PEM Small Capacity Electrolyzer Market Size - By Capacity (≤ 100 kW, > 100 kW - 300 kW, > 300 kW - 500 kW), By Application (Power Generation, Transportation, Industry Energy, Industry Feedstock), Regional Outlook & Global Forecast, 2024 – 2032

PEM Small Capacity Electrolyzer Market Size

PEM Small Capacity Electrolyzer Market was valued at USD 124.9 million in 2023 and is anticipated to grow at a CAGR of 6.5% from 2024 to 2032. A Proton Exchange Membrane (PEM) electrolyzer is a device that uses electricity to split water into hydrogen and oxygen through a process called electrolysis. This type of electrolyzer employs a solid polymer electrolyte (the PEM) to conduct protons from the anode to the cathode, separate the gases produced, and insulate the electrodes from each other.
 

Ongoing research and development efforts are focused on reducing costs and improving the durability of these systems. Advances in catalyst materials and manufacturing processes are anticipated to enhance the economic viability of the product. PEM electrolyzers offer a versatile and efficient solution for integrating renewable energy sources, balancing the grid, and providing decentralized power generation, making them a key technology in the transition to a clean energy future. Furthermore, technological advancements and increased production scale will reduce the costs along with growing public private partnerships to expand the hydrogen refueling networks? will accelerate the industry dynamics.
 

Supportive regulatory environments and substantial investments in infrastructure are also critical factors driving the adoption of PEM electrolyzers. Governments around the world are investing in hydrogen production facilities and creating favorable conditions for the deployment of PEM technology? will positively impact the industry statistics. Furthermore, countries and companies are increasingly investing in hydrogen fuel cell technology, recognizing its potential to provide a sustainable and efficient solution for the transportation sector's energy needs, which will complement the product penetration.
 

PEM Small Capacity Electrolyzer Market Trends

Notable increase in the use of PEM electrolyzers in the transportation sector, particularly for fueling fuel cell electric vehicles (FCEVs) along with increasing utilization for power generation owing to their ability to efficiently produce hydrogen, which can be used as a clean energy source will stimulate the industry statistics. Gaining traction across various industrial applications, comprising production of ammonia, methanol, steel, and other chemicals will drive the business dynamics. Additionally, innovations in the electrolyzer technology, comprising increased current density and the use of less expensive materials, are leading to significant cost reductions, which will enhance the industry growth.
 

PEM Small Capacity Electrolyzer Market Analysis

Based on application, the transportation segment is anticipated to cross more than USD 44 million by 2032. The PEM electrolyzers are crucial in producing the hydrogen needed for fuel cell electric vehicles (FCEVs). These vehicles include cars, buses, trucks, and trains, offering a clean alternative to conventional internal combustion engines? which will foster the industry growth. Further, investments and public-private partnerships are crucial to build and expand hydrogen refueling networks?, which will positively impact the technology adoption.
 

Power generation segment is set to grow at 24.5% CAGR through 2032 owing to ability to support the grid by absorbing excess electricity during peak production times and generating hydrogen. The hydrogen produced serves as a form of energy storage that can be used when demand exceeds supply, which will boost the industry dynamics. Small and medium-sized PEM electrolyzer systems can be deployed for decentralized power generation. These systems can be installed close to renewable energy sources or end users, reducing the need for extensive hydrogen transportation infrastructure and enhancing local energy resilience, thereby favoring the product adoption.
 

Based on capacity, the >100 – 300 kW segment is likely to register about 17.5% CAGR up to 2032 owing to driven by advancements in technology and increasing demand for green hydrogen production. These systems are particularly appealing for applications requiring decentralized hydrogen generation and flexible, scalable solutions which will positively influence the business scenario. Introduction of more efficient and accessible hydrogen production technologies, which are essential for supporting the transition to renewable energy sources and meeting climate goals will boost the product adoption.
 

Europe PEM small capacity electrolyzer market is poised to reach USD 77.5 million by 2032. The region has experienced a notable increase in installations, with hydrogen projects across economies including Germany among others. The European Union's strategic frameworks and funding, such as the Horizon 2020 program, have been crucial in supporting research and innovation in PEM electrolyzers. Additionally, projects including ADVANCEPEM aim to develop cost-effective and high pressure PEM electrolyzers, enhancing the technology's efficiency and reducing production costs?.
 

The U.S. PEM small capacity electrolyzer market will grow on account of supportive regulatory policies regulating the adoption of hydrogen across the economy. Advancements in PEM electrolyzers, offering high current densities and compact designs, will stimulate the product penetration. Further, these systems are suitable for applications requiring quick response times to voltage changes?, thereby driving the business landscape.
 

PEM Small Capacity Electrolyzer Market Share

Hydrogenics, ITM Power plc, McPhy Energy, Linde and Plug Power are some major players operating in the industry. Companies are forming alliances to advance electrolyzer technology and improve efficiencies. They are also collaborating on research & development to push the boundaries of electrolyzer efficiency and cost reduction. Strategic partnerships facilitate joint research, technology transfer, and innovation, essential for the continuous improvement of electrolyzer systems?. Strategic collaborations and investments are essential for market growth to enhance their product lines and expand their consumer base.
 

PEM Small Capacity Electrolyzer Market Companies

Eminent players operating in the PEM small capacity electrolyzer industry are:

• Air Products and Chemicals, Inc.
• Elogen
• Giner Inc.
• Hydrogenics
• ITM Power PLC.
• Linde plc
• McPhy Energy S.A.
• Nel ASA
• Plug Power Inc.GH2
• Siemens Energy
   

PEM Small Capacity Electrolyzer Industry News

• In November 2021, Australian Gas Networks, part of Australian Gas Infrastructure Group, partnered with the Australian government to enable implementation of blended hydrogen gas for the Hydrogen Park Gladstone project. The facility will include a water demineralization system, 175 kW Polymer Electrolyte Membrane (PEM) electrolyzer,  along with process cooling equipment. Further, the proof-of-concept will support enable implementation of blended hydrogen gas across the regional cities in the economy.
   
• In January 2021, Hydrogenics, part of the Cummins Group, supplied the low capacity PEM electrolyzer for the Power to Green Hydrogen Mallorca industrial project. It is capable of producing over 330 tons of green hydrogen per year. Further, it will be injected into the natural gas grid to reduce the carbon dioxide emissions, aiming to be operational by year end of 2021.
   

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

Click here to Buy Section of this Report

Market, By Capacity

• ≤ 100 kW
• > 100 kW - 300 kW
• > 300 kW - 500 kW

Market, By Application

• Power Generation
• Transportation
• Industry Energy
• Industry Feedstock
• 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
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
• Rest Of World