PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1555812
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1555812
Water Electrolysis Market size was valued at USD 9,530.43 Million in 2023, expanding at a CAGR of 6.90% from 2024 to 2032.
Water electrolysis is a process that uses electricity to split water (H2O) into its basic components, hydrogen (H2) and oxygen (O2). Water electrolysis is used in various applications, such as producing hydrogen fuel, generating oxygen for breathing in spacecraft, and in some industrial processes. It's a key technology for producing clean hydrogen fuel, which can be used as a renewable energy source.
Water Electrolysis Market- Market Dynamics
Increasing demand from renewable energy sector for energy storage in especially from industrial application is expected to propel market demand
The growing push for cleaner energy sources has increased the demand for hydrogen as a fuel. Water electrolysis is a key method for producing green hydrogen, which can be used to store and transport renewable energy from sources like wind and solar. Many governments are implementing policies and providing incentives to support clean energy technologies. Subsidies, grants, and tax breaks for hydrogen production and renewable energy projects boost the adoption of water electrolysis.
Water electrolysis offers a way to store excess electricity from intermittent renewable sources. By converting surplus electricity into hydrogen, which can be stored and used later, it helps balance supply and demand, driving market growth. Hydrogen produced through electrolysis is used in various industrial processes, including ammonia production, petroleum refining, and metal processing. The growth in these sectors drives demand for water electrolysis technology. As global energy demand rises, there is a greater need for sustainable and scalable energy solutions. Water electrolysis offers a way to produce hydrogen that can be used across various sectors, contributing to a more resilient and diverse energy system.
Water Electrolysis Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 6.90% over the forecast period (2024-2032)
Based on Product Type segmentation, the alkaline water electrolysis segment was predicted to show maximum market share in the year 2023, owing to the increasing adoption of green energy technology.
Based on End-Use segmentation, the renewable energy segment was the leading Application in 2023, owing to rising energy demand.
Based on Application segmentation, chemical segment was the leading End User segment in 2023, owing to high demand for chemical processing of hydrogen.
On the basis of region, Asia Pacific was the leading revenue generator in 2023, due to the high demand from chemical and power industries.
The Global Water Electrolysis Market is segmented on the basis of Product Type, Application, End User, and Region.
The market is divided into three categories based on Product Type: proton exchange membrane, alkaline water electrolysis, and solid oxide electrolyte. The alkaline water electrolysis segment dominates the market. The growing adoption of fuel-cell EVs is mainly contributing to segment growth.
The market is divided into five categories based on Application: chemical, electronics, pharmaceuticals, green hydrogen, and others. The chemical segment dominates the market. Chemical processing and green hydrogen demand is boosting market growth.
The market is divided into four categories based on End Users: renewable energy, petroleum, power plants, and others. The renewable energy segment dominates the market and is expected to maintain its high dominance during the forecast period. An increasing number of energy grid infrastructure and sustainability emphasis is expected to boost segment growth.
Water Electrolysis Market- Geographical Insights
Geographically, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. Europe is one of the most advanced regions in the adoption of water electrolysis technology, driven by strong policies supporting green hydrogen and renewable energy. The European Union has set ambitious climate targets and funding programs, such as the European Green Deal and Horizon Europe. Countries like Germany, the Netherlands, and Denmark are particularly active in developing green hydrogen. The U.S. has several large-scale projects in development and is investing in technological advancements and pilot projects.
The Water Electrolysis market is moderately competitive in nature. Marke players are forming strategic alliances and acquiring other firms to enhance their technological capabilities and market reach. Companies are targeting different regions based on local hydrogen strategies, policy incentives, and market opportunities. Europe, Asia-Pacific, and North America are particularly active regions. Further, companies are investing in R&D to improve the efficiency, cost-effectiveness, and scalability of electrolyzer technologies. This includes advancements in alkaline, PEM, and AEM electrolyzer.
In February 2024, Toyota and Chiyoda Corporation declared a collaboration to create a large-scale electrolysis system to integrate water electrolysis.
In October 2023, Bekaert collaborated with Toshiba Corporation to produce a membrane electrode assembly for proton exchange membrane (PEM) electrolysis.