ISSUE NO.
2 DDL STRATEGOSPHERE
Compact Strategy Analysis
Market Entry Strategies of Chinese
Electrolyzer Technology Companies
in the Global Hydrogen Market
■ Which different strategies are used by Chinese EL OEMS?
■ Which strategies are used in which world regions?
■ An estimation of the global market share of chinese OEMs by 2030.
■ How Western Companies can benefit from the Chinese Market Potential.
delphidata.com
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MARKET ENTRY STRATEGIES OF CHINESE TECHNOLOGY COMPANIES IN THE GLOBAL HYDROGEN MARKET
OVERVIEW
About Delphi
Introduction 3
VARIOUS STRATEGIES EMPLOYED BY CHINESE
TECHNOLOGY COMPANIES TO ENTER AND EXPAND
IN THE GLOBAL HYDROGEN MARKETS
Delphi provides data and tools to
navigate cleantech markets.
Licensing Agreements: 5
A Strategic Gateway
Delphi Data Labs was founded in 2021 by a team of
THE PRIMARY STRATEGY THAT CHINESE COMPANIES
industry experts from the mechanical engineering, oil &
ARE USING TO ENTER AND ESTABLISH THEMSELVES IN
gas and finance sectors with a passion for driving the
INTERNATIONAL HYDROGEN MARKETS
green transition.
International Manufacturing: 7 Our mission is to help organizations navigate the
Establishing Global Presence rapidly evolving hydrogen market and make informed
decisions about their investment and growth strategies.
CHINESE COMPANIES ARE EXPANDING THEIR GLOBAL
FOOTPRINT BY INVESTING IN LOCAL MANUFACTURING Our vision encompasses crafting an effortlessly
FACILITIES navigable product that consistently furnishes the latest
market insights, ensuring comprehensive accessibility
International Branding 9 for every stakeholder in the cleantech sector.
and Global Expansion
MANY ARE REBRANDING AND RESTRUCTURING TO
BETTER ALIGN WITH INTERNATIONAL BUSINESS
PRACTICES
Contact
International Subsidiaries 11 Delphi Data Labs Gmbh
and Cross-Border Operations Stella-Klein-Löw-Weg 8
1020 Vienna
LEVERAGING LOCAL SUBSIDIARIES AND CROSS-BORDER
Austria
OPERATIONS TO ESTABLISH A PRESENCE IN KEY MARKETS
Chinese EPCs & Developers delphidata.com
EXECUTING LARGE-SCALE HYDROGEN PROJECTS
GLOBALLY THROUGH ENGINEERING, PROCUREMENT,
AND CONSTRUCTION (EPC) CONTRACTS
Reverse Strategies: 15
Leveraging China
WESTERN COMPANIES ARE SEEKING TO BENEFIT
FROM CHINA’S MANUFACTURING EXPERTISE
Market Share Projections 19
and Global Impact
CHINESE TECHNOLOGY COMPANIES TO CAPTURE A
SIGNIFICANT SHARE OF THE GLOBAL HYDROGEN
MARKET BY 2030
Strategic Considerations 21
and Conclusion
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MARKET ENTRY STRATEGIES OF CHINESE TECHNOLOGY COMPANIES IN THE GLOBAL HYDROGEN MARKET
INTRODUCTION
Introduction
China is not only the largest domestic market for
hydrogen electrolysis but also home to the world’s
most extensive ecosystem of technology companies,
driving a rapid market ramp-up in this sector.
According to the current baseline market forecast by Delphi Data Labs, China is expected to install
32 GW of electrolyzer capacity by 2030. However, this projection might prove to be conservative if
the Chinese government decides to fully embrace hydrogen as a strategic energy source. We estimate
that China’s annual manufacturing capacity for electrolyzers will exceed 30 GW by 2026 and could
reach as high as 80 GW per annum by 2030.
