Pem Electrolyzer Market
PEM Electrolyzer Market Forecasts to 2032 - Global Analysis By Component (Bipolar Plates, Membrane Electrode Assembly (MEA), End Plates & Gaskets, Balance of Plant (BoP) and Other Components), Capacity, Application, End User and By Geography
|
Years Covered |
2024-2032 |
|
Estimated Year Value (2025) |
US $1.3 BN |
|
Projected Year Value (2032) |
US $10.9 BN |
|
CAGR (2025-2032) |
35.5% |
|
Regions Covered |
North America, Europe, Asia Pacific, South America, and Middle East & Africa |
|
Countries Covered |
US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa |
|
Largest Market |
Europe |
|
Highest Growing Market |
Asia Pacific |
According to Stratistics MRC, the Global PEM Electrolyzer Market is accounted for $1.3 billion in 2025 and is expected to reach $10.9 billion by 2032, growing at a CAGR of 35.5% during the forecast period. A PEM electrolyzer is a device that utilizes electrical energy to perform the electrolysis process, effectively separating water into its constituent elements, hydrogen and oxygen. The system uses a strong polymer membrane as the electrolyte, allowing protons to pass through while blocking gases. PEM electrolyzers exhibit high efficiency, rapid response times, and a compact design, making them suitable for the integration of renewable energy and the production of green hydrogen. Their applications are particularly relevant in transportation, industrial processes, and grid balancing.
According to the International Energy Agency (IEA), globally installed electrolyzer capacity reached 1.4?GW at the end of 2023, nearly doubling from the previous year. Proton Exchange Membrane (PEM) electrolyzers accounted for approximately 300 MW of this capacity.
Market Dynamics:
Driver:
Growing demand for green hydrogen
The demand for green hydrogen is being driven by the global move toward renewable energy sources and the growing emphasis on decarbonization. PEM electrolyzers, which use renewable energy sources like sun and wind to split water into hydrogen and oxygen, are essential to the production of green hydrogen. Transportation, power generation, and chemical industries all depend on this clean hydrogen. Green hydrogen is becoming a key component of sustainable energy transitions as a result of encouraging government policies and financial incentives that are speeding up investments in hydrogen infrastructure.
Restraint:
Limited availability of critical materials
One major issue is the lack of essential materials for PEM electrolyzers, namely platinum and iridium. Despite being costly and scarce, these materials are essential for the membrane electrode construction. PEM electrolyzers are more costly to manufacture as a result of this restriction, making them less accessible to smaller market players. The dependence on these uncommon elements creates supply chain vulnerabilities, further hindering PEM technology's scalability in cost-sensitive sectors.
Opportunity:
Integration with renewable energy sources
PEM electrolyzers provide a substantial growth potential when combined with renewable energy sources. PEM electrolyzers can produce green hydrogen using extra electricity from solar and wind energy, helping to stabilize the power grid and support efforts to reduce carbon emissions. Furthermore, improvements in electrolyzer technology are lowering expenses and increasing effectiveness, allowing for wider industry usage. Long-term market expansion is anticipated due to the synergy between hydrogen generation and renewable energy.
Threat:
Policy uncertainty and lack of long-term vision
Inconsistent rules and a lack of a coherent long-term strategy for hydrogen adoption threaten market expansion. Numerous governments are funding green hydrogen projects, but inconsistent laws and underdeveloped infrastructure hinder their advancement. Also, competition from other technologies like alkaline electrolysis makes the rules more complicated and could delay the widespread use of PEM electrolyzers.
Covid-19 Impact:
Due to supply chain disruptions and project timeline delays, the COVID-19 pandemic caused disruptions in the PEM electrolyzer business. Key hydrogen consumers like steel, chemicals, and oil refining saw a reduction in activities during lockdowns, which affected the need for electrolyzers. But the epidemic also highlighted the necessity of robust energy networks, which led to a resurgence of clean energy technology investments after the recovery. The emphasis on sustainable infrastructure increased as economies recovered, making PEM electrolyzers essential parts of green recovery strategies.
