Water Electrolysis Machine Market

Water Electrolysis Machine Market Outlook

The water electrolysis machine market is estimated to reach valuation of US$ 12,145.4 Million in 2023 and will top US$ 24,800.2 Million by 2033, growing with a CAGR of around 7.4% from 2023-2033.

Report Attributes	Details
Water Electrolysis Machine Market Size (2022A)	US$ 11,242.3 Million
Estimated Market Value (2023E)	US$ 12,145.4 Million
Forecast Market Value (2033F)	US$ 24,800.2 Million
Global Market Growth Rate (2023-2033)	7.4% CAGR
North America Market Share (2023)	24.3%
North America Market Value (2023)	US$ 2,946.5 million
Europe Market Share (2023)	23.7%
Europe Market Value (2023)	US$ 2,878.5 million
China Market Share (2023)	14.1%
China Market Value (2023)	US$ 1,711.2 million
Market Share of Top 3 Countries	38.4%
Key Companies Profiled	AREVA H2Gen Audlong Machinery Manufacturing Co., Ltd. C&E Environmental Technology Co., Ltd. Cockerill Jingli Hydrogen Cummins Inc. EHM Group Limited, Guangzhou Weyes Network Technology Co., Ltd Elogen HyGear ITM Power PLC Jiangmen Leonard Industrial Machineries Co., Ltd. McPhy Energy S.A. Nel ASA Peak Scientific Instruments Qinhuang Water Teledyne Technologies Incorporated

Sales Analysis of Water Electrolysis Machine (2018-2022) Vs. Market Outlook (2023-2033)

Water electrolysis is the electrochemical breakdown of water using two electrodes submerged in an electrolyte and electrical energy. Modern alkaline electrolyzers are sufficiently technologically sophisticated to begin producing renewable hydrogen at considerable rates during the electrolysis procedure.

However, it is generally acknowledged that considerably larger electrolysis units than those currently in use would be soon necessary to produce the vast amounts of hydrogen that the use of hydrogen as an alternative energy source will be in demand.

Based on the core technology, high-efficiency nickel electrodes have been developed that lower system production costs and produce hydrogen at a high yield per unit of input power. This technology also has a long activation cycle of over 10,000 hours. The utilization of new technologies for upgrading the efficiency of the machine will provide many opportunities in the future.

• Short Term (2023 Q1 to 2026): To goal to shift towards sustainable development will provide an upsurge in sales of water electrolysis machine.
• Medium Term (2026- 2029): Countries like the U.S. and Germany are likely to create more revenue generation opportunities on the back of the growing end use industries in the countries.
• Long Term (2029- 2033): Deployment of digital technologies with advanced analytics can show an immense untapped potential to improve water electrolysis machine. With technologies such as smart detection of the output hydrogen generated can set the market to grow exponentially in the future.

From 2018 to 2022, the global market for water electrolysis machine registered a CAGR of 5.2%. Fact.MR, a market research and competitive intelligence provider, reveals that the market will exhibit growth at 7.4% CAGR between 2023 and 2033.

What’s Driving High Demand for Water Electrolysis Machine across Regions?

“Shifting towards sustainability has led to rise in demand for hydrogen as green energy source will propel the market”

Due to the growing demand for environmental sustainability, industrial and commercial sectors have recognized hydrogen as an important vector for a wide array of future applications. Due to the growing interest in hydrogen as a green energy source, innovations and technological advances are mainly focused on producing hydrogen in the most sustainable way possible.

Hydrogen is utilized in several industries, and the amplified usage of hydrogen in fuel cell-based applications is creating a resounding effect on the production of hydrogen.

A water electrolysis machine is an efficient machine that produces hydrogen in quite a sustainable manner and also in a good amount by volume. Owing to the extensive requirement for hydrogen as a green energy source in the upcoming years, water electrolysis machine manufacturers will have plenty of opportunities for revenue generation.

“Elevating chemical industry to provide support to water electrolysis machine market”

Hydrogen has applications in many industries including the chemical industry. Humans use hydrogen for extracting oxygen from other oxygen compounds and to smelt metals in the smelting process in the metallurgical industry. Hydrogen can be used to make hydrochloric acid, liquid vegetable oil, and others. Hydrogen is also ideal as fuel. Hydrogen is a very abundant resource and water is the main storage medium for hydrogen.

Increased adoption of water electrolyzers in the chemical industry can be attributed to the development of fuel cells and fuel additives, as well as extensive hydrogen production requirements in iron ore reduction, ammonia fertilizer production, and methanol production.

The chemical industry is an important industry that contributes to the global economy. The global chemical industry was approximately valued at US$ 4.7 trillion in 2021. Owing to the increasing utilization of water electrolysis machines for the production of hydrogen and further the importance of hydrogen in the chemical industry the market is poised to grow.

What Do Water Electrolysis Machine Manufacturers Need to Watch Out?

“Replacement by alternative product is a constant threat.”

Production of hydrogen can be done in many different ways and by many other machines. The large-scale demand for hydrogen for various applications is ought to rise in the future. Water electrolysis machines can produce hydrogen upto limited capacity.

The replacement of these machines by high hydrogen production alternative machines is a risk associated with this product. Also, the machine has high initial costs in which small-scale business owners hesitate to invest. All these factors can act as a stumbling block in the expansion of the market

Country Wise Analysis

How U.S. Water Electrolysis Machine Market will grow?

