Electrolyzers Market Report 2026

The electrolyzers market size has grown exponentially in recent years. It will grow from $0.85 billion in 2025 to $1.04 billion in 2026 at a compound annual growth rate (CAGR) of 21.5%. The growth in the historic period can be attributed to government support for hydrogen initiatives, early deployment in industrial gas production, increasing pilot green hydrogen projects, growth in renewable power generation, advancements in electrolysis technologies.

The electrolyzers market size is expected to see exponential growth in the next few years. It will grow to $2.2 billion in 2030 at a compound annual growth rate (CAGR) of 20.6%. The growth in the forecast period can be attributed to acceleration of hydrogen economy development, increasing investments in green steel and chemicals, expansion of hydrogen fueling infrastructure, declining renewable energy costs, continued innovation in high-efficiency electrolyzers. Major trends in the forecast period include scaling of green hydrogen production capacity, rising adoption of pem and solid oxide electrolyzers, integration of renewable energy with electrolysis systems, expansion of large-scale industrial hydrogen projects, enhanced focus on electrolyzer efficiency.

The growing production of green electricity is expected to drive the electrolyzer market in the coming years. Green electricity, also referred to as 'green energy' or 'clean electricity,' is generated from renewable and environmentally friendly sources. These sources are considered 'green' because they have a lower environmental impact and emit fewer greenhouse gases compared to conventional fossil fuel-based power generation. Green power supports environmental sustainability and helps reduce overall carbon emissions. Electrolyzers play a critical role in the transition to a renewable energy future by enabling efficient storage and utilization of excess electricity generated from renewable sources while supporting the production of low-carbon energy. For example, in January 2024, the U.S. Energy Information Administration, a US-based federal statistical agency, projected that U.S. solar power generation would increase by 75%, from 163 billion kWh in 2023 to 286 billion kWh by 2025. During the same period, wind power generation is expected to rise by 11%, from 430 billion kWh in 2023 to 476 billion kWh in 2025. Therefore, the expansion in green electricity production is propelling the electrolyzer market.

Key companies in the electrolyzer market are focusing on technological innovations, such as green hydrogen, to enhance efficiency, reduce carbon emissions, and support the transition to a sustainable energy ecosystem. Green hydrogen refers to hydrogen gas produced through water electrolysis powered by renewable energy sources, such as solar or wind, resulting in minimal or zero carbon emissions. For example, in September 2024, Hygreen Energy, a US-based clean energy company, launched its first anion exchange membrane (AEM) electrolyzer system. This system provides scalable, cost-effective hydrogen production solutions while promoting global adoption of clean energy technologies. The AEM electrolyzer features a modular design and high durability, allowing flexible deployment for both industrial and renewable energy applications.

In July 2025, Battolyser Systems, a Netherlands-based clean energy technology company, merged with VDL Hydrogen Systems to develop the first fully flexible industrial electrolyzer. This collaboration aims to accelerate green hydrogen production, improve the scalability and efficiency of electrolyzer technology for industrial applications, and support the transition to sustainable energy solutions. VDL Hydrogen Systems, based in the Netherlands, specializes in designing and manufacturing advanced hydrogen production and storage systems.

Major companies operating in the electrolyzers market are Nel ASA, Asahi Kasei Corporation, Hydrogenics, Siemens AG, McPhy Energy S.A., ITM Power PLC, Erredue SpA, Enapter, Next Hydrogen Solutions Inc., Tianjin Continental Hydrogen Equipment Co. Ltd., Plug Power Inc., H-TEC SYSTEMS GmbH, Hysata Pty. Ltd., SunGreenH2, Hydrogen Pro, Iberlyzer, Bloom Energy, Cummins Inc., Green Hydrogen Systems A/S, Topsoe A/S, John Cockerill, LONGi Green Energy Technology Co. Ltd., Ohmium International Inc., Sunfire GmbH, Sungrow Power Supply Co. Ltd., thyssenkrupp nucera AG & Co KGaA.

Western Europe was the largest region in the electrolyzers market in 2025. Asia-Pacific is expected to be the fastest-growing region in the electrolyzers market during the forecast period. The regions covered in the electrolyzers market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electrolyzers market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electrolyzes market consists of sales of direct methanol fuel cell, solid oxide fuel cells (SOFC). Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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