The global PEM electrolyzer market is forecast to reach a value of $2,302.4 million by 2031 from $95.9 million in 2021, growing at a CAGR of 37.4%
The demand for PEM electrolyzers is anticipated to grow with the increasing demand from the end-use industries such as ammonia production, refining industry, power and energy storage, transportation, methanol production, and others.
Furthermore, it is anticipated that during the projected period 2022-2031, the increasing adoption of PEM electrolyzers in generating green hydrogen and the investment from the government and private sector companies toward renewable energy is expected to further fuel the advancement of the global PEM electrolyzer market.
However, the lack of hydrogen infrastructures, such as hydrogen storage and hydrogen transportation, is anticipated to hinder market growth in the upcoming future.
Market Lifecycle Stage
The global PEM electrolyzer market is in the growth phase. Rising sales of fuel cell vehicles and increasing focus on decarbonization and controlling greenhouse emissions are expected to boost market growth.
Furthermore, due to high demand from the end-user industries and rising government regulations related to controlling GHG emissions are expected to increase the demand for eco-sustainable fuels, thereby bolstering the global PEM electrolyzer market.
Moreover, the global PEM electrolyzer market is expected to benefit from the growing demand for green hydrogen, which would promote market expansion. The requirement for PEM electrolyzers is being stimulated by fuel cell electric vehicles as well.
Industrial Impact
Growing demand for hydrogen and green hydrogen is the main driving force behind the growing interest in the PEM electrolyzer market.
As a result, these materials are getting prominence in a variety of industries, including transportation, refining industry, and power and energy storage, among others. One area where implementation has been significantly greater is ammonia production, which has created opportunities for both existing market participants and market entrants.
Furthermore, PEM electrolyzers have a moderate to high impact on end-user industries; however, in the upcoming future, with increased production of ammonia, electric vehicles, and other applications, the impact is anticipated to increase.
Analyst View
According to Sachin Singh, Lead Analyst at the publisher, "PEM electrolysis has gained growth in recent years due to a growing emphasis on environmentally friendly and low-carbon technology. PEM electrolysis is gaining popularity among companies as there is zero carbon emission, and it uses electricity as a feedstock.
This electricity is generated by renewable energy sources such as wind and solar, which are abundant and produce no greenhouse gases. Furthermore, due to a number of technical and performance advancements in proton exchange membrane electrolyzer, the market is anticipated to expand quickly during the forecast period."
How can this report add value to an organization?
PEM electrolyzers are gaining traction in end-user industries on the back of sustainability concerns and their high-power density properties. They are also being used for controlling GHG emissions.
The global PEM electrolyzer market has seen major development by key players operating in the market, such as business expansions, partnerships, collaborations, mergers and acquisitions, and joint ventures. The favored strategy for the companies has been product developments, business expansions, and acquisitions to strengthen their position in the global PEM electrolyzer market.
For instance, in May 2022, Ohmium signed a collaboration agreement with Politecnico di Torino University in Turin, Italy. Ohmium is focused on developing next-generation catalyst materials used in PEM electrolysis, and the collaboration is expected to help the company determine the requirements for future projects.
Key players in the global PEM electrolyzer market analyzed and profiled in the study involve PEM electrolyzer manufacturers and the overall ecosystem.
Moreover, a detailed competitive benchmarking of the players operating in the global PEM electrolyzer market has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive
Key Market Players and Competition Synopsis
The companies that are profiled have been selected based on inputs gathered from primary experts, analyzing company coverage, product portfolio, and market penetration.
The global PEM electrolyzer market has been segmented by different end users, among which ammonia production captured around 33.0% of the market as of 2021.
Other end users, including transportation, accounted for around 15.6%, the refining industry accounted for 22.6%, power and energy storage accounted for 7.2%, methanol production accounted for 4.7%, and other end-use industry accounted for 16.9% of the total demand in 2021 in terms of value.
Recent Developments in the Global PEM Electrolyzer Market
In March 2022, Elogen received an order of 1 MW proton exchange membrane (PEM) electrolyzer from Communaute d'Agglomeration Pau Bearn Pyrenees. Elogen would design and produce this PEM electrolyzer and would deliver it in the first half of 2023 to the Lescar wastewater treatment site.
In April 2022, Ohmium received an investment of around $45 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.
In July 2022, Plug Power Inc. signed a contract with an international energy company, Irving Oil, to supply a 5-megawatt (MW) containerized proton exchange membrane (PEM) electrolyzer system for the production and distribution of hydrogen at its Saint John, New Brunswick refinery in Canada.
Some of the established names in this market are:
Plug Power Inc
Nel ASA
Cummins. Inc.
ITM Power PLC
Hitachi Zosen Corporation
Elogen
Siemens Energy
Ningbo Vet Energy Technology Co., Ltd.
Key Attributes:
Report Attribute
Details
No. of Pages
278
Forecast Period
2021 - 2031
Estimated Market Value (USD) in 2021
$95.9 Million
Forecasted Market Value (USD) by 2031
$2302.4 Million
Compound Annual Growth Rate
37.4%
Regions Covered
Global
Business Dynamics
Business Drivers
Increasing Demand for Green Hydrogen
Rising Adoption of Fuel Cell Electric Vehicles (FCEVs)
Prevailing Research and Development Initiatives for Technological Advancements
Business Challenges
High Energy Losses during Production Process
High Cost of Production due to Usage of Precious Metals in PEM Technology
Business Strategies
Market Developments
Corporate Strategies
Partnerships, Collaborations, and Joint Ventures
Business Opportunities
Rising Need for Hydrogen Energy Storage Infrastructure
Rising Demand for Green Fuel Technologies and Green Fertilizers
Start-Up/Emerging Manufacturer Landscape
Key Start-Ups/Emerging Manufacturers in the Ecosystem
New Products/Offerings
Industry Outlook
Trends: Current and Future
Rising Government Efforts to Construct Low-Carbon Infrastructure
Surge in Sustainable Hydrogen Economy
Rising Demand for Advanced Electrolysis Technologies
Ecosystem/Ongoing Programs
Consortiums and Associations
Regulatory Bodies
Government Programs
Programs by Research Institutions and Universities
Iridium Impact on PEM Electrolyzer: Current and Future
Iridium Scarcity and Deposits
Methods to Reduce Iridium Dependence
Research and Development Activities by Universities/Institutes
Company Innovations to Lessen Reliance on Iridium
Proposed Activities to Enhance the Efficiency of PEM Electrolyzers
Iridium, Osmium, and Ruthenium: Import and Export Analysis by key Countries, (2017-2021)
Global Iridium Supply and Demand Gap
Impact of Russia-Ukraine Conflict on the PEM Electrolyzer Market
Impact on the Supply Chain of the PEM Electrolyzer Market
Sanctions on Russia and Evaluation of These Sanctions
Effect of Sanctions on Russia
Impact of Sanctions on other Countries
The Road Ahead
Key Metal Importers from Russia
New Sourcing Avenues for Key Metal Importers from Russia
Detailed Analysis of Key Steps Taken by Key 10 PEM Electrolyzer Manufacturers to Mitigate Iridium Demand-Supply Gap
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