Electrolyzers Market Trends

Growth Drivers

• Corporate decarbonization strategies: The presence of energy-efficient sectors, such as refining, steel, and chemicals, is initiating net-zero commitments. This has created a long-lasting and tangible demand for green hydrogen as a reduction agent and clean feedback, which is readily driving the electrolyzers market globally. As per an article published by the Net Zero Climate Organizations in September 2025, there has been a rise in U.S.-based companies by 9%, and these currently represent USD 12 trillion in international revenue, amounting to 64% of the revenue of overall organizations assessed in the Stocktake. In this regard, despite the U.S. federal government’s retrenchment on climate action, 77% of international gross domestic product (GDP) continues to be covered by national net-zero commitments, thus denoting an optimistic outlook for the market.
• Reduction in renewable energy expenses: The continuous decline in the expense associated with wind power and solar PV is considered the single most essential factor for reducing the Levelized Cost of Hydrogen (LCOH), which positively caters to the market’s growth. As stated in an article published by the UN Organization in 2025, USD 2 trillion went into clean energy as of 2025, denoting USD 800 billion over fossil fuels and an increase by nearly 70% within 10 years. Additionally, in 2023, clean energy industries readily drove 10% of international GDP growth. Besides, there has been slow growth in emissions to 0.8%, while the global economy extended by over 3%. However, almost USD 4.5 trillion per year has been projected to be invested in renewable energy until 2030, which includes investments in infrastructure and technology, thus permitting to reach net-zero emissions by the end of 2050.
• Development of technical standards: The aspect of bankability and standardization for guaranteeing the green origin of hydrogen has increased investor confidence and successfully made large-scale projects extremely bankable, which is also bolstering the electrolyzers market globally. According to a data report published by the World Trade Organization in December 2023, at present, hydrogen is largely produced by utilizing natural gas, with trade flow valuation ranging from USD 150 million to USD 200 million every year. Besides, the trade of commodities derived from green hydrogen, specifically methanol and ammonia, is worth USD 14.1 billion and USD 17.5 billion as of 2022. However, the hydrogen supply is projected to expand by 2050 to over 500 million tons every year, thus denoting a positive impact on the market’s growth.

Challenges

• Constrained and immature supply chains: The supply chain system for critical components and materials is not mature enough to support the predicted gigawatt-scale deployment, which poses a huge risk in the electrolyzers market. This is specifically acute for PEM electrolyzers, which depend on platinum group metals (PGMs), such as iridium. Besides, the price volatility and scarcity of these materials can critically cap the PEM technological growth. Beyond materials, the supply chain system for high-quality catalysts, membranes, as well as large-scale balance-of-plant components is also readily stretched. Furthermore, scaling up manufacturing needs a parallel scaling of an internationally resilient and distributed supply base, which comprises significant and long-lasting investments.
• Market Uncertainty and lack of supporting infrastructure: The development of a large-scale hydrogen economy is deliberately hampered by a critical absence of crucial infrastructure for distribution, storage, and transportation. The aspect of transporting hydrogen through pipelines needs expensive refurbishment of current natural gas networks and dedicated pipelines. Besides, liquefaction for shipping is considered an energy-intensive process, and for this, the large-scale salt cavern storage is geographically restricted. This particular infrastructure barrier has created a logistical risk, frequently pressuring projects to be captive, wherein consumption and production need to take place at a similar location, thereby causing a hindrance in the electrolyzers market across different countries.