As the demand for clean green hydrogen grows, electrolyser demand will grow in tandem. This new release written by industry expert Dr Conor O’Brien, a Senior Technology Analyst at market intelligence firm IDTechEx, details which electrolyser components will seize market value based on adoption of different electrolyser technology solutions.
Demand for green hydrogen is rising rapidly as industries seek low-carbon alternatives to fossil fuels and governments set ambitious decarbonisation targets. This surge is driven by its potential in heavy industry, transport, and energy storage. As a result, the need for efficient, scalable electrolysers has grown significantly, with IDTechEx forecasting demand to approach 45 GW by 2036. Electrolyser manufacturers are expanding capacity and improving efficiency to meet this momentum, while component manufacturers are iterating product development.
Together, these trends are supporting the build-out of global green hydrogen infrastructure.
IDTechEx extensively covers the hydrogen sector, with reports detailing all aspects of the value chain from hydrogen production, storage and distribution through to end use cases in various fuel cells in a range of application areas. A new report has been published, “Materials for Green Hydrogen Production 2026-2036: Technologies, Players, Forecasts”, providing an independent and unbiased assessment of electrolyser technologies, the components for these electrolysers and the players operating at all stages of the supply chain.
An overview of the component market for electrolysers, set to exceed US$10 billion by 2036. Source: IDTechEx, “Materials for Green Hydrogen Production 2026-2036: Technologies, Players, Forecasts”.
Which Electrolyzer technology will dominate?
The global demand for electrolysers will approach 45 GW by 2036, with significant installations for the major electrolyzer technology types: alkaline (AEL), proton exchange membrane (PEM), solid oxide (SOEC), and anion exchange membrane (AEMEL). IDTechEx have forecast the global adoption, taking into account announced projects, electrolyser manufacturing capacities and global policies, while also considering the current challenges being faced by the hydrogen sector globally (e.g. slower project development, US policy uncertainty).
AEL is expected to be the dominant technology, with PEMEL being the second largest. Between the two leading technologies, AEL and PEMEL will account for almost 80% of the market by the end of the decade. AEMEL and SOEC installations are predicted to be relatively small in comparison due to them being more novel technologies, with manufacturing still scaling up.
The value of electrolyser components is not uniform
Each electrolyser can be broken down into constituent components with varying share of the value associated with each component. Taking the example of an AEL stack, IDTechEx provide detailed analysis of components such as bipolar plates, anode, cathode, diaphragm, end plates and sealing, with this repeated for PEMEL, SOEC and AEMEL. In general, the membrane electrode assembly (MEA), consisting of the electrodes and the membrane/electrolyte, has the largest share of the stack cost. Other components like the bipolar plates and coatings also contribute significantly.
The cost of components and combined stack differs by electrolyser technology. Despite AEL being the leader by installations, PEMEL components are likely to seize a larger portion of the total market value due to the higher cost associated with individual components. A notable example here is the use of platinum group metal catalysts, with significant focus of R&D on reducing the cost of the catalyst in both PEM electrolyzers and fuel cells. The major trends seen are the optimisation of catalyst application to reduce wastage, or the development of alternative materials with a lower price point.
Another interesting narrative when considering PEM technology is the bipolar plate (BPP). In PEM fuel cells, graphite BPPs are often used, especially in heavy duty applications such as trucks or vans, leveraging the significant price reduction compared to metal plates. However, PEMEL almost exclusively utilise titanium BPPs, leading to a higher price point for a PEMEL stack with respect to PEMFC. For more insights on PEM fuel cell technology, see the IDTechEx report, “Materials for PEM Fuel Cells 2026-2036: Technologies, Markets, Players”.
The IDTechEx report “Materials for Green Hydrogen Production 2026-2036: Technologies, Players, Forecasts” is the most comprehensive assessment of the technology considerations underpinning the components used in the production of green hydrogen. The report provides an independent and unbiased, granular ten-year market forecast for electrolyser components by value, area, volume and weight, helping material suppliers to make informed decisions about this booming space.
•Dr Conor O’Brien, a Senior Technology Analyst at market intelligence firm IDTechEx
Source: IDTechEx
