The global modular electrolyzer market size was USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031, expanding at a CAGR of XX% during 2023–2031. The market is driven by technological advancements and the growing demand for alternative fuel solutions.
Modular electrolyzers are devices that separate water molecules into oxygen and hydrogen by using electric energy, through the chemical process of electrolysis. The hydrogen is collected at the cathode of the electrolyzer and stored for further use in various industries. Hydrogen is a highly effective gas that is used to produce chemicals such as methanol and ammonia. These compounds are used in various industrial processes and are in high demand, especially in the petroleum and fertilizer industries, which is a major propelling factor of the market.
- According to the International Energy Association, the global demand for Hydrogen reached 95Mt in the year 2022. This is 3% more than what it was in 2021. The demand for Hydrogen is constantly increasing in various areas, including traditional applications such as fertilizer production and petroleum refining.
Using the hydrocracking process, green hydrogen, obtained from modular electrolyzers, is used in the production of petroleum products such as diesel and gasoline. The compound ammonia (NH3) obtained from hydrogen is used in the manufacture of fertilizers for usage in the agriculture industries. Furthermore, these electrolyzers are extensively used for producing hydrogen for fuel cells, which are being considered to replace conventional fuel in transportation and other energy-related industries. Additionally, it is also used for electric grid stabilization and as a fuel for cooling power plant generators.
The market report finds that the COVID-19 pandemic hampered the growth of the modular electrolyzer market. The restrictions imposed by governments across the globe led to supply chain disruptions and minimal site operations, due to the low availability of the workforce. Although, ever since the lockdowns have been lifted, there has been a significant increase in the demand for electrolyzers, and is expected to continue increasing during the forecast period with growing exploration for alternative fuel solutions.
Modular Electrolyzer Market Dynamics
Major Drivers
Growing demand for electrolyzer-based on-site fueling stations is expected to drive the market during the forecast period. The emission from petroleum-fueled vehicles accounts for around 15% of greenhouse emissions globally. In order to tackle the problem of global warming and greenhouse gases, governments across the globe are promoting the use of clean energy resources and fuels. Therefore, the rising adaption of hydrogen fuel cells is anticipated to increase the requirement for electrolyzer-based fueling stations.
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According to the World Meteorological Organization, the average global temperature was 1.15°C more in 2022 than it was between 1850-1900. Between 2023 and 2027, it has been predicted that the annual mean global temperature near the surface is likely to be high, between 1.1°C and 1.8°C.
Increasing utilization of hydrogen as an eco-friendly fuel is anticipated to propel the modular electrolyzer market during the forecast period. There is a growing adoption of hydrogen fuel cells as an alternative to fossil fuel, owing to their eco-friendly properties such as negligible emission of carbon.
Boosting hydrogen production for these fuel cells leads to an increased demand for electrolyzers. Furthermore, intensive research is taking place to make its manufacturing process efficient, owing to the increasing uses of hydrogen in the mining, glass, chemical, food & beverage, and semiconductor industries.
Existing Restraints
High electricity expenses required for electrolysis are expected to hinder the market during the forecast period. The process of making hydrogen through electrolysis is highly expensive, as it requires running a high amount of current through a liquid to separate the chemical compounds. Therefore, this increases the production cost of hydrogen fuel cells, thereby making them unaffordable for lower-to middle-class customers. This can potentially dampen the growth of the modular electrolyzer market.
Emerging Opportunities
Increasing investments in large-scale green hydrogen projects are anticipated to provide significant growth opportunities for the market in the coming years. The interest of investors is rising in green hydrogen projects, due to the various applications of hydrogens across various sectors. These include cement & steel production, power generation, and the development of fuel cells for electric vehicles. Modular electrolyzers help in the production of green hydrogen. The green ammonia (NH3) derived from this type of hydrogen is used in electric grid stabilization, refrigeration, and the development of cleaning products and fertilizers.
Scope of the Modular Electrolyzer Market Report
The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Modular Electrolyzer Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Component (Compressor, Pressure Storage Module, Fuel Cell, and Others), Type (Alkaline Electrolyzer, Polymer Electrolyte Membrane (PEM), and Solid Oxide), and Application (Residential, Commercial, and Industrial)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Cummins Inc.; Enapter S.r.l.; First Ammonia; Green Hydrogen Systems; ITM Power PLC; McPhy Energy S.A.; Nel ASA; Next Hydrogen; Ohmium; ostermeier H2ydrogen Solutions GmbH; Plug Power Inc.; Robert Bosch GmbH; Siemens; and TÜV Rheinland
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Modular Electrolyzer Market Segment Insights
Component Segment Analysis
Based on component, the modular electrolyzer market is divided into compressor, pressure storage module, fuel cell, and others. The fuel cell segment is projected to hold the major revenue share of the market during the forecast period, owing to its high power and efficiency as compared to fossil fuels. Hydrogen is a clean energy source that does not leave behind any carbon footprint and contributes to the conservation of the environment. Furthermore, fuel cells with hydrogen energy storage are highly reliable and reduce the requirement of importing foreign oil, thereby benefitting the economy as well as the environment.
Type Segment Analysis
On the basis of type, the global market is categorized as alkaline electrolyzer, polymer electrolyte membrane (PEM), and solid oxide. The alkaline electrolyzer segment is projected to register a high CAGR during the forecast period, as it is highly cost-effective in comparison to other types and is a relatively mature technology.
In an alkaline electrolyzer, nickel-based catalysts are used in an alkaline solution of electrolytes such as potassium hydroxide and a diaphragm to transport hydroxide ions and separate the electrodes. Alkaline electrolyzer demand is increasing, due to their extensive industrial applications, including photovoltaics & electronics, steel manufacturing, power-producing plants, and others.
The polymer electrolyte membrane (PEM) segment is expected to expand at a significant growth rate in the coming years, due to its ability to effectively operate at variable power levels and high current densities. The PEM electrolyzers are highly compatible for pairing with other renewable energy sources, including wind and solar-based energy sources. The PEM electrolyzers are the most common generators of hydrogen, due to their ability to cycle rapidly with high efficiency.
Application Segment Analysis
On the basis of application, the modular electrolyzer market is segmented into residential, commercial, and industrial. The industrial segment is anticipated to register a robust growth rate during the forecast period, owing to the vast industrial applications of green hydrogen obtained from modular electrolyzers. Hydrogen is largely used as a key component or catalyst in the manufacture of ammonia and methanol as well as in the process of oil refining. These processes make up the majority of the industrial applications of hydrogen.
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According to estimates, around 55% of the global hydrogen goes into the manufacture of ammonia (NH3), which is crucial for agriculture sectors, 25% in oil refining, and 10% in methanol production.
The commercial segment is projected to register a considerable CAGR during the forecast period. The surging demand for alternative fuel, due to growing environmental awareness, has resulted in increased production of hydrogen fuel cells and electrolyzer-based fueling stations. This is anticipated to increase the demand for modular electrolyzers in the coming years.
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Prominent Germany-based electrolyzer manufacturer, Ostermeier H2ydrogen Solutions, developed a special electrolyzer prototype that can operate with tap water. It has a fuel cell to produce electricity and bottles to store hydrogen. It has a capacity of 1kW-100kW, which leads to 0.2-20 Nm3/h of hydrogen production.
Regional Outlook
In terms of region, the global modular electrolyzer market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the forecast period, owing to the increasing demand for hydrogen in various industrial and commercial applications.
The rising awareness relating to clean energy production and the increasing aid from the government, in the form of financial support, are promoting the use of hydrogen as an alternative fuel source. Moreover, the region has had a substantial investment in the exploration, production, and refining of alternative fuel, which further propels the growth of the market.
Europe is projected to have rapid growth in the modular electrolyzer market during the forecast period, due to the continuous expansion and fortification of the grid infrastructure network. Conscious efforts are being made by governments and private sectors towards increasing the installation of renewable energy systems, owing to rising environmental awareness. Furthermore, a large number of investments have been made by the key market players in this region. The increasing demand for green hydrogen is contributing to the market growth in this region.
Segments
The modular electrolyzer market has been segmented on the basis of
Component
- Compressor
- Pressure Storage Module
- Fuel Cell
- Others
Type
- Alkaline Electrolyzer
- Polymer Electrolyte Membrane
- PEM
- Solid Oxide
Application
- Residential
- Commercial
- Industrial
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Cummins Inc.
- Enapter S.r.l.
- First Ammonia
- Green Hydrogen Systems
- ITM Power PLC
- McPhy Energy S.A.
- Nel ASA
- Next Hydrogen
- Ohmium
- ostermeier H2ydrogen Solutions GmbH
- Plug Power Inc.
- Robert Bosch GmbH
- Siemens
- TÜV Rheinland
Competitive Landscape
Key players competing in the global modular electrolyzer market are Cummins Inc.; Enapter S.r.l.; First Ammonia; Green Hydrogen Systems; ITM Power PLC; McPhy Energy S.A.; Nel ASA; Next Hydrogen; Ohmium; ostermeier H2ydrogen Solutions GmbH; Plug Power Inc.; Robert Bosch GmbH; Siemens; and TÜV Rheinland.
These companies adopt development strategies such as mergers, partnerships, collaboration, acquisitions, product launches, and production expansion to get an edge over the competitors. These market players are forming collaborations and partnership agreements to form symbiotic relationships for mutual development and increase relevance in the industry. For instance,
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In March 2023, Plug Power Inc. the prominent US-based market player, was chosen by Uniper SE for manufacturing electrolyzer technology for its Netherland-based Maasvlakte Energy Hub. For the project, the former had to deliver 10 prefabricated PEM electrolyzers (proton exchange membrane). The partnership was done to strengthen the company's presence in Europe.
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In March 2023, Siemens Energy, one of the big energy corporations globally, collaborated with HIF Global for the supply of PEM (polymer electrolyte membrane) electrolyzer for HIF Matagorda's Texas-based eFuels plant. The electrolyzer is expected to help with the annual production of around 300,000 tons of hydrogen.
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