Water Electrolysis Market Size

ID: MRFR/Equip/2789-CR

118 Pages

Varsha More

February 2020

Water Electrolysis Market Research Report By Technology (Alkaline Electrolysis, Proton Exchange Membrane Electrolysis, Solid Oxide Electrolysis), By Application (Hydrogen Production, Energy Storage, Fuel Cells), By End Use (Industrial, Transportation, Power Generation), By Electrolyzer Size (Small Scale, Medium Scale, Large Scale) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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Water Electrolysis Size

Market Size Snapshot

Year	Value
2024	USD 1.82 Billion
2035	USD 15.0 Billion
CAGR (2025-2035)	21.14 %

Note – Market size depicts the revenue generated over the financial year

The electrolysis of water market is expected to reach $1.8 billion by 2024, with a projected growth to $ 15.0 billion by 2035. The remarkable growth of the market is estimated at a CAGR of 21.14% from 2025 to 2035. The demand for hydrogen as a clean energy source, driven by the world's shift towards green energy, is the main driving force of the market. The development of water electrolysis technology, such as proton exchange membrane (PEM) and alkaline electrolysis, has increased the efficiency and lowered the cost, which is expected to drive the market. The leading companies in the water electrolysis industry, such as Siemens, ITM Power, and Nel ASA, are actively investing in R & D to develop new products and services. The strategic collaboration of large-scale hydrogen production projects and the investment in renewable energy integration will also be an important factor affecting the competition in the market. The policy of reducing carbon dioxide emissions and promoting hydrogen as an energy carrier will promote the development of the water electrolysis market.

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Regional Market Size

Regional Deep Dive

The electrolysis of water is experiencing a high growth rate in different regions of the world. The growing demand for hydrogen is accompanied by a shift in the energy industry towards the use of clean and renewable energy sources. In North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America, the dynamics of the market are influenced by regional policies, technological development and the launch of green hydrogen projects. Each region has its own characteristics in terms of government support, industrial applications and market maturity, which determine the global market for water electrolysis.

Europe

The European Union's Green Deal and Hydrogen Strategy are pivotal in driving investments in water electrolysis, with countries like Germany and the Netherlands leading the charge in establishing hydrogen infrastructure.
Innovations in electrolyzer technology, such as the development of high-temperature electrolysis by companies like Siemens Energy, are enhancing efficiency and reducing operational costs, thereby making hydrogen more competitive.

Asia Pacific

Japan and South Korea are at the forefront of hydrogen technology, with government-backed projects like Japan's 'Basic Hydrogen Strategy' promoting water electrolysis as a key component of their energy transition.
Chinese manufacturers are rapidly scaling up electrolyzer production, supported by government incentives, which is expected to significantly lower costs and increase market penetration in the region.

Latin America

Brazil is emerging as a key player in the water electrolysis market, with government support for renewable energy projects and initiatives aimed at producing green hydrogen from its abundant hydropower resources.
Innovative partnerships between local companies and international firms are fostering technology transfer and investment in electrolyzer technology, which is expected to enhance the region's capabilities in hydrogen production.

North America

The U.S. Department of Energy has launched initiatives to promote hydrogen production through electrolysis, aiming to reduce costs and enhance efficiency, which is expected to accelerate market adoption.
Major companies like Plug Power and Nel ASA are investing heavily in electrolyzer technology, focusing on scaling production capabilities to meet the rising demand for hydrogen fuel in transportation and industrial sectors.

Middle East And Africa

Countries like Saudi Arabia are investing in large-scale hydrogen projects, such as the NEOM project, which aims to produce green hydrogen through water electrolysis, positioning the region as a future hydrogen hub.
The UAE is also exploring water electrolysis as part of its broader strategy to diversify its energy sources and reduce carbon emissions, with initiatives like the Abu Dhabi Hydrogen Alliance.

Did You Know?

