The USA hydrogen electrolyzer market size is projected to expand at a CAGR of 23.8% from 2023 to 2033. It is anticipated to reach a valuation of about US$ 790.8 million by 2033. The market is likely to cross a valuation of around US$ 93.2 million in 2023.
Demand for polymer electrolyte membrane (PEM) electrolyzers is estimated to contribute to more than 45% of market value share in 2023. It is owing to continued demand for supplementation of the natural gas grid for increased efficiency and vehicle fueling.
A hydrogen-producing electrolyzer is a device that produces hydrogen via a chemical reaction known as electrolysis. It possesses an electrical capacity to separate oxygen and hydrogen molecules.
A hydrogen electrolyzer is used to produce hydrogen in a sustainable manner. Carbon dioxide is not released into the atmosphere. As a result, a decarbonized economy can be built, and the market can advance.
Hydrogen electrolyzer in the USA is a rapidly expanding sector of the economy. It is primarily motivated by the need to cut carbon emissions and rising demand for sustainable energy alternatives
Electrolyzers are machines which convert freshwater into oxygen and hydrogen using electricity, providing an energy source that is renewable & clean. Electrolysis can produce hydrogen that can be utilized as a propellant for industrial activities, power plants, and transportation.
Demand for hydrogen electrolyzers in the USA is also being fueled by a number of reasons such as legislative efforts to cut carbon emissions and rising financial support for renewable energy sources. The market would flourish if new, more effective electrolyzer technologies were developed.
Government programs to lower carbon emissions are a leading force behind the rising hydrogen electrolyzer sales. The USA government is enforcing laws and policies to promote the use of sustainable energy options such as hydrogen fuel.
For instance, the USA General Services Administration (GSA) declared its intention to use only renewable energy sources for the portfolio of federal real estate by 2025.
Strong adjustments to the hydrogen electrolyzer manufacturing process brought on by the pandemic back in 2020 are also anticipated to drive the industry. Due to the swift shift to less polluted, more reliable, and environmentally friendly energy sources, businesses must coordinate their strategies.
Players in the hydrogen electrolyzer business are under pressure to be more watchful and forward-thinking. It is due to worries about the slowing USA economy and dangers of stagflation with potential market scenarios.
2018 to 2022 USA Hydrogen Electrolyzer Market Outlook Compared to Demand/Sales Forecast for/from 2023 to 2033
The USA hydrogen electrolyzer industry stood at US$ 76.0 million in 2022. As per the report, hydrogen electrolyzer demand is anticipated to expand at a CAGR of 23.8% between 2023 and 2033.
Creation of green hydrogen is an ongoing concern for energy businesses in the USA. Utilizing sustainable energy sources such as solar, wind, or water power, environmentally friendly hydrogen can be created.
It can be kept for several hours, days, or even months. Green hydrogen can also be used to create sustainable chemicals, electricity, or as a clean, carbon dioxide-free substance in the transport sector.
The power generation industry, chemical industry, and petrochemical industry are the main end consumers of hydrogen electrolyzers. These sectors are searching for electrolyzer solutions that are affordable, have a long service life, and require less maintenance.
In these industries, significance of on-site hydrogen production is expanding in order to lower overall operating costs. It is envisaged that contracts will be entered into in order to benefit the provider, retailer, and end user equally. Governments in developed towns across the country are expanding their spending in renewable energy initiatives, which will drive demand for hydrogen generators.
It is anticipated that regulatory organizations will finance infrastructure development initiatives in USA communities that are still emerging. To advance a sustainable energy economy, they might also install hydrogen fueling stations.
This will increase the need for hydrogen electrolyzers and open up new growth prospects for leading players. Driven by the above-mentioned factors, the USA hydrogen electrolyzer industry is anticipated to broaden 8.7x from 2023 to 2033.
Top USA Hydrogen Electrolyzer Market Trends Listed by Future Market Insights (FMI)
· Increasing usage of hydrogen in refinery hydro-processing in recent years, as well as rising number of secondary end-user sectors would drive demand in the USA.
