Global Water Electrolysis Market Research Report: Forecast (2024-2030)

Market Definition

Water electrolysis is a chemical process that breaks down water molecules (H2O) into their constituent elements, hydrogen (H2) and oxygen (O2). This happens in an electrolyzer, which is a device that consists of two electrodes (usually made of metals like platinum or nickel) immersed in water and separated by an electrolyte, which can be an acidic, alkaline, or solid-state material. An electric current passing through water causes a reaction between the water molecules at the electrode surfaces.

Water electrolysis produces hydrogen gas, which is a clean and renewable source of energy that can be used in a variety of industries, including fuel cell technology for transportation, energy storage, and industrial processes.

Market Insights & Analysis: Global Water Electrolysis Market (2024-30):

The Global Water Electrolysis Market size was valued at around USD 1.8 billion in 2023 & is estimated to grow at a CAGR of about 7.1% during the forecast period, i.e., 2024-30. Increasing demand for hydrogen fuel cells, the rise of eco-friendly fertilizers due to the surge in sustainable farming practices, and a growing need for renewable energy sources, are key drivers propelling revenue growth in the forecast period. Green hydrogen generated from water electrolysis has gained significant traction as a renewable energy source in today's world. With increasing emphasis on combating climate change, efforts to decarbonize energy supplies are expected to gain momentum.

Moreover, the recent introduction of gas-powered fuel cell vehicles is also anticipated to drive emerging trends in the market in the coming years. The International Energy Agency (IEA) predicts a 25% to 30% surge in energy demand by 2040, prompting companies and governments to seek sustainable, low-carbon emission energy sources. Hydrogen is being hailed as the fuel for the future, with projections from IEA suggesting that hydrogen production through water electrolysis could prevent approximately 830 million tons of CO2 emissions annually. Furthermore, the rising demand for hydrogen fuel cell vehicles, green ammonia, green methanol, and other applications is fueling the growth of the water electrolysis market.

Simultaneously, stringent government regulations on fossil fuel usage are expected to compel substantial demand for water electrolysis machines in the near future. Moreover, technological advancements aimed at enhancing the water electrolysis process are creating market trends and opportunities. In addition, water electrolysis machines are rapidly gaining prominence, with hydrogen production playing a pivotal role in multiple sectors, thereby augmenting the Water Electrolysis Market size in the forthcoming years.

Global Water Electrolysis Market Driver:

Transition to Sustainability to Have a Positive Impact on Market Expansion – The rising emphasis on environmental sustainability has prompted industries and businesses in the commercial sector to identify hydrogen as a crucial element for numerous future applications. With a heightened interest in hydrogen as a green energy solution, ongoing innovations & technological advancements primarily target sustainable methods of hydrogen production, hence instigating the Water Electrolysis Market.

Hydrogen finds extensive use across various industries, particularly in fuel cell-based applications, significantly impacting hydrogen production. A water electrolysis machine stands as an efficient solution for producing hydrogen in a sustainable manner & in considerable volume, meeting the substantial demand for hydrogen as a green energy source, further elevating the market share in the upcoming years.

Global Water Electrolysis Market Opportunity:

Advancements in Urban Wastewater Treatment to Open New Avenues for the Market – Water quality degradation has recently become a major concern as a result of industrial advancements. The oil industry is one of the most significant sources of pollution. Therefore, strict environmental protection legislation has been enacted. In line with this, the EPA's research has identified water electrolysis as a viable technique for treating hazardous waste from industrial zones, thus creating an opportunistic arena for the Water Electrolysis Market growth. Furthermore, as electrocoagulation methods gain popularity, the water electrolysis process has become an essential component of wastewater treatment facilities, further contributing to upgrading the market's growth graph in the forecast years.

Global Water Electrolysis Market Challenge:

Consistent Threat Posed by Alternative Products to Limit the Expansion – Hydrogen could be produced in a variety of ways and by deploying numerous machines. With time, it is estimated that the demand for hydrogen would increase on a large scale for various applications, thus affecting the production sector. As water electrolysis machines have a limited capacity for producing hydrogen, several manufacturers are practicing other alternative ways to produce hydrogen, thus hampering the Water Electrolysis Market.

Moreover, the risk associated with this product is the replacement of these machines with high hydrogen production alternative machines. Furthermore, the machine has high initial costs, making small-business owners hesitant to invest, thus acting as a barrier to market expansion.

Global Water Electrolysis Market (2024-30): Segmentation Analysis

The Global Water Electrolysis Market study by MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2024–2030 at the global, regional, and national levels. In accordance to the analysis, the market has been further classified as:

Based on Electrolyzer Type:

• Alkaline Electrolyzer
• Proton Exchange Membrane (PEM) Electrolyzer
• Solid Oxide Electrolyzer Cell (SOEC)
• Anion Exchange Membrane (AEM) Electrolyzers

Alkaline water electrolysis processes, with salt water electrolysis machine, is presumed to hold a substantial share of the Water Electrolysis Market due to its higher demand among the end-users. Furthermore, driven by demand from the petroleum and power sectors, the market segment for alkaline water electrolysis machines currently represents 43.2% of the global revenue. Also, the efficacy of electrolysis processes in alkaline water electrolysis presents substantial opportunities, potentially fueling long-term sales growth of water electrolysis in the years ahead.

Based on Application

• Refining industry
• Power & Energy Storage
• Ammonia Production
• Methanol Production
• Transportation Industry

The Transportation Industry captures the potential share of the Water Electrolysis Market and is expected to grow at a fast pace over the forecast period. Hydrogen, as a fuel and energy source in fuel cells, offers emission-free power for cars and trucks. Notably, heavy-duty trucks, constituting only 5% of American road vehicles, contribute over 20% of transportation-related emissions, particularly nitrogen oxides. Embracing hydrogen and fuel cells holds the potential to significantly reduce emissions, thus driving revenue growth across this sector.

Global Water Electrolysis Market (2024-30): Regional Projection

Geographically, the Global Water Electrolysis Market expands across:

• North America
• South America
• Europe
• Asia-Pacific
• The Middle East & Africa

In the coming years, the Asia-Pacific region is poised to hold a substantial share of the Water Electrolysis Market. This growth is primarily fueled by escalating demand for hydrogen as a clean energy source in countries such as China, Japan, and South Korea. Moreover, significant investments in renewable energies like solar and wind power are underway, ensuring abundant electricity availability for hydrogen production.

Furthermore, governments in the region actively support the promotion of hydrogen fuel as an alternative, offering incentives and support measures. This bolstering governmental support contributes significantly to the growth of the Asia-Pacific Water Electrolysis Market.

Global Water Electrolysis Industry Recent Development:

• 2023: Siemens Energy has revealed plans to commence the production of electrolysis modules (stacks) at the multi-gigawatt electrolyzer facility located in Berlin, aiming to scale up to a three-gigawatt production capacity by 2025.
• 2022: Cummins Inc. entered into a supply agreement with Hysetco for a 2.5-megawatt (MW) electrolyzer through its affiliate, Hydrogenics Europe N.V. This initiative by Hysetco is focused on establishing and operating the inaugural large-scale hydrogen mobility platform. The platform will seamlessly combine hydrogen production, distribution, and utilization, leveraging local hydrogen generation facilitated by an electrolyzer in Paris, France.

Gain a Competitive Edge with Our Global Water Electrolysis Market Report

• Global Water Electrolysis Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Global Water Electrolysis Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.