The Global Market for Electrolyzers Is Expected to Grow at 16% Annually through 2028
Rapid growth in the mobility segment, supplemented by consistent growth in the industrial and storage segments, is expected to boost the electrolyzer market
A new report from Navigant Research analyzes the global market for electrolyzers based on geographic region and hydrogen end-use, providing market forecasts for capacity and revenue, through 2028.
The process of water electrolysis, which extracts hydrogen by running an electric current through water, is growing in popularity as green hydrogen (hydrogen produced with renewable electricity) becomes more prevalent. Only 1%-4% of hydrogen is produced with electrolyzers in 2019. However, with greater emphasis on decarbonization, increasing renewables integration, and decreasing capital costs of electrolyzers, Navigant Research expects significant growth in the electrolyzer market. Click to tweet: according to a new Navigant Research report, the market for electrolyzers is expected to experience a compound annual growth rate of 16% through 2028 globally.
“Manufacturers are scaling up electrolyzer offerings, and double-digit megawatt projects are being built,” says Shayne Willette, research analyst at Navigant Research. “In the coming years, further market expansion is expected, primarily driven by rapid growth in the mobility segment supplemented by consistent growth in the industrial and storage segments.”
According to the report, significant growth is expected in the mobility sector, due to expansion in the fuel cell vehicle market, and in the hydrogen storage segment. Additionally, one of the strongest drivers will be in the variability of renewables, primarily wind and solar PV. As grid operators aim to balance the grid during periods of surplus electricity from renewables, this electricity can be used in electrolysis to produce hydrogen for seasonal storage.
The report, Electrolyzers, analyzes the global market for electrolyzers based on geographic region and hydrogen end-use. The study provides an analysis of current market issues, opportunities, drivers, and key market players regarding electrolyzers. Global market forecasts for capacity and revenue extend through 2028. The report also examines end-use segments broken down into industry, mobility, and storage. An Executive Summary of the report is available for free download on the Navigant Research website.
*The information contained in this press release concerning the report, Electrolyzers, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.