Hydrogen is used in refineries to lower the sulfur content of diesel fuel. Demand for hydrogen from refineries is increasing as demand for diesel fuel increases, both domestically and internationally, and regulations on sulfur levels tighten.

The U.S. is the ninth-largest oil reserves in the world. Texas is one of the nation's leading oil-producing states. The Eagle Ford Shale Play and the Permian Basin, in Texas, are among the most active drilling targets for conventional as well as unconventional oil, which includes shale and oil sands. Other major hydrogen-producing states are Louisiana, California, etc.

Nearly all of the hydrogen produced in the United States today is used in petroleum refining, fertilizer manufacturing, metal processing, and others. In addition, industrial gas producers will benefit from the growing hydrogen gas pipeline network, especially in the US Gulf region, which provides greater reliability in supplying hydrogen to their customers.

Plethora of opportunities provided by the oil and petroleum industry in the country will lead to exceeded sales of water electrolysis machine. Hence, according to Fact.MR analysis U.S. is expected to obtain a valuation of US$ 2,429.1 million in 2023.

How Market for Water Electrolysis Machine is Estimated to Rise in Germany?

The pharmaceutical industry utilizes hydrogen to make vitamins, medicinal drugs, and other pharmaceuticals. Bulk hydrogen is used to purify gases such as argon and others containing trace amounts of oxygen using a combination of hydrogen and oxygen catalysts, followed by the removal of the water.

Germany offers a developing environment for carrying out research and production of research-intensive, high-quality products. In 2018, the German pharmaceutical industry invested around €7.4 billion in research and development. Germany is the largest pharmaceutical production base within the European Union.

Considering the various platforms provided by Germany for the growth of the pharmaceutical industry, there will be a domino effect on the water electrolysis machine market in the future. Germany is expected to capture the European market by obtaining a value share of 34.7% in 2023.

Category wise Insights

How Steel Plant End Use Will Lead to Market Growth?

One of the biggest challenges for the steel industry is the production of decarbonization or 'green' steel in a highly competitive market. As a globally traded commodity with delicate cost margins, steel production is linked to major geopolitical issues such as tariffs and trade disputes.

But there is also a sudden and massive demand for low-carbon production of steel due to climate change. Hydrogen plays an important role in this process. In the green steel process, iron pellets can instead be reduced with hydrogen to form sponge iron or metallic iron, which can be processed into steel.

Also, by the introduction of non-fossil fuels such as hydrogen to produce iron pellets and renewable power to turn scrap and sponge iron into steel, the steel industry can eliminate fossil fuels from the process and significantly reduce emissions.

Currently, the largest steel producer is China, accounting for 57% of global steel production in 2020. The crude steel production of China in 2021 was recorded to be approximately 1,032.8 million metric tons. The steel plant end users of water electrolysis machines will capture a market share of 8.7% in 2023.

How the Proton Exchange Membrane Type Will Lead to Rise in Market for Water Electrolysis Machine?

During the evaluation period, proton exchange membranes type of water electrolysis machines is expected to maintain their dominance, as they are likely to have a higher adoption rate. This technique is in high demand as it produces high-purity hydrogen which is used for applications in the chemical and energy storage sectors.

Proton exchange membranes can be expected to have a relatively high share in the water electrolyzer market compared to alkaline water electrolysis methods, due to the advantages of deionized water and differential pressure operation, where hydrogen is less transferred even at high-pressure settings and at variable temperatures.

This technology is gaining traction, especially for on-site hydrogen generation applications, and hence is predicted to have a valuation of US$ 6,466.2 million in 2023.

Competitive Landscape

Fact.MR profiled the following top companies in water electrolysis machine market in its report. Those companies are AREVA H2Gen, Audlong Machinery Manufacturing Co., Ltd. , C&E Environmental Technology Co., Ltd., Cockerill Jingli Hydrogen, Cummins Inc., EHM Group Limited, Guangzhou Weyes Network Technology Co., Ltd , Elogen, HyGear, ITM Power PLC, Jiangmen Leonard Industrial Machineries Co., Ltd., McPhy Energy S.A., Nel ASA, Peak Scientific Instruments, Qinhuang Water, Teledyne Technologies Incorporated

A shift to sustainable technologies, increasing regulatory pressures related to environmental conservation, increased government support, and increased investment in developing state-of-the-art water electrolyzers are some of the main factors that are expected to drive the market during the evaluation period.

Market players should focus on research and development activities and identify opportunities in other regional markets by forming strategic partnerships and business alliances.

Fact.MR has provided detailed information about the price points of key manufacturers of water electrolysis machine positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Water Electrolysis Machine Industry Research

• By Type :

  • Proton Exchange Membrane
  • Alkaline Water Electrolysis
  • Others

• By Input Power :

  • Below 5 kW
  • 2 kW – 5 kW
  • Above 5 kW

• By Hydrogen Production :

  • Below 500 L/hr
  • 500 - 2000 L/hr
  • Above 2000 L/hr

• By End Use :

  • Chemicals
  • Petroleum
  • Pharmaceuticals
  • Power Plants
  • Electronics & Semiconductors
  • Steel Plants
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia and Oceania
  • Middle East & Africa