PEM Electrolyzer Market Analysis

PEM Electrolyzer Market Analysis

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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.