogen electrolyzer market is a fragmented market due to the presence of a number of regional as well as international players. The strategies of market stakeholders revolve around enhancing scalability, cost efficiency and increasing the production.
Some of the prominent companies in the hydrogen electrolyzer market include Siemens AG, Nel Hydrogen, McPhy Energy S.A, ITM Power Plc, Hydrogenics, Tianjin Mainland Hydrogen Equipment Co. Ltd, Areva H2Gen, Giner Inc., ELB Elektrolysetechnik GmbH, GreenHydrogen.dk ApS, iGas Energy GmbH, Beijing CEI Technology Co., Ltd. And Next Hydrogen, and Accagen SA etc. and others.
Nel, an industry pioneer in the production of cost-efficient electrolysers has carved a niche for itself generating hydrogen with the help of renewable energy sources. For instance, its Proton PEM electrolyser has a modular design that can be containerized and scalable.
In June 2020, Nel Hydrogen received an order from Nikola Motor got a 85 MW alkaline electrolyzers which will produce 8 ton/day of hydrogen for fueling stations.
In June this year Siemens and Engie collaborated on the setting up of 12MW green hydrogen project in Saillat- sur-Vienne, France. Together they will produce renewable feedstock to produce and store electrolyzed hydrogen. This will be done through conversion of the existing infrastructure thus proving advantageous for lower costs and minimized lead time.
Similarly, Nestle is planning to get a high-temperature electrolyzer for its refinery at Rotterdam. The electrolyzer is purported to be 20% more efficient than its low-temperature counterparts.
COVID-19 to Cause Marginal Delay in Roll-out of Clean Hydrogen
The economic downturn spurred by the COVID-19 crisis will cause a delay in the evolution of clean hydrogen:
- In short-term, smaller businesses and technology providers in the hydrogen electrolyzer market landscape will face a liquidity crunch with low demand and a subsequent drop in revenues
- Leading manufacturers in regions such as Europe will put a halt on green hydrogen plans as economic recovery plans gain more prominence. Major investments which were previously targeted towards the production of green hydrogen will scale back
- Other investors who earlier showed a heightened inclination to invest in clean hydrogen production will show lesser inclination now to finance such initiatives.
Towards this, compensation to the hydrogen value chain will help to mitigate some losses. Stronger commitments towards decarbonization through financial bailouts in the short and medium term will enable market recovery.
The global Hydrogen Electrolyzer market is segmented in detail to cover every aspect of the market and present a complete market intelligence approach to the reader.
By Product Type
By Output Pressure
Chapter 01 – Executive Summary
The report on commences with the executive summary of the Hydrogen Electrolyzer market, which includes a summary of the key findings and key statistics of the market. It also includes the market value (US$ million) estimates of prominent segments of the Hydrogen Electrolyzer market.
Chapter 02 – Market Overview
Readers can find detailed taxonomy and definition of the Hydrogen Electrolyzer market in this chapter, which will help them understand the basic information about the Hydrogen Electrolyzer market. This section also highlights the inclusions and exclusions, which helps the reader understand the scope of the Hydrogen Electrolyzer market report.
Chapter 03 – Key Market Trends
The report provides key market trends of the Hydrogen Electrolyzer market that are expected to significantly impact the market growth during the forecast period. Detailed industry trends are provided in this section, along with key market developments and product innovations.
Chapter 04 – Key Success Factors
This section includes key inclusions of the Hydrogen Electrolyzer market report. It includes product adoption & usage analysis, reimbursement scenario, pipeline assessment & opportunity analysis, and strategies of manufacturers for the market expansion.
Chapter 05 – Global Hydrogen Electrolyzer Market Demand (in Value or Size in US$ Mn) Analysis 2015-2019 and Forecast 2020-2030
This chapter includes detailed analysis of the historic Hydrogen Electrolyzer market, along with an opportunity analysis of the future. Readers can also find the absolute $ opportunity for the current year (2019-2020) and an incremental $ opportunity for the forecast period of 2020-2030.
Chapter 06 – Global Hydrogen Electrolyzer Market Pricing Analysis
This section highlights the average price of the Polymer Electrolyte Membrane (PEM) Electrolyzer, Alkaline Electrolyzer and Solid Oxide Electrolyzer in different regions of the world. The pricing benchmark for manufacturer level pricing and distributor level pricing is analyzed in this section.
Chapter 07 – Global Hydrogen Electrolyzer Market Demand (Volume in Units) Analysis 2015-2019 and Forecast 2020-2030
This section of the Hydrogen Electrolyzer market explains the global market volume analysis and forecast for the Hydrogen Electrolyzer market between the forecast periods of 2020-2030
Chapter 08 – Market Background
This chapter explains the key macro-economic factors that are expected to influence the growth of the Hydrogen Electrolyzer market over the forecast period. Along with macroeconomic factors, this section highlights the opportunity analysis for the Hydrogen Electrolyzer market. The chapter also provides information about COVID -19 Impact on the market and Assessment of how the spread of pandemic is set to curb the market growth. This chapter also highlights the key market dynamics of the Hydrogen Electrolyzer market, which includes the drivers, restraints, opportunities, and trends. Moreover, readers will understand the key trends followed by the prominent manufacturers in the Hydrogen Electrolyzer market.
Chapter 09 – Global Hydrogen Electrolyzer Market Analysis 2015 - 2019 & Forecast 2020 – 2030, by Product Type
Based on the product type, the Hydrogen Electrolyzer market is segmented into Polymer Electrolyte Membrane (PEM) Electrolyzer, Alkaline Electrolyzer and Solid Oxide Electrolyzer. In this chapter, readers can find information about key trends and developments in the Hydrogen Electrolyzer market and market attractiveness analysis based on the product type.