“Water electrolysis can produce hydrogen with a purity level of over 99.999%, making it suitable for various applications, including fuel cells and industrial processes.” — International Energy Agency (IEA)

Segmental Market Size

The electrolysis of water market is booming. The demand for hydrogen as a clean fuel is growing. The trend is mainly due to the increasingly stringent regulations on carbon dioxide emissions and the need for sustainable energy solutions in various industries. The development of new electrolysis methods such as proton exchange membrane (PEM) and alkaline electrolysis further increases the efficiency and reduces the cost of operation, which makes them more attractive to both investors and companies. The market is currently at the stage of commercialization, and there are notable examples of projects carried out by companies such as Siemens Energy and Nel Hydrogen in Europe and North America. The main applications of water electrolysis are transportation, hydrogen fuel cells, and industrial processes, including ammonia production. The growth in the water electrolysis market is accelerating due to macro-economic trends, such as the development of sustainable energy and the use of renewable energy sources. In the long run, innovation in electrolysis and the use of renewable energy sources will continue to determine the future of the industry.

Future Outlook

The market for water electrolysis is projected to grow at a CAGR of 21.14% from 2024 to 2035. This growth is largely due to the increasing demand for clean hydrogen, which is driven by the urgent need to transition to sustainable energy sources and reduce carbon emissions. The adoption of water electrolysis is expected to penetrate various sectors, such as transportation, industry and energy storage, with hydrogen production possibly reaching 15 to 20 percent by 2035. Also, technological developments, such as increasing the efficiency of the electrolysis and reducing the cost of the plant, are expected to promote market growth. In addition, advances in materials science, such as the development of more efficient catalysts, will improve the performance of the water electrolysis system and make it more economically viable. Also, government policies and subsidies to encourage the use of green hydrogen will play a significant role in shaping the market. Also, the integration of the electrolysis system with the power grid and the development of hydrogen infrastructure will contribute to the growth of the market, and water electrolysis will be the foundation of the future energy system.

Market Highlights

Author

Varsha More

Research Analyst

Experienced business professional with a demonstrated history of working in the CFnB industry. Skilled in market research, and market estimation. Strong professional with a Masters focused in marketing management.

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FAQs

What is the current valuation of the Water Electrolysis Market in 2024?

The Water Electrolysis Market was valued at 1.82 USD Billion in 2024.

What is the projected market size for the Water Electrolysis Market by 2035?

The market is projected to reach 14.96 USD Billion by 2035.

What is the expected CAGR for the Water Electrolysis Market during the forecast period 2025 - 2035?

The expected CAGR for the Water Electrolysis Market during 2025 - 2035 is 21.11%.

Which technology segment is anticipated to dominate the Water Electrolysis Market?

The Solid Oxide Electrolysis segment is projected to grow significantly, reaching 6.81 USD Billion by 2035.

How does the Hydrogen Production application segment perform in the Water Electrolysis Market?

The Hydrogen Production application segment was valued at 0.91 USD Billion in 2024 and is expected to grow to 7.48 USD Billion by 2035.

What are the key players in the Water Electrolysis Market?

Key players include Nel Hydrogen, ITM Power, Siemens Energy, and Plug Power, among others.

What is the expected performance of the Industrial end-use segment in the Water Electrolysis Market?

The Industrial end-use segment was valued at 0.73 USD Billion in 2024 and is projected to reach 5.83 USD Billion by 2035.

What is the market outlook for the Medium Scale electrolyzer size segment?

The Medium Scale electrolyzer size segment is expected to grow from 0.73 USD Billion in 2024 to 5.98 USD Billion by 2035.

How does the Fuel Cells application segment compare to others in the Water Electrolysis Market?

The Fuel Cells application segment was valued at 0.36 USD Billion in 2024 and is projected to reach 2.99 USD Billion by 2035.

What trends are influencing the Water Electrolysis Market in 2025?

Trends indicate a strong shift towards sustainable hydrogen production technologies, particularly in the Solid Oxide Electrolysis segment.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

As per MRFR analysis, the Water Electrolysis Market Size was estimated at 1.82 USD Billion in 2024. The Water Electrolysis industry is projected to grow from 2.204 USD Billion in 2025 to 14.96 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 21.11 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Water Electrolysis Market is poised for substantial growth driven by technological advancements and increasing demand for clean energy solutions.

The market is witnessing a rising demand for green hydrogen, particularly in North America, which is currently the largest market. Technological advancements in electrolysis are enhancing efficiency and reducing costs, thereby attracting more investments. Asia-Pacific is emerging as the fastest-growing region, fueled by supportive government policies and incentives for clean energy. Key market drivers include increasing investment in renewable energy and a growing awareness of environmental sustainability.

Water Electrolysis Market

CAGR

21.11%

Market Size & Forecast

2024 Market Size	1.82 (USD Billion)
2035 Market Size	14.96 (USD Billion)
CAGR (2025 - 2035)	21.11%
Largest Regional Market Share in 2024	Europe

Major Players

Nel Hydrogen (NO), ITM Power (GB), <a href="https://www.siemens-energy.com/global/en/home/products-services/product-offerings/hydrogen-solutions.html">Siemens </a>Energy (DE), Plug Power (US), McPhy Energy (FR), Ballard Power Systems (CA), Hydrogenics (CA), <a href="https://www.thyssenkrupp-uhde.com/en/products-and-technologies/hydrogen-and-gas-technologies/hydrogen">Thyssenkrupp</a> (DE), Enel Green Power (IT)

Market Trends

The Water Electrolysis Market is currently experiencing a transformative phase, driven by the increasing demand for clean energy solutions and the global shift towards sustainable practices. This market appears to be gaining momentum as industries and governments alike recognize the potential of hydrogen as a clean fuel alternative. The technology involved in water electrolysis is evolving, with advancements in efficiency and cost-effectiveness, which may further enhance its adoption across various sectors. As the world grapples with climate change, the role of water electrolysis in producing green hydrogen is becoming increasingly pivotal, suggesting a promising future for this market. Moreover, the Water Electrolysis Market is likely to benefit from supportive policies and investments aimed at promoting renewable energy sources. The integration of electrolysis technology into existing energy systems could facilitate a smoother transition towards a hydrogen economy. While challenges remain, such as the need for infrastructure development and the optimization of energy sources, the overall outlook for the Water Electrolysis Market appears optimistic. Stakeholders are encouraged to monitor technological advancements and regulatory frameworks that may influence market dynamics in the coming years.

Rising Demand for Green Hydrogen

The Water Electrolysis Market is witnessing a surge in interest due to the increasing demand for green hydrogen. This trend is largely driven by the need for sustainable energy solutions and the decarbonization of various industries. As companies seek to reduce their carbon footprints, the production of hydrogen through electrolysis is becoming a viable option.

Technological Advancements

Recent innovations in electrolysis technology are enhancing the efficiency and cost-effectiveness of hydrogen production. These advancements may lead to improved performance and lower operational costs, making water electrolysis a more attractive option for energy generation and storage.

Supportive Regulatory Frameworks

Governments worldwide are implementing policies that favor the development of renewable energy technologies, including water electrolysis. This supportive environment could accelerate market growth, as incentives and funding opportunities encourage investment in hydrogen production and infrastructure.

Water Electrolysis Market Market Drivers

Growing Demand for Clean Energy Solutions

The Water Electrolysis Market is witnessing a notable increase in demand for clean energy solutions. As industries and consumers alike seek alternatives to fossil fuels, hydrogen produced through water electrolysis emerges as a viable option. The market for hydrogen is expected to grow significantly, with estimates suggesting a compound annual growth rate of over 15% through the next decade. This demand is fueled by the transportation sector, where hydrogen fuel cells are gaining traction as a clean energy source. Furthermore, the industrial sector is increasingly adopting hydrogen for processes such as ammonia production and refining. This growing appetite for clean energy solutions is likely to propel the Water Electrolysis Market forward, as stakeholders recognize the potential of hydrogen as a sustainable energy carrier.

Increasing Investment in Renewable Energy

The Water Electrolysis Market is experiencing a surge in investment as nations pivot towards renewable energy sources. This shift is driven by the need to reduce carbon emissions and combat climate change. In 2025, investments in renewable energy technologies are projected to reach unprecedented levels, with electrolysis playing a pivotal role in hydrogen production. The International Energy Agency indicates that the hydrogen economy could attract over 300 billion USD in investments by 2030. This influx of capital is likely to enhance the development of water electrolysis technologies, making them more efficient and cost-effective, thereby expanding their application across various sectors. As a result, the Water Electrolysis Market is poised for substantial growth, driven by the increasing focus on sustainable energy solutions.

