Hydrogen Electrolyzers

The Hydrogen Electrolyzers Emerging Market Analysis delivers current market analysis plus a five year market and technology forecast. The research covers Hydrogen Electrolyzers, Renewable Energy, Green Hydrogen, Gray Hydrogen, Alkaline, Solid Oxide, Proton Exchange Membrane, PEM, Strategic Analysis, Market Size, Industry Trends

New ARC Research Shows Huge Potential for Hydrogen Electrolyzers

 According to ARC Advisory Group research, the market for hydrogen electrolyzers is ready for significant growth as the market shift to renewable energy intensifies. ARC’s research provides an insightful analysis of the emerging market for the manufacture and sales of commercial off-the-shelf dedicated hydrogen electrolyzers. This research focuses on the market for dedicated hydrogen electrolyzer systems and excludes electrolyzers for chlor-alkali processes which produce hydrogen as a byproduct. This research includes information on market size, growth, and key trends.

Hydrogen Electrolyzers Strategic Issues

hydrogen electrolyzers market trendsIn addition to providing a five-year market forecast, the Hydrogen Electrolyzers market research provides detailed quantitative current market data and addresses key strategic issues as follows.

Select the Right Technologies

If you are looking at electrolyzers, it is highly likely that you have a requirement for green hydrogen, otherwise grey hydrogen would be much cheaper until the price of green power drops substantially. Find a low-cost reliable source of green power with a power purchase agreement and sufficient electrolyzer efficiency that allows you to produce hydrogen at a favorable cost considering maintenance, equipment life, and ultimate equipment recycling/disposal. There are three main technologies available on the market: alkaline, solid oxide, and proton exchange membrane (PEM) electrolyzers. Alkaline electrolyzers are cheaper in terms of investment (they use nickel catalysts) but are least efficient. PEM electrolyzers are more expensive (they generally use expensive platinum and iridium metal catalysts available in South Africa, Zimbabwe, and the Russia) but are more efficient and can operate at higher current densities, and can, therefore, be possibly cheaper if the hydrogen production is large enough. These same rare earth metals are used in fuel cells. Solid oxide electrolyzer cells (SOEC) are the third most common type of electrolysis and use high operating temperatures to increase efficiency. The theoretical electrical efficiency of SOEC is close to 100 percent.

The stack cost of an alkaline electrolyzer is lower than PEM. But when it comes to the complexity and cost of balance of plant (BOP) as the system size increases, PEM is lower, according to the Fraunhofer Institute for Solar Energy Systems ISE. In fact, the total cost of ownership of a PEM electrolyzer is lower than alkaline with forecasters estimating that PEM service costs are one-third of alkaline. SOECs are also an emerging technology for electrolyzers that have been built at demonstration scale. Anion exchange membrane (AEM) electrolysis is still in the early research and development stage, while alkaline water electrolysis is in the mature stage and PEM electrolysis is in the commercial stage. The major technical challenge facing a consumer level AEM electrolyzer is the low durability of the membrane.

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ALK electrolyzers’ caustic electrolyte solution can also ratchet up its hefty price tag. For example, a 10 to 20-year project means a long term need to replace parts such as pumps and valves, or the removal of potassium hydroxide from the hydrogen or oxygen streams. The 3.5 ton per megawatt requirement for highly-corrosive potassium hydroxide in alkaline systems typically incur significant space requirements–often two to three times the space of a PEM system for a similar output. Any losses in space can lead to losses in revenue. When considering output pressure, standard alkaline electrolyzers deliver output at a low pressure of 1 to 10 bar, which is nearly ambient pressure. For most applications, hydrogen must be further compressed for transport, storage, or consumption. PEM electrolyzers have an output of 40 bar—that is 4 to 40 times of a typical alkaline system. PEM reduces the cost of compression.

