The Middle East & Africa Fuel Cell Electrolyzer market is projected to grow at a CAGR of around 44% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. The growth is primarily driven by the desire to achieve renewable energy targets & the need for improved energy security by decreasing dependence on imported energy sources. Many countries in the Middle East & Africa are blessed with abundant renewable energy resources such as wind & solar power. Fuel cell electrolyzers can be used to store this energy for later use, thus making it more accessible & reliable.
The cost of renewable energy has significantly reduced over the past ten years, making it a more affordable & sustainable option for expanding access to electricity in off-grid areas & strengthening the power supply in other regions. As part of its efforts to promote sustainable energy & reduce its carbon footprint, Morocco has undergone significant progress in expanding its renewable energy capacity. The country aims to add about 10 GW of renewable energy capacity between 2018 & 2030 to meet its 2030 goal. Moreover, the countries of the region are encountering severe water scarcity issues, rendering conventional electrolysis technology less practical due to its high water demand.
In contrast, fuel cell electrolyzers employ proton exchange membranes that require significantly less water, which makes them a more viable solution in water-scarce areas. Despite being one of the largest oil & gas producers, the Middle East & Africa's rising interest in clean energy & the necessity to reduce carbon emissions are amplifying the demand for renewable energy sources in the region, boosting the growth of the market, further states the research report, “The Middle East & Africa Fuel Cell Electrolyzer Analysis, 2023.”
Alkaline Electrolyzers the Game Changer in the Clean Energy Revolution
Based on Type, the market is bifurcated into Alkaline Electrolyzers, Proton Exchange Membrane, Solid Oxide Electrolyzers, Anion Exchange Membrane, and Others (Reversible Fuel Cells, Direct Methanol Fuel Cells, etc.). Among them, Alkaline Electrolyzers accounted for the majority of the market share since the past period owing to the burgeoning demand for clean energy solutions. The alkaline electrolysis process stands as a well-established & mature technology, facilitating the conversion of water (H2O) into hydrogen (H2) & oxygen (O2) gases through electrochemical reactions.
Moreover, the cost-effectiveness of utilizing potassium hydroxide (KOH) electrolytes in alkaline electrolyzers is a compelling factor. Thus, its application is gaining significance in power generation, transportation, and industrial processes for providing clean & green energy solutions, which is anticipated to enhance the segment growth during 2023-28.
The UAE to Lead Market & Aims to Become Global Hub for Hydrogen Trading
Based on geographical location, the UAE is expected to dominate the Middle East & Africa Fuel Cell Electrolyzer market in the coming years owing to the government's approach towards promoting renewable sources for producing energy. The UAE is looking to expand its renewable energy sector & is investing in hydrogen-based technologies such as fuel cell electrolyzers.
With the announcement of the Hydrogen Alliance, the country aims to become a global hub for hydrogen trading, utilizing renewable resources to produce green hydrogen, etc. For instance, in 2023, the UAE Ministry of Energy announced to reach around 25% share of the hydrogen export market by 2030, with Japan, South Korea, and Germany to be among the leading destinations. Hence, the strong expansion plans of the government towards hydrogen, renewable energy, and sustainability would ignite the demand for fuel cell electrolyzers in the forthcoming years.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players including Hydrogen Rise, Plug Power Inc, Nel AS, Dana Limited, Nigbo TopCorr Corrison Technology Co. Ltd., Bloom Energy, Fuel Cell Energy, INEOS Group, Mitsubishi Heavy Industries Limited, Nuvera Fuel Cells, LLC and others are looking forward to strengthening their market position.
Key Questions Answered in the Research Report