PEM Electrolyzer Market Size - By Capacity (≤ 500 kW, > 500 kW - 2 MW, Above 2 MW), By Application (Power Generation, Transportation, Industry Energy, Industry Feedstock, Building Heating & Power), Regional Outlook & Forecast, 2024 – 2032

PEM Electrolyzer Market Size

PEM Electrolyzer Market was valued at USD 8.5 billion in 2023 and is anticipated to grow at a CAGR of 24.6% from 2024 to 2032. A PEM (Proton Exchange Membrane) electrolyzer is a type of electrolysis device that utilizes a proton exchange membrane to split water (H?O) into hydrogen (H?) and oxygen (O?) through an electrochemical reaction. PEM electrolyzers are commonly used to produce hydrogen gas, which can be utilized in various applications across different sectors.
 

Major economies are continuously developing supportive hydrogen strategies as part of the wider climate & clean energy related targets, thereby supporting the business dynamics. Growing adoption of hydrogen generation along with the rising energy requirement will create better market for the hydrogen & electrolyzer industry. Moreover, technological advancements hold potential to create several opportunities leading to sustainable economic growth by creating more employment in various industries which will strengthen the industry landscape.

Close coordination between various industry stakeholders along with the government efforts to further broaden the existing policy framework will contribute to achieve greater energy security and economic development. Ongoing electrification programs across the developing economies along with wide scale integration of renewable energy sources has also resulted in the demand for large scale use of efficient and low-cost energy storage sources will complement the product penetration. Additionally, Significant private and public sector efforts across economies to establish a clean, safe, innovative and competitive hydrogen ecosystem to achieve carbon neutrality targets will boost the industry statistics.
 

PEM Electrolyzer Market Trends

Introduction of favorable government norms and incentives to promote eco-friendly technologies has led to an increased product adoption across the globe. ongoing measures pertaining to the reduction of carbon footprints will expedite the deployment of PEM electrolyzers as a feedstock across various applications, thereby strengthening the business landscape. Additionally, Ongoing adoption of various policies and norms by numerous countries to reduce their carbon footprints along with increasing share of renewables in the overall energy mix is projected to boost the demand for hydrogen, thereby boosting the business scenario.
 

PEM Electrolyzer Market Analysis

Based on capacity, the > 500 kW – 2 MW segment is anticipated to cross more than USD 700 million by 2032. These systems use a large amount of water as a major feedstock for hydrogen generation and are widely used on-site across numerous industries including glass, metal, food & beverage, transportation, and chemical. Flexible delivery contracts, reduced cost, energy efficient process, compact & modular design, and significant reduction of harmful emissions are some of the key features which will augment the product demand.
 

Based on application, the transportation segment is set to register about 32% CAGR through 2032, owing to growing investments in innovation and research & development along with increasing demand for FCEVs as an alternative to conventional automobiles. Stringent regulatory norms toward low carbon emission vehicles have instigated the leading vehicle manufacturers to adopt renewable fuels will strengthen the product adoption.
 

Europe PEM electrolyzer market is likely to exceed USD 46.5 billion by 2032, driven by significant funding and support for hydrogen-related projects. Investment in the development of hydrogen infrastructure is anticipated to augment the market growth. The infrastructure is critical for the production, distribution, and utilization of hydrogen in various sectors, aligning with the European Union's hydrogen strategy. Moreover, the shifting trends toward sustainable transport infrastructure along with robust investments toward development of hydrogen based infrastructure will positively influence the business dynamics.
 

In the U.S. intensifying demand for hydrogen from the burgeoning industrial sectors including refining, petrochemicals, glass purification, and fertilizers will augment the industry landscape. Active involvement of several government institutions including the U.S. Department of Energy and National Laboratories is dynamically advancing the large-scale transition toward hydrogen technologies. Introduction of stringent federal regulations to limit the sulfur content in petroleum products will further reinforce the business scenario in the region.
 

PEM Electrolyzer Market Share

Industry collaborations in the PEM Electrolyzer industry across the Asia-Pacific region have been instrumental in driving innovation, expanding market reach, and improving product offerings. Development and marketing of tankless water heaters, ongoing expansion into emerging markets in Southeast Asia and development of energy-efficient water heating solutions will drive the business scenario. Further, integration of renewable energy sources with water heating systems along with research on advanced water heating technologies and smart systems is set to augment the business landscape.
 

PEM Electrolyzer Market Companies

Eminent players operating in the PEM electrolyzer industry are:

• Air Liquide
• Air Products and Chemicals, Inc.
• Cummins Inc.
• Erre Due s.p.a.
• Elogen
• Giner Inc.
• ITM Power PLC
• LARSEN & TOUBRO LIMITED
• Nel ASA
• ostermeier H2ydrogen Solutions GmbH
• Plug Power Inc.
• Siemens Energy
   

PEM Electrolyzer Industry News

• In November 2023, Siemens Energy, in a joint venture with Air Liquide, started its new gigawatt scale plant in Berlin to produce electrolyzer modules with high efficiency. The facility will utilize robotics and automation for the production of PEM electrolyzers. The aim is to manufacture low carbon hydrogen at a competitive cost and boost the innovative ecosystem in Europe. This will allow the companies to significantly contribute to a sustainable hydrogen economy and will mark a strong presence across the region.
   
• In July 2021, Air Liquide transformed its network in Germany with the development of a renewable hydrogen plant that runs on electrolysis. The facility integrated PEM electrolyzers into the company’s existing infrastructure and local pipeline to provide key industries & mobilities with sustainable energy across the country. With this move, the company achieved its sustainable development objectives and strengthened its presence across the market.
   

This PEM electrolyzer market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in “USD Billion & MW” from 2021 to 2032, for the following segments:

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Market, By Capacity

• ≤ 500 kW
• > 500 kW – 2 MW
• Above 2 MW

Market, By Application

• Power Generation
• Transportation
• Industry Energy
• Industry feedstock
• Building Heating & Power
• Others

The above information has been provided for the following countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Netherlands
  • Denmark
  • Spain
  • Norway
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
• Rest of World