Description
Global PEM Electrolyzer Market: Industry Overview
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.
Impact of COVID-19
The PEM electrolyzer market was affected positively by COVID-19 as an investment in renewable energy surged to record heights and sales of fuel cell vehicles increased. The sales of fuel cell vehicles (FCVs) reduced significantly in 2020, with only 937 vehicles sold in the U.S., according to the California Fuel Cell Partnership. However, the sales rebounded spectacularly in 2021, with an increase of 257% year-over-year and a record 3,341 fuel cell vehicles sold. The PEM electrolyzer market was among the few markets that were positively affected by COVID-19, and the market has since continued its growth. The demand for green hydrogen is growing day by day, and with rising sales of fuel cell vehicles and a growing emphasis on decarbonization and sustainability, the demand for PEM electrolyzers is expected to keep on growing in the coming years.
Market Segmentation:
• Segmentation 1: by End User
Refining Industry
Power and Energy Storage
Ammonia Production
Methanol Production
Transportation
Others
Based on end users, ammonia production led the global PEM electrolyzer market in 2021
• Segmentation 2: by Material Type
Iridium
Platinum
Others
The global PEM electrolyzer market was led by platinum in terms of material type in 2021.
Segmentation 4: by Region
o North America – U.S., Canada, and Mexico
o Europe – Germany, France, Netherlands, Spain, and Rest-of-Europe
o China
o U.K.
o Asia-Pacific and Japan – Japan, India, South Korea, Australia, and Rest-of-Asia-Pacific
o Rest-of-the-World– South America, and Middle East and Africa
In the global PEM electrolyzer market, Europe dominates the market due to the presence of several leading companies, such as Nel ASA, ITM Power PLC, and many more, along with a highly developed renewable energy market and growing sales of fuel cell vehicles.
Recent Developments in the Global PEM Electrolyzer Market
• In March 2022, Elogen received an order of 1 MW proton exchange membrane (PEM) electrolyzer from Communauté d’Agglomération Pau Béarn Pyrénées. 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.
Demand – Drivers and Limitations
The following are the demand drivers for the global PEM Electrolyzer market:
Rising Adoption of Fuel Cell Electric Vehicles (FCEVs)
Prevailing Research and Development Initiatives for Technological Advancements in PEM Electrolyzer
Increasing Demand for Green Hydrogen
The market is expected to face some limitations as well due to the following challenges:
High Energy Losses during Production Process
High Cost of Production due to the Use of Precious Metals in PEM Technology
Analyst View
According to Sachin Singh, Lead Analyst, “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?
Product/Innovation Strategy: The product segment helps the reader understand the different material types involved in the production of PEM electrolyzers. Moreover, the study provides the reader with a detailed understanding of the global PEM electrolyzer market based on the end user (refining industry, ammonia production, methanol production, power and energy storage, transportation, and others). 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.
Growth/Marketing Strategy: 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.
Competitive Strategy: 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.
Some of the established names in this market are:
Company Type (by End User)
Plug Power Inc
Nel ASA
Cummins. Inc.
ITM Power PLC
Hitachi Zosen Corporation
Elogen
Siemens Energy
Ningbo Vet Energy Technology Co., Ltd.
Companies that are not a part of the previously mentioned pool have been well represented across different sections of the report (wherever applicable).
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