Hydrogen Electrolyzer Market Set to Skyrocket by 2031
London, Tuesday, 7 October 2025.
The hydrogen electrolyzer market is expected to surge, reaching $3,791.6 million by 2031, fuelled by the growing demand for green hydrogen and supportive policies. Who knew going green could be so profitable?
The Growth Trajectory
The hydrogen electrolyzer market is projected to grow from $615.3 million in 2023 to a staggering $3,791.6 million by 2031. That’s a compound annual growth rate (CAGR) of 25.71% between 2024 and 2031, driven by the global push for green hydrogen. This demand is buoyed by ambitious targets, like the European Commission’s plan to install 40 GW of electrolyzers by 2030, and the International Energy Agency’s forecast of a potential global capacity of up to 520 GW by the same year [1][2].
Policy-Driven Expansion
Favourable policies are the wind beneath the wings of the hydrogen electrolyzer market. The U.S. Department of Energy’s ‘Hydrogen Shot’ initiative aims to slash the cost of clean hydrogen to $1 per kilogram by 2031, demonstrating a clear commitment to driving the market forward. Similarly, Europe’s ‘Fit for 55’ package and the establishment of the European Hydrogen Bank are set to provide significant policy support for deployment [1][2][3].
Regional Leaders and Key Players
Europe remains at the forefront of hydrogen electrolyzer adoption, but the Asia-Pacific region is hot on its heels with significant investments in hydrogen mobility and decarbonization projects. China, Japan, South Korea, and Australia are making substantial headway, supported by industrial policies and renewable energy expansions. Key companies like Cummins Inc., Enapter S.r.l., and Siemens AG are leading innovation in this rapidly growing market [1][2][3].
The Road Ahead
The journey towards green hydrogen is not just about energy sustainability; it’s also about industrial decarbonization and operational efficiency. As the world pivots towards renewable energy sources, the hydrogen electrolyzer market stands as a beacon of innovation and opportunity, promising a future where green is not just a colour but a commitment to the planet [1][2].