The Europe electrolyzer market was valued at $3.1 billion in 2022 and is estimated to reach $13.9 billion by 2032, exhibiting a CAGR of 16.5% from 2023 to 2032. An electrolyzer is a device that employs an electrochemical process to split water (H2O) into its constituent elements such as hydrogen (H2) and oxygen (O2). This process is called electrolysis and involves passing an electric current through the water, causing the water molecules to dissociate into hydrogen and oxygen gas. The electrolyzer consists of two electrodes, typically made of conductive materials such as metal, immersed in an electrolyte solution, which is usually water mixed with a catalyst or an electrolyte such as potassium hydroxide (KOH) or sodium hydroxide (NaOH).
However, the absence of a harmonized regulatory framework led to disparities in market conditions and incentives, affecting the competitiveness of electrolyzer projects across Europe. Developers face challenges in navigating diverse permitting processes, grid connection requirements, and certification standards, adding time and costs to project development. Moreover, uncertainty surrounding government support mechanisms, such as subsidies, grants, or carbon pricing schemes deter private investment in electrolyzer projects and impede market growth. All these factors hamper the Europe electrolyzer market growth.
The widespread adoption of electrolyzers contributes to Europe's efforts to reduce greenhouse gas emissions and combat climate change. By replacing fossil fuels with green hydrogen in sectors such as transportation, heating, and industry, electrolyzers significantly reduce carbon emissions and help achieve the European Union's ambitious climate targets. This aligns with the European Green Deal and the EU's goal of becoming climate-neutral by 2050, positioning electrolyzer technology as a key enabler of the region's decarbonization agenda. All these factors are anticipated to offer new growth opportunities for Europe electrolyzer market during the forecast period.
On the basis of capacity, the market is classified as less than 500 KW, 500 KW to 2 MW, above 2 MW. The 500 KW to 2 MW segment accounted for less than half of Europe electrolyzer market share in 2022 and is expected to maintain its dominance during the forecast period. Electrolyzers in the 500 kW to 2 MW range offer higher production capacities compared to smaller-scale units that makes them well-suited for industrial applications, energy storage projects, and hydrogen refueling stations for transportation. As industries seek to decarbonize their operations and shift towards renewable energy sources, there is a corresponding increase in demand for larger electrolyzers capable of producing significant quantities of green hydrogen to meet these needs.
On the basis of application, the market is categorized into power generation, transportation, industry energy, industry feedstock, building heat and power, and others. The power generation segment accounted for less than one-third of Europe electrolyzer market share in 2022 and is expected to maintain its dominance during the forecast period. Electrolyzers facilitate the production of green hydrogen, which holds immense potential as a clean alternative to fossil fuels in power generation. By utilizing renewable electricity to split water molecules, electrolyzers produce hydrogen without generating carbon emissions, thus supporting efforts to decarbonize the power sector. Green hydrogen is used in fuel cells to generate electricity with zero greenhouse gas emissions, offering a scalable and versatile solution for meeting electricity demand while reducing environmental impact.
Based on product the market is segmented into alkaline electrolyzer, proton exchange membrane electrolyzer, solid oxide (SOE) electrolyzer, anion exchange membrane (AEM) electrolyzer. The alkaline electrolyzer segment accounted for less than three-fifths of Europe electrolyzer market share in 2022 and is expected to maintain its dominance during the forecast period. Alkaline electrolyzers are known for their scalability and cost-effectiveness that makes them well-suited for large-scale hydrogen production. In Europe, where ambitious renewable energy targets are driving the deployment of wind and solar power projects, alkaline electrolyzers offer a viable solution for converting surplus renewable electricity into hydrogen. The scalability of alkaline electrolyzers enables them to be integrated into utility-scale renewable energy projects, such as offshore wind farms or solar parks, to produce green hydrogen at scale. This capability aligns with Europe's objectives to maximize the utilization of renewable energy resources and facilitate the transition to a low-carbon energy system.
Market Dynamics
Electrolyzers align with the principles of the circular economy by enabling the production of hydrogen from water. By coupling electrolysis with renewable energy sources and incorporating hydrogen into various sectors, Europe fosters a more sustainable and resilient energy system while reducing its dependence on fossil fuels. According to International Energy Agency (IEA), Europe is expected to deploy 7 GW of dedicated renewable capacity for hydrogen production during 2022-2027, encouraged by decarbonization goals and, more recently, the need to strengthen energy security by displacing Russian gas. All these factors are expected to drive the demand for the Europe electrolyzer market during the forecast period.However, the absence of a harmonized regulatory framework led to disparities in market conditions and incentives, affecting the competitiveness of electrolyzer projects across Europe. Developers face challenges in navigating diverse permitting processes, grid connection requirements, and certification standards, adding time and costs to project development. Moreover, uncertainty surrounding government support mechanisms, such as subsidies, grants, or carbon pricing schemes deter private investment in electrolyzer projects and impede market growth. All these factors hamper the Europe electrolyzer market growth.