· In the USA, there has been an increasing demand for hydrogen in ultra-low sulfur diesel fuel.
· There has also been a surging demand for environmentally friendly energy sources, which has fueled the demand for hydrogen electrolyzers, resulting in market expansion.
· On-site hydrogen generation is gaining high popularity among various end users due to a number of environmental and economic benefits.
· These include low transportation costs and emissions, as well as a reduced risk of inadequate gas handling and storage.
· When small-scale on-site hydrogen generation technologies are used, capital investment is less.
· Manufacturers are focused on the use and development of green hydrogen such as through the electrolysis of water as a source of hydrogen to attain sustainability.
· Water electrolysis is also an economically viable option for small-scale hydrogen generation in various remote places when other production sources such as natural gas, are not readily available.
· Combined effect of these variables is the rising demand for on-site hydrogen generation.
· In the USA, demand for hydrogen is being driven by growing need to reduce carbon emissions into the atmosphere.
· Hydrogen is hence being viewed as a clean alternative fuel.
· Increased demand for low-sulfur and ultra-low sulfur gasoline & diesel fuels in the USA has further boosted the need for hydrogen in refineries, as a part of obtaining improved fuel products.
· This necessitates the use of hydrogen in refinery hydroprocessing, which increases hydrogen consumption.
· The USA is considering hydrogen as a transportation fuel as an option for achieving its clean energy goals.
· Scope of this plan is projected to encompass marine and off-highway fuels.
· Hydrogen is used in a variety of industries, including electronics, food & beverage, metal production & fabrication, and pharmaceuticals.
· Over the next ten years, the USA market is predicted to develop due to macroeconomic expansion in these industries.
· Increased demand for hydrogen electrolyzers from these industries would also augment sales.
· General growth of the semiconductor and LED industries is expected to fuel the USA industrial hydrogen electrolyzer sector.
· For effective operation, the electronics sector requires highly pure hydrogen.
· Heavy oil, a blend of hydrocarbons with sulfur and nitrogen compounds, is the fuel used in ship engines.
· They emit significant volumes of sulfur and nitrogen oxide pollutants, as well as carbon dioxide.
· Both the environment and human health are harmed by these.
· A deal was made to severely limit the use of these fuels by the International Maritime Organization (IMO).
· Demand for hydrogen is further elevating in the refineries sector with expanding need for marine fuel.
Category-wise Insights
Which is the Most Preferred Type of Hydrogen Electrolyzer Used in the USA?
PEM Green Hydrogen Electrolyzers to Witness High Demand with Quick Ion Transportation Feature
The PEM electrolyzer category accounts for around 45% of the USA hydrogen electrolyzer industry share. Hence, it is one of the prominent segments for hydrogen electrolyzers as a result of growing applications for energy storage.
Due to low operating pressures of these electrolysis cells, a compression step is necessary before storing the generated hydrogen. It serves as an additional expense for running these systems.
When using intermittent energy sources, PEM electrolyzers have significant load-following advantages than alkaline electrolyzers. This occurs as PEM electrolyzers move ions more quickly than alkaline electrolyzers. The PEM electrolyzer segment is likely to elevate at a CAGR of about 24.5% over the projected period.
Competitive Landscape
The USA hydrogen electrolyzer industry is moderately consolidated. Significant competition is faced by domestic and international players in the market owing to rising number of startups in the refining and chemical sectors.
Increasing usage of hydrogen in refinery hydro-processing in recent years is expected to create favorable growth opportunities for manufacturers. Rising adoption of hydrogen-based vehicles in the transportation industry is also set to drive opportunities.
For instance
In May 2022, Bloom Energy and LSB Industries Inc. announced their plans to build a new manufacturing facility in Oklahoma, USA. They aim to produce solid oxide electrolyzers.
In April 2022, Plug Power Inc. and MOL Group partnered up and signed an agreement. The former is planning to provide hydrogen solutions to the MOL Group.
