ID: MRFR/IA - E/2789-CR | July 2019 | Region: Global | 118 pages
Electrolysis is the process of splitting water into hydrogen and oxygen from renewable sources. It is the simplest method for producing hydrogen, where an electric current is passed through a compound thereby separating elements. Water electrolysis for hydrogen production finds its application in various industries, such as chemicals, petroleum, glass, refineries, automobile, pharmaceuticals, metals & mining, and others.
Global Water Electrolysis Market is projected to value at USD 12,975 million by 2025 at an estimated CAGR of 7.58% during the forecast period.
The market is driven by various factors such as an increase in the use of water electrolysis in end-use industries, growing demand of carbon-free source of energy, the highly effective way of integrating renewables through the power to the gas facility. However, water electrolysis has various constraints that hinder the growth of the global water electrolysis market. Moreover, such a substitute for water electrolysis and increase the cost of water electrolyzer are further expected to slow down the market growth, globally, during the forecast period.
The global water electrolysis market is expected to witness significant growth during the forecast period. In 2018, the global water electrolysis market was led by Asia-Pacific followed by North America and Europe. Asia-Pacific is expected to be the largest market for water electrolysis market in 2018 and expected to dominate the global water electrolysis market during the forecast period. In Asia-Pacific, the presence of the developing countries such as China, India, South Korea, and Malaysia, among others are the main factor for the growth of the water electrolysis in the domestic region. Moreover, the stringent government regulation to reduce carbon footprint in the local region is expected to further contribute to the market growth of the water electrolysis during the forecast period.
Europe held for the second largest market in the water electrolysis market in 2018, having the most advanced infrastructure in the industry. The largest association in Europe for hydrogen is the multinational European Hydrogen Association (EHA), which comprises 19 national association and several primary hydrogen producing companies. The chemical industry in Europe is the major user for water electrolysis market, due to which the market is expected to grow during the forecast period.
The global water electrolysis market has been segmented into a product category, end users, and region. The global water electrolysis market by product category has been segmented into a proton exchange membrane and alkaline water electrolysis. Among these types, in 2018, the global market was led by alkaline water electrolysis segment and is projected to lead throughout the forecast period. Alkaline water electrolysis is extensively known as advanced technology and the most advanced water electrolysis technology. It was developed in 1800 by William Nicholson and Anthony Carlisle. Alkaline electrolyzers account for most of the installed water electrolysis capacity worldwide. 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 operation
Based on end users, the global water electrolysis market has been categorized as chemicals, electronics & semiconductor, power plants, petroleum, pharmaceuticals, and others. Among these products, the chemicals segment accounted for the largest market share, followed by pharmaceuticals. The chemical industry market will witness phenomenal growth over hydrogen consumption, owing to its growing end users. The increasing demand for hydrogen in the chemical industry is primarily for the manufacturing of ammonia, and hence fertilizers and methanol are used to manufacture polymers. Hydrogen is also used in making other vital products including aniline, cyclohexane, hydrochloric acids, and an assortment of bases. These factors are expected to raise the demand for water electrolysis in the global chemical industry during the forecast period. Furthermore, the high efficiency and increased pressure to reduce industrial carbon emission are expected to further incorporation of water electrolysis by end users, which further raised the market demand and size for the global water electrolysis market during the forecast period.
The key players of the global water electrolysis market are ThyssenKrupp AG, Linde AG, Air Products and Chemicals, Inc., Siemens AG, ProtonOnsite, Teledyne Energy Systems Inc., AREVA H2Gen, Hydrogenics Corporation, Erre Due SpA, and Peak Scientific.
On the basis of region, the global water electrolysis market is segmented into North America, Europe, Asia-Pacific (APAC), and the rest of the world (RoW).
Global Water Electrolysis Market, by Region, 2018
Source: MRFR Analysis
North America is expected to witness significant growth in the global water electrolysis market. North America mainly consists of the US and Canada. The US is one of the global leaders in the development of hydrogen through water electrolysis. Hydrogen and fuel cells in North America offer energy security and a cleaner environment for the people. The US has maintained and developed specific codes and standards to ensure that hydrogen and fuel cells products are safe and environment-friendly. There is various innovation implemented for the use of hydrogens, such as hydrogen-powered bus and hydrogen-powered forklifts in retail stores. The increased use of hydrogen in the US is expected to drive the water electrolysis market in North America during the forecast period.
The rest of the world include the Middle East & Africa and Latin America. In the Middle East & Africa, the automotive industry is expected to witness steady growth during the forecast period due to the steady rate of production of vehicles. This steady rate of production will result in the increased use of water electrolysis in vehicles. The increased usage of water electrolysis will drive the market during the forecast period.
The global water electrolysis market has been segmented based on product category, application, and region. Based on the product category, the global market has been segmented into a proton exchange membrane and alkaline water electrolysis. Among these products, the alkaline water electrolysis segment is projected to be dominant throughout the forecast period, whereas the proton exchange membrane segment has registered as the fastest growing technology. On the basis of end users, in 2018, the chemical segment was dominated by the global market followed by pharmaceuticals. On the basis of region, Asia-Pacific has accounted for the largest market share in the Water Electrolysis market followed by Europe and North America.
Key Questions Addressed by the Report
Frequently Asked Questions (FAQ) :
North America led the market in 2018 and is expected to retain its prominence throughout the conjectured timeline.
The global market for water electrolysis has been segmented in terms of product category and application.
The significant end users in the global water electrolysis market are electronics & semiconductors, power plants, chemicals, pharmaceuticals, petroleum, and others.
Top-performing companies in the market are Peak Scientific, Air Products and Chemicals, Inc., Siemens AG, Linde AG, ThyssenKrupp AG, Hydrogenics Corporation, Erre Due SpA, Teledyne Energy Systems Inc., ProtonOnsite, AREVA H2Gen, to name a few.
The Middle East & Africam automotive industry is expanding favorably, which can boost the growth of the water electrolysis market. Thus, the market condition in the region during the review timeframe is expected to be quite decent.