Global Market for Electrolyzers Estimated to Grow to Nearly $25 Billion by 2032

Potential challenges for manufacturers include mismatch between demand and supply and international competition for market share

Sep 26, 2023

A new report from Guidehouse Insights analyzes electrolyzer supply and demand dynamics over the coming decade.

Producing green hydrogen at the scale needed to deliver meaningful emissions reductions requires a substantial ramp-up of installed electrolyzer capacity. Electrolyzer manufacturers have responded to the anticipated demand by investing heavily in new manufacturing facilities. According to a new report from Guidehouse Insights, the installed electrolyzer capacity base is expected to increase from approximately 1,908 megawatts of electricity input (MWe) by the end of 2023 to 106,768 MWe at a compound annual growth rate (CAGR) of 56.4% by 2032. Annual revenues across all technologies are anticipated to increase from $2.9 billion in 2023 to $24.5 billion in 2032.

“Both established players and new entrants are focused on developing the capability to deliver projects swiftly,” says Jacques Moss, senior research analyst with Guidehouse Insights. However, uncertainty about the pace of green hydrogen production growth may contribute to a sustained mismatch between supply and demand. Long-term underutilization could represent a threat to the profitability of some manufacturers.”

Although capacity expansion is necessary for individual manufacturers to deliver projects swiftly, it also presents risks. Significant growth in electrolyzer deployments has yet to occur, and the timing for demand increases remains uncertain. Some industry observers have concluded that the electrolyzer sector may suffer from a sustained mismatch between demand and supply. Others have warned that European and North American manufacturers will encounter fierce international competition for market share, particularly from Chinese original equipment manufacturers able to produce electrolyzers at significantly reduced costs. Manufacturers’ responses to these risks will strongly influence the complexion of the electrolyzer industry throughout the 2020s and early 2030s, according to the report.

The report, Electrolyzer Supply and Demand Outlook, provides an analysis of electrolyzer supply and demand dynamics over the coming decade. It includes outlooks for cumulative electrolyzer capacity deployments, annual revenues, and average system capital expenditures between 2023 and 2032, as well as information on announced manufacturing capacity over the same period. This data informs Guidehouse Insights’ assessment of the opportunities and challenges faced by manufacturers, project developers, and other hydrogen stakeholders in key global markets. An executive summary of the report is available for free download on the Guidehouse Insights website.


* The information contained in this press release concerning the report, Electrolyzer Supply and Demand Outlook, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.