Alkaline Water Electrolysis Market Size, Share & Industry Analysis, By Type (10 m3/h, 30 m3/h, 50 m3/h, 80 m3/h, and 80 m3/h), By Application (Power Plants, Steel Plant, Electronics and Photovoltaics, Industrial Gases, and Others), and Regional Forecast, 2024-2032

The global alkaline water electrolysis market size was USD 137.24 million in 2023. The market is projected to grow from USD 146.94 million in 2024 to USD 217.36 million in 2032 at a CAGR of 5.02% during the 2024-2032 period.

Alkaline water electrolysis is the process of converting water into oxygen and hydrogen. This process is widely used for hydrogen production, which finds its application in several industries, such as chemicals, petroleum, glass, refineries, automobile, pharmaceuticals, metals & mining, and others. The key market is anticipated to drive rapidly due to the growing demand for carbon-free sources of energy and an effective way of integrating renewables through the power to the gas facility.

The unexpected outbreak of COVID-19 wreaked havoc on the global health system, affecting a wide range of industries. Several industrial projects were postponed as a result of the pandemic, causing substantial supply chain disruptions. Since January 2020, nearly every country in the world recorded a significant increase in the number of impacted cases. The global alkaline water electrolysis market has been slightly affected by the outbreak. However, the growing demand for renewable sources is anticipated to attract significant investments that will bode well for the market growth in the forthcoming years. For instance, in June 2020, ThyssenKrupp AG and De Nora expanded their manufacturing capacities for water electrolysis plants. The move would enable them to produce electrolysis cells with a total power consumption of one gigawatt annually.

Alkaline Water Electrolysis Market Trends

Increasing Demand for Green Hydrogen to Propel Market Growth

Green hydrogen production projects are continuously securing the attention of the governments of different countries and several companies across the globe to curb the rising carbon emissions. Additionally, the increasing renewable energy capacity and supportive government policies & investments support the production of green hydrogen. Other factors supporting the production comprise the rising demand for decarbonization solutions across industries and advancements in electrolysis technology leading to cost reduction and improved efficiency.

For instance, in February 2023, Germany announced the creation of two funds, with a total of around USD 595 million, to assist developing and emerging countries in establishing green hydrogen projects. The development fund, worth USD 270 million, is aimed at helping these countries to build their own local green hydrogen value chain. Furthermore, the growth fund, worth USD 325 million, will support German or European companies in increasing their presence in the global hydrogen market. Hence, similar government investment for the expansion of green hydrogen by other countries such as Australia, China, France, and others, would boost the demand for alkaline water electrolysis further driving the market growth.

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Alkaline Water Electrolysis Market Growth Factors 

Rising Government Regulations for Greenhouse Gas Emissions to Drive Market Growth

According to the World Economic Forum 2020, more than 120 countries have announced plans for net-zero emissions by 2050, including China, Japan, South Korea, South Africa, and Canada. Green hydrogen, manufactured by alkaline water electrolysis using solar and wind electricity, is essential for meeting international climate targets. In October 2018, United Nations Intergovernmental Panel on Climate Change (IPCC) declared that the world would have to reduce carbon dioxide emissions by 45% by 2030 and reach net zero by 2050. To ensure a global warming range between 1.5°C-2°C, more than 200 countries signed the Paris Agreement in 2015 that requires them to voluntarily and aggressively cut their carbon emissions. This factor is likely to drive the market during the global forecast period.

Increasing Demand in Transportation Sector to Augment Market Growth 

The increasing popularity of electric vehicles in Europe is likely to increase demand for alkaline water electrolysis. In addition, countries like China, Japan, and South Korea have suggested major electric car implementation pledges in order to lessen the world's rising reliance on fossil fuels. In the next few years, this is projected to contribute to the market's growth.

Electric vehicles play a critical role in meeting the sustainable development scenario to reduce gas emissions and address climate change. Green hydrogen is clean energy carrier fuel. According to the International Energy Agency (IEA), the global electric vehicle market grows by 36% annually, reaching 245 million vehicles in 2030. This factor is likely to drive the market growth during the forecast period.

RESTRAINING FACTORS

High Hydrogen Cost to Impede Market Growth

Alkaline water electrolysis is widely used to produce green hydrogen, but it faces more challenges due to its high cost. Green hydrogen produced from the plant is two to three times more expensive than grey hydrogen. According to the International Renewable Energy (IRENA) - Green Hydrogen Economy Report 2019, electric vehicles with fuel cells and hydrogen tanks cost at least 1.5 to 2 times more than their fossil fuel counterparts. However, key players such as ThyssenKrupp AG are developing prefabricated skid-mounted modules for water electrolysis plants, which helps to keep costs down. The units are easy to transport and can be combined to realize projects of megawatts or gigawatts, which will likely drive the market during the forecast period.

Alkaline Water Electrolysis Market Segmentation Analysis

By Type Analysis

≥80 m3/h Electrolysis Segment Accounted for Largest Market Share

Based on the type, the market is categorized into ＜10 m3/h, ＜30 m3/h, ＜50 m3/h, ＜80 m3/h, and ≥80 m3/h.

The ≥80 m3/h segments accounted for the major share of the market in 2023. Large-scale systems frequently use these types of equipment. Because cheaper nickel-based catalysts are used, this technology has a lower initial cost and a longer shelf life.

The ＜10 m3/h, ＜30 m3/h, ＜50 m3/h electrolysis plants are mainly used for small-scale hydrogen production. High differential pressures across the membrane are used in these devices.

