The water electrolysis machine market involves the production of hydrogen and oxygen gases from water through the process of electrolysis. Water electrolysis is a carbon-free method of producing hydrogen and has significant applications in power-to-gas technology, fuel cells, transportation and many industrial uses. Electrolysis machines allow the conversion of excess renewable electricity into hydrogen as an energy storage medium. The global demand for emission-free, renewable hydrogen is driving investments and technological advancements in water electrolysis.
The Global Water Electrolysis Machine Market is estimated to be valued at US$ 13.24 Bn in 2024 and is expected to exhibit a CAGR of 7.8% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the water electrolysis machine are Air Products and Chemicals, Inc., AREVA H2Gen, Asahi Kasei Corporation, C&E Environmental Technology Co. Ltd., Cummins Inc., Enagic International Inc., Eneco Holdings Inc., ErreDue S.p.A., Hitachi Zosen Corporation, Hydrogenics Corporation, ITM Power Plc, Kobelco Eco-Solutions Co. Ltd., Linde AG, Nel ASA, and Siemens AG.
Water Electrolysis Machine Market Demand Electrolysis is increasingly being adopted for green hydrogen production to replace fossil fuel-based hydrogen in oil refineries, fertilizer plants and various industrial processes.
Major players in the market are focusing on geographical expansion and capacity additions to tap the increasing demand for renewable hydrogen especially in Asia Pacific and European nations. Water electrolysis machine companies are also investing in R&D to develop more efficient and cost-effective electrolyzer technologies.
Market Key Trends
One Water Electrolysis Machine Market Size And Trends is the shift towards alkaline electrolyzer technologies. Alkaline electrolysis is a mature technology and alkaline electrolyzers have higher current densities and lower capital costs as compared to PEM electrolyzers. This makes alkaline electrolyzers suitable for large-scale hydrogen production applications. Leading players like Thyssenkrupp and Nel ASA are continue to strengthen their portfolio of alkaline electrolysis products.
Porter’s Analysis
Threat of new entrants: The high capital requirements and economies of scale prevent new companies from easily entering the market.
Bargaining power of buyers: Large industrial buyers can negotiate lower prices due to their higher purchase volumes.
Bargaining power of suppliers: Few suppliers of critical components limits their bargaining power over manufacturers.
Threat of new substitutes: Improvements in alternative energy technologies like fuel cells pose a threat over the long run.
Competitive rivalry: Companies compete based on product quality, technology, services and price to gain market share.
Geographical regions:
Asia Pacific accounts for the largest share of the global water electrolysis machine market, mainly driven by increasing demand from China, Japan and South Korea.
The Europe market is growing at the fastest rate due to supportive government policies and investments to utilize green hydrogen for decarbonizing various industries in countries like Germany, Norway and the UK.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it