Global Water Electrolysis Market Analysis, Drivers, Restraints, Opportunities, Threats, Trends, Applications, and Growth Forecast to 2028

The Water Electrolysis Market Report has been segmented on the basis of technology, end-user, and region.

Water Electrolysis Market: Overview

“The Water Electrolysis Market size is expected to be worth around US$ xx Billion by 2021 from US$ X.xx million in 2031, growing at a CAGR of X.x% during the forecast period 2021 to 2031.”

Water electrolysis is a process used to decompose water into hydrogen and oxygen gas by passing an electric current. The electric power source is a DC current, connected to both electrodes that are placed in water.

Hydrogen appears at the cathode whereas oxygen appears at the anode. The process is widely used in various end-use industries such as chemical, petroleum, pharmaceuticals, energy, electronic & semiconductor, and others.

Water Electrolysis Market: Dynamics

Increasing demand for PEM water electrolysis owing to its compact system design, and ability to operate at high pressure and high current density is a key factor expected to drive the growth of the global water electrolysis market.

In addition, the growing adoption of carbon-free sources of energy is another factor expected to support the growth of the target market.

Furthermore, increasing research and development and rapid industrialization, coupled with a growing power plant, chemical, and petroleum industries are factors expected to proliferate the growth of the global water electrolysis market in the near future.

However, the high cost of water electrolysis equipment is a factor that may restrain the growth of the target market. Additionally, sensitivity to imperfections, impurities, and dust could damage the equipment.

This is a challenging factor that could affect its demand among end-users.

Nevertheless, increasing R&D and investment in developing new and cost-effective ion-exchange membranes is a factor expected to create high revenue opportunities for players in the global water electrolysis market.

Water Electrolysis Market: Segment Analysis

Among the technology segments, the proton exchange membrane segment is projected to register lucrative revenue growth in the next coming years.

This is attributable to the increasing demand for PEM electrolysis owing to its advantages such as the ability to operate at high current density and high pressure as compared to alkaline water electrolysis.

Among the end-user segments, the power plant segment is expected to register moderate growth in terms of revenue in the near future. This is attributed to the increasing demand for carbon-free sources of energy.

Water Electrolysis Market: Region Analysis

Currently, the market in the Asia Pacific is expected to account for a major share in terms of value and is projected to maintain its dominance in the next 10 years.

Increasing demand for water electrolysis in various end-use industries such as power plants, chemicals, electronics & semiconductors, and others in countries such as China, India, and Japan is a factor expected to support the growth of the Asia Pacific market.

The North American water electrolysis market is projected to register moderate growth in terms of revenue in the target market.

This is attributed to the increasing demand for water electrolysis in various end-use industries and the presence of major players in countries in the region.

The market in Europe is projected to register a moderate growth rate in the near future, followed by the Middle East & Africa, and Latin America.

Water Electrolysis Market Segmentation:

Segmentation by Technology:

• Alkaline Water Electrolysis
• Proton Exchange Membrane (PEM)

Segmentation by End User:

• Chemical
• Petroleum
• Pharmaceuticals
• Power Plant
• Electronic & Semiconductor
• Others

Segmentation by Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa