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.
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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.
Country
Forecast CAGR (2024–2034)
United States
25.0 %
Japan
25.9 %
United Kingdom
26.2 %
South Korea
26.9 %
China
23.8 %
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:
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
By Region
North America
Latin America
Europe
East Asia
South Asia
Oceania
Middle East & Africa
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About Future Market Insights (FMI)
Future Market Insights (FMI) is a leading provider of market intelligence and consulting services, serving clients in over 150 countries. Headquartered in Delaware, USA, with a global delivery center in India and offices in the UK and UAE, FMI delivers actionable insights to businesses across industries including automotive, technology, consumer products, manufacturing, energy, and chemicals.
An ESOMAR-certified research organization, FMI provides custom and syndicated market reports and consulting services, supporting both Fortune 1,000 companies and SMEs. Its team of 300+ experienced analysts ensures credible, data-driven insights to help clients navigate global markets and identify growth opportunities.
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