Global PEM Electrolyzer Market
Description
MARKET SCOPE:
The global PEM electrolyzer market is projected to grow significantly, registering a CAGR of 24.1% during the forecast period (2024 – 2032).
A Proton Exchange Membrane (PEM) electrolyzer is a device designed to employ an electrochemical process for the separation of water (H2O) into hydrogen (H2) and oxygen (O2) gases. It comprises a solid polymer electrolyte membrane, typically composed of a perfluorinated polymer, along with two electrodes (an anode and a cathode), and catalyst layers. PEM electrolyzer play a pivotal role in advancing renewable energy and facilitating the establishment of a sustainable hydrogen economy. The product's widespread adoption is driven by notable features such as high current densities, a compact system design, and rapid responsiveness to current fluctuations. The electrolyzer market is experiencing significant growth, driven in part by the increasing commercial utilization of hydrogen. Notably, the transportation sector has witnessed substantial growth, contributing significantly to the market's revenue generation. Hydrogen plays a crucial role in cooling generators in power plants, leading to substantial financial advancements over time. Additionally, the utilization of hydrogen contributes to the stabilization of the electrical grid. The production of hydrogen gas is achieved through the coal gasification process.
MARKET OVERVIEW:
Driver: Growing Demand for hydrogen and green hydrogen is predicted to foster the market growth.
The growing enthusiasm for the PEM (Proton Exchange Membrane) electrolyzer market is primarily driven by the surging demand for hydrogen, especially the environmentally friendly variant known as green hydrogen. This upswing in demand is exerting a substantial influence on various industries, particularly impacting transportation, the refining sector, power generation, and energy storage. The adaptability of PEM electrolyzer positions them as pivotal contributors to hydrogen production, presenting a significant opportunity for the development of a clean and sustainable energy carrier. Numerous industries are increasingly acknowledging the advantages of integrating PEM electrolyzer into their operations. In the transportation sector, the utilization of hydrogen fuel cells, generated through electrolysis, emerges as a promising alternative to conventional fossil fuels, thereby contributing to the broader decarbonization efforts within the industry. The refining sector is experiencing a growing adoption of hydrogen for diverse processes, such as hydrotreating and hydrocracking, aiming to enhance fuel quality while mitigating environmental impact. Moreover, within the power and energy storage domain, PEM electrolyzer play a vital role in generating green hydrogen, which can be stored and utilized as a clean energy source as needed. This adaptability in energy storage aligns seamlessly with the increasing emphasis on renewable energy sources and their inherent intermittency.
Opportunities: Campaigns to achieve net zero and electrolysis installation targets is expected to pave the way for market growth in the upcoming years.
Attaining for net zero involves finding an equilibrium between the release of greenhouse gases into the atmosphere and the effective removal of these emissions. A multitude of countries, businesses, cities, and institutions have made commitments to achieve net-zero emissions. Notably, over 70 countries, including major contributors such as China, the US, and the European Union, have established net-zero targets, covering approximately 76% of global emissions. Collaborating with the Science-Based Targets Initiative, over 3,000 businesses and financial entities are actively engaged in aligning their emissions reduction initiatives with climate science. Additionally, more than 1,000 educational institutions, 1,000 cities, and 400 financial institutions have joined forces in the Race to Zero initiative, making robust and immediate pledges to halve global emissions by 2030.
COVID IMPACT:
The instant appearance of COVID-19 as a global health crisis has exerted a significant influence on various industries. Since 2020, a considerable rise in confirmed cases has been observed across almost all countries. The economic landscapes of several rapidly developing nations have been directly impacted by the consequences of the pandemic. This market, too, has been affected by the ongoing COVID-19 epidemic. Industries such as oil refining, chemical manufacturing, and steel production, which currently exhibit substantial hydrogen consumption, have experienced notable disruptions due to the outbreak of COVID-19. The outbreak had a relatively modest effect on the overall expansion of the PEM electrolyzer market. Ongoing project delays, primarily driven by geographical constraints and government regulations, did influence the sector. Nevertheless, by early 2021, the industry had demonstrated a recovery in its momentum as lockdown restrictions were alleviated by various government authorities, leading to the resumption of operations in industrial facilities, manufacturing plants, and the transportation sector. Additionally, strategic investments in new projects and the enhancement of existing infrastructure are poised to complement the overall business scenario.
