Water Electrolysis Market to Reach $12.44 Billion by 2029, Driven by Green Hydrogen Demand and Technological Advancements

The water electrolysis market is projected to grow from $7.81 billion in 2024 to $12.44 billion by 2029, exhibiting a CAGR of 9.7%. This growth is fueled by increasing demand for eco-friendly hydrogen, supportive government policies, renewable energy expansion, and declining electrolyzer prices. Key trends include advancements in electrolyzer materials, power-to-x technologies, automation, and carbon capture integration. In March 2024, Sungrow Power Supply Co. Ltd. (China) launched a 300Nm³/h PEM Water Electrolyzer, consuming less than 4.15kWh/Nm³, designed for flexible hydrogen production from renewable sources. Europe was the largest market in 2024, while North America is expected to be the fastest-growing region.