by The water electrolysis machine market refers to the equipment which produces hydrogen and oxygen from water through the process of electrolysis. Water electrolysis machines are primarily used to produce green hydrogen which is environment friendly and produced from renewable energy sources. The rising focus on decarbonization of industries and transition towards a green economy has boosted the demand for green hydrogen in various end use sectors like transportation, power generation and chemical processing. The water electrolysis process helps split water into hydrogen and oxygen by passing an electric current through an electrolyte. This allows large scale and on-site production of hydrogen from renewable energy sources like solar and wind power. The demand for fuel cell vehicles and use of hydrogen as an energy carrier is also driving sales of water electrolysis equipment globally.
The Global water electrolysis machine market is estimated to be valued at US$ 13.24 Bn in 2024 and is expected to exhibit a CAGR of 7.8% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the water electrolysis machine market are Air Products and Chemicals, Inc., AREVA H2Gen, Asahi Kasei Corporation, C&E Environmental Technology Co. Ltd., Cummins Inc., Enagic International Inc., Eneco Holdings Inc., ErreDue S.p.A., Hitachi Zosen Corporation, Hydrogenics Corporation, ITM Power Plc, Kobelco Eco-Solutions Co. Ltd., Linde AG, Nel ASA, and Siemens AG.
The Water Electrolysis Machine Market Demand Countries across Europe, North America and Asia Pacific are launching large initiatives to scale up green hydrogen economy. This will drive strong demand for water electrolysis machines over the coming years.
Major electrolysis equipment companies are expanding globally to tap growth opportunities. For instance, Nel Hydrogen and ITM Power have established manufacturing plants and sales offices across different regions to serve growing international demand. Further acquisitions and partnerships are also expanding global footprints of players in this industry.
Market Drivers
The Water Electrolysis Machine Market Size And Trends is the growing focus on adopting renewable and clean sources of energy globally. Many countries and industrial plants are increasingly investing in green hydrogen production to replace fossil fuels. This is positively impacting demand for electrolysis equipment. Additionally, commercialization of fuel cell applications in transportation and other sectors will further drive market growth over the forecast period. Investments into research & development of advanced and more efficient electrolysis technologies are also fueling revenue creation for market participants.
PEST Analysis
Political: Governments of different countries are taking initiatives to develop sustainable and clean sources of energy by supporting electrolysis technologies. Some governments provide subsidies and tax benefits to manufacturers of water electrolysis machines.
Economic: Need for affordable and renewable sources of hydrogen fuel is driving investments in water electrolysis technologies. Declining costs of renewable energy sources is making hydrogen production via electrolysis economically viable.
Social: Growing environmental concerns and need to reduce dependence on fossil fuels is increasing social acceptance of clean technologies like water electrolysis for production of hydrogen.
Technological: Advancements are being made to improve the efficiency and reduce the capital costs of water electrolysis machines. Research is ongoing to develop improved catalysts and membrane materials to enhance the process. Proton exchange membrane electrolysis is gaining popularity over alkaline electrolysis due to its high hydrogen purity and efficiency.
The geographical regions where the water electrolysis machine market is concentrated in terms of value are Europe and North America. Europe dominates the market currently due to strong government support for hydrogen and fuel cell technologies in countries like Germany, France and the UK. Meanwhile, countries in North America like the United States and Canada are also investing significantly in developing hydrogen infrastructures.
The Asia Pacific region is projected to be the fastest growing regional market for water electrolysis machines between 2024-2031. Rapid industrialization and economic growth in countries like China and India is driving energy demand. Moreover, these nations are working to establish domestic production capacities for hydrogen fuel to meet rising energy needs in a sustainable manner. Growing deployment of renewable energy is also expected to support the use of water electrolysis technology in the Asia Pacific region.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
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