Global PEM Electrolyzer Market Research Report: Forecast (2024-2030)

Market Definition

Proton Exchange Membrane (PEM) electrolyzer is a type of electrolyzer used to produce hydrogen gas through the electrolysis of water. It uses a solid polymer electrolyte membrane to conduct protons. This membrane allows for the separation of hydrogen & oxygen gas during electrolysis. PEM electrolyzers find applications in various industries, including energy storage, power-to-gas, transportation (hydrogen fuel cell vehicles), and industrial processes requiring hydrogen.

Market Insights & Analysis: Global PEM Electrolyzer Market (2024-30):

The PEM Electrolyzer Market size is estimated to grow at a CAGR of around 32.7% during the forecast period, i.e., 2024-30. The market growth imputes to the growing demand for hydrogen from the transportation sector, government initiatives & policies, and the burgeoning demand for ammonia. The global demand for green hydrogen has been steadily upscaling, as countries & industries focus on decarbonization & the transition to sustainable energy sources.

Many countries like the US, China, India, and the UK have set ambitious climate change mitigation goals & targets aiming to reduce greenhouse gas emissions & transition to a low-carbon economy. Green hydrogen, produced using renewable energy, is considered a key solution to achieve these goals by providing a clean alternative to fossil fuels. As a result, countries across the globe are heavily investing to produce green hydrogen alternatives for fossil fuels. For instance:

• In 2023, the Sultanate of Oman signed six agreements worth a total of USD20bn with international developers to build green hydrogen production plants inside the country.

Thus, the growing focus on green hydrogen to lower carbon emissions is resulting in the booming demand for Proton Exchange Membrane electrolyzers. PEM electrolyzers are a key technology for producing green hydrogen. Unlike traditional hydrogen production methods, such as steam methane reforming, PEM electrolysis generates hydrogen through the electrolysis of water splitting it into hydrogen & oxygen.

Moreover, governments & regulatory bodies worldwide are implementing policies & providing incentives to promote the adoption of clean energy technologies. Additionally, the bourgeoning demand for green ammonia from the transportation & power generation sector is anticipated to escalate the demand for PEM electrolyzers in the prediction period.

_{Global PEM Electrolyzer Market Driver:}

Augmenting Industrial Application to Fuel the Market Size – PEM electrolyzers find significant utilization in the industrial sector, serving as a crucial technology for diverse applications such as chemical production, electronics manufacturing, and metal refining. The industrial demand for PEM electrolyzers is experiencing substantial growth due to the escalating need for sustainable and environmentally friendly industrial processes.

Moreover, the adoption of hydrogen produced by PEM electrolyzers in industrial settings holds substantial assurance for reducing greenhouse gas emissions & enhancing overall energy efficiency. Industries are increasingly prioritizing the reduction of their carbon footprint & the attainment of sustainability objectives, thereby driving the expansion of the PEM Water Electrolyzer Market within the industrial sector.

Global PEM Electrolyzer Market Opportunity:

Surging Growth of Fuel Cell Electric Vehicles (FCEVs) Accelerating the Market Size – The growing government initiatives, advancement in fuel cell technology, and infrastructure developments are driving the growth of Fuel Cell electric vehicles. The increasing adoption of FCEVs is driving the demand for green hydrogen, prompting the need for efficient & scalable PEM Electrolyzers. Governments like the US, European Union, China, etc., are increasingly taking initiatives by providing incentives, subsidies, and supportive policies to promote the adoption of FCEVs. This is majorly driven due to the heightened environmental consciousness & carbon reduction targets across the globe.

Hence, the growing government support for the adoption of electric vehicles would boost FCEV adoption in the coming years. With the rising demand for FCEVs, there will be a heightened need for hydrogen as a fuel, thereby emphasizing the necessity for more efficient and scalable hydrogen production methods. Hence, this evolving landscape would present a favorable prospect for the PEM Electrolyzer Market in the succeeding years.

Global PEM Electrolyzer Market Challenge:

Growing Iridium Shortage to Impede Market Growth – Iridium is a precious metal that finds application in proton exchange membrane (PEM) electrolyzers, playing a crucial role in facilitating efficient & durable electrolysis for hydrogen production. The primary application of iridium in PEM electrolyzers is in the construction of electrodes, particularly the anode. However, the growth of clean hydrogen would encounter a potential hurdle due to its reliance on precious catalyst materials such as iridium.