The widespread adoption of electrolyzers contributes to Europe's efforts to reduce greenhouse gas emissions and combat climate change. By replacing fossil fuels with green hydrogen in sectors such as transportation, heating, and industry, electrolyzers significantly reduce carbon emissions and help achieve the European Union's ambitious climate targets. This aligns with the European Green Deal and the EU's goal of becoming climate-neutral by 2050, positioning electrolyzer technology as a key enabler of the region's decarbonization agenda. All these factors are anticipated to offer new growth opportunities for Europe electrolyzer market during the forecast period.
Segments Overview
The Europe electrolyzer market is segmented into capacity, application, product, and country. On the basis of capacity, the market is classified as less than 500 KW, 500 KW to 2 MW, above 2 MW. On the basis of application, the market is categorized into power generation, transportation, industry energy, industry feedstock, building heat and power, and others. By product, the market is segmented into alkaline electrolyzer, proton exchange membrane electrolyzer, solid oxide (SOE) electrolyzer, anion exchange membrane (AEM) electrolyzer. Country wise, the market is analyzed across Germany, the UK, France, Italy, Spain, Norway, Sweden, Denmark, and rest of Europe.On the basis of capacity, the market is classified as less than 500 KW, 500 KW to 2 MW, above 2 MW. The 500 KW to 2 MW segment accounted for less than half of Europe electrolyzer market share in 2022 and is expected to maintain its dominance during the forecast period. Electrolyzers in the 500 kW to 2 MW range offer higher production capacities compared to smaller-scale units that makes them well-suited for industrial applications, energy storage projects, and hydrogen refueling stations for transportation. As industries seek to decarbonize their operations and shift towards renewable energy sources, there is a corresponding increase in demand for larger electrolyzers capable of producing significant quantities of green hydrogen to meet these needs.
On the basis of application, the market is categorized into power generation, transportation, industry energy, industry feedstock, building heat and power, and others. The power generation segment accounted for less than one-third of Europe electrolyzer market share in 2022 and is expected to maintain its dominance during the forecast period. Electrolyzers facilitate the production of green hydrogen, which holds immense potential as a clean alternative to fossil fuels in power generation. By utilizing renewable electricity to split water molecules, electrolyzers produce hydrogen without generating carbon emissions, thus supporting efforts to decarbonize the power sector. Green hydrogen is used in fuel cells to generate electricity with zero greenhouse gas emissions, offering a scalable and versatile solution for meeting electricity demand while reducing environmental impact.
Based on product the market is segmented into alkaline electrolyzer, proton exchange membrane electrolyzer, solid oxide (SOE) electrolyzer, anion exchange membrane (AEM) electrolyzer. The alkaline electrolyzer segment accounted for less than three-fifths of Europe electrolyzer market share in 2022 and is expected to maintain its dominance during the forecast period. Alkaline electrolyzers are known for their scalability and cost-effectiveness that makes them well-suited for large-scale hydrogen production. In Europe, where ambitious renewable energy targets are driving the deployment of wind and solar power projects, alkaline electrolyzers offer a viable solution for converting surplus renewable electricity into hydrogen. The scalability of alkaline electrolyzers enables them to be integrated into utility-scale renewable energy projects, such as offshore wind farms or solar parks, to produce green hydrogen at scale. This capability aligns with Europe's objectives to maximize the utilization of renewable energy resources and facilitate the transition to a low-carbon energy system.
Key Market Trends
- On the basis of capacity, the less than 500 KW segment is anticipated to grow at the fastest CAGR of 16.8% during the forecast period.
- By product, the proton exchange membrane electrolyzer segment is anticipated to grow at the fastest CAGR during the forecast period.
- On the basis of application, the power generation segment is anticipated to grow at the fastest CAGR of 17.3% during the forecast period.
Key Benefits for Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the Europe electrolyzer market analysis from 2022 to 2032 to identify the prevailing Europe electrolyzer market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the Europe electrolyzer market statistics and segmentation assists to determine the prevailing market opportunities.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the Europe electrolyzer market trends, key players, market segments, application areas, and market growth strategies.
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: EUROPE ELECTROLYZER MARKET, BY CAPACITY
CHAPTER 5: EUROPE ELECTROLYZER MARKET, BY PRODUCT
CHAPTER 6: EUROPE ELECTROLYZER MARKET, BY APPLICATION
CHAPTER 7: EUROPE ELECTROLYZER MARKET, BY COUNTRY
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
Companies Mentioned
- Air Liquide
- Cummins Inc.
- Enapter S.r.l.
- Green Hydrogen Systems
- H-TEC SYSTEMS GmbH
- INEOS
- ITM Power PLC
- John Cockerill
- Linde PLC
- McPhy Energy S.A.
- Nel ASA
- Plug Power Inc.
- Siemens AG
- Sunfire GmbH
- thyssenkrupp nucera AG & Co. KGaA
- Topsoe A/S
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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