The membrane electrode assembly (MEA) segment is expected to be the largest during the forecast period
The membrane electrode assembly (MEA) segment is expected to account for the largest market share during the forecast period. This is due to its crucial role in facilitating electrochemical processes during hydrogen production. MEAs integrate cutting-edge catalysts like platinum and iridium to guarantee outstanding efficiency and durability in PEM systems. The fact that sectors such as transportation and electricity generation widely use them highlights their relevance. Furthermore, continued R&D efforts to enhance MEA performance while lowering costs will further support their adoption during the projection period.
The hydrogen generation for industrial use segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the hydrogen generation for industrial use segment is predicted to witness the highest growth rate. This growth rate is attributed to the increasing demand from industries such as chemicals, steel, and ammonia production. In these sectors, green hydrogen provides a sustainable substitute for conventional fossil fuels that supports international decarbonization objectives. Government incentives for clean technology adoption are also encouraging industries to switch to green hydrogen solutions. This pattern emphasizes how crucial industrial applications are becoming to market growth.
Region with largest share:
During the forecast period, the Europe region is expected to hold the largest market share due to its strong commitment to becoming carbon neutral by 2050. This leadership is demonstrated by the European Union's large investments in green hydrogen infrastructure and renewable energy initiatives. Initiatives to use PEM electrolyzers in transportation networks and industrial processes are being led by nations like France and Germany. Additionally, encouraging laws like tax breaks and subsidies fosters an atmosphere that is conducive to market expansion in this area.
Region with highest CAGR:
Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR because of increased investments in renewable energy and growing demand for green hydrogen across end-use industries, including power generation and transportation. Leading this expansion are nations like China, South Korea, Japan, and India, which are putting ambitious hydrogen plans into action with the help of public-private partnerships. Furthermore, the growing use of fuel cell cars in this area is driving up demand for PEM electrolyzers.
Key players in the market
Some of the key players in PEM Electrolyzer Market include Plug Power Inc., Nel ASA, Cummins Inc., ITM Power PLC, Hitachi Zosen Corporation, Elogen, Siemens Energy AG, Ningbo Vet Energy Technology Co., Ltd., Ohmium International, Inc., Hystar, H-TEC SYSTEMS GmbH, Bloom Energy Corporation, McPhy Energy S.A., Giner Inc., Areva H2Gen, Thyssenkrupp Nucera, and Proton On-Site.
Key Developments:
In January 2025, Plug Power Inc., a global leader in comprehensive hydrogen solutions for the green hydrogen economy, today announced a landmark purchase agreement with Allied Green Ammonia (AGA). This agreement will see Plug supplying an impressive three gigawatts (GW) of electrolyzer capacity to AGA's state-of-the-art green hydrogen-to-ammonia plant, currently under development in Australia. In a significant step towards a clean energy future, AGA will install a 4.5 GW solar plant to power the Plug electrolyzers with zero emission clean electricity. The green hydrogen produced will be used to make green ammonia. With the agreement now signed and sealed, Plug will develop a Basic Engineering and Design Package (BEDP), providing crucial technical details and engineering specifications to attract investors and finalize financing.
In October 2024, Nel’s expanded and automated PEM manufacturing facility in Wallingford, Connecticut, was officially opened by Senator Richard Blumenthal. The new facility will have the capacity to produce 10 times as many PEM electrolysers at 30% lower cost than the old factory.
In May 2024, Nel Hydrogen Electrolyser AS, a fully owned subsidiary of Nel ASA has entered into a technology licensing agreement with Reliance Industries Limited (RIL). The agreement provides RIL with an exclusive license for Nel’s alkaline electrolysers in India and also allows RIL to manufacture Nel’s alkaline electrolysers for captive purposes globally.
