Global Water Electrolysis Market Size Likely to Grow at a CAGR of 8.1% By 2034

As per the Water Electrolysis Market size analysis conducted by CMI Team, the global water electrolysis market is expected to record a CAGR of 8.1% from 2025 to 2034. In 2025, the market size is projected to reach a valuation of USD 7.2 Billion. By 2034, the valuation is anticipated to reach USD 14.5 Billion.

Overview

According to industry experts at CMI, Electrolysis is the process of breaking down water (H₂O) into its basic parts, hydrogen (H₂) and oxygen (O₂). An electrolytic cell, which has an anode, a cathode, and an electrolyte, is used to do this. The cathode (negative electrode) makes hydrogen gas, and the anode (positive electrode) makes oxygen gas in a 2:1 ratio by volume. The water electrolysis market is being driven by several factor such as growing decarbonization initiatives, increasing awareness regarding environmentally friendly technology, rising product launch, technological advancements and growing emphasis on clean energy across the globe.

Key Trends & Drivers

• Growing partnership among the market players: The rising partnership among the key market players are expected to florish the industry expansion over the forecast period. For instance, in June 2024, Newark (US, California), The Hague, Wieringerwerf, Ohmium International, the US international tech company, which designs, manufactures and implements advanced Proton Exchange Membrane (PEM) electrolysers, announced a collaboration with HYGRO, a Dutch provider of green hydrogen solutions. This collaboration begins with a new hydrogen production and distribution project in North Holland (project Duwaal). The Duwaal project demonstrates how Ohmium’s electrolysers can work together with wind turbines, using HYGRO’s knowledge and patents on this concept, and also incorporating HYGRO’s new iBundle – a new storage, transport and fast tank system. This integrated approach is crucial to the success of the hub, iBundle and satellite strategy, which will be rolled out in phases in the Netherlands and internationally.

• Increasing demand for green fertilizers: The water electrolysis business is getting larger because more people desire eco-friendly fertilizer. This is largely because they create green hydrogen, which is used to make ammonia in a way that doesn’t hurt the environment. Using renewable energy, water is divided into hydrogen, which is then utilized to generate ammonia. This lowers the amount of carbon dioxide that comes from generating ammonia from fossil sources like natural gas. Green hydrogen, for instance, creates ammonia, which is a carbon-free raw material for nitrogen-based fertilizers. These fertilizers are incredibly vital for food security and farming around the world. Using electrolytic green hydrogen instead of hydrogen from fossil fuels in the Haber-Bosch ammonia synthesis process can cut CO₂ emissions by a lot, up to 1.8 tons for every ton of ammonia that isn’t made. This is what is making the water electrolysis industry grow.

Report Scope

SWOT Analysis

• Strengths: The core strength of the market is its sustainable nature since water electrolysis produces green hydrogen when powered by renewables. They support global decarbonization goals and reducing carbon emissions across sectors.

• Weakness: The major weakness of the market is its dependency on electricity because the cost of hydrogen production is highly dependent on electricity prices, affecting economic viability in regions with expensive power.

• Opportunities: The growing industrial and transport sector adoption for carbon-neutral hydrogen offers significant opportunity for the market development.

• Threats: The availability of critical materials such as platinum group metals for PEM and manufacturing scale limitations pose risks.

List of the prominent players in the Water Electrolysis Market:

• Nel ASA
• ThyssenKrupp AG
• Asahi Kasei Corporation
• Cummins Inc.
• Plug Power Inc.
• ITM Power PLC
• Toshiba Energy Systems & Solutions Corporation
• Teledyne Energy Systems Inc. Ltd.
• Hitachi Zosen Corporation
• Siemens Energy AG
• GreenH Electrolysis
• 3M
• Next Hydrogen
• Industrie De Nora S.p.A.
• HORIBA Group
• Others

The Water Electrolysis Market is segmented as follows:

By Product

• Proton Exchange Membrane
• Alkaline Water Electrolysis
• Solid Oxide Electrolyte (SOE)

By End-use

• Chemicals
• Electronics & Semiconductor
• Power Plants
• Petroleum
• Pharmaceuticals
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America