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The global market for water electrolysis machines, the key component for hydrogen production, surpassed $10.6bn in 2019 and compounded annual growth to 2030 is expected to be about 7.6 per cent, a new report indicates.
However, the market is expected to contract slightly by the end of 2020, to about $10.2bn, in part due to the Covid-19 pandemic.
Renewable energy and chemical applications, as well as innovations in crude oil processing applications, will support the longer-term developments in the market.
According to the Future Market Insights report, higher investments and favorable policies from government towards the development of sustainable, renewable energy sources – and the use of hydrogen in key industries such as steel, chemicals, petroleum and power generation – are major factors driving the growth of the global water electrolysis machine market.
Some GCC countries have demonstrated strong interest in developing clean hydrogen. A $5bn clean hydrogen-based ammonia plant is being planned in Saudi Arabia’s Neom development, while Oman plans to build a clean hydrogen hub at Sohar Port.
It is understood prohibitive capital costs and high levels of electricity consumption had restrained market growth in the past, despite the steady rise of the water electrolysis machine market.
The report says alkaline water electrolysis machines will be in high demand over the next 10 years, while polymer electrolyte membrane options are also likely to reflect steady growth on the back of higher efficacy in electrolysis processes.
The report also said that the 500-2,000 litre an hour (L/Hr) offerings in the water electrolysis machines market reflect relatively higher demand due to “reduced risk of hydrogen crossovers”.
The report added: “East Asia is a prominent regional market reflecting relatively faster growth in adoption rates owing to major scope for industrial applications in China and Japan.”
According to the report, the major companies offering water electrolysis machines are Air Products & Chemicals, Toshiba Energy Systems & Solutions, Nel ASA, Thyssenkrupp Uhde Chlorine Engineers, Areva H2Gen, Teledyne Technologies, Asahi Kasei, Kobelco Eco-Solutions, and C&E Environmental Technology.
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