Components Covered:
• Bipolar Plates
• Membrane Electrode Assembly (MEA)
• End Plates & Gaskets
• Balance of Plant (BoP)
• Other Components
Capacities Covered:
• Small Scale (< 1 MW)
• Medium Scale (1 MW - 10 MW)
• Large Scale (> 10 MW)
Applications Covered:
• Power Generation
• Transportation
• Industry Energy Storage
• Hydrogen Generation for Industrial Use
• Other Applications
End Users Covered:
• Industrial
• Mobility
• Power & Energy
• Other End Users
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Application Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global PEM Electrolyzer Market, By Component
5.1 Introduction
5.2 Bipolar Plates
5.3 Membrane Electrode Assembly (MEA)
5.3.1 Proton Exchange Membrane (PEM)
5.3.2 Electrodes
5.3.3 Gas Diffusion Layers
5.3.4 Catalyst
5.3.4.1 Iridium-Based
5.3.4.2 Platinum-Based
5.4 End Plates & Gaskets
5.5 Balance of Plant (BoP)
5.6 Other Components
6 Global PEM Electrolyzer Market, By Capacity
6.1 Introduction
6.2 Small Scale (< 1 MW)
6.3 Medium Scale (1 MW - 10 MW)
6.4 Large Scale (> 10 MW)
7 Global PEM Electrolyzer Market, By Application
7.1 Introduction
7.2 Power Generation
7.3 Transportation
7.4 Industry Energy Storage
7.5 Hydrogen Generation for Industrial Use
7.6 Other Applications
8 Global PEM Electrolyzer Market, By End User
8.1 Introduction
8.2 Industrial
8.2.1 Chemical
8.2.2 Petrochemical
8.2.3 Fertilizer
8.2.4 Steel & Metal
8.3 Mobility
8.3.1 Fuel Cell Vehicles
8.3.2 Aerospace & Marine
8.4 Power & Energy
8.5 Other End Users
9 Global PEM Electrolyzer Market, By Geography
9.1 Introduction
9.2 North America
9.2.1 US
9.2.2 Canada
9.2.3 Mexico
9.3 Europe
9.3.1 Germany
9.3.2 UK
9.3.3 Italy
9.3.4 France
9.3.5 Spain
9.3.6 Rest of Europe
9.4 Asia Pacific
9.4.1 Japan
9.4.2 China
9.4.3 India
9.4.4 Australia
9.4.5 New Zealand
9.4.6 South Korea
9.4.7 Rest of Asia Pacific
9.5 South America
9.5.1 Argentina
9.5.2 Brazil
9.5.3 Chile
9.5.4 Rest of South America
9.6 Middle East & Africa
9.6.1 Saudi Arabia
9.6.2 UAE
9.6.3 Qatar
9.6.4 South Africa
9.6.5 Rest of Middle East & Africa
10 Key Developments
10.1 Agreements, Partnerships, Collaborations and Joint Ventures
10.2 Acquisitions & Mergers
10.3 New Product Launch
10.4 Expansions
10.5 Other Key Strategies
11 Company Profiling
11.1 Plug Power Inc.
11.2 Nel ASA
11.3 Cummins Inc.
11.4 ITM Power PLC
11.5 Hitachi Zosen Corporation
11.6 Elogen
11.7 Siemens Energy AG
11.8 Ningbo Vet Energy Technology Co., Ltd.
11.9 Ohmium International, Inc.
11.10 Hystar
11.11 H-TEC SYSTEMS GmbH
11.12 Bloom Energy Corporation
11.13 McPhy Energy S.A.
11.14 Giner Inc.
11.15 Areva H2Gen
11.16 Thyssenkrupp Nucera
11.17 Proton On-Site
List of Tables
1 Global PEM Electrolyzer Market Outlook, By Region (2024-2032) ($MN)
2 Global PEM Electrolyzer Market Outlook, By Component (2024-2032) ($MN)
3 Global PEM Electrolyzer Market Outlook, By Bipolar Plates (2024-2032) ($MN)
4 Global PEM Electrolyzer Market Outlook, By Membrane Electrode Assembly (MEA) (2024-2032) ($MN)
5 Global PEM Electrolyzer Market Outlook, By Proton Exchange Membrane (PEM) (2024-2032) ($MN)
6 Global PEM Electrolyzer Market Outlook, By Electrodes (2024-2032) ($MN)
7 Global PEM Electrolyzer Market Outlook, By Gas Diffusion Layers (2024-2032) ($MN)
8 Global PEM Electrolyzer Market Outlook, By Catalyst (2024-2032) ($MN)
9 Global PEM Electrolyzer Market Outlook, By End Plates & Gaskets (2024-2032) ($MN)
10 Global PEM Electrolyzer Market Outlook, By Balance of Plant (BoP) (2024-2032) ($MN)
11 Global PEM Electrolyzer Market Outlook, By Other Components (2024-2032) ($MