Chinese Electrolyser Manufacturers Poised for Global Expansion by 2025
Key Ideas
  • Chinese electrolyser manufacturers are projected to capture one-third of orders outside Europe and North America by 2025, driven by increasing demand for green hydrogen and competitive advantages in cost and delivery times.
  • Chinese OEMs are expanding manufacturing capacity, positioning themselves for global growth by focusing on regions like the Middle East, Southeast Asia, North Africa, and Australia.
  • Although European restrictions exist, Chinese electrolysers could still find opportunities through competitive pricing, technology licensing, and co-investment in European manufacturing, potentially reducing trade barriers and benefiting local economies.
  • While challenges such as after-sales service concerns and geopolitical risks persist in Europe, Chinese electrolyser manufacturers are turning their attention to markets in Latin America, the Middle East, and Southeast Asia to leverage favorable conditions and circumvent limitations.
Wood Mackenzie's analysis forecasts that Chinese electrolyser manufacturers will secure a significant share of orders beyond Europe and North America by 2025. The competitive edge of Chinese electrolysers in terms of cost, manufacturing capacity, and delivery times positions them favorably for global expansion. Despite restrictions in Europe, Chinese OEMs are anticipated to thrive due to their successful track record in various international markets and substantial manufacturing capacity investments. Challenges such as after-sales service issues and geopolitical risks may hinder their growth in Europe, leading Chinese manufacturers to explore markets in Latin America, the Middle East, and Southeast Asia. Chinese companies are adopting strategies like technology licensing and co-investing in European manufacturing to mitigate trade barriers and stimulate local economic benefits. These initiatives align with the increasing demand for green hydrogen and preferences for cost-effective solutions in the global hydrogen market.
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