PEM Electrolyzer Market Size, Share, and Industry Analysis By Material (Iridium and Platinum), By End-User (Power Generation & Energy Storage, Transportation, Refineries & Petrochemicals, Ammonia Production, and Others), and Regional Forecast, 2024-2032

The global PEM electrolyzer market is expanding with a considerable surge in the automotive and transportation business. These electrolyzers are electrochemical systems that use electricity to split water into oxygen and hydrogen.

Owing to its rapid use in many sectors, such as power plants, industrial gases, energy storage, electronics and photovoltaic, fuel cell electric vehicles, and others, the requirement for PEM water electrolyzers has increased in recent years. For instance, in May 2024, Air Liquide, one of the leaders in the PEM electrolyzer business, committed to the evolving renewable hydrogen by 2030 by implementing PEM electrolyzer technology.

PEM Electrolyzer Market Driver

Growing Application of Hydrogen for Various Sectors across the Globe to Drive Market Growth

Several industries have been using hydrogen for a long time, but recently, an upsurge has been seen due to the emerging applications of PEM electrolyzers. Transport and automotive are some of the industries that are taking advantage of hydrogen. These sectors are in demand owing to the rising adoption of hydrogen as a fuel, which is driving the market growth.

In addition, major auto manufacturers are evolving fuel cell vehicles (FCVs) powered by gaseous hydrogen. Hence, most of the key players, such as Walmart, Fed Ex, Bridgestone Firestone, Coca-Cola, and Whole Foods, are deploying fuel cell industrial trucks. For instance, in February 2023, Toyota's hydrogen-powered car “Mirai” was launched in California and Japan with an extended range and lower price.

In May 2024, The DOE Hydrogen Program Record outlined the estimated levelized cost of clean hydrogen (LCOH) generated from renewable electricity utilizing existing proton exchange membrane (PEM) electrolyzer technology and different renewable energy sources as roughly USD 5 to USD 7 per kilogram.

PEM Electrolyzer Market Restraint

High Installation and Investment Costs May Hinder Market Growth

Despite the demand in multiple sectors, only a few countries are able to produce hydrogen via PEM electrolyzers. This is due to the requirement of high capital to invest in the processes. A PEM electrolyzer is a complex device that requires high installation costs to produce hydrogen. The high cost is mandatory for the device, technicality, power plants, and large open space. Thesefactors may hinder the market growth in recent years.

PEM Electrolyzer Market Opportunity

Rising Hydrogen Demand across Several Sectors to Open Doors to New Avenues

Low carbon is the fastest-growing approach in recent years, driven by the sources that produce low carbon. PEM electrolyzer is one of the devices that produce hydrogen, which comes under nuclear energy. The growing demand for hydrogen in several sectors is creating new opportunities in the market. For instance, as per an update in January 2023, considering hydrogen applications and climate change, the UAE is about to produce nuclear energy for power generation, which is currently operating two out of four units at the Barakah nuclear power plant. Each plant has a capacity of over 1.4 GW. The plants will deliver up to 25% of the UAE's energy needs once all four units are active.

Segmentation

By Material	By End-User	By Geography
Iridium Platinum	Power Generation & Energy Storage Transportation Refineries & Petrochemicals Ammonia Production Others	North America (U.S. and Canada) Europe (U.K., Germany, France, Spain, Italy, Russia, and the Rest of Europe) Asia Pacific (Japan, China, India, Australia, South Korea, and the Rest of Asia Pacific) Latin America (Brazil, Mexico, and the Rest of Latin America) Middle East & Africa (South Africa, GCC, and  Rest of the  Middle East & Africa)

Key Insights

The report covers the following key insights:

• Recent Advancements in PEM Electrolyzer


• Key Industry Trends


• Regulatory Landscape for PEM Electrolyzer


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Market

Analysis By Materials

Based on material, the market is bifurcated into iridium and platinum.

The platinum segment is considered the dominating segment globally. This is owing to its application in sectors such as the diaphragm, which serves as a divider between the hydroxide ions and electrodes. Compared to other techniques in the market, the durability of these systems is quite considerable.

The iridium segment is the fastest-growing segment in the global PEM electrolyzer market. This is driven by its advantages, such as quick response and greater hydrogen production rate with high purity of gases. The segment is expected to grow over the forecast period, backed by its applications.

Analysis By End-User

Based on end-user, the market is divided into power generation & energy storage, transportation, refineries & petrochemicals, ammonia production, and others.

In recent years, power generation & energy storage have been considered as the dominating sector. Growing demand for hydrogen production is backing the market where PEM electrolyzer plays a crucial role. For instance, in March 2023, India, one of the major greenhouse gas emitters, recently announced an INR 197 billion (approx. USD 2.4 billion) green hydrogen program to change the country's carbon intensity and decrease dependence on fossil fuels. Major players such as NTPC, Reliance Industries, Adani Group, JSW Energy, and Acme Solar have proclaimed plans to help India meet its goal of producing a minimum of 5 million tonnes of green hydrogen by 2030.

The transportation segment is expected to be the fastest-growing segment owing to the expansion of sustainable transportation services all over the world. Other segments are also contributing to the global PEM electrolyzer market and will boost the global market growth.

Regional Analysis

Based on region, the market has been studied across North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.

Europe is considered the dominating segment, driven by the availability of PEM electrolyzer producers in the region. The U.K. and Germany are leading countries and serve several industry applications such as energy storage systems.

Asia Pacific is one of the fastest-growing segments owing to the rising demand across various applications. Asia Pacific is the fastest-growing region, driven by China and South Korea's higher contributions to PEM electrolyzer technology.

North America holds a significant share in the global market. The availability of power plants in the U.S. that produce hydrogen via PEM electrolyzer is backing the regional growth. For instance, in 2022, DOE’s Office of Energy Efficiency & Renewable Energy and the Office of Nuclear Energy already started collaborating with utilities to back three hydrogen demonstration projects at nuclear power plants. The rest of the world is also contributing to the global PEM electrolyzer market, the race for hydrogen production will continue to grow over the forecast period and it will develop PEM technologies.

Key Players Covered

The global PEM electrolyzer market is fragmented in terms of the number of providers. Various market developments and strategic initiatives are anticipated to drive market growth. For instance, in July 2024, Ohmium International, a foremost green hydrogen business, announced the official introduction of its new gigafactory in Bengaluru, India.

The report includes the profiles of the following key players:

• Plug Power Inc. (U.S.)


• Nel ASA (Norway)


• H-Tech Systems (India)


• ITM Power Plc (U.K.)


• Air Liquide (France)


• Elogen (France)


• Hande Hydrogen (China)


• Ningbo Vet Energy Technology Co., Ltd. (China)


• Siemens Energy (Germany)


• Cummins Inc. (U.S.)

Key Industry Developments

• In July 2024, U.S. firm 3M finished a strategic investment in electrolyzer producer Ohmium International as part of energies to expand into developing climate technologies.


• In June 2024, H-TEC Systems, a hydrogen specialist based in Bavaria will be able to produce more than 1 GW of electrolyzers preliminary next year.