Worldwide water electrolysis machine sales are expected to be valued at around USD 12.6 billion at the end of 2023. The market for water electrolysis machines is expanding at an accelerated rate of 7.3% due to rising worldwide industrialization.
As per the market analysis report, the net valuation is poised to reach USD 25.5 billion by the end of this forecast period.
Green hydrogen produced from water electrolysis is an increasingly popular source of renewable energy in the contemporary world. With climate change prevention goals gaining importance day by day, efforts towards the de-carbonization of energy supplies are also projected to gain traction.
The recent introduction of gas-based fuel cell automobiles is anticipated to propel the emerging trends in the water electrolysis machine market over the forecast period. On the other hand, strict government regulations on the use of fossil fuels are also expected to create a huge demand for water electrolysis machines in the coming days.
Technological improvements to improve the water electrolysis process are also driving the water electrolysis systems market trends and opportunities. Innovations and advancements in water electrolysis equipment enable not only on-grid but also off-grid configurations.
Water electrolysis machines are rapidly becoming commonplace, with hydrogen production gaining importance for applications in multiple sectors. Meanwhile, the shortage of grid infrastructure remains a significant challenge for the water electrolysis devices market players operating in specific regions.
| Attributes | Details |
|---|---|
| Water Electrolysis Machine Market Size (2022) | USD 11.71 billion |
| Water Electrolysis Machine Market Size (2023) | USD 12.6 billion |
| Sales Forecast for Water Electrolysis Machines (2033) | USD 25.5 billion |
| Global Market Growth Rate (2023 to 2033) | 7.3% CAGR |
| Share of Top 5 Market Players | 50% |
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Demand for water electrolysis machines back in the year 2016 was surveyed by FMI to be around USD 10 billion. Then in the following years from 2018 to 2022, this water electrolysis systems market valuation rose at a mild CAGR of 4%.
The coronavirus pandemic hampered short-term demand in several end-use sectors that utilize water electrolysis devices. Government-imposed restrictions and lockdowns also harmed supply networks for critical raw materials and components. However, the water electrolysis process gained traction from the chemical, power, and petroleum sectors during these years of the survey.
By the conclusion of the survey period in 2022, the net worth of total sales of water electrolysis machines worldwide reached USD 11.7 billion. Niche applications in the steel and pharmaceutical sectors are also expected to remain key to the industrial water electrolysis machine market for the foreseeable future.
The market for water electrolysis machines is anticipated to surge ahead at a CAGR of 7.3% over the forecast period of 2023 to 2033.
Rising Trend of Renewable Energy Applications Boost the Market
The potential of the renewable energy sector is lacking without adequate storage infrastructure. So, hydrogen generation has played a key role as a solution to store renewable energy. Reciprocally, the energy surplus from renewable energy sources is used to separate water into hydrogen and oxygen further strengthening the production process.
Waste Water Treatment Applications to Usher in Better Opportunities in the Urban Areas
In recent years, industrial development has become a key concern for the degradation of water quality. The oil industry is one of the leading sources of pollutants. Consequently, restrictive laws on environmental protection have been implemented.
Studies conducted by the EPA have designated the electrolysis of water as a viable method of treating hazardous effluent from industrial areas. Moreover, with the techniques of electrocoagulation gaining prominence water electrolysis process has turned into an important part of wastewater treatment plants.
Polymer Electrolyte Membrane (PEM) Options Gaining Traction for Economic Production of Hydrogen
Facile recycling processes for catalyst-coated membranes are gaining traction in polymer electrolyte membrane (PEM) water electrolysis machines these days. Ultrasonication processes allow for the recovery of higher yields of hydrogen and oxygen, without the emission of hazardous gases.
High Investment & High Maintenance Costs of Water Electrolysis Machines Might be a Challenge for Water Electrolysis Equipment Market Suppliers
Prominent cleaning methods to produce hydrogen include water electrolysis, but the process is cost-prohibitive. The high requirement of capital to operate in the industrial water electrolysis machines industry can hamper the growth and emerging trends in the market. High electricity consumption in the process is also another limitation hindering market development.
Principal Consultant
| Country | Global Market Share |
|---|---|
| United States | 19.3% |
| Germany | 4.2% |
| Japan | 7.3% |
| Australia | 3.2% |
The United States water electrolysis machine market is expected to reflect strong growth for the duration of the assessment period owing to higher investments. Capital infusion into the said market by the federal government has helped in the transition from carbonized energy sources to eco-friendly water electrolysis machines.
Also, government initiatives in the United States towards the desulphurization of fossil fuels may have a positive impact on the development of the water electrolysis machine market.
Pledges towards cutting emissions, and resultant regulation and policy changes have resulted in the promotion and use of green hydrogen in the last few years. The adoption of green hydrogen as a viable source of energy in several European countries has increased the adoption of water electrolysis machines as well.
Market growth in Germany can be ascribed to the considerable industrial expansion, which has resulted in a demand for green hydrogen. Contrastingly, the rate of adoption of water electrolysis machines in the United Kingdom is projected to remain higher during the forecast years.
| Country | CAGR (2023 to 2033) |
|---|---|
| United Kingdom | 6.7% |
| China | 9.2% |
| India | 8.7% |
East Asia is expected to account for nearly 25% share of the water electrolysis machine market in 2022. Hydrogen technologies are anticipated to remain a key process in several countries, with niche, fast-growing applications in the electric automotive industry.
In addition to this, demand for water electrolysis equipment, led by Japan, is also likely to remain steady during the assessment period in East Asia.
For example, in 2020, the government of Japan signed an agreement with Australia to collaborate on fuel and hydrogen cells. This is likely to create long-term opportunities for market players.
Water electrolysis machines can be categorized, in terms of type, into 2 key types - proton exchange membranes and alkaline water electrolysis. Of these options, alkaline water electrolysis processes, with salt water electrolysis machine is in higher demand among the end users.
Moreover, with demand arising from the petroleum and power sectors, the alkaline water electrolysis machine market segment now contributes 43.2% of the global revenue. Alkaline water electrolysis reflects greater opportunities in the higher efficacy of electrolysis processes, which could drive sales of water electrolysis machines for the long term.
The chemicals industry remains the leading end user of water electrolysis machines. The growing use of water electrolysis machines in the chemicals industry can be attributed to the high need for hydrogen in ammonia fertilizer manufacturing.
Iron ore reduction and methanol manufacturing as well have increased the industrial utilization of water electrolysis processes these days. Other than that, fuel additives and fuel cell research are also contributing to the growth of this segment.
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Leading manufacturers of water electrolysis machines have been found focusing their investments and resources on strategic acquisitions and collaborations. On the other hand, growing public and private investments in renewables and hydrogen generation are expected to drive market growth over the coming years.
Strategic partnerships and ongoing research and development are anticipated to drive the demand growth of water electrolysis machine manufacturers. Also, investments towards product development to widen the scope of application are likely to gain traction over the coming years.
Recent Developments by the Water Electrolysis Machine Industries
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | Value in USD million, Volume in Units |
| Key Regions Covered |
North America; Latin America; Europe; East Asia; South Asia & Pacific; The Middle East & Africa (MEA) |
| Key Countries Covered | United States, Canada, Mexico, Brazil, Mexico, Argentina, Germany, Italy, France, United Kingdom, Nordic, Spain, Japan, China, India, Malaysia, Thailand, Australia, GCC Countries, South Africa, Türkiye |
| Key Market Segments Covered |
By Type, By Input Power, By Hydrogen Production Capacity, By End-use Industry, By Region |
| Key Companies Profiled |
Siemens Gamesa; Thyssenkrupp Uhde Chlorine Engineers; Nel ASA; Asahi Kasei Corporation; Enagic International Inc.; HyGear BV; Eneco Holdings Inc.; Hydrogenics Corporation; ITM Power Plc; Peak Scientific; Teledyne Technologies Inc.; Toshiba Energy Systems & Solutions Corporation |
The global water electrolysis machine market is to grow at 7.3% during the forecast period.
The global water electrolysis machine market is predicted to be valued at USD 25.5 billion by 2033.
The global water electrolysis machine market was valued at USD 11.7 billion in 2022.
The United States accounts for nearly 19.3% revenue share of the global market.
China is to witness a CAGR of 9.2% in the sales of water electrolysis machines through 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 5.1. Proton Exchange Membranes 5.2. Alkaline Water Electrolysis 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Input Power 6.1. Below 5 MW 6.2. 5-10 MW 6.3. Above 10 MW 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Hydrogen Production 7.1. Below 500 L/Hr 7.2. 500 – 2000 L/Hr 7.3. Above 2000 L/Hr 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use 8.1. Chemicals 8.2. Petroleum 8.3. Pharmaceuticals 8.4. Power Plants 8.5. Others 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. Asia Pacific 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1.1. Siemens Gamesa 17.1.2. Thyssenkrupp Uhde Chlorine Engineers 17.1.3. Nel ASA 17.1.4. Asahi Kasei Corporation 17.1.5. Enagic International Inc. 17.1.6. HyGear 17.1.7. Eneco Holdings Inc. 17.1.8. Hydrogenics Corporation 17.1.9. ITM Power Plc 17.1.10. Peak Scientific 17.1.11. Teledyne Technologies Inc. 17.1.12. Toshiba Energy Systems & Solutions Corporation 18. Assumptions & Acronyms Used 19. Research Methodology
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Water Electrolysis Machine Market