By Application Analysis

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Power Plants Segment to Hold Highest Position

Based on application, the market is classified into power plants, steel plants, electronics & photovoltaics, industrial gases, and others.

The power plants segment held a major share of the market in 2023.  Electrolysis is mostly utilized to create oxygen and hydrogen. They are frequently employed to minimize greenhouse gas emissions and other pollutants in the power generation industry.

In the electronics and photovoltaics sector, electrolysis is used for fuel cells, as hydrogen can store large amounts of energy and release it when needed for industrial use.

Electrolysis is used in steel plants to make fossil-free steel by reducing iron ore directly.

REGIONAL INSIGHTS

The market has been analyzed across five key regions, comprising North America, Asia Pacific, the Middle East & Africa, Europe, and Latin America. 

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Europe was estimated to hold the largest market share in 2023. As a hub for vehicles, petrochemicals, refining, glass purification, and fertilizers, Germany has the greatest market share in the region. Furthermore, hydrogen is frequently used in these industries, which is projected to boost the region's alkaline water electrolysis market expansion.

North America is the fastest-growing region due to the rising demand for green hydrogen from the automotive industry. Furthermore, many countries, including the United States and Canada, are enacting zero-emissions regulations in the transportation, electricity, transportation, and heating industries.

Developing economies in Asia-Pacific, such as India and South Korea, are focusing on implementing sustainable energy technologies. This is likely to help the product gain traction in the region.

Due to the growing usage of green hydrogen in various end-use industries such as glass, electronics, welding and metal fabrication, and so on, the Latin American market is likely to see significant expansion.

Due to the increasing deployment of renewable energies such as solar and wind, as well as electric mobility, the Middle East and Africa are likely to hold a substantial proportion of the market.

List of Key Companies in Alkaline Water Electrolysis Market

ThyssenKrupp AG Focusing on New Contracts to Strengthen its Position

ThyssenKrupp AG is an international group of companies with a strong focus on green industrial engineering solutions and steel production. The company is based in Duisburg and Essen, Germany, and is spread across 60 countries worldwide. The company has 670 subsidiaries, and its product portfolio consists of steel production, machines, and industrial services to high-speed trains, elevators, shipbuilding, frigates, corvettes, and submarines.

• On January 21, 2021, ThyssenKrupp AG secured an engineering contract to install an 88 megawatt (MW) water electrolysis plant for the Canadian energy company, Hydro-Québec. The water electrolysis plant will be producing 11,100 metric tons of green hydrogen annually.

LIST OF KEY COMPANIES PROFILED:

• Nel Hydrogen (Norway)


• Asahi Kasei (Japan)


• thyssenkrupp (Germany)


• Teledyne Energy Systems, Inc. (United States)


• McPhy (France)


• Suzhou Jingli (China)


• TianJin Mainland Hydrogen Equipment Co., Ltd. (China)


• Hydrogenics (Canada)


• MVS Engineering Pvt. Ltd. (India)


• Green Hydrogen.dk (Denmark)


• 718^th Research Institute of CSIC (China)


• Yangzhou Chungdean Hydrogen Equipment Co., Ltd (China)


• ShaanXi HuaQin (China)


• Next Hydrogen Corp. (Canada)

KEY INDUSTRY DEVELOPMENTS:

• February 2024 – Tecnimont secured a FEED contract from MadoquaPower2X to design an integrated green hydrogen and green ammonia plant in the industrial zone of Sines, Portugal. MadoquaPower2X, a consortium consisting of Madoqua Renewables, Power2X, and Copenhagen Infrastructure Partners (CIP), is behind this initiative, backed by its Energy Transition Fund. This project aims to produce green hydrogen using alkaline-water electrolyzer technology and green ammonia through the Haber-Bosch process.


• October 2023- Thyssenkrupp Nucera, a leading supplier of electrolysis technology, and Neste  collaborated to install a 120 megawatt (MW) water electrolyzer at Neste's Porvoo refinery in Finland. Neste, known for sustainable aviation fuel and renewable products for various industries, signed an agreement with Thyssenkrupp Nucera to reserve production space for an alkaline water electrolysis plant. The contract includes six 20 MW modules, totaling 120 MW, along with advisory services.


• July 2023- NTPC (National Thermal Power Corporation) awarded Hild Electric one of India’s largest contracts to provide alkaline electrolyser to the NTPC Renewable Energy Limited (REL). According to the agreement, the solution will be implemented for a capacity of up to 600 MW across various industrial applications such as ammonia production, transportation, and power generation. These applications are anticipated to contribute to NTPC's goal of producing at least 150 thousand tons per annum (kTPA) of green hydrogen by 2032.


• April 2021 – CF Industries has signed an engineering and procurement contract with ThyssenKrupp AG to supply a 20 megawatt alkaline water electrolysis plant to produce green hydrogen at Donaldsonville, U.S. Construction is expected to begin in the second half of 2021 and finish in 2023.


• November 2020 – Cummins Inc. decided to open a new facility in Germany to make hydrogen fuel cell systems. Expected to be finished by July 2021, the facility will have a capacity of 10 megawatts per year. It will produce one megawatt of fuel cell systems each month for Alstom’s Coradia iLint hydrogen-powered trains, along with aftermarket support.

REPORT COVERAGE

The global alkaline water electrolysis market research report presents a comprehensive assessment of the industry by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches have been adopted to make meaningful assumptions and views to formulate the report. Furthermore, the report covers a detailed market analysis and information as per market segments, including type, applications, and regions, helping our readers to get a comprehensive overview of the global industry.

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