Published : 27 May 2025
Alkaline Water Electrolysis Market, valued at USD 162.6 Million in 2024, is projected to surpass USD 628.5 Million by 2033, indicating a robust CAGR of 16.4%.
Alkaline water electrolysis (AWE) is a method in which an electric current splits water into hydrogen and oxygen in an alkaline solution, allowing clean hydrogen generation. Its principal applications include hydrogen generation for industrial applications, energy storage, and clean transportation fuel, all of which help to drive the transition to low-carbon economies. The importance of AWE stems from its cost-effectiveness and scalability, with future growth being driven by rising demand for green hydrogen, technological breakthroughs, and increased renewable energy integration.
Alkaline water electrolysis (AWE) is widely employed in industries such as ammonia production, refining, and burgeoning renewable energy sectors to produce green hydrogen. Its ability to use non-precious metal catalysts lowers costs while increasing durability, which is critical for large-scale hydrogen production.
With a growing worldwide emphasis on decarbonization and major industrial players pursuing green energy projects, the market is likely to rise significantly in the near future. For example, in May 2024, Reliance Industries announced an agreement with Nel Hydrogen to purchase hydrogen electrolysers to improve green hydrogen production and aid India's transition to renewable energy.
Rising global investments in renewable energy infrastructure are fueling the alkaline water electrolysis industry. According to the Press Information Bureau, investments in India's renewable energy sector reached new highs in the first quarter of 2025, boosted by substantial acquisitions and significant loan funding. Total investments totaled $9.84 billion in Q1 2025, a 7.7-fold increase from the $1.279 billion recorded in Q1 2024.
As governments seek better energy sources, alkaline electrolysis becomes an important technology for creating green hydrogen efficiently. This increase in funding speeds up the development and implementation of large-scale electrolysis plants. As a result, the alkaline water electrolysis market is predicted to grow fast, facilitating the move to sustainable energy systems.
The integration of electrolysis equipment with offshore wind farms represents a significant opportunity in the alkaline water electrolysis business. Offshore wind farms generate abundant, clean electricity, which is suitable for powering electrolysis to make green hydrogen. This combination allows for efficient, large-scale hydrogen production with low carbon emissions. Increased investment in offshore wind infrastructure improves the feasibility and attraction of such integrated systems. As a result, this synergy will considerably benefit the alkaline water electrolysis business, fueling future growth and innovation.
The global market for alkaline water electrolysis has been segmented into type, application, and region.
In terms of alkaline water electrolysis market analysis, Europe leads the market. The region has well-established renewable energy infrastructure, which enables low-cost green hydrogen generation. According to the IEA – International Energy Agency, Germany intends to implement major legislative reforms to achieve 100-110 GW onshore wind, 30 GW offshore winds, 200 GW solar, and 10 GW hydrogen capacities by 2030. It also intends to reduce energy use by 500 TWh (20%) under the Energy Efficiency Act. This push for renewable energy and hydrogen will bolster the alkaline water electrolysis sector, a critical technology for green hydrogen generation.
The alkaline water electrolysis business in North America is rapidly expanding, thanks to significant government financing and favorable laws. The Infrastructure Investment and Jobs Act (IIJA) has given billions of dollars to the development of clean hydrogen hubs, which will improve production, storage, and distribution capacities. Collaborations between industry and research institutes speed up innovation and commercial expansion in the region.
Alkaline water electrolysis companies profiled in the report include NEL Hydrogen, Cummins, Enaex, SunHydrogen, Asahi Kasei, McPhy Energy, Teledyne CARES, ITM Power, Green Hydrogen Systems, and Thyssenkrupp Uhde Chlorine Engineers.
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Parameter |
Details |
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Size in 2024 |
USD 162.6 Million |
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Forecast by 2033 |
USD 628.5 Million |
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CAGR During 2025 - 2033 |
16.4% |
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Largest application Segment (% share 2024) |
Power Plants – 30% |
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Largest Region Size (2024) |
Europe- USD 63.41 Million |
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Fastest Growing Region (% CAGR) |
North America– 17.7% |
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Key Players Covered |
NEL Hydrogen, Cummins, Enaex, SunHydrogen, Asahi Kasei, McPhy Energy, Teledyne CARES, ITM Power, Green Hydrogen Systems, and Thyssenkrupp Uhde Chlorine Engineers |
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Mr. Richard Johnson
Acumen Research and Consulting
India: +91 8983225533