Technological Innovations in Electrolysis

The Water Electrolysis Market is benefiting from rapid technological innovations that enhance the efficiency and scalability of electrolysis systems. Recent advancements in materials science, such as the development of more efficient catalysts, have the potential to reduce energy consumption and operational costs. For instance, new membrane technologies are being introduced that improve the performance of electrolyzers, making them more competitive with traditional hydrogen production methods. The market is projected to see a significant increase in the deployment of advanced electrolysis systems, with a forecasted growth rate of approximately 20% annually over the next five years. These innovations not only improve the economic viability of water electrolysis but also expand its applicability across various sectors, thereby driving the Water Electrolysis Market forward.

Supportive Government Policies and Incentives

The Water Electrolysis Market is increasingly influenced by supportive government policies and incentives aimed at promoting clean energy technologies. Many governments are implementing frameworks that encourage the adoption of hydrogen as a clean energy source, including subsidies for electrolysis projects and tax incentives for research and development. In 2025, several countries are expected to announce ambitious hydrogen strategies, which may include funding for large-scale electrolysis plants. These initiatives are likely to create a favorable environment for investment in the Water Electrolysis Market, facilitating the growth of infrastructure necessary for hydrogen production and distribution. As a result, the alignment of government policies with market needs is expected to significantly bolster the Water Electrolysis Market.

Rising Awareness of Environmental Sustainability

The Water Electrolysis Market is experiencing a heightened awareness of environmental sustainability among consumers and businesses. As climate change concerns escalate, there is a growing recognition of the need for sustainable energy solutions. This awareness is driving demand for hydrogen produced through water electrolysis, waste management as it is seen as a clean alternative to conventional fossil fuels. Market Research Future indicates that consumers are increasingly willing to pay a premium for products and services that are environmentally friendly. This shift in consumer behavior is likely to encourage companies to invest in water electrolysis technologies, thereby expanding the Water Electrolysis Market. The emphasis on sustainability is expected to shape market dynamics, influencing both production methods and consumer preferences in the coming years.

Market Segment Insights

By Technology: Alkaline Electrolysis (Largest) vs. Proton Exchange Membrane Electrolysis (Fastest-Growing)

The Water Electrolysis Market is characterized by a diverse range of technologies, with Alkaline Electrolysis holding the largest market share. This technology is favored due to its low capital costs and well-established operational efficiencies. In comparison, Proton Exchange Membrane (PEM) Electrolysis, while currently smaller in market share, is rapidly gaining attention thanks to its ability to operate at higher efficiencies and flexibility in various applications, including fluctuating renewable energy sources. As the market evolves, both technologies are witnessing dynamic growth trends influenced by the global push for clean energy solutions. Alkaline Electrolysis continues to dominate due to its reliability, particularly in large-scale operations, while PEM Electrolysis is recognized as the fastest-growing segment. Factors such as government incentives, technological advancements, and the pressing need for sustainable hydrogen production are driving interest and investment in PEM technology, ultimately reshaping the competitive landscape of the market.

Technology: Alkaline Electrolysis (Dominant) vs. Proton Exchange Membrane Electrolysis (Emerging)

Alkaline Electrolysis remains the dominant force in the Water Electrolysis Market, primarily due to its cost-effectiveness and maturity in industrial applications. This technology excels in producing hydrogen from <a href="https://www.marketresearchfuture.com/reports/water-purifier-market-2178">water purifier</a> through an alkaline solution, which enables high efficiency and durability. The infrastructure for Alkaline systems is widely established, making it a preferred choice for large-scale hydrogen production. Conversely, Proton Exchange Membrane Electrolysis is emerging as a pivotal technology due to its compact design and ability to operate efficiently across varying load conditions. This flexibility positions PEM Electrolysis as a frontrunner in niche applications, particularly where quick response times are necessary, such as integration with renewable energy sources. As demand for cleaner hydrogen grows, both segments play critical roles in shaping the future energy landscape.

By Application: Hydrogen Production (Largest) vs. Energy Storage (Fastest-Growing)

The water electrolysis market is characterized by its diverse applications, with hydrogen production taking the lead as the largest segment. This segment significantly contributes to the overall market share, thanks to the increasing demand for hydrogen in various industries including transportation and manufacturing. Following closely is the energy storage segment, which has emerged as a critical player, particularly in renewable energy integration, enabling the efficient use of intermittent energy sources by storing excess energy produced during peak times for later use. Both segments complement each other in promoting sustainable energy solutions, ensuring the continued growth of the market. Growth trends in the water electrolysis market reveal a promising trajectory, especially with the rising emphasis on clean energy sources and reducing carbon emissions. The hydrogen production segment is driven by advancements in electrolysis technology, making the process more efficient and cost-effective. Meanwhile, energy storage is witnessing rapid growth as businesses and utilities increasingly adopt it to optimize energy usage and improve grid reliability. Fuel cells are also on an upward trend, supported by government policies and investments aimed at promoting clean transport and energy solutions.

Hydrogen Production (Dominant) vs. Fuel Cells (Emerging)

Hydrogen production remains the dominant segment in the water electrolysis market, tapping into the growing need for clean hydrogen as an alternative energy source. This segment benefits from extensive investments and research aimed at enhancing electrolysis technologies, thereby improving efficiency and reducing operational costs. On the other hand, fuel cells represent an emerging segment with substantial growth potential, as they are pivotal in clean energy applications like transportation and portable power generation. While hydrogen production focuses on generating hydrogen from water, fuel cells utilize this hydrogen to produce electricity through electrochemical reactions. The synergy between these segments fosters innovation and drives market expansion.

By End Use: Industrial (Largest) vs. Transportation (Fastest-Growing)

In the Water Electrolysis Market, the end-use segments are primarily categorized into Industrial, Transportation, and Power Generation. Industrial applications dominate this market, leveraging water electrolysis for hydrogen production, which is integral for various manufacturing processes. Transportation is emerging rapidly, powered by the adoption of hydrogen fuel cell vehicles that promise a cleaner alternative to fossil fuels. Power Generation is also gaining momentum, utilizing hydrogen as an energy storage solution to balance supply and demand effectively.

Industrial (Dominant) vs. Transportation (Emerging)

The Industrial segment is the backbone of the Water Electrolysis Market, facilitating crucial hydrogen production that supports chemical, petrochemical, and refining processes. This segment benefits from established infrastructure and extensive applications of hydrogen, making it the most stable in the market. Conversely, the Transportation segment is swiftly gaining traction. The rise in renewable energy initiatives and the push for greener technologies have amplified the focus on hydrogen fuel cells in vehicles, marking it as an emerging force in the sector. With supportive government policies and technological advancements, this segment is poised for rapid growth, attracting investments and innovation aimed at sustainable mobility.

By Electrolyzer Size: Large Scale (Largest) vs. Small Scale (Fastest-Growing)

In the Water Electrolysis Market, the distribution of the electrolyzer size segment showcases that Large Scale units account for a significant share, largely due to their efficiency and capacity to meet large demand scenarios. Small Scale electrolyzers are gaining traction among end-users that prioritize space-saving solutions, highlighting a shift in market dynamics towards more modular systems. This distribution reflects evolving preferences influenced by project scope and application requirements.

Electrolyzer Size: Large Scale (Dominant) vs. Small Scale (Emerging)

Large Scale electrolyzers are positioned as the dominant force in the market, offering reliability and efficiency for industrial applications. Their capacity to produce large volumes of hydrogen makes them ideal for heavy-duty operations and large-scale renewable energy projects. On the other hand, Small Scale electrolyzers are emerging as a versatile solution for smaller applications, appealing to decentralized energy systems and small businesses. Their modularity and lower upfront costs provide a competitive edge in niche markets, further driving their growth as sustainability initiatives gain momentum.