Chapter 10 – Global Hydrogen Electrolyzer Market Analysis 2015 - 2019 & Forecast 2020 - 2030, by Capacity
This chapter provides details about the Hydrogen Electrolyzer market on the basis of Low (≤ 500 kW), Medium (500 kW – 2 MW) and High (> 2 MW). In this chapter, readers can understand the market attractiveness analysis based on the phase type.
Chapter 11 – Global Hydrogen Electrolyzer Market Analysis 2015 - 2019 & Forecast 2020 - 2030, by Output Pressure
This chapter provides details about the Hydrogen Electrolyzer market on the basis of Low (≤10 bar), Medium (10 bar – 40 bar) and High (≥ 40 bar). In this chapter, readers can understand the market attractiveness analysis based on the phase type.
Chapter 12 – Global Hydrogen Electrolyzer Market Analysis 2015 - 2019 & Forecast 2020 - 2030, by End User
This chapter provides details about the Hydrogen Electrolyzer market on the basis of Ammonia, Methanol, Refinery/Hydrocarbon Processing, Electronics, Energy, Power to Gas, Transport, Metal Production & Fabrication, Pharma &Biotech, Food & Beverages, Glass Industry and Others. In this chapter, readers can understand the market attractiveness analysis based on the application.
Chapter 13 – Global Hydrogen Electrolyzer Market Analysis 2014 – 2018 & Forecast 2020 - 2030, by Region
This chapter explains how the Hydrogen Electrolyzer market will grow across several geographic regions such as North America, Latin America, Western Europe, Eastern Europe, Asia Pacific Excluding Japan, Middle East & Africa (MEA), and Japan.
Chapter 14 – North America Hydrogen Electrolyzer Market Analysis 2014 – 2018 & Forecast 2020 - 2030
This chapter includes detailed analysis of the growth of the North America Hydrogen Electrolyzer market, along with the country-wise assessment such as the U.S. and Canada. Readers can also find the regional trends, regulations, and market growth based on end users and countries in North America.
Chapter 15 – Latin America Hydrogen Electrolyzer Market Analysis 2015 - 2019 & Forecast 2020 - 2030
Readers can find detailed information about several factors, such as the pricing analysis and regional trends, which are impacting the growth of the Latin America Hydrogen Electrolyzer market. This chapter also includes the growth prospects of the Hydrogen Electrolyzer market in the prominent LATAM countries such as Brazil, Mexico, and the Rest of Latin America.
Chapter 16 – Western Europe Hydrogen Electrolyzer Market Analysis 2015 - 2019 & Forecast 2020 - 2030
Important growth prospects of the Hydrogen Electrolyzer market based on its end users in several countries, such as Germany, Italy, France, UK, Spain, Benelux and Rest of Western Europe are included in this chapter.
Chapter 17 – Eastern Europe Hydrogen Electrolyzer Market Analysis 2015 - 2019 & Forecast 2020 - 2030
Important growth prospects of the Hydrogen Electrolyzer market based on its end users in several countries, such as Russia, Poland and Rest of Eastern Europe are included in this chapter.
Chapter 18 – Asia Pacific Excluding Japan Hydrogen Electrolyzer Market Analysis 2015 - 2019 & Forecast 2020 - 2030
Important growth prospects of the Hydrogen Electrolyzer market based on its end users in several countries, such as China, India, ASEAN, Australia & New Zealand and Rest of APEJare included in this chapter.
Chapter 19 – Japan Hydrogen Electrolyzer Market Analysis 2015 - 2019 & Forecast 2020 - 2030
This chapter highlights the growth of the Hydrogen Electrolyzer market by focusing on Japan. This section also help readers understand the key factors that are responsible for the growth of the Hydrogen Electrolyzer market in Japan.
Chapter 20 – MEA Hydrogen Electrolyzer Market Analysis 2015 - 2019 & Forecast 2020 - 2030
This chapter provides information about how the Hydrogen Electrolyzer market will grow in major countries in the MEA region such as GCC, North Africa, South Africa, Turkey and Rest of MEA during the forecast period of 2020 - 2030.
Chapter 21 – Emerging Economies Hydrogen Electrolyzer Market Analysis 2015 - 2019 & Forecast 2020 - 2030
This chapter provides information about how the Hydrogen Electrolyzer market will grow in major countries such as China and Germany during the forecast period of 2020 – 2030
Chapter 22 – Market Structure Analysis
In this chapter, readers can find detailed information about the tier analysis and market concentration of key players in the Hydrogen Electrolyzer market, along with their market presence analysis by region and product portfolio.
Chapter 23 – Competition Analysis
In this chapter, readers can find a comprehensive list of all the prominent stakeholders in the Hydrogen Electrolyzer market, along with detailed information about each company, which includes the company overview, revenue shares, strategic overview, and recent company developments. Some of the market players featured in the report are Siemens AG, Nel Hydrogen, McPhy Energy S.A, ITM Power Plc, Hydrogenics, Tianjin Mainland Hydrogen Equipment Co. Ltd, Areva H2Gen, Giner Inc., ELB Elektrolysetechnik GmbH, GreenHydrogen.dk ApS, iGas Energy GmbH, Beijing CEI Technology Co., Ltd. And Next Hydrogen, and Accagen SA etc.
Chapter 24 – Assumptions and Acronyms
This chapter includes a list of acronyms and assumptions that provide a base to the information and statistics included in the Hydrogen Electrolyzer market report.
Chapter 25 – Research Methodology
This chapter help readers understand the research methodology followed to obtain various conclusions as well as important qualitative and quantitative information about the Hydrogen Electrolyzer market.
Sources and Primary Research Splits (%)
Primary research interview with Key Opinion Leaders and other participants were conducted for data collection and validation of the below information: