Press release
Global Water Electrolysis Machine Market to Surge to USD 24 Billion by 2035; Green Hydrogen and Industrial Decarbonization Drive Demand, Reports FactMR
Water Electrolysis Machine Market
A Decade of Growth Driven by Clean Energy Transition
The shift towards sustainable energy sources is fueling demand for water electrolysis systems. Industrial sectors such as steel, chemicals, and refining are increasingly deploying electrolysis machines to produce green hydrogen, with the industrial application segment accounting for 48% of the market in 2025. Growth is further supported by mobility applications-including hydrogen fuel cell vehicles-which represent 29% of the market, as well as grid-scale and seasonal energy storage, contributing 23% to market revenues.
"Water electrolysis machines are central to the green hydrogen economy," said a FactMR research analyst. "They are transforming industrial operations, enabling compliance with net-zero mandates, and supporting renewable energy integration on a large scale."
Technology and Capacity Segmentation
Proton Exchange Membrane (PEM) technology dominates the market with a 44% share in 2025, favored for its high efficiency, rapid response, and suitability for renewable energy integration. Alkaline electrolysis, holding 43% share, remains attractive due to its cost-effectiveness and proven large-scale deployment track record. SOEC and other high-temperature technologies, accounting for 13%, offer efficiency advantages in specialized industrial processes, though adoption is tempered by integration complexity and material constraints.
Capacity-wise, mid-scale systems (10-100 MW) lead with a 42% share in 2025, balancing deployment flexibility with industrial-scale economics. Smaller systems (≤10 MW) capture 38% of the market, ideal for modular hydrogen production and distributed applications. Large-scale (>100 MW) deployments, comprising 20%, are gaining traction in gigawatt-level green hydrogen projects aligned with national hydrogen strategies.
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Regional Insights
North America, Europe, and Asia Pacific are key growth regions. The United States leads with a CAGR of 16.1%, driven by industrial decarbonization projects and federal clean energy incentives. Europe follows with Germany at 14.4%, France at 13.7%, and the UK at 13.2%, reflecting strong renewable energy adoption and policy support. In Asia Pacific, South Korea shows a CAGR of 12.9%, with growing investment in hydrogen mobility infrastructure and green industrial initiatives.
Five Forces Driving Market Expansion
Green Hydrogen Demand:Accelerating industrial and mobility hydrogen requirements are increasing electrolysis deployment.
Renewable Energy Integration:Electrolysis machines help balance grids and store renewable energy effectively.
Industrial Decarbonization Pressure:Steel, chemical, and refining sectors seek clean hydrogen solutions to meet emission targets.
Technological Innovation:Advanced PEM and high-temperature electrolysis systems deliver improved efficiency and operational reliability.
Policy & Regulatory Support:International climate commitments and carbon neutrality standards are incentivizing green hydrogen production.
Competitive Landscape
Key market players include Nel Hydrogen, Plug Power, and Cummins, among others. These companies emphasize efficiency, scalability, and reliability to meet industrial hydrogen production needs. Investment in advanced electrolysis technologies, system optimization, and renewable energy integration are critical differentiators shaping market leadership.
Market Outlook: Powering the Green Hydrogen Revolution
Over the next decade, water electrolysis machines will transition from conventional industrial tools to essential components of integrated clean energy ecosystems. With global decarbonization initiatives and renewable energy expansion, demand for PEM and alkaline systems is expected to remain robust. Emerging technologies, including high-temperature SOEC solutions and modular scalable designs, are set to redefine industrial hydrogen production standards.
"Water electrolysis is not just a production technology-it is the backbone of the global green hydrogen economy," added the FactMR analyst. "Companies that innovate in efficiency, reliability, and integration with renewable energy sources will dominate the next wave of market growth."
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