Get more detailed insights about Water Electrolysis Market Research Report - Global Forecast till 2035

Regional Insights

The Water Electrolysis Market is poised for significant growth, with various regions contributing uniquely to this dynamics. In 2024, North America is valued at USD 0.54 billion and is expected to increase to USD 4.23 billion by 2035, reflecting a strong emphasis on clean hydrogen production technologies. Europe follows closely, with a current market value of USD 0.65 billion, projected to reach USD 5.15 billion, largely driven by stringent environmental regulations and a robust focus on renewable energy sources.

South America, although smaller, shows promise with a valuation of USD 0.15 Billion in 2024, growing to USD 1.05 billion, highlighting emerging hydrogen initiatives.

Asia Pacific holds a notable position with a market worth USD 0.42 billion, increasing to USD 3.69 billion, indicating its potential for industrial applications and sustainable energy solutions. Lastly, the Middle East and Africa region, currently valued at USD 0.06 billion, is anticipated to grow to USD 0.88 billion, due to increasing investments in sustainable technologies. Each region's growth reflects its commitments to transitioning towards a greener economy, driven by the rising demand for clean energy solutions, significant technological advancements, and supportive government policies.

The Water Electrolysis Market segmentation thus showcases the varying but interconnected approaches regions are taking towards harnessing the potential of water electrolysis.

Water Electrolysis Market Regional Insights

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Key Players and Competitive Insights

The Water Electrolysis Market is experiencing significant growth as the focus on renewable energy and clean hydrogen production intensifies. This market is characterized by a diverse range of technologies and stakeholders, including multinational corporations, specialized technology providers, and research institutions. Competitive insights indicate a landscape driven by innovation, where companies are investing heavily in research and development to enhance the efficiency of electrolyzer technologies. The competitive dynamics are largely influenced by market drivers, such as the increasing demand for green hydrogen, government initiatives supporting clean energy, and the advent of advanced electrolysis methods.

As incumbents and new entrants vie for market share, strategic partnerships, mergers, and acquisitions become vital for expanding technological capabilities and regional outreach.

Cummins Inc. has established a notable presence in the Water Electrolysis Market, leveraging its expertise in power solutions and energy transition technologies. The company's strong reputation for innovation in energy systems allows it to produce efficient hydrogen electrolyzers that cater to diverse industrial applications. Cummins Inc. benefits from its extensive distribution networks and customer relationships across various regions, which enhance its competitive edge. The company's commitment to sustainability aligns with global trends towards reducing greenhouse gas emissions, allowing it to position itself effectively within this growing market.

Additionally, Cummins Inc. is known for its strategic investments in expanding its product portfolio and enhancing the technological capabilities of its hydrogen solutions, setting it apart from competitors.

Nel ASA stands out as a significant player in the Water Electrolysis Market, focusing on the production of hydrogen-based technologies with an emphasis on electrolyzer manufacturing. The company offers a range of key products and services that cater to various sectors, including industrial hydrogen applications and renewable energy integration. Nel ASA's strengths lie in its robust technological advancements and a comprehensive approach to hydrogen production, allowing it to stay competitive in an evolving market. Its strategic focus on innovation has resulted in significant collaborations and partnerships aimed at enhancing production efficiency.

Moreover, Nel ASA actively engages in mergers and acquisitions to bolster its market presence and expand its capabilities in electrolyzer technologies globally. This positioning allows the company to capitalize on the increasing demand for cleaner hydrogen solutions across regions as the market continues to develop.