This indicates that the potential market expansion
Baseline market forecast, China expected to
in China could be significantly larger than initially install 32 GW of electrolyzer capacity by 2030
forecasted. Despite the promising outlook, there
are notable challenges in developing the green
hydrogen market. 35
31.99
A key example is Sinopec’s 260MW Kuqa facility in 30
Xinjiang, the world’s largest operating electrolyzer,
which highlights the difficulties in scaling
25
operations. Initially, the plant operated at just 10%
19.80
capacity and only managed to achieve 35% of
its planned output in the first year, as reported by 20
17.39
Hydrogen Insight.
Gigawatt
14.53
15
10.99
This reflects the broader growing pains within
China’s green hydrogen sector, despite its vast 10
scale and resources.
7.11
4.14
5
2.24
China currently has over 300 electrolyzer
0.88
0.46
OEMs, reflecting a highly fragmented and
competitive market landscape. This situation 0
2022
2021
2025
2028
2026
2029
2023
2027
2024
2030
parallels the dynamics of the Chinese electric
vehicle (EV) industry, where intense price
Source: Delphi P2X Dashboard / Internal Data
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MARKET ENTRY STRATEGIES OF CHINESE TECHNOLOGY COMPANIES IN THE GLOBAL HYDROGEN MARKET
INTRODUCTION
competition and the phasing out of government subsidies have left many companies struggling.
According to restoftheworld.org, more than 20 EV manufacturers, including notable names
like Singulato and Aiways, have exited the market since 2020, still there are over 100 EV OEMs
remaining. A similar shakeout is expected among Chinese electrolyzer OEMs as the industry moves
toward consolidation, with intense competition aimed at forging a few global market leaders.
For many of these OEMs, internationalization could present a critical pathway to survival. As domestic
competition continues to intensify, expanding into international markets might offer these companies
a much-needed escape route from the fiercely contested Chinese market. By seeking opportunities
abroad, these OEMs can diversify their revenue streams and reduce their reliance on the challenging
domestic landscape, positioning themselves as competitive players on the global stage.
On the following pages we take a closer look at different observed market entry strategies in the
electrolyzer market.
Licensing
Agreements
Collaborations International
(Universities) Manufacturing
Mergers and OBSERVED International
Acquisitions (M&A) Branding
CHINESE
MARKET ENTRY
STRATEGIES
Direct International
Exports Subsidiaries
Reverse Megaprojects
Strategies (Through EPCs)
Sources: Hydrogeninsight, Rest of World 4
MARKET ENTRY STRATEGIES OF CHINESE TECHNOLOGY COMPANIES IN THE GLOBAL HYDROGEN MARKET
LICENSING AGREEMENTS
Licensing
Agreements
A Strategic Gateway
ONE OF THE PRIMARY STRATEGIES THAT
CHINESE COMPANIES ARE USING TO
ENTER AND ESTABLISH THEMSELVES IN
INTERNATIONAL HYDROGEN MARKETS IS
THROUGH LICENSING AGREEMENTS. A
PROMINENT EXAMPLE OF THIS STRATEGY METACON & PERIC
IS THE PARTNERSHIP BETWEEN METACON
AB AND PERIC 718. PARTNERSHIP
Peric 718, or CSIC (Handan) Peric Hydrogen Technolo- Metacon, a Swedish company, has se-
gy Co., Ltd., a subsidiary of the 718th Research Institute cured an OEM license and manufactur-
under China Shipbuilding Group Co., Ltd., has over 60 ing agreement with PERIC, a Chinese
years of experience in the hydrogen energy sector. The firm renowned for its expertise in pres-
company is active in research, development, and pro- surized alkaline electrolysis modules.
duction of hydrogen-related technologies, including This agreement is historically significant
water electrolysis and hydrogen refueling stations. as it marks the first time PERIC has al-
lowed another company to manufac-
With a strong legacy of innovation and nearly 700 ture its technology outside of China. For
authorized patents, CSIC (Handan) Peric serves both Metacon, this partnership is a strategic
domestic and international markets, exporting its move to capitalize on Europe’s growing
products to over 30 countries. It is a national leader in demand for large-scale hydrogen pro-
the hydrogen energy industry, known for its compre- duction systems. Prior to this initiative,
hensive equipment and solutions. which was established in January 2024,
Metacon was already marketing Peric’s
technology in Europe & North America.
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