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

PEM Electrolyzer Market Size

PEM Electrolyzer Market Size was valued at USD 8.24 billion in 2023 and is anticipated to grow at a CAGR of over 22.9% between 2024 and 2032.
 

A PEM (Proton Exchange Membrane) electrolyzer is a device that uses an electrochemical process to split water (H₂O) into hydrogen (H₂) and oxygen (O₂) gases. It consists of a solid polymer electrolyte membrane (typically made of a perfluorinated polymer), two electrodes (an anode and a cathode), and catalyst layers. They significantly contribute to the advancement of renewable energy and the development of a sustainable hydrogen economy. Moreover, high current densities, compact system design, and rapid response toward current fluctuations are some of the key features which have stimulated the product adoption.
 

COVID-19 Impact

The outbreak had relatively little impact on overall PEM electrolyzer market expansion. Frequent project delays caused by geographical constraints and government mandates have had an impact on the overall sector. However, by early 2021, the industry had regained its lost strength due to the easing of the lockdown by various government authorities and the resumption of operations of industrial facilities, manufacturing plants, & the transportation sector. Furthermore, focused investments on new projects and upgrading current infrastructure will complement the business scenario.
 

PEM Electrolyzer Market Analysis

PEM electrolyzer market from transportation industry accounted for over USD 10.6 billion by 2032. Growing demand for FCEVs as a substitute to conventional vehicles, in conjunction with increased investments in innovation and R&D, will accelerate the adoption of electrolyzers across the transportation sector. For instance, In December 2022, Next Hydrogen was awarded USD 5.1 million in financing from Sustainable Development Technology Canada (SDTC) for the demonstration of the cutting-edge electrolysis technology. The USD 12 million project is expected to result in efficient & cost-effective electrolysis products and modules for large-scale green hydrogen systems. This investment will deliver high-end technology in the market, swaying the industry trends.
 

PEM electrolyzers for power generation industry will witness a significant growth prospect along with the rising demand for electricity resulting in diversion of the industry focus towards alternative power solutions will considerably accelerate the product adoption. Hydrogen has been extensively utilized as a feedstock in the production and refining of ammonia, steel, methanol, & other chemicals. For instance, the Hydrogen Council estimates that by 2030, 10 to 15 million tons of chemicals would be manufactured utilizing hydrogen as a feedstock. The increasing use of hydrogen as a feedstock will increase demand for electrolyzers in the future years. As a result, a favorable regulatory environment, coupled with changing inclinations towards renewable energy, will further boost business growth.
 

The above 2 MW PEM electrolyzer market size is set to grow at CAGR more than 24.4% by 2032. Growing urbanization in developing/underdeveloped nations, coupled with sustainable building development programmes by respective government bodies, will fuel product demand for deployments of above 2 MW capacity. Furthermore, increased expenditures in the construction of fuel cell infrastructure and chemical facilities, and the ongoing propagation of these systems across railways & other modes of transportation, will stimulate the industry outlook. For instance, In December 2022, Cummins Inc. collaborated with Marie Tecnimont Group to develop the largest PEM electrolyzers for GAIL in India. These electrolyzers will be built using Cummins’s exclusive PEM electrolysis technology, which is capable of producing 4.3 tons of green hydrogen per day. The deployment will further complement the business growth.
 

Lower costs, flexible delivery contracts, an energy-efficient process, considerable reductions in hazardous emissions and a compact & modular design are some of the major aspects that will influence product adoption for electrolyzers with capacities ranging from 500 kW to 2 MW in the coming years. The ongoing development of manufacturing hubs using gasification solutions, combined with the continuous adoption of improved techniques, will foster the industry dynamics. For instance, In February 2023, Elogen signed a contract with CrossWind for designing & manufacturing a PEM electrolyzer for the advancement of the innovative Hollandse Kust Noord (HKN) Offshore Wind Project in 2025 that will convert electricity into green hydrogen.
 

Asia Pacific PEM electrolyzer market size was valued at over USD 1.3 billion in 2022. Governments across the regions are implementing supportive policies, financial incentives, and regulatory frameworks to promote the adoption of renewable energy and hydrogen technologies. These measures encourage investments in PEM electrolyzers and create a favorable market environment for their growth. For instance, In January 2022, the Union Cabinet of India adopted the National Green Hydrogen Mission with the goal of making India a global hub for the production, consumption, and export of clean H2 and its derivatives. According to this, the focus of Phase I (2022-23 to 2025-26) will be on developing local electrolyzer production capacity while creating demand.
 

PEM Electrolyzer Market Share

Strategic partnerships and collaborations along with ongoing technological development across the eminent players will foster the business growth. The key industry participants include

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

PEM Electrolyzer Industry News

• In March 2023, Siemens Energy signed an agreement with HIF Global to supply Polymer Electrolyte Membrane (PEM) electrolyzers for HIF Matagorda’s eFuels plant in Texas. The electrolyzer will enable the annual production of 300,000 tons of green hydrogen, allowing the company to showcase its manufacturing & designing strength in the electrolyzer industry while reinforcing its position across the U.S.
   
• In March 2023, Plug Power Inc. selected by Uniper SE to manufacture electrolyzer technology for Uniper’s Maasvlakte Energy Hub in the Netherlands. According to the contract, the company will deliver 10 prefabricated PEM electrolyzers for the project. This partnership will strengthen the company’s presence in Europe for bringing energy security to the market.
   

The PEM electrolyzer market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘MW and USD Million’ from 2023 to 2032 for the following segments:

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By Capacity

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

By Application

• Power Generation
• Transportation
• Industry Energy
• Industry Feedstock
• Building Heat & Power
• Others

The above information has been provided for the following regions and countries:

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