Middle East & Africa Fuel Cell Electrolyzer Market Research Report: Forecast (2023-2028)

Market Definition

Fuel cell electrolyzer also referred as electrolysis-based fuel cell is a device that combines the processes of electrolysis and fuel cell technology. It has two mode of operation i.e., an electrolyzer and a fuel cell. An electrolyzer utilizes electrical energy to split water into hydrogen and oxygen whereas a fuel cell generates electricity by combining hydrogen & oxygen to produce water. Fuel cell electrolyzer is gaining a traction in the Middle East & Africa region due to its growing uses as a sustainable means for producing hydrogen and storing energy.

Market Insights & Analysis: The Middle East & Africa Fuel Cell Electrolyzer Market (2023-28):

The Middle East & Africa Fuel Cell Electrolyzer market is projected to grow at a CAGR of around 44% during the forecast period, i.e., 2023-28. The market is propelled by various factors, such as achieving renewable energy goals & increasing energy security by reducing their reliance on imported energy sources. Renewable energy resources like solar & wind power are abundant in many countries in the Middle East & Africa, and one way to store this energy is by using fuel cell electrolyzers. Hence, this allows the energy to be used at a later time when it is needed. Moreover, the cost of renewable energy has decreased significantly over the past decade, making it a more economically viable solution for expanding electricity access in off-grid areas & strengthening supply in other areas. Some countries, such as the UAE, Saudi Arabia, Morocco, etc., have made significant pledges to boost their use of renewables in their electricity mix. For instance:

• In 2021, Morocco has committed to augment the proportion of renewables in its electricity mix to nearly 52% by 2030, with around 20% coming from solar, 20% from wind, and 12% from hydro sources.

Additionally, the Middle East & Africa are facing severe water scarcity problems, making traditional electrolysis technology that requires large amounts of water less viable. Fuel cell electrolyzers use proton exchange membranes that require significantly less water, making them a more feasible solution in areas of water scarcity.

The Middle East & Africa are among the largest producers of oil & gas, however, growing interest in clean energy & the need to reduce carbon emissions are enriching the demand for renewable energy sources in the region, which fuels the demand. Countries such as Saudi Arabia, the UAE, and South Africa are leading the adoption of fuel cell technology & the construction of hydrogen fuel stations. Consequently, the Middle East & Africa's allegiance to clean energy, government support, and growing investments indicate a promising future for the market in the region.

The Middle East & Africa Fuel Cell Electrolyzer Market Driver:

Growing Focus on Renewable Energy Sources Initiatives- The increasing focus on renewable energy sources initiatives is the prominent factor that drives the Middle East & Africa Fuel Cell Electrolyzer market. Governments in the region recognize the importance of reducing dependence on fossil fuels, which are finite & environmentally damaging resources.

Therefore, it invests in renewable energy technologies such as fuel cells & electrolyzers to diversify energy sources & promote sustainable development as they are efficient & have zero emissions, making them a cleaner alternative to fossil fuels. Furthermore, Governments in MEA are investing in fuel cell technology for a variety of applications, including transportation, stationary power generation, and backup power systems. For instance:

• In 2021, Masdar & Engie formed a strategic alliance to develop a green hydrogen hub in the UAE. It would consist of projects with at least 2GW of capacity & is expected to be developed by 2030 with a total investment of USD5 billion.

Therefore, the growing focus on renewable energy sources drives the Middle East & Africa Fuel Cell Electrolyzer market.

The Middle East & Africa Fuel Cell Electrolyzer Market Opportunity:

Commercialization of Electrolytic Hydrogen Production- Electrolytic hydrogen offers the Middle East & Africa an opportunity to decarbonize heavy industry & meet climate goals but electrolytic hydrogen is currently more expensive than the SMR-produced hydrogen widely used in industry today. Thus, to commercialize & extend this technology costs must be addressed.

Hence, this can be achieved through R&D & large-scale manufacturing techniques that directly reduce the capital cost of the electrolyzer. In addition, the research & development in electrolytic hydrogen production, would create a lucrative the opportunities to support the development of electrolytic hydrogen production, hence upscaling the market demand.

The Middle East & Africa Fuel Cell Electrolyzer Market Challenge:

High Initial Installation Costs & Maintenance to Hamper the Market- High initial costs can seriously hinder the growth of emerging industries. The fuel cell electrolyzer market is a prime example of such an industry, where the high cost of equipment & infrastructure is a major barrier to adoption. The technology holds promise in reducing greenhouse gas emissions & combating climate change.

However, the high cost of equipment, especially electrolysis units, limits its acceptance. One of the main reasons for the high cost of electrolysis plants is the complexity of the technology used. A unit requires several components, such as power supplies, reaction vessels, electrodes, and membranes. These components must be of high quality so that the device operates efficiently, safely, and reliably. The added cost of these components can drive up the overall cost of the electrolysis process.

Nevertheless, equipment costs are not the only obstacle; installation, maintenance, and operating costs must also be considered. Installing electrolyzers requires a large capital investment, including assembling the equipment, ensuring proper ventilation & safety measures, and complying with regulations.