Understand Your Market

Find a reliable customer for the hydrogen that is produced. Many early projects with green hydrogen are development projects to prove the concept. The new markets for hydrogen depend on regulations such as a price on carbon, penalties for greenhouse gas emissions, or other incentives that will make them economic. Currently refining, steel, cement kilns, and ammonia industries have little economic incentive to switch to green hydrogen. There may be corporate commitments to sustainability, net zero, or carbon reduction goals, but these come at a price. Grey hydrogen is cheaper than green hydrogen and easy to produce. Vehicle filling stations are certainly a requirement for a green hydrogen transportation system just as EV chargers are needed for EVs. Supplying hydrogen filling station with grey hydrogen would increase total CO2 emissions compared to just using gasoline or diesel cars or trucks, negating the appeal of hydrogen. As green hydrogen is very expensive today, hydrogen car makers have offered rebates. Toyota Mirai comes with $15,000 or 6 years, whichever comes first, of complimentary hydrogen fuel purchases. Early Tesla EV’s came with lifetime free supercharging. After these free hydrogen incentives are discontinued the cost of fuel for hydrogen will be much higher than the cost of electricity for EVs.

Market Data Research Available Datasets

This in-depth market data research is available as a Market Growth Outlook Service.  This service is configured into several sub-modules to meet the needs of executives as well as marketing, sales, and product development managers.  A brief description of the sub-modules and their use cases is included below.

Market Growth Outlook

ARC’s market growth outlook service delivers an in-depth market opportunity analysis including five-year market and technology forecasts and 3-year history trend lines where available. Besides providing an in-depth analysis of the market opportunity provided by each technology, this service allows technology suppliers to analyze their own customized markets consisting of multiple technologies. For example, customers can view different market scenarios by adding or removing technology markets from the analysis, providing them a Total Available Market (TAM) view of their own served market. A list of the available market growth outlook services can be seen in the list below.  

This service is designed to help accelerate your organization's ability to understand an up-to-date view of the market opportunity provided by your current product portfolio and analyze how your company’s market opportunity would change if you were to acquire or divest a particular product line. The service will also help you identify and capitalize on emerging markets, whether these markets are based on an emerging technology, region, vertical industry, or application. Built upon a proprietary market model and ARC’s field proven primary research, this service helps product and marketing managers optimize their business plans by identifying the opportunities provided by emerging trends. ARC’s reputation as the preeminent independent provider of market growth opportunity analyses for nearly four decades also provides greater weight to your business plans. ARC’s market growth outlook services are available in a variety of formats depending on whether you view your market opportunities via different technologies, industries, or world regions.  

In addition, ARC has a strong history of providing customized market opportunity reports and services to meet your specific needs.  For example, you may sell your products only to specific industries and/or in only one or two regions. You tell us your served markets and ARC can quickly configure a report or service designed to best serve your served market.

ARC provides several versions of these reports and services depending on your role in the organization. Executive Views are high level market opportunities designed to help executives quickly identify key trends and market opportunities around the world.  In-depth market opportunity analyses provide marketing and product managers more detailed technology specific market information to plan marketing and product development strategies.  The following table shows more specific information included in each version.

Market Growth Outlook AnalysisUse CasesTarget Role
Worldwide Market Growth Outlook by Industry & Region with 3-year history where availableIn-depth technology-specific strategic growth planning across multiple technologies, applications, regions, and industriesProduct & Marketing Managers
Worldwide Industry Growth Outlook by Region with 3-year history where availableStrategic technology growth planning for markets defined by a single or multiple vertical industriesIndustry Managers
Regional/Country Market Growth Outlook by Technology & Industry with 3-year history where available (includes country data)Strategic technology growth planning for markets defined by a single or multiple world regionsRegional & Country Sales Managers
Market Growth Outlook Executive ViewStrategic Total Available Market (TAM) growth planning dashboard covering multiple vertical industries, technologies, and world regionsExecutives

Worldwide Research Focus Areas

Strategic Analysis

  • Executive Overview
  • Market Trends
  • Buyer Strategies
  • Supplier Strategies
  • Growth Contributors and Inhibitors

Market Forecasts

  • Total Shipments of Hydrogen Electrolyzers
  • Shipments by Region
    • North America
    • Europe, Middle East, Africa
    • Asia
    • Latin America
  • Shipments by Electrolyzer Type
    • Alkaline Electrolysis
    • Anion Exchange Membrane
    • Proton Exchange Membrane
    • Solid Oxide Electrolyzer Cell

Industry Participants

The research identifies all relevant suppliers serving this market.

For More Information

For more information or to purchase the Hydrogen Electrolyzer Market Research, please contact us.

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