Water Electrolysis Machine Market

2020 Analysis and Review: Water Electrolysis Machine Market by Type – Proton Exchange Membrane, Alkaline Water Electrolysis for 2020-2030

About the Report

Water electrolysis process has been gaining traction from the chemical, power, and petroleum sectors. Niche applications in the steel and pharmaceutical sectors will remain key to water electrolysis machine market for the foreseeable future.

In a new report, Future Market Insights analyzes the water electrolysis machine market, offering detailed insights on how demand will be influenced during 2020-2030.

Introduction

Water electrolysis process has been adopted rapidly in recent years with higher investments being used in hydrogen and oxygen synthesis for waste water treatment, renewable energy, and chemical sector applications. These trends continue to bolster prospects for the market, which is set to grow at 7.6% CAGR, surpassing a valuation of US$ 10.2 billion in 2020.

Renewable Energy Applications Drive Growth

The potential of the renewable energy sector is largely lacking without adequate storage infrastructure. Hydrogen generation has played a key role as a solution to store renewable energy. Energy surplus from renewable energy sources is used to separate water into hydrogen and oxygen.

Innovations in water electrolysis technology enable not only on-grid but also off-grid configurations. While the shortage of grid infrastructure remains a challenge, hydrogen from renewable energy sources can be produced around the world at minimal cost for use in the telecom, fuel cell, and fertilizer production sectors.

Hybrid, automation systems display high levels of efficiency and safety in the generation of high-purity hydrogen in reliable control and energy-efficient operations.

Waste Water Treatment Applications Driving Demand

In recent years, industrial development has become a key concern for degradation of water quality. The oil industry is one of the largest sources of pollutants. Consequently, restrictive laws on environmental protection have been implemented.

Studies conducted by the EPA have designated electrolysis of water as a viable method of treating hazardous waste materials, with the techniques of electrocoagulation gaining prominence. Research into the optimization of deconstructing oil-in-water emulsions in terms of metal pollutants and soluble solids will positively impact demand in long-term.

PEM Options Gain Traction

Facile recycling processes for catalyst coated membranes are gaining traction in polymer electrolyte membrane water electrolysis machines. Ultrasonication processes allow for recovery of higher yields of hydrogen and oxygen, without the emission of hazardous gases.

The widespread deployment of these processes create positive prospects of growth for gigawatt scale of PEM water electrolysis machines, with the use of noble metals. This trend is expected to have major ramifications in reducing the need for precious metals for the application of electrolysis devices and other energy storage options including fuel cells.

Key Challenges

Water electrolysis machines are rapidly becoming commonplace, with hydrogen production gaining importance for applications in multiple sectors. Technological improvements to improve electrolysis efficiency are driving the market. However, the industry continues to face growing challenges.

High requirement of capital to operate in the industrial water electrolysis machine industry can hamper growth. Prominent cleaning methods to produce hydrogen includes water electrolysis, but the process has been found to be cost prohibitive. Also high electricity consumption in the process is also hindering market developments. 

Region-wise Insights

East Asia Water Electrolysis Machine Market

Hydrogen technologies will remain key, with niche, fast-growing applications in the electric automotive sector. Led by China and Japan, demand for water electrolysis machines in East Asia is likely to remain steady during the assessment period.

Green hydrogen produced from water electrolysis is an increasingly popular source of renewable energy in the region. With climate change prevention goals, efforts towards the decarbonization of energy supplies will gain traction.

For example, the government of Japan has entered an agreement with Australia to collaborate on fuel and hydrogen cells. This is likely to create long-term opportunities for market players.

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North America Water Electrolysis Machine Market

The North America water electrolysis machine market is the second largest following East Asia. Strict government regulations on the use of fossil fuels and the recent introduction of gas-based fuel cell automobiles will propel the market through the forecast period.

The North American market is expected to reflect strong growth for the duration of the assessment period owing to investments into the transition from carbonized energy sources to eco-friendly alternatives in the region.

Also, government initiatives, particularly in the United States towards the desulphurization of fossil fuels will have a positive impact on developments of the water electrolysis machine market.

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South Asia & Pacific Water Electrolysis Machine Market

According to the International Energy Agency, production of hydrogen from water electrolysis is still in a nascent accounting for close to 0.1% of the overall green hydrogen production, while solar and wind sources hold substantial market share. However, the fall of costs in terms of renewable energy is creating interest in electrolytic hydrogen.

Across the ASEAN countries, pledges towards cutting emissions, and resultant regulation and policy changes has resulted in the promotion and use of green hydrogen as a viable source of energy.

Singapore has already initiated a project to study the viability of hydrogen storage to mitigate issues arising from the inconsistencies of solar power.

SP Group, a leader in energy utilities, established the very first zero-emission building in Singapore, powered by green hydrogen. Such developments bode well for the future of the market. However, the Covid-19 impact on water electrolysis machine market will be negative for the short-term in the region.

Category-wise Analysis

Alkaline Water Electrolysis Drives Demand

Water electrolysis machines can be categorized in terms of type into 2 key types – proton exchange membranes and alkaline water electrolysis. Of these options, alkaline water electrolysis processes, with salt water electrolysis machine is in higher demand, with major demand arising from the petroleum and power sectors.

Further, the demand for alkaline water electrolysis can be attributed to cost benefits, even as proton exchange membranes reflect greater opportunities in the higher efficacy of electrolysis processes, which will drive growth in the water electrolysis machine market for the long term.

Below 5MW Input Power Remains Popular

On the basis of input power, water electrolysis machines are manufactured in below 5 MW, 5 to 10 MW and above 10 MW specifications. The demand and sales of water electrolysis machines is expected to remain relatively higher, contributing to more than 60% of the overall market share.

Strong demand in on site hydrogen generation applications sector, owing to cost restrictions are likely to drive demand in the years to come. Advances in technology to improve electrolysis yields in larger scale applications for water electrolysis will contribute to developments in other power input options.

Below 500 L/Hr Products are Highly Sought After

Water electrolysis machines can also be classified in terms of hydrogen production into below 500 L/Hr, 500 to 2000 L/Hr, and above 2000 L/Hr variants. The below 500 L/Hr machines are projected to hold larger market share in the near future.

While the below 500 L/Hr products remain popular, the 500 to 2000 L/Hr alternatives have been reflecting a stronger growth rate. The segment is projected to surpass the valuation of 500 L/Hr machines by the end of the assessment period in 2030.

Chemical Industry Applications Key to Revenue

Water electrolysis machines play key roles in the chemical, petroleum, pharmaceuticals, power plants, electronics & semiconductors, steel plant sectors. The petroleum sector sector remains the leading end user of water electrolysis machines, with chemical sector applications accounting for a higher growth rate.

The growth of the petroleum sector applications is driven by the extensive use of hydrogen in wastewater treatment applications for crude oil production processes, which will aid the growth of the market for the foreseeable future.

Water Electrolysis Machine Companies and Competitive Landscape

Major players in the water electrolysis machine market have been found largely focusing their efforts and resources strategic acquisitions and collaborations. Strategic partnerships and ongoing R&D will drive the water electrolysis machine market. Also, Investments towards product development to widen the scope of applications is likely to gain ground during the forecast period.

Siemens Gamesa has initiated the development of a new wind turbine to water electrolysis machine pilot project in Western Denmark. As a first of its kind, the operation of electrolysis rigs without being connected to electricity grids will expand potential applications for onshore and offshore wind energy infrastructure. The project comprises a 3MW turbine to power a 400 kW electrolyzer.

Thyssenkrupp Uhde Chlorine Engineers, has announced a partnership with Air Products and Chemicals Inc. to collaborate exclusively with each other in key regional markets, with complementary technology offerings. The project will aim to develop green hydrogen production projects, for power generation, sustainable transport, and chemical industry applications.

HyGear A market leader in on-site hydrogen production has announced entering into a distributor agreement with PERIC for the use of water electrolysis for hydrogen generation. The collaboration will help in the expansion of portfolio to meet the needs of HyGear’s Gas-as-a-Service model of business.

Aside from these manufacturers, other leading market participants in the industry include:

  • Nel ASA
  • AREVA H2Gen
  • Asahi Kasei Corporation
  • C&E Environmental Technology Co. Ltd.
  • Enagic International Inc.
  • Eneco Holdings Inc.
  • ErreDue S.p.A.
  • Hitachi Zosen Corporation
  • Hydrogenics Corporation
  • ITM Power Plc
  • Peak Scientific
  • Kobelco Eco-Solutions Co. Ltd.
  • Teledyne Technologies Inc.
  • Toshiba Energy Systems & Solutions Corporation

The list is only indicative – full list of water electrolysis machine market key players is available upon request.

Water Electrolysis Machine Market Report: Scope

Attribute

Details

Forecast Period

2020-2030

Historical Data Available for

2015-2019

Market Analysis

US$ Million for value, Units for Volume

Key Regions Covered

North America, Latin America, Europe, South Asia & Pacific, East Asia, and Middle East & Africa (MEA)

Key Countries Covered

US, Canada, Brazil, Mexico, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, ASEAN, Oceania, GCC Countries, Turkey, South Africa, Northern Africa

Key Segments Covered

Type, Input Power, Hydrogen Production, End Use, and Region

Key Companies Profiled

Air Products and Chemicals Inc., Nel ASA, AREVA H2Gen, Asahi Kasei Corporation, C&E Environmental Technology Co. Ltd., Enagic International Inc., Eneco Holdings Inc., ErreDue S.p.A, Hitachi Zosen Corporation, Hydrogenics Corporation, ITM Power Plc, Peak Scientific, Siemens AG, Kobelco Eco-Solutions Co. Ltd., Teledyne Technologies Inc., Thyssenkrupp Uhde Chlorine Engineers GmbH, Toshiba Energy Systems & Solutions Corporation (only indicative list)

Report Coverage

Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered by the Report

  • What is the size of the water electrolysis machine market?

    The global water electrolysis machine market hit US$ 10.6 billion in 2019. The estimated growth rate for the water electrolysis machine market will be a healthy 7.6% CAGR between 2020 and 2030.

  • Which is the largest market for water electrolysis machine?

    East Asia is estimated to be the largest market for water electrolysis machines for the duration of the forecast period, owing to a substantially higher population and the resultant increase in demand for water electrolysis machine in automotive and clean energy applications.

  • Which are the top companies in global water electrolysis machine market?

    Air Products and Chemicals Inc., AREVA H2Gen, Asahi Kasei Corporation, C&E Environmental Technology Co. Ltd., Enagic International Inc., Eneco Holdings Inc., Hitachi Zosen Corporation, ITM Power Plc, Peak Scientific, Siemens AG, Kobelco Eco-Solutions Co. Ltd., Teledyne Technologies Inc., Thyssenkrupp Uhde Chlorine Engineers GmbH, Toshiba Energy Systems & Solutions Corporation are among the more prominent market players.

  • What are the applications of water electrolysis machine?

    Water electrolysis machines are largely used in for hydrogen synthesis and applications of specialty chemicals production, in addition to oxygen production uses in the space exploration sector, among others.

  • In what types are water electrolysis machines available?

    Companies usually manufacture water electrolysis machine products in 2 major variants – proton exchange membrane and alkaline water electrolysis. The demand for alkaline water electrolysis machine is expected to remain relatively stronger over other options.

  • What is the near-term competitive outlook of the global water electrolysis machine market?

    The global water electrolysis machine market is fairly fragmented, with the major presence of mid- and small-size manufacturers, and strategic collaborations and product development gaining importance in the industry.

Enquiry before Buying

  • Is this research conducted by Future Market Insights?

    Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst.

  • What research methodology is followed by FMI?

    FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions.

  • Who are the respondents for primary research?

    FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.

  • What are the sources of secondary research?

    FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request

  • Is a sample of this report available for evaluation?

    Yes, you can request a sample and it will be sent to you through an email.

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Key Segments

Type

  • Proton Exchange Membrane
  • Alkaline Water Electrolysis
  • Others

Input Power

  • Below 5 MW
  • 5-10 MW
  • Above 10 MW

Hydrogen Production

  • Below 500 L/Hr
  • 500 – 2000 L/Hr
  • Above 2000 L/Hr

End Use

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

Regional Outlook

  • North America (US, Canada)
  • Latin America (Brazil, Mexico, Rest of LATAM)
  • Europe (Germany, UK, Russia, France, Italy, Spain, Rest of Europe)
  • South Asia & Pacific (India, ASEAN, Oceania, Rest of South Asia & Pacific)
  • East Asia (China, Japan, and South Korea)
  • Middle East & Africa (GCC Countries, Turkey, Northern Africa, South Africa, and Rest of MEA)

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Water Electrolysis Machine Market