In recent years, there has been a notable increase in interest and adoption of water electrolysis as a sustainable and low-carbon technology. This trend is driven by various factors, including the zero carbon emissions associated with the process and the abundant and cost-effective availability of water as a feedstock. In addition, the growing demand for hydrogen, particularly green hydrogen, is a significant driver for the increasing interest in water electrolysis.
The power supply equipment market for water electrolysis was valued at $331.5 million in 2022, and it is expected to grow at a CAGR of 33.27% and reach $5,714.8 million by 2032.
The advancements in alkaline electrolysis and proton exchange membrane electrolysis have contributed to the improved technical performance of water electrolysis. Additionally, emerging technologies such as solid oxide electrolytic cells (SOEC) and anion exchange membranes (AEM) have also entered the market, providing further options for efficient electrolysis.
As water electrolysis requires a reliable and efficient power source, the expansion of electrolysis plants and the adoption of advanced electrolysis technologies drive the need for suitable power supply equipment. Companies involved in the electrolysis market seek reliable and high-performance power supply solutions to support their operations. Therefore, increased government investments and initiatives create opportunities for manufacturers and suppliers of power supply equipment to cater to the specific needs of the expanding water electrolysis market.
The alkaline electrolyzer segment held the largest share in the power supply equipment market for water electrolysis in 2022. Alkaline electrolyzers were the initial electrolyzers to enter the market for industrial applications, and they remained the sole electrolyzer technology available until the 1970s when proton exchange membrane (PEM) technology emerged. Unlike PEM electrolyzers, alkaline electrolyzers do not require the use of precious metals, offering a longer operational lifespan and a more cost-effective solution.
In 2022, Rectifier held the largest share in the global power supply equipment market for water electrolysis and is expected to dominate the market during the forecast period (2023-2032). In the power supply equipment for water electrolysis plants, both rectifiers and transformers play important roles; however, their dominance varies depending on the specific requirements and configuration of the electrolysis plant. Also, if the energy is sourced from the grid, additional transformers may not be necessary. However, when renewable energy is utilized, transformers are commonly employed to adapt the voltage for optimal operation of the electrolyzer cells.
Power Supply Equipment Market for Water Electrolysis Region Analysis
- North America: U.S., Canada, and Mexico
- Europe: Germany, France, Spain, Netherlands, and Rest-of-Europe
- U.K.
- China
- Asia-Pacific and Japan: Japan, South Korea, India, Australia, and Rest-of-Asia-Pacific and Japan
- Rest-of-the-World: South America and the Middle East and Africa
The dominance of the European region in the power supply equipment sector for water electrolysis is anticipated. This is attributed to the presence of prominent entities like Nidec Industrial Solutions, Ingeteam, Prodrive Technologies, and KraftPowercon within the region. The well-established renewable energy market and escalating sales of fuel cell vehicles also contribute. Europe has been an early adopter of water electrolysis technology, notably in hydrogen production, with regional nations at the forefront. As per the International Energy Agency (IEA), Europe secured roughly 40% of global water electrolyzer capacity in 2020. The European Union's strategic integration of electrolyzer capacity into its hydrogen plans is expected to foster substantial expansion, targeting 75 gigawatts (GW) of installed electrolyzer capacity by 2030.
Scope of the Study
As per the Hydrogen and Fuel Cell Technologies Office, “Water electrolysis is the process of converting electrical energy into chemical energy in the form of hydrogen and oxygen, and an electrolyzer is a system that breaks water into hydrogen and oxygen with the help of electricity.” As per industry players, power supply equipment for water electrolysis refers to the devices or systems that provide electrical energy for the process of water electrolysis. The power supply equipment is responsible for delivering the necessary electrical energy to drive the electrolysis reaction.
The anticipated increase in global energy demand and the growing emphasis on sustainability and low-carbon energy sources has led to a heightened interest in hydrogen as a future fuel. As per the International Energy Agency (IEA), water electrolysis-based hydrogen production has the potential to prevent the release of around 830 million tons of CO2 annually. The rising demand for hydrogen fuel cell vehicles, green ammonia, green methanol, and other applications is a significant driver for the growth of the water electrolysis market. This, in turn, creates a demand for power supply equipment that can efficiently support the electrolysis process.
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Go ahead and ask your family members, friends or colleagues who have purchased these items recently.
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