PEM Electrolyzers Market Size, Share, Growth, And Industry Analysis by Type (Small Scale Type, Middle Scale Type & Large Scale Type) by Downstream Industry (Hydrogen Refueling Station, Laboratory, Petrochemical Industry, Electronics and Semiconductor, Power to Gas & Others) and Regional Forecast to 2032

Updated On: 02 September 2024

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PEM ELECTROLYZERS MARKET REPORT OVERVIEW

The global PEM Electrolyzers Market size reached a value of USD 270.82 million in 2023. It’s expected that the market will achieve USD 24179.26 million by 2032, exhibiting a CAGR of 56.7% during the forecast period.

A PEM (Proton Exchange Membrane) electrolyzer is a device used to conduct electrolysis of water into oxygen and hydrogen with the help of proton exchange membranes. Known for their close relationship with proton exchange membranes, hydrogen fuel cells and PEM electrolyzers serve as sources of power for many applications. The advantages such as high efficiency in producing hydrogen plus low operating temperatures make hidden costs much lower than other methods.

There are various factors which are driving the growth of the mechanical mine clearance system market such as the rising requirement from end-use industries and increasing usage of PEM electrolyzers in producing green hydrogen fuel. PEM electrolyzers are well known for their high productivity and working within high current densities. On the whole, this technology of PEM electrolyzers shows potential for sustainable hydrogen production that would be important in the move to a hydrogen economy.

COVID-19 Impact: Investment in Renewable Energy Surged Led To Increased Demand

The COVID-19 pandemic has been unprecedented and staggering, with PEM electrolyzers markets experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels once the pandemic is over.

During the COVID-19 pandemic, many companies and governments started investing heavily in renewable energy sources hence leading to increased demand for PEM electrolyzers. With most nations emphasising green recovery programs, investment in hydrogen technology increased exponentially. This made it possible to pay more attention to PEM electrolyzers which play an important role in producing green hydrogen. As a result of such calls there have been numerous collaborations as well as initiatives whose overall goal is minimising carbon emissions while enhancing energy security. Supply chain disruptions were challenging at first, but the long-term outlook is promising, due to the global transition to alternative energy and less dependence on fossil fuels.

LATEST TRENDS

"Incentives to Promote Eco-friendly Technologies is a Latest Trend "

The PEM electrolyzer industry is being driven by incentives that are aimed at eco friendly technologies. Nations all around the world and organisations are providing grants, tax exemptions, and subsidies in an attempt to induce the rise of green hydrogen. As a result, such motivations are hastening up this type of development while making them cheaper and more innovative. The sustainable energy solutions are pushing forth the growth of the market, attracting investment and providing support to global endeavours that fight against climate change. This means that PEM electrolyzers are fast being considered as important tools in achieving a low carbon economy.

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PEM ELECTROLYZERS MARKET SEGMENTATION

By Type

Depending on the global PEM electrolyzers market given are types: Small Scale Type, Middle Scale Type & Large Scale Type.

Small Scale Type: This type of small scale electrolyzers are compatible for small sized industries application. They are compact and flexible.

Middle Scale Type: It is designed for medium type of industries for mid-sized applications. It is cheaper in cost and provides flexible operations.

Large Scale Type: The large scale electrolyzers are made for huge workload in large industries. It is made heavy duty and strong for operations.

By Downstream Industry

The market is divided into Hydrogen Refuelling Station, Laboratory, Petrochemical Industry, Electronics and Semiconductor, Power to Gas & Others.

Hydrogen Refuelling Station: It utilises PEM electrolyzers to produce hydrogen on-site for refuelling hydrogen fuel cell vehicles

Laboratory: In the laboratory it is used for research and development for hydrogen production.

Petrochemical Industry: In the petrochemical industry it is used to generate hydrogen in the refining process.

Electronics and Semiconductor: The electrolyzer ensures high-purity hydrogen essential for precision and quality in electronic components.

Power to Gas: Here the renewable energy is converted into hydrogen with the help of PEM electrolyzer.

Others: The other uses can be seen in the metal refining, food packaging & other industries.

DRIVING FACTORS

"Increasing Demand from the End-use Industries Drive Growth in Market"

The increasing demand from the end-use industries is one of the reasons driving the PEM electrolyzers market growth. The world is embracing alternatives that are efficient and environmentally friendly in sectors like hydrogen refuelling stations, petrochemicals, and electronics. The demand is stimulated by the need for cleaner sources of energy as well as lower carbon dioxide emissions. The utilization of PEM electrolyzers is becoming crucial as firms search for hydrogen that is both pure and dependable all the time. These devices help in the transition to greener technologies while also extending markets due to their various uses.

"Increasing Adoption in Generating Green Hydrogen Increases the Market Demand"

Another important reason driving the market is the increasing adoption of PEM electrolyzers in generating green hydrogen. Alternatively, green hydrogen—which is formed via the usage of renewable energy sources—is taking on importance with rising global endeavours to diminish carbon emissions. The reason is simple: PEM electrolyzers stand out for their efficiency and compatibility with renewable energy systems, thus playing a key role in this process. The acceleration of PEM electrolyzer refers to the human activities which use this type of energy in their machines, processes or for household appliances. Additionally, the promotion of cleaner production methods and the overall move towards a low-carbon economy are also being facilitated.

RESTRAINING FACTORS

"High Energy Losses during Production Process Hamper the Market Growth"

One limiting factor affecting the PEM electrolyzers is the High Energy Losses during Production Process. Although they are very efficient, large amounts of energy are lost during the process of converting energy from electrical sources to chemical forms in PEM electrolyzers, which in turn affects their operational cost and efficiency. Thus, hydrogen produced using this technique is much more expensive than other techniques which make its use less common.

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PEM ELECTROLYZERS MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America and Middle East & Africa.

"Europe to Dominate the Market due to Presence of Leading Companies in the Region"

The market in Europe is the most dominant region and largest PEM electrolyzers market share as well as exhibiting very high profitability. Industry key players like Siemens, ITM Power and Nel Hydrogen are innovating, while increasing their production capacity. The European Union’s commitment to renewables and green hydrogen projects further enhances the market. The European leadership in PEM electrolyzer technology development is supported by favourable policies, major funding in R&D and an established industrial base which makes it a world hub for hydrogen productions.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

The PEM electrolyzers market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of electrolyzers options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• Proton On-Site (U.S.)
• ITM Power (U.K.)
• 718th Research Institute of CSIC (China)
• Toshiba (Japan)
• Elogen (France)
• Elchemtech (South Korea)
• Cummins (U.S.)
• H2B2 (Spain)
• Shandong Saksay Hydrogen Energy (China)
• Siemens (Germany)
• Kobelco Eco-Solutions (Japan)

INDUSTRIAL DEVELOPMENT

November 2023: The new gigawatt scale plant for electrolyzer modules with high efficiency has been launched by Siemens Energy in partnership with Air Liquide in Berlin. Production of PEM electrolyzers will be conducted using robotics and automation at the facility. The objective is to produce low carbon hydrogen at a competitive price while enhancing Europe’s innovative ecosystem. This will enable these companies to play an important role in the establishment of a sustainable hydrogen economy as well as have a solid presence all over the continent.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.