Electrolyzers Industry Emerge as Core Net-Zero Technology with $42.4 Billion Market Outlook - Future Market Insights, Inc. Forecast

NEWARK, Del., Dec. 10, 2025 /PRNewswire/ -- Future Market Insights, Inc. (FMI) — Global momentum toward clean energy and industrial decarbonization is propelling the electrolyzer market into one of the fastest-growing technology segments of the decade. According to Future Market Insights, Inc., the global electrolyzer market is on track to rise from USD 4.7 billion in 2024 to USD 42.4 billion by 2034, registering a powerful 24.6% CAGR over the forecast period.

The acceleration reflects unprecedented demand for green hydrogen, rapid scaling of renewable energy, and government-backed industrial transition programs across North America, Europe, and Asia.

"Electrolyzers have moved from a niche technology to a central pillar of global net-zero strategies," said an FMI energy analyst. "Manufacturers, investors, and policymakers are now aligned on the role of green hydrogen, setting the stage for a decade of record installations and capacity additions."

A Decade of Demand as Green Hydrogen Gains Global Priority

Electrolyzers—critical systems that split water into hydrogen and oxygen—have become the centerpiece of national hydrogen strategies across the United States, Europe, Japan, South Korea, China, and the Middle East.

The market's strong growth is supported by:

• Rapid adoption of renewable energy, making electrolysis more cost-competitive.
• Industry-wide decarbonization, especially in steel, chemicals, refineries, and mobility.
• New energy storage models, using hydrogen to stabilize grids with high solar and wind penetration.
• Surging investor interest, with multi-gigawatt projects announced across Europe and Asia since 2023.

From 2019 to 2023, electrolyzer sales delivered a striking 27.9% CAGR, signaling the sector's early-stage acceleration. Despite expected cost and infrastructure challenges, FMI forecasts sustained long-term growth through 2034.

Technologies and Segments Poised for the Strongest Growth

PEM Electrolyzers Lead the Market's Next Growth Cycle

• Top Technology: PEM (Proton Exchange Membrane)
• 2024–2034 CAGR: 24.3%
  PEM systems are increasingly favored for high-purity hydrogen, rapid start-stop capability, and strong compatibility with intermittent renewable power.

Manufacturers are improving PEM durability, catalyst efficiency, and recycling processes—key factors driving commercial adoption across industrial and mobility applications.

≤ 500 kW Capacity Systems Take Center Stage

• Top Capacity Segment: ≤ 500 kW
• 2024–2034 CAGR: 24.0%
  Small- and mid-size electrolyzers are gaining traction for distributed hydrogen systems, refueling stations, industrial pilot plants, and on-site renewable hydrogen generation.

Modular design, affordability, and easier grid integration are pushing this category to the forefront.

Five Countries Setting the Global Pace

FMI identifies the United States, China, Japan, South Korea, and the United Kingdom as the world's most influential electrolyzer markets.

United States — Hydrogen Demand Surges Across Energy and Manufacturing

Valued at USD 7.6 billion by 2034, U.S. growth is driven by:

• Expanding refinery hydrogen requirements
• Ultra-low sulfur fuel production
• Federal clean hydrogen hubs and industrial transition programs

United Kingdom — Automotive and Power Sectors Accelerate Deployment

The UK is expected to reach USD 1.7 billion by 2034, driven by:

• Rapid EV ecosystem expansion
• Power plant modernization
• Strong domestic investments and supportive policy frameworks

China — Gigawatt-Scale Manufacturing Takes Off

China's electrolyzer market is projected to hit USD 6 billion by 2034, backed by:

• Gigawatt-scale project announcements
• Heavy investment in R&D and cost-down strategies
• Strong hydrogen integration within renewable power clusters

Japan — Urban Energy Demand Shapes Hydrogen Strategy

Japan, expected to reach USD 4.7 billion, is building hydrogen-centric solutions for:

• Urban energy resilience
• Mobility and fuel-cell systems
• Large-scale renewable integration

South Korea — Government-Led Green Push Accelerates Scaling

South Korea, forecast at USD 2.7 billion by 2034, is experiencing:

• Rapid expansion of hydrogen refueling networks
• Strong state-backed industry partnerships
• Growing public and private investment momentum

Companies Shaping the Global Market Outlook

Major manufacturers steering the electrolyzer transformation include:

• Nel Hydrogen (Norway)
• Asahi Kasei (Japan)
• Hydrogenics (Canada)
• Siemens Energy (Germany)
• ITM Power (United Kingdom)
• Ballard Power Systems (Canada)
• Plug Power (United States)
• McPhy Energy (France)
• Teledyne Energy Systems (United States)
• Green Hydrogen Systems (Denmark)**
  …along with a growing number of regional entrants in China, India, and the Middle East.

These companies are accelerating innovations in catalyst materials, stack durability, cost reduction, modular system design, and large-scale manufacturing.

Recent Industry Developments

• BASF (Jan 2024) received funding for a 54 MW PEM electrolyzer, expected to produce 8,000 MT of hydrogen annually.
• Reliance Electrolyzer Manufacturing, Adani New Industries, Jindal India (Jan 2024) filed bids for India's 1.5 GW electrolyzer manufacturing program.
• Enapter AG & Wolong Electric (Jan 2024) formed a joint venture to produce AEM electrolyzers in China.
• McPhy Energy (Dec 2023) secured a contract for four 3200-30 McLyzer electrolyzers totaling 64 MW.

Where Investments Are Flowing

By Technology

• PEM Electrolyzer
• Alkaline Electrolyzer
• Solid Oxide Electrolyzer

By Capacity

• ≤ 500 kW
• 500 kW to 2 MW
• Above 2 MW

By Application

• Steel Plants
• Power Plants
• Electronics & Photovoltaics
• Fuel-Cell Energy Storage
• Industrial Gases
• Power-to-Gas Systems
• Others

By Region

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• Middle East & Africa

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Other Electrolyzers Related Reports

• PEM Electrolyzer Market (2025–2035) — https://www.futuremarketinsights.com/reports/pem-electrolyzer-market Future Market Insights
• Hydrogen Electrolyzer Market (2025–2035) — https://www.futuremarketinsights.com/reports/hydrogen-electrolyzer-market Future Market Insights
• Small Capacity Electrolyzer Market (2025–2035) — https://www.futuremarketinsights.com/reports/small-capacity-electrolyzer-market Future Market Insights
• PEM Small Capacity Electrolyzer Market (2025–2035) — https://www.futuremarketinsights.com/reports/pem-small-capacity-electrolyzer-market Future Market Insights

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SOURCE Future Market Insights