How big is the Water Electrolyzer Market | Industry Trends & Forecast 2025

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Code: MTA9683

Publication Date: Oct 2025

What is the size of Water Electrolyzer Market?

According to 6Wresearch internal database and industry insights, the Water Electrolyzer Market was valued at USD 1.9 Billion in 2024 and is expected to reach USD 6.5 Billion by 2031, growing at a CAGR of 11% during 2025-2031.

The main drivers of this growth are the rising demand for green hydrogen, government policies supporting decarbonization, and rapid advancements in electrolysis technologies. Growing investments from energy companies and industries are strengthening large-scale deployments of electrolyzers for sustainable fuel production.

Growth Factors for Water Electrolyzer Industry

Increasing adoption of green hydrogen in transportation and energy sectors.
Government incentives and subsidies supporting hydrogen infrastructure.
Advancements in PEM and alkaline electrolysis technologies.
Industrial decarbonization driving demand for clean hydrogen solutions.
Rising investments from utilities and private players in hydrogen projects.

Trends in the Water Electrolyzer Market

The trends in Water Electrolyzer Market point to new large-format electrolyzers being paired with renewable energy, including solar and wind, and an increasing popularity of modular electrolyzer units that can deploy flexibility across the economy. In addition, gigawatt-scale hydrogen projects are starting to be initiated in order to meet the rising demand for green hydrogen. The increased use of digital monitoring and automation can lead to more efficiency in water electrolyzers and be cost-effective. Some energy majors are beginning to collaborate with technology providers to commercialize and promote the hydrogen economy.

Emerging Developments in Water Electrolyzer Market

The developments in Water Electrolyzer Market indicate that the number of pilots for hydrogen blending into natural gas pipeline systems and/or hydrogen storage will increase. Companies will continue to invest in next-generation technology related to solid oxide water electrolyzers in order to obtain higher efficiencies. Strategic partnerships will continue to form to build hydrogen corridors and create fuelling infrastructure. The falling costs of renewable energy are making hydrogen production via electrolysis more competitive. Lastly, international collaboration towards cross boarder hydrogen trade is possible, which will lead to more water electrolysis. All of these drivers’ position electrolyzers as the enabler of energy transition and transformation.