Published : 10 Dec 2025
The water electrolysis market was valued at USD 7.42 billion in 2025 and is projected to generate a revenue of USD 16.45 billion by 2035, registering a CAGR of 8.2% during the forecast period from 2026 to 2035.
The growing interest in green hydrogen has fueled the rapid growth of the water electrolysis market. Industrial and national sectors are increasingly sourcing electrolyser-based hydrogen as their growing interest in using cleaner technology than traditionally sourced hydrogen continues to drive demand for this product. In addition, the growing number of renewable energy systems being deployed throughout the world, primarily wind and solar, are generating large quantities of additional clean electricity to allow for the sustainable creation of "green" hydrogen through water electrolysis. The interaction of these two trends creates a reinforcing cycle of growth within the water electrolysis industry.
The announcement of a major development, Ohmium International (the world’s largest manufacturer of electrolysis systems) has committed to increasing its production capacity to 4GW (by 2026) by scaling up the operations at their new 'gigafactory' located near Bengaluru, India. This facility has been recently opened and is ramping up shipment rates to reach the 4GW goal. Additionally, another growth factor is the advancement of electrolyser technology has increased the efficiency of operation and increased the scalability of electrolyser manufacturing, thus lowering costs and increasing the financial viability of electrolyser products. The availability of high-tech electrolyser equipment, better membrane materials and designs, innovative catalyst formulations, and modular construction methods would provide the users of wind and solar energy with a considerably lower price point for renewable hydrogen production. The provision of government programs to support the commercialization of renewable hydrogen production will continue to create new market opportunities for electrolyser manufacturers by removing barriers to entry and accelerating the use of these systems throughout areas with existing industrial hydrogen markets and clean renewable energy generation capability.
Surging global demand for green hydrogen powerfully accelerates water electrolysis technology adoption.
The most important factor influencing the growth of water-powered electrolysis systems is the use of clean fuels as an alternative to non-renewable energy sources. As more nations and industries choose to invest in water-powered electrolysis systems as opposed to hydrogen extracted from fossil fuels, the need for these renewable hydrogen sources will increase in order to meet both national and corporate environmental goals de-carbonization. Industries that will utilize renewable hydrogen powered by water electrolysis systems include chemicals, oil refining, steel-making, fertilizer production, and transportation. Government interest in promoting hydrogen through subsidies and funding for infrastructure development and large-scale projects will be an important factor driving demand for water-based electrolysis systems.
Expanding renewable energy integration creates massive growth opportunities for advanced water electrolysis systems.
A major opportunity lies in the electrolytic systems being integrated with the large number of renewables, such as wind and solar, that are in such rapid growth. The low-cost, plentiful sources of electricity generated by renewables, such as wind and solar, also allow for the development of large, utility-scale electrolysis plants to convert excess green energy into hydrogen. The development of these facilities is a means to solving intermittency problems associated with producing green energy and will provide a means for storage of the energy produced through the use of hydrogen. The development of these facilities will create new opportunities for utilities to develop hydrogen based storage systems through hydrogen hubs, hybrid renewable and electrolysis facilities and energy storage ecosystems.
The global water electrolysis market has been segmented into product, end-use, and region.
The Asia Pacific area is growing rapidly in terms of water electrolysis technology due to aggressive clean energy objectives, and the massive investments by both public and private entities into building green hydrogen production capabilities. Countries such as China, Japan, South Korea and India are constructing large-scale renewable energy production facilities integrated with electrolyzer systems for reduce dependency on fossil fuels and improve energy independence. In addition, China will become the world's largest manufacturer of electrolyzer systems since its increasing manufacturing capacity and create more cost-effective systems that lead to wider acceptance of the technologies in various industries. Additional frustration and support for clean hydrogen infrastructure continue to grow in Japan and South Korea through their significant investments into using hydrogen for transportation and power applications. India is currently establishing multiple renewable hydrogen routes that will connect solar-generated electric production to electrolyzer installations. Finally, the accelerated industrial growth, increased renewable energy generation and favorable government policies will continue to establish the Asia Pacific market as the leading location for future water electrolysis market growth.
Water Electrolysis companies profiled in the report include Teledyne Energy Systems Inc. Ltd, Hitachi Zosen Corporation, ITM Power PLC, ThyssenKrupp AG, Asahi Kasei Corporation, Cummins Inc., Nel ASA, Plug Power Inc., Toshiba Energy Systems & Solutions Corporation, Siemens Energy AG, ShaanXi HuaQin, and Suzhou Jingli.
| Parameter | Details |
| Size in 2025 | USD 7.42 Billion |
| Forecast by 2035 | USD 16.45 Billion |
| CAGR During 2026 - 2035 | 8.2% |
| Largest Component Segment (% Share 2025) | Alkaline Water Electrolysis – 56% |
| Largest Region Size (2025) | Asia Pacific – 37% |
| Fastest Growing Region (% CAGR) | North America – 9.6% |
| Key Players Covered | Teledyne Energy Systems Inc. Ltd, Hitachi Zosen Corporation, ITM Power PLC, ThyssenKrupp AG, Asahi Kasei Corporation, Cummins Inc., Nel ASA, Plug Power Inc., Toshiba Energy Systems & Solutions Corporation, Siemens Energy AG, ShaanXi HuaQin, and Suzhou Jingli. |
Contact:
Mr. Richard Johnson
Acumen Research and Consulting
India: +91 8983225533