Key Companies in the Water Electrolysis Market market include

Industry Developments

Q2 2024: Siemens Energy and Air Liquide inaugurate gigawatt-scale electrolyzer factory in Germany Siemens Energy and Air Liquide opened a new gigawatt-scale electrolyzer manufacturing facility in Berlin, aiming to ramp up production of PEM electrolyzers for green hydrogen projects across Europe.
Q2 2024: Plug Power secures $1.5 billion contract to supply electrolyzers for green hydrogen plant in Texas Plug Power announced a major contract win to deliver electrolyzer systems for a large-scale green hydrogen production facility in Texas, marking one of the largest deals in the U.S. water electrolysis sector.
Q2 2024: Nel ASA partners with Iberdrola to develop green hydrogen projects in Spain Norwegian electrolyzer manufacturer Nel ASA entered a strategic partnership with Iberdrola to supply and co-develop water electrolysis systems for multiple green hydrogen projects in Spain.
Q3 2024: Thyssenkrupp Nucera wins contract for 500 MW electrolyzer plant in Saudi Arabia Thyssenkrupp Nucera announced it will supply alkaline electrolyzers for a 500 MW green hydrogen facility in NEOM, Saudi Arabia, supporting the region’s ambitious hydrogen economy plans.
Q3 2024: Cummins launches new 5 MW PEM electrolyzer platform Cummins unveiled its latest 5 MW proton exchange membrane (PEM) electrolyzer, targeting utility-scale green hydrogen projects and industrial decarbonization efforts.
Q3 2024: ITM Power secures $100 million funding round led by Snam and Vitol UK-based ITM Power raised $100 million in new funding to expand its electrolyzer manufacturing capacity, with strategic investments from Snam and Vitol.
Q4 2024: John Cockerill opens new electrolyzer assembly plant in India Belgian engineering firm John Cockerill inaugurated a new electrolyzer assembly facility in Gujarat, India, to serve the growing demand for green hydrogen in South Asia.
Q4 2024: Enapter receives regulatory approval for AEM electrolyzer in Japan Enapter, a German electrolyzer manufacturer, received Japanese government approval for its anion exchange membrane (AEM) electrolyzer technology, enabling commercial deployment in the country.
Q1 2025: Sunfire signs partnership with Shell for offshore hydrogen production Sunfire, a German electrolyzer company, entered a partnership with Shell to deploy solid oxide electrolyzers for offshore green hydrogen production in the North Sea.
Q1 2025: H2 Green Steel acquires electrolyzer startup HydroGenics Swedish steelmaker H2 Green Steel acquired HydroGenics, a startup specializing in advanced water electrolysis technology, to accelerate its green steel production plans.
Q2 2025: Siemens Energy appoints new Head of Electrolyzer Division Siemens Energy announced the appointment of Dr. Anna Müller as the new Head of its Electrolyzer Division, signaling a strategic focus on scaling up water electrolysis technologies.
Q2 2025: Bloom Energy wins contract for 200 MW electrolyzer installation in South Korea Bloom Energy secured a contract to supply 200 MW of solid oxide electrolyzers for a major green hydrogen project in South Korea, supporting the country’s clean energy transition.

Future Outlook

Water Electrolysis Market Future Outlook

The Water Electrolysis Market is projected to grow at a 21.11% CAGR from 2024 to 2035, driven by increasing demand for clean hydrogen and renewable energy integration.

New opportunities lie in:

Development of modular electrolysis systems for decentralized hydrogen production.Investment in advanced materials to enhance electrolyzer efficiency and lifespan.Partnerships with renewable energy providers for integrated hydrogen solutions.

By 2035, the Water Electrolysis Market is expected to be a cornerstone of the global hydrogen economy.

Market Segmentation

Water Electrolysis Market End Use Outlook

Industrial
Transportation
Power Generation

Water Electrolysis Market Technology Outlook

Alkaline Electrolysis
Proton Exchange Membrane Electrolysis
Solid Oxide Electrolysis

Water Electrolysis Market Application Outlook

Hydrogen Production
Energy Storage
Fuel Cells

Water Electrolysis Market Electrolyzer Size Outlook

Small Scale
Medium Scale
Large Scale

Report Scope

MARKET SIZE 2024	1.82(USD Billion)
MARKET SIZE 2025	2.204(USD Billion)
MARKET SIZE 2035	14.96(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	21.11% (2024 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Market analysis in progress
Segments Covered	Market segmentation analysis in progress
Key Market Opportunities	Advancements in renewable energy integration enhance growth potential in the Water Electrolysis Market.
Key Market Dynamics	Rising demand for clean hydrogen fuels drives innovation and competition in the water electrolysis market.
Countries Covered	North America, Europe, APAC, South America, MEA