Global Water Electrolysis Market is set for significant growth from 2023 to 2032, driven by the increasing demand for hydrogen as a clean energy source and the growing adoption of water electrolysis technology.

The market is expected to achieve a Compound Annual Growth Rate (CAGR) of approximately 7.9% during this period. In 2023, the market is estimated to be valued at USD 12.9 Billion, projected to reach USD 25.7 Billion by 2032.

Water Electrolysis Market: Growth Factors and Dynamics:

  • Growing Green Hydrogen Demand: The water electrolysis market experiences robust growth due to the increasing demand for green hydrogen, driven by sustainability goals and clean energy initiatives.
  • Renewable Energy Integration: Integration with renewable energy sources, such as wind and solar power, enhances the environmental sustainability of water electrolysis processes.
  • Technological Advancements: Ongoing research and development efforts lead to technological advancements in water electrolysis systems, increasing efficiency and reducing costs.
  • Electrolyzer Types: Various electrolyzer types, including alkaline, proton exchange membrane (PEM), and solid oxide electrolyzers, cater to diverse application needs, contributing to market diversity.
  • Industrial and Energy Sectors: Water electrolysis finds applications in various sectors, including industrial processes, energy storage, and fuel production, expanding its market presence.
  • Green Hydrogen Infrastructure: Investments in green hydrogen infrastructure and production facilities create a supportive ecosystem for water electrolysis technology adoption.
  • Hydrogen as an Energy Carrier: Hydrogen’s role as a versatile energy carrier for various sectors, including transportation and industrial processes, drives the demand for water electrolysis.
  • Government Initiatives: Government incentives, subsidies, and policies promoting green hydrogen production and utilization stimulate market growth.
  • Decarbonization Goals: Water electrolysis aligns with global decarbonization efforts, making it a pivotal technology in the transition to cleaner energy sources.
  • Electrolysis for Grid Balancing: Water electrolysis systems support grid balancing by storing excess renewable energy as hydrogen, ensuring grid stability.
  • Environmental Awareness: Growing environmental awareness and concerns about carbon emissions contribute to the market’s expansion.
  • Global Market Expansion: The water electrolysis market expands into new geographical regions as countries adopt green hydrogen strategies.
  • Investment in Research: Ongoing research into electrolyzer materials and designs leads to more efficient and durable water electrolysis solutions.
  • Scaling Up Production: As demand for green hydrogen increases, manufacturers scale up production capacity to meet market requirements.
  • Collaborations and Partnerships: Collaborations between technology providers, energy companies, and research institutions foster innovation and market development.

Report Scope

Feature of the Report Details
Market Size in 2023 USD 12.9 Billion
Projected Market Size in 2032 USD 25.7 Billion
Market Size in 2022 USD 11.5 Billion
CAGR Growth Rate 7.9% CAGR
Base Year 2022
Forecast Period 2023-2032
Key Segment By Product Type, Application, End-User and Region
Report Coverage Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
Regional Scope North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America
Buying Options Request tailored purchasing options to fulfil your requirements for research.

Water Electrolysis Market: COVID-19 Analysis:

  • Accelerated Green Energy Focus: The pandemic accelerated the focus on green energy solutions, including green hydrogen, as countries sought sustainable economic recovery.
  • Supply Chain Disruptions: Similar to other industries, the water electrolysis market faced supply chain disruptions, impacting the availability of key components.
  • Investment in Renewable Energy: The pandemic encouraged investments in renewable energy projects, driving the demand for water electrolysis technology.
  • Energy Transition Resilience: The water electrolysis market demonstrated resilience during the pandemic, showcasing its importance in the energy transition.
  • Remote Monitoring and Control: Remote monitoring and control solutions gained prominence, ensuring the uninterrupted operation of water electrolysis systems.
  • Shift to Remote Work: The shift to remote work accelerated digitalization in the water electrolysis industry, improving efficiency and communication.
  • Government Stimulus Packages: Government stimulus packages and green recovery initiatives supported the growth of the water electrolysis market.
  • Increased Research Funding: The pandemic increased research funding for green hydrogen and water electrolysis technology, leading to innovation.
  • Economic Recovery and Market Growth: As economies recover, the water electrolysis market anticipates continued growth, driven by sustainable energy priorities.
  • Environmental Resilience: The pandemic underscored the importance of environmental sustainability, further boosting the market’s growth prospects.

Global Water Electrolysis Market 2023–2032 (By Billion)

List of the prominent players in the Water Electrolysis Market:

  • Siemens AG
  • ITM Power
  • Nel ASA
  • Hydrogenics Corporation
  • Plug Power Inc.
  • AREVA H2Gen
  • McPhy Energy
  • Enapter
  • Erre Due
  • Giner ELX
  • Others

The Water Electrolysis Market is segmented as follows:

By Product Type

  • Alkaline Electrolysis
  • Proton Exchange Membrane (PEM) Electrolysis
  • Solid Oxide Electrolysis

By Application

  • Hydrogen Production
  • Oxygen Production

By End-User

  • Chemical Industry
  • Power Plants
  • Renewable Energy
  • Others

Regional Coverage:

North America

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


  • 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