Currently, the operation of PEM electrolyzers in the market hinges on using iridium catalysts. As the electrolyzer industry continues to expand, the limited availability of iridium globally would emerge as a significant obstacle to scaling up production. Hence, the global scarcity of iridium poses a major threat to the expansion of the PEM Electrolyzer Market.

Global PEM Electrolyzer Market Trend:

Growing Research & Development Initiatives for Advanced Materials Exploration – Research and Development (R&D) initiatives for the technological advancement of Proton Exchange Membrane (PEM) electrolyzers have gained significant attention in recent years. PEM electrolyzers play a crucial role in the production of hydrogen through water electrolysis, offering a clean & sustainable method for generating hydrogen fuel. Researchers are exploring advanced materials for key components like membranes, catalysts, and bipolar plates to improve the overall performance & durability of PEM electrolyzers.

Moreover, increasing government investments in improving hydrogen technologies are boosting the R&D activities in the PEM Electrolyzer Market. These investments stimulate R&D activities, accelerate innovation, support manufacturing scale-up, create jobs, and foster an environment conducive to the widespread adoption of PEM electrolyzers in the evolving hydrogen economy.

Global PEM Electrolyzer Market (2024-30): Segmentation Analysis

The PEM Electrolyzer Market study by MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment & includes predictions for the period 2023–2028 at the global levels. In accordance to the analysis, the market has been further classified as:

Based on Material Type:

• Iridium
• Platinum
• Others (Titanium, Gold, etc.)

Platinum material is estimated to account for the majority share in the PEM Electrolyzer Market during 2024-2030 due to its catalytic efficiency, long-term stability, and commercial availability. Platinum exhibits excellent catalytic properties, particularly in the oxygen evolution & hydrogen evolution reactions that occur within PEM electrolyzers. Its efficiency in facilitating these reactions contributes to the overall effectiveness of the electrolyzer, making it a preferred choice for manufacturers.

Moreover, platinum is known for its stability & durability in harsh electrochemical environments. This characteristic is essential for ensuring the longevity & reliability of PEM electrolyzers, making them suitable for continuous and demanding industrial applications. Additionally, it is readily available in the commercial market, ensuring a consistent and stable supply for manufacturers of PEM electrolyzers.

Based on Application:

• Power Generation & Energy Storage
• Transportation
• Industrial Processes
  • Refineries & Petrochemicals
  • Ammonia Production
  • Methanol Production
• Others (Hydrogen Refueling Stations, Electronics & Semiconductor, etc., etc.)

Power generation & Energy storage are dominating the Global PEM Electrolyzer Market, owing to the heightening demand for energy storage solutions, growing green hydrogen production, and industrial power application. The rising integration of renewable sources across the globe is resulting in booming demand for energy storage solutions due to their intermittency nature. This would fuel the requirement for PEM electrolyzers for converting excess electricity from renewable sources into hydrogen, which can be stored & used for power generation during periods of low renewable energy availability.

Moreover, industries are increasingly exploring the usage of hydrogen in fuel cells for power generation. PEM electrolyzers contribute to the production of the hydrogen needed for these industrial power applications, reducing carbon emissions in various sectors.

Global PEM Electrolyzer Market (2024-30): Regional Projection

Geographically, the PEM Electrolyzer Market expands across:

• North America
• South America
• Europe
• Asia-Pacific
• The Middle East & Africa

Asia-Pacific has been dominating the PEM Electrolyzer Market over the past period, owing to surging renewable energy integration, increasing investment, and hydrogen infrastructure development. The region is witnessing a growing share of renewable energy sources, such as wind & solar, in the energy mix due to government efforts & environmental awareness among the consumers. According to Zero Carbon Analytics, in 2022, Asia would have the fastest growth of wind & solar capacity at around 35% per year. Hence, this increasing renewable energy share in the region is fueling the demand for PEM electrolyzers, as it plays a crucial role in converting excess renewable energy into hydrogen for storage or direct use.

Global PEM Electrolyzer Industry Recent Development:

• 2023, Plug Power Inc., received USD 21.8 million grant from the European Commission to build an offshore hydrogen production plan. Plug will design & deliver a 10-megawatt (MW) proton exchange membrane (PEM) electrolyzer system to the site in the North Sea.
• April 2022, Ohmium received an investment of around USD45 million from one of its investors, Fenice Investment Group. The fund is expected to support the growth of the company and help it to increase the hydrogen manufacturing capacity from 500 MW to 2 GW annually by the end of 2022.

Gain a Competitive Edge with Our Global PEM Electrolyzer Market Report

• Global PEM Electrolyzer Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• 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.
• Global PEM 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.