The power supply equipment market for water electrolysis was valued at $0.430 B in 2023, and it is expected to grow at a CAGR of 33.27% and reach $5.710 B by 2032. The growth in the power supply equipment market for water electrolysis is expected to be driven by supportive government initiatives, strict net-zero targets, and rising demand for H₂ fuel cell vehicles, green ammonia, green methanol and other applications.

This is according to a report by ResearchAndMarkets, “Power supply equipment market for water electrolysis—A global and regional analysis: Focus on application, equipment type, and region - analysis and forecast, 2023–2032.”

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. Water electrolysis is the process of converting electrical energy into chemical energy in the form of H₂ and oxygen, and an electrolyzer is a system that breaks water into H₂ and oxygen with the help of electricity. As per the International Energy Agency (IEA), water electrolysis-based H₂ production has the potential to prevent the release of around 830 MMtpy of CO2. The rising demand for green H₂ 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.

The power supply equipment market for water electrolysis has experienced significant growth in recent years due to increasing government support through policies and incentives, technological advancements and increasing investments in renewable energy infrastructure. Furthermore, the advancement of water electrolysis technologies, particularly PEM electrolysis, has led to the need for specialized power supply equipment that can meet the unique requirements of these systems.

The power supply equipment market for water electrolysis is currently small, but it is projected to experience substantial growth in the near future. This growth is anticipated due to ongoing technological advancements in power electronics, renewable energy integration and energy storage technologies. Additionally, the increasing recognition of the imperative to transition toward green H₂ further contributes to this anticipated growth. The market has attracted significant interest and investment as companies strive to develop and establish their position in the power supply equipment segment specifically tailored for water electrolysis.

The power supply equipment market for water electrolysis is driven by several factors, such as growing interest in H₂ as a clean energy source and the need for energy storage solutions. Various companies and startups are actively developing and commercializing water electrolysis systems, aiming to improve efficiency, reduce costs and increase scalability. The growth and development of the water electrolysis market have a direct impact on the demand and innovation within the power supply equipment market.

The key players operating in the power supply equipment market for water electrolysis include ABB, General Electric, Nidec Industrial Solutions, Danfoss Drives, SMA Solar Technology AG and American Superconductor. These companies are focusing on strategic partnerships, collaborations, and acquisitions to enhance their product offerings and expand their market presence.