SEGMENTATION ANALYSIS:
The Above 2 MW segment is anticipated to grow significantly during the forecast period.
The escalating urbanization in developing and underdeveloped nations, coupled with government-backed sustainable building development programs, is poised to drive the demand for products with capacities exceeding 2 MW. Moreover, increased investments in constructing fuel cell infrastructure and chemical facilities, along with the widespread adoption of these systems in railways and other modes of transportation, will contribute to the positive trajectory of the industry. As an illustration, in December 2022, Cummins Inc. entered into a collaboration with Marie Tecnimont Group to develop the largest Proton Exchange Membrane (PEM) electrolyzer for GAIL in India. These electrolyzer, leveraging Cummins's exclusive PEM electrolysis technology, have the capability to produce 4.3 tons of green hydrogen per day. The implementation of such electrolyzer is expected to further enhance business growth.
REGIONAL ANALYSIS:
The Asia Pacific region is set to witness significant growth during the forecast period.
The Asia Pacific market for PEM electrolyzer holds the highest market share in 2022. Governments throughout the region are actively implementing supportive policies, financial incentives, and regulatory frameworks to bolster the adoption of renewable energy and hydrogen technologies. These initiatives serve to incentivize investments in PEM electrolyzer, fostering a conducive market environment for their expansion. For example, in January 2022, the Union Cabinet of India endorsed the National Green Hydrogen Mission, aiming to position India as a global hub for the production, consumption, and export of clean hydrogen and its derivatives. As part of Phase I (2022-23 to 2025-26), the mission focuses on developing local electrolyzer production capacity while concurrently stimulating demand.
COMPETITIVE ANALYSIS
The global PEM electrolyzer market is reasonably competitive with mergers, acquisitions, and product launches. See some of the major key players in the market.
Siemens Energy
In March 2023, Siemens Energy entered into a contract with HIF Global to provide Polymer Electrolyte Membrane (PEM) electrolyzer for HIF Matagorda's eFuels facility in Texas. Through this agreement, the electrolyzer is set to facilitate the annual production of 300,000 tons of green hydrogen. This venture not only serves as a demonstration of Siemens Energy's capabilities in electrolyzer manufacturing and design but also strengthens its position within the U.S. market.
Plug Power Inc.
In March 2023, Plug Power Inc. was chosen by Uniper SE to produce electrolyzer technology for Uniper's Maasvlakte Energy Hub in the Netherlands. As per the agreement, the company is set to supply 10 prefabricated PEM electrolyzer for the project. This collaboration is anticipated to enhance the company's footprint in Europe and contribute to establishing energy security in the market.
Air Liquide
ITM Power PLC
Nel ASA
Erre Due s.p.a.
Elogen
Cummins Inc.
Air Products and Chemicals, Inc.
Giner Inc.
ostermeier H2ydrogen Solutions GmbH
LARSEN & TOUBRO LIMITED
SCOPE OF THE REPORT
By Capacity
≤ 500 kW
> 500 kW – 2 MW
Above 2 MW
By Application
Power Generation
Transportation
Industry Energy
Industry Feedstock
Building Heat & Power
Others
By Region
North America (the United States & Canada)
Europe (Germany, UK, France, Spain, Italy, and the Rest of Europe)
Asia Pacific (China, Japan, India, and Rest of Asia Pacific)
Rest of the World (the Middle East & Africa, and Latin America)
KEY REASONS TO PURCHASE THIS REPORT
It provides a technological development map over time to understand the industry’s growth rate and indicates how the PEM electrolyzer market is evolving.
The report offers a dynamic method to various factors that drive or restrain the growth of the market and specifies which PEM electrolyzer submarket will be the main driver of the overall market from 2024 to 2032.
It renders a definite analysis of changing competitive dynamics and stipulates the leading players and what are their prospects over the forecast period.
It builds a nine-year estimate based on how the market is predicted to grow and shows what will market shares of the global region change by 2032 and which country will lead the market in 2032.
The global PEM electrolyzer market is projected to grow significantly, registering a CAGR of 24.1% during the forecast period (2024 – 2032).
A Proton Exchange Membrane (PEM) electrolyzer is a device designed to employ an electrochemical process for the separation of water (H2O) into hydrogen (H2) and oxygen (O2) gases. It comprises a solid polymer electrolyte membrane, typically composed of a perfluorinated polymer, along with two electrodes (an anode and a cathode), and catalyst layers. PEM electrolyzer play a pivotal role in advancing renewable energy and facilitating the establishment of a sustainable hydrogen economy. The product's widespread adoption is driven by notable features such as high current densities, a compact system design, and rapid responsiveness to current fluctuations. The electrolyzer market is experiencing significant growth, driven in part by the increasing commercial utilization of hydrogen. Notably, the transportation sector has witnessed substantial growth, contributing significantly to the market's revenue generation. Hydrogen plays a crucial role in cooling generators in power plants, leading to substantial financial advancements over time. Additionally, the utilization of hydrogen contributes to the stabilization of the electrical grid. The production of hydrogen gas is achieved through the coal gasification process.
MARKET OVERVIEW:
Driver: Growing Demand for hydrogen and green hydrogen is predicted to foster the market growth.
The growing enthusiasm for the PEM (Proton Exchange Membrane) electrolyzer market is primarily driven by the surging demand for hydrogen, especially the environmentally friendly variant known as green hydrogen. This upswing in demand is exerting a substantial influence on various industries, particularly impacting transportation, the refining sector, power generation, and energy storage. The adaptability of PEM electrolyzer positions them as pivotal contributors to hydrogen production, presenting a significant opportunity for the development of a clean and sustainable energy carrier. Numerous industries are increasingly acknowledging the advantages of integrating PEM electrolyzer into their operations. In the transportation sector, the utilization of hydrogen fuel cells, generated through electrolysis, emerges as a promising alternative to conventional fossil fuels, thereby contributing to the broader decarbonization efforts within the industry. The refining sector is experiencing a growing adoption of hydrogen for diverse processes, such as hydrotreating and hydrocracking, aiming to enhance fuel quality while mitigating environmental impact. Moreover, within the power and energy storage domain, PEM electrolyzer play a vital role in generating green hydrogen, which can be stored and utilized as a clean energy source as needed. This adaptability in energy storage aligns seamlessly with the increasing emphasis on renewable energy sources and their inherent intermittency.
Opportunities: Campaigns to achieve net zero and electrolysis installation targets is expected to pave the way for market growth in the upcoming years.
Attaining for net zero involves finding an equilibrium between the release of greenhouse gases into the atmosphere and the effective removal of these emissions. A multitude of countries, businesses, cities, and institutions have made commitments to achieve net-zero emissions. Notably, over 70 countries, including major contributors such as China, the US, and the European Union, have established net-zero targets, covering approximately 76% of global emissions. Collaborating with the Science-Based Targets Initiative, over 3,000 businesses and financial entities are actively engaged in aligning their emissions reduction initiatives with climate science. Additionally, more than 1,000 educational institutions, 1,000 cities, and 400 financial institutions have joined forces in the Race to Zero initiative, making robust and immediate pledges to halve global emissions by 2030.