Additionally, maintenance & operational costs over the lifecycle of the units, such as repair & replacement of components, associated infrastructure management, and waste management, can be substantial. Therefore, the high initial installation cost & maintenance of the device hinder the growth of the market.

The Middle East & Africa Fuel Cell Electrolyzer Market Trend:

Product Innovation with Containerized Design- Product Innovation is the key trend growing in popularity in the fuel cell electrolyzer market. Major companies operating in the market are innovating new products to strengthen their position in the market. In 2021, Nel ASA launched the MC250 & MC500 M series of containerized PEM electrolyzers. This is an MW-class hydrogen generator with a modular container design for easy installation & transportation. The new electrolyzer offers the same ruggedness & reliability as the M-Series predecessor.

The launch of the MC250 & MC500 represents automated & standardized large-scale hydrogen production. The containerized MC250 & MC500 are offered in standard configurations of 1.25 & 2.5 MW (246 and 492 Nm3/h), respectively. The new product integrates Nel's newly developed 1.25 MW PEM cell stack, increasing capacity per unit & lowering costs. The platform allows easy integration of multiple units in the field being an influential consideration during the development, hence being a potential trend to the market.

The Middle East & Africa Fuel Cell Electrolyzer Market (2023-28): Segmentation Analysis

The Middle East & Africa Fuel Cell Electrolyzer Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the analysis, the market has been further classified as:

Based on Type:

• Alkaline Electrolyzers
• Proton Exchange Membrane
• Solid Oxide Electrolyzers
• Anion Exchange Membrane
• Others (Reversible Fuel Cells, Direct Methanol Fuel Cells, etc.)

Out of them all, Alkaline Electrolyzers segment has dominated the Middle East & Africa Fuel Cell Electrolyzer market during the historical years, owing to its various benefits over the other water electrolysis technologies such as better rate of hydrogen production, compact design, and higher energy efficiency. Additionally, the alkaline electrolysis process has been also considered a mature technology for the decomposition of water (H2O) into hydrogen (H2) and oxygen (O2) gases through an electrochemical reaction.

Furthermore, the use of affordable potassium hydroxide (KOH) electrolytes in alkaline electrolyzer contributes to lower operating costs, especially when compared to some proton exchange membrane (PEM) electrolyzers that require expensive materials like platinum. Thus, it plays a key role in storing excess renewable energy (e.g., wind or solar) as hydrogen during periods of surplus electricity generation.

Also, with the growing emphasis on decarbonization, alkaline electrolyzers is expected to contribute to the production of green hydrogen by using renewable electricity sources, aligning with sustainability goals in the forthcoming years.

Based on Application:

• Stationary Power
• Transportation
• Portable Power
• Others (Water Treatment, Chemical Production, etc.)

Out of them all, Stationary Power is dominating the market & is expected to follow the same trend during the forecast period as well. Power applications require reliable & assistant power solutions that can operate for extended periods without frequent maintenance or refueling. Fuel cell electrolyzers are ideal for these applications due to their high efficiency, low emissions, and long life span.

The growing demand for dependable & environmentally friendly power solutions is one of the key factors driving the stationary power industry in the MEA region. The region's growing population & economy are expanding, and as a result, energy demand has significantly raised over time.

Traditional energy sources such as fossil fuels have drawbacks, including high emission reliance on imports & unstable prices. Hence, to meet their energy needs & lower their carbon footprint, government & corporation are actively investing in renewable energy technology, thus influencing the revenue growth of the market.

The Middle East & Africa Fuel Cell Electrolyzer Market Regional Projection:

Geographically, the market expands across:

• Saudi Arabia
• The UAE
• Israel
• Egypt
• South Africa
• Rest of the Middle East & Africa

The UAE is expected to dominate the market in the coming years owing to the country’s ambitious renewable energy target. According to the UAE ministry of climate change and environment the country aims to have 14GW of renewable energy by 2030. The country has set high goals for growing its capacity for renewable energy, including hydrogen-based technologies like fuel cell electrolyzers. The UAE has announced its Hydrogen Alliance, which aims to be a global hub for hydrogens trade & enable the production of green hydrogen through renewable sources.

The nation has formed alliances with several other nations to investigate the possibility of exporting green hydrogen, which is created from renewable energy resources like solar & wind power to other countries with insufficient access to renewable energy resources. Thus, the development in the renewable energies across the country, including green hydrogen would further push the demand for fuel cell electrolyzer in the upcoming years as well.

The Middle East & Africa Fuel Cell Electrolyzer Industry Recent Development

• 2022: Hydrogen Rise, a clean hydrogen technology firm based in Germany, has set out its vision for a green hydrogen economy in Oman. The company aims to design, build, and manage a green hydrogen facility in Sohar, Oman, as part of the country's commitment to developing a local hydrogen economy.

Gain a Competitive Edge with The Middle East & Africa Fuel Cell Electrolyzer Market Report

1. The Middle East & Africa Fuel Cell Electrolyzer Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. The Middle East & Africa Fuel Cell Electrolyzer Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.