Water Electrolysis Market Growth Analysis | 2025-2030

Water Electrolysis Market Growth Analysis | 2025-2030

Water Electrolysis Market Growth Analysis | 2025-2030
Report code - SR2314 Delivery - 2 Weeks
Water Electrolysis Market Size, Share, Trends, Dynamics, Forecast, & Growth Analysis: See more...

Market Insights

The water electrolysis market was estimated at USD 6.6 billion in 2024 and is likely to grow at a CAGR of 7.81% during 2025-2030 to reach USD 10.38 billion in 2030.

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Market Dynamics

Introduction

The process of separating water into hydrogen and oxygen, known as electrolysis, takes place in an electrolyzer. Hydrogen and oxygen are separated from water through electrolysis and then collected separately for use in industrial processes in the chemical, power, and automotive sectors. Electrolyzers come in various sizes, including compact appliances ideal for small-scale dispersed hydrogen generation and massive central production plants that can be directly connected to non-greenhouse gas-generating sources.

Market Drivers

The market's growth will be fueled by favorable regulatory policies toward building hydrogen infrastructure and expanding its use as an industrial feedstock. The continued advancement of technology and the decline in carbon emissions from manufactured goods will be favorable to the future of the business.

The market structure for water electrolysis in the world today takes into account current developments and the use of new technology by the major industry participants. The market grew as a result of several causes, including rising global carbon emissions, rising low-carbon hydrogen and ammonia production, increasing margarine consumption, rising capacity for menthol manufacture, and growing semiconductor demand.

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Key Players

The following are the key players in the market (arranged alphabetically):

  • AREVA H2Gen
  • Air Products and Chemicals, Inc.
  • Erre Due SpA
  • Hydrogenics Corporation
  • Linde AG
  • Peak Scientific
  • ProtonOnsite
  • Siemens AG
  • Teledyne Energy Systems Inc.
  • ThyssenKrupp AG

The market is highly populated with the presence of several local, regional, and global players. Most of the major players compete in some of the governing factors including price, product offerings, regional presence, etc.

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Write to us at sales@stratviewresearch.com

Segments Analysis

Segmentations

List of Sub-Segments

Dominant and Fastest-Growing Segments

Product-Type Analysis

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

Alkaline water electrolysis is expected to remain the largest and fastest-growing product type in the market.

End-User-Type Analysis

Chemicals, Electronics & Semiconductor, Power Plants, Petroleum, Pharmaceuticals, and Others

The chemicals is expected to remain the dominant as well as the fastest-growing end-user type in the market.

Regional Analysis

North America, Europe, Asia-Pacific, and Rest of the World

North America is expected to witness significant growth in the market during the forecast period.

By Product Type

“Alkaline water electrolysis is expected to remain the largest and fastest-growing product type in the market.”

  • The market is segmented into proton exchange membranes, alkaline water electrolysis, and solid oxide electrolytes.
  • Alkaline water electrolysis is expected to remain the largest and fastest-growing product type in the market during the forecast period.
  • The most advanced water electrolysis method is well recognized as alkaline water electrolysis.
  • The majority of the installed water electrolysis capacity worldwide comes from alkaline electrolyzers.
  • The vast majority of alkaline electrolyzers are appropriate for producing hydrogen on a large scale.
  • Alkaline water electrolysis research is currently focused on increasing efficiency through the use of high-temperature and high-pressure operations.

By End-User Type

“Chemical is expected to remain the dominant as well as the fastest-growing end-user type in the market.”

  • The market is segmented into chemicals, electronics & semiconductors, power plants, petroleum, pharmaceuticals, and others.
  • Chemical is expected to remain the dominant as well as the fastest-growing end-user type in the market during the forecast period.
  • To produce ammonia, which has a rising demand for hydrogen in the chemical sector, fertilizers and methanol are utilized in the production of polymers.
  • Other essential chemicals made from hydrogen include aniline, cyclohexane, hydrochloric acids, and a variety of bases.

Regional Insights

“North America is expected to witness significant growth in the water electrolysis market”.

  • The market is broken down geographically into areas, namely North America, Europe, Asia-Pacific, and the Rest of the World (RoW).
  • In terms of regions, North America is expected to witness significant growth in the water electrolysis market during the forecast period.
  • In the development of hydrogen through water electrolysis, the US is a world leader.
  • In North America, hydrogen and fuel cells provide energy security and a healthier environment for people.
  • To guarantee the safety and environmental friendliness of hydrogen and fuel cell products, the US has maintained and developed particular rules and standards.
  • For the usage of hydrogens, numerous innovations have been put into place, including hydrogen-powered buses and forklifts at retail establishments.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s water electrolysis market realities and future market possibilities for the forecast period of 2025 to 2030. After a continuous interest in our water electrolysis market report from the industry stakeholders, we have tried to further accentuate our research scope to the water electrolysis market to provide the most crystal-clear picture of the market. The report segments and analyses the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

  • Market structure: Overview, industry life cycle analysis, supply chain analysis.
  • Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
  • Market trend and forecast analysis.
  • Market segment trend and forecast.
  • Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
  • COVID-19 impact and its recovery curve
  • Attractive market segments and associated growth opportunities.
  • Emerging trends.
  • Strategic growth opportunities for the existing and new players.
  • Key success factors.

Market Segmentation

This report studies the market, covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The water electrolysis market is segmented into the following categories:

By Product Type

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

By End-User Type

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

By Region

  • North America (Country Analysis: the USA, Canada, and Mexico)
  • Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
  • Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
  • Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

  • Detailed profiling of additional market players (up to three players)
  • SWOT analysis of key players (up to three players)

Competitive Benchmarking

  • Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research:

Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.

Frequently Asked Questions (FAQs)

The process of separating water into hydrogen and oxygen, known as electrolysis, takes place in an electrolyzer. Hydrogen and oxygen are separated from water through electrolysis and then collected separately for use in industrial processes in the chemical, power, and automotive sectors.

The water electrolysis market was estimated at USD 6.6 billion in 2024.

The water electrolysis market is likely to reach USD 10.38 billion in 2030.

The water electrolysis market is likely to grow at a CAGR of 7.81% during 2025-2030.

Peak Scientific, Air Products and Chemicals, Inc., Siemens AG, Linde AG, ThyssenKrupp AG, Hydrogenics Corporation, Erre Due SpA, Teledyne Energy Systems Inc., ProtonOnsite, and AREVA H2Gen are the leading players in the market.

Alkaline water electrolysis is estimated to be dominant in the coming years as alkaline electrolyzers are mostly suitable for large-scale hydrogen production. The current focus for development in alkaline water electrolysis is towards obtaining higher efficiency by applying high-temperature and high-pressure operations.

North America is estimated to remain dominant in the market in the foreseeable future as the US has maintained and developed specific codes and standards to ensure that hydrogen and fuel cell products are safe and environment friendly.

Major factors such as increasing global carbon emissions, growing production of low carbon hydrogen, increasing production of ammonia, rising demand for margarine, rising production capacity for menthol, and increase in the demand for semiconductors are likely to drive the growth of the market in the coming five years.

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