The accelerated growth of the global electrolyzer market is supported by increasing demand for hydrogen across industrial, energy, and mobility sectors. Valued at $2.08bn in 2025, the segment is expected to reach $14.48bn by 2031, representing a compound annual growth rate of 38.2%. This expansion is underpinned by large-scale hydrogen infrastructure and projects aligned with renewable energy deployment.
Dominant technologies and segment outlook
Among the various technologies available, alkaline electrolyzers held the largest market share in 2024. Their technological maturity, lower costs, and compatibility with industrial-scale volumes account for their dominance. Proton exchange membrane (PEM) electrolyzers are gaining traction due to their responsiveness to fluctuating energy supply and ability to deliver high-purity hydrogen.
Anion exchange membrane (AEM) technology is projected to post the highest growth rate over the forecast period. Its ability to combine the low-cost advantages of alkaline systems with efficiencies similar to PEM models positions it as a cost-effective solution for distributed applications, small industrial sites, and emerging transport-related hydrogen uses.
Geographic expansion and strategic projects in Europe
Europe is identified as the fastest-growing region in this period. The installation of cross-border hydrogen corridors, hydrogen-ready industrial hubs, and large-scale storage facilities is driving sustained demand for electrolyzers. Incentive programmes such as Important Projects of Common European Interest (IPCEI), national tenders, and Contracts for Difference are improving project bankability.
Initiatives tied to synthetic aviation fuels, maritime transport, and urban heating networks are also accelerating electrolyzer adoption across the region. European manufacturers are responding with the expansion of gigafactories, reinforcing their technological positioning.
Industrial strategies and competitive dynamics
Key players in the sector include thyssenkrupp nucera, Siemens Energy, John Cockerill, Nel, and Cummins Inc. These companies are pursuing growth strategies through contracts, partnerships, capacity expansions, and acquisitions. thyssenkrupp nucera notably strengthened its technology portfolio in June 2025 by acquiring key assets from Green Hydrogen Systems, including patents and a test facility for pressurised alkaline electrolysis.
John Cockerill, through its Chinese subsidiary Cockerill Jingli Hydrogen, signed a memorandum of understanding in April 2025 with Vietnam’s The Green Solutions Group for the supply of pressurised alkaline electrolyzers and joint development of hydrogen and ammonia projects. The Belgian group holds more than 70 patents and reported supplying half of the global alkaline equipment deliveries in 2021.