COVID IMPACT:
The instant appearance of COVID-19 as a global health crisis has exerted a significant influence on various industries. Since 2020, a considerable rise in confirmed cases has been observed across almost all countries. The economic landscapes of several rapidly developing nations have been directly impacted by the consequences of the pandemic. This market, too, has been affected by the ongoing COVID-19 epidemic. Industries such as oil refining, chemical manufacturing, and steel production, which currently exhibit substantial hydrogen consumption, have experienced notable disruptions due to the outbreak of COVID-19. The outbreak had a relatively modest effect on the overall expansion of the PEM electrolyzer market. Ongoing project delays, primarily driven by geographical constraints and government regulations, did influence the sector. Nevertheless, by early 2021, the industry had demonstrated a recovery in its momentum as lockdown restrictions were alleviated by various government authorities, leading to the resumption of operations in industrial facilities, manufacturing plants, and the transportation sector. Additionally, strategic investments in new projects and the enhancement of existing infrastructure are poised to complement the overall business scenario.
SEGMENTATION ANALYSIS:
The Above 2 MW segment is anticipated to grow significantly during the forecast period.
The escalating urbanization in developing and underdeveloped nations, coupled with government-backed sustainable building development programs, is poised to drive the demand for products with capacities exceeding 2 MW. Moreover, increased investments in constructing fuel cell infrastructure and chemical facilities, along with the widespread adoption of these systems in railways and other modes of transportation, will contribute to the positive trajectory of the industry. As an illustration, in December 2022, Cummins Inc. entered into a collaboration with Marie Tecnimont Group to develop the largest Proton Exchange Membrane (PEM) electrolyzer for GAIL in India. These electrolyzer, leveraging Cummins's exclusive PEM electrolysis technology, have the capability to produce 4.3 tons of green hydrogen per day. The implementation of such electrolyzer is expected to further enhance business growth.
REGIONAL ANALYSIS:
The Asia Pacific region is set to witness significant growth during the forecast period.
The Asia Pacific market for PEM electrolyzer holds the highest market share in 2022. Governments throughout the region are actively implementing supportive policies, financial incentives, and regulatory frameworks to bolster the adoption of renewable energy and hydrogen technologies. These initiatives serve to incentivize investments in PEM electrolyzer, fostering a conducive market environment for their expansion. For example, in January 2022, the Union Cabinet of India endorsed the National Green Hydrogen Mission, aiming to position India as a global hub for the production, consumption, and export of clean hydrogen and its derivatives. As part of Phase I (2022-23 to 2025-26), the mission focuses on developing local electrolyzer production capacity while concurrently stimulating demand.
COMPETITIVE ANALYSIS
The global PEM electrolyzer market is reasonably competitive with mergers, acquisitions, and product launches. See some of the major key players in the market.
Siemens Energy
In March 2023, Siemens Energy entered into a contract with HIF Global to provide Polymer Electrolyte Membrane (PEM) electrolyzer for HIF Matagorda's eFuels facility in Texas. Through this agreement, the electrolyzer is set to facilitate the annual production of 300,000 tons of green hydrogen. This venture not only serves as a demonstration of Siemens Energy's capabilities in electrolyzer manufacturing and design but also strengthens its position within the U.S. market.
Plug Power Inc.
In March 2023, Plug Power Inc. was chosen by Uniper SE to produce electrolyzer technology for Uniper's Maasvlakte Energy Hub in the Netherlands. As per the agreement, the company is set to supply 10 prefabricated PEM electrolyzer for the project. This collaboration is anticipated to enhance the company's footprint in Europe and contribute to establishing energy security in the market.
Air Liquide
ITM Power PLC
Nel ASA
Erre Due s.p.a.
Elogen
Cummins Inc.
Air Products and Chemicals, Inc.
Giner Inc.
ostermeier H2ydrogen Solutions GmbH
LARSEN & TOUBRO LIMITED
SCOPE OF THE REPORT
By Capacity
≤ 500 kW
> 500 kW – 2 MW
Above 2 MW
By Application
Power Generation
Transportation
Industry Energy
Industry Feedstock
Building Heat & Power
Others
By Region
North America (the United States & Canada)
Europe (Germany, UK, France, Spain, Italy, and the Rest of Europe)
Asia Pacific (China, Japan, India, and Rest of Asia Pacific)
Rest of the World (the Middle East & Africa, and Latin America)
KEY REASONS TO PURCHASE THIS REPORT
It provides a technological development map over time to understand the industry’s growth rate and indicates how the PEM electrolyzer market is evolving.
The report offers a dynamic method to various factors that drive or restrain the growth of the market and specifies which PEM electrolyzer submarket will be the main driver of the overall market from 2024 to 2032.
It renders a definite analysis of changing competitive dynamics and stipulates the leading players and what are their prospects over the forecast period.
It builds a nine-year estimate based on how the market is predicted to grow and shows what will market shares of the global region change by 2032 and which country will lead the market in 2032.
Table of Contents
165 Pages
- 1. Executive Summary
- 1.1. Market Snapshot
- 1.2. Regional Analysis
- 1.3. Segment Analysis
- 2. Overview And Scope
- 2.1. Market Vision
- 2.1.1. Market Definition
- 2.2. Market Segmentation
- 3. Global Pem Electrolyzer Market Overview By Region: 2019 Vs 2023 Vs 2032
- 3.1. Global Pem Electrolyzer Market Size By Regions (2019-2023) (Usd Million)
- 3.1.1. North America Pem Electrolyzer Market Size By Country (2019-2023) (Usd Million)
- 3.1.2. Europe Pem Electrolyzer Market Size By Country (2019-2023) (Usd Million)
- 3.1.3. Asia Pacific America Pem Electrolyzer Market Size By Country (2019-2023) (Usd Million)
- 3.1.4. Rest Of The World Pem Electrolyzer Market Size By Country (2019-2023) (Usd Million)
- 3.2. Global Pem Electrolyzer Market Size By Regions (2024-2032) (Usd Million)
- 3.2.1. North America Pem Electrolyzer Market Size By Country (2024-2032) (Usd Million)
- 3.2.2. Europe Pem Electrolyzer Market Size By Country (2024-2032) (Usd Million)
- 3.2.3. Asia Pacific Pem Electrolyzer Market Size By Country (2024-2032) (Usd Million)
- 3.2.4. Rest Of The World Pem Electrolyzer Market Size By Country (2024-2032) (Usd Million)
- 4. Global Pem Electrolyzer Market Dynamics
- 4.1. Market Overview
- 4.1.1. Market Drivers
- 4.1.2. Market Restraints/ Challenges Analysis
- 4.1.3. Market Opportunities
- 4.2. Pestle Analysis
- 4.3. Porter’s Five Forces Model
- 4.3.1. Bargaining Power Of Suppliers
- 4.3.2. Bargaining Power Of Buyers
- 4.3.3. The Threat Of New Entrants
- 4.3.4. Threat Of Substitutes
- 4.3.5. Intensity Of Rivalry
- 4.4. Value Chain Analysis/Supply Chain Analysis
- 4.5. Covid-19 Impact Analysis On Global Pem Electrolyzer Market
- ** In – Depth Qualitative Analysis Will Be Provided In The Final Report Subject To Market
- 5. Global Pem Electrolyzer Market, By Capacity
- 5.1. Overview
- 5.2. Global Pem Electrolyzer Market Size By Capacity
- 5.3. Key Findings For Pem Electrolyzer Market - By Capacity
- 5.3.1. ≤ 500 Kw
- 5.3.2. > 500 Kw – 2 Mw
- 5.3.3. Above 2 Mw
- 6. Global Pem Electrolyzer Market, By Application
- 6.1. Overview
- 6.2. Key Findings For Pem Electrolyzer Market - By Application
- 6.2.1. Power Generation
- 6.2.2. Transportation
- 6.2.3. Industry Energy
- 6.2.4. Industry Feedstock
- 6.2.5. Building Heat & Power
- 6.2.6. Others
- 7. Global Pem Electrolyzer Market, By Region
- 7.1. Overview
- 7.2. Key Findings For Pem Electrolyzer Market- By Region
- 7.3. Global Pem Electrolyzer Market, By Capacity
- 7.4. Global Pem Electrolyzer Market, By Application
- 8. Global Pem Electrolyzer Market- North America
- 8.1. Overview
- 8.2. North America Pem Electrolyzer Market Size (2019 - 2032) (Usd Million)
- 8.3. North America Pem Electrolyzer Market, By Capacity
- 8.4. North America Pem Electrolyzer Market, By Application
- 8.5. North America Pem Electrolyzer Market Size By Countries
- 8.5.1. United States
- 8.5.2. Canada
- 9. Global Pem Electrolyzer Market- Europe
- 9.1. Overview
- 9.2. Europe Pem Electrolyzer Market Size (2019 - 2032) (Usd Million)
- 9.3. Europe Pem Electrolyzer Market, By Capacity
- 9.4. Europe Pem Electrolyzer Market, By Application
- 9.5. Europe Pem Electrolyzer Market Size By Countries
- 9.5.1. Germany
- 9.5.2. Uk
- 9.5.3. France
- 9.5.4. Spain
- 9.5.5. Italy
- 9.5.6. Rest Of Europe
- 10. Global Pem Electrolyzer Market - Asia Pacific
- 10.1. Overview
- 10.2. Asia Pacific Pem Electrolyzer Market Size (2019 - 2032) (Usd Million)
- 10.3. Asia Pacific Pem Electrolyzer Market, By Capacity
- 10.4. Asia Pacific Pem Electrolyzer Market, By Application
- 10.5. Asia Pacific Pem Electrolyzer Market Size By Countries
- 10.5.1. China
- 10.5.2. Japan
- 10.5.3. India
- 10.5.4. Rest Of Asia Pacific
- 11. Global Pem Electrolyzer Market- Rest Of World
- 11.1. Overview
- 11.2. Rest Of World Pem Electrolyzer Market Size (2019 - 2032) (Usd Million)
- 11.3. Rest Of World Pem Electrolyzer Market, By Capacity
- 11.4. Rest Of World Pem Electrolyzer Market, By Application
- 11.5. Rest Of World Pem Electrolyzer Market Size By Regions
- 11.5.1. Middle East & Africa
- 11.5.2. Latin America
- 12. Global Pem Electrolyzer Market- Competitive Landscape
- 12.1. Key Strategies Adopted By The Leading Players
- 12.2. Recent Developments
- 12.2.1. Investments & Expansions
- 12.2.2. New End-user Launches
- 12.2.3. Mergers & Acquisitions
- 12.2.4. Agreements, Joint Ventures, And Partnerships
- 13. Global Pem Electrolyzer Market- Company Profiles
- 13.1. Siemens Energy
- 13.1.1. Company Overview
- 13.1.2. Financial Overview
- 13.1.3. Product Offered
- 13.1.4. Key Developments
- 13.2. Air Liquide
- 13.3. Plug Power Inc.
- 13.4. Itm Power Plc
- 13.5. Nel Asa
- 13.6. Erre Due S.P.A.
- 13.7. Elogen
- 13.8. Cummins Inc.
- 13.9. Air Products And Chemicals, Inc.
- 13.10. Giner Inc.
- 13.11. Ostermeier H2ydrogen Solutions Gmbh
- 13.12. Larsen & Toubro Limited
- 14. Our Research Methodology
- 14.1. Data Triangulation
- 14.2. Data Sources
- 14.2.1. Secondary Sources
- 14.2.2. Primary Sources
- 14.3. Assumptions/ Limitations For The Study
- 14.4. Research & Forecasting Methodology
- 15. Appendix
- 15.1. Disclaimer
- 15.2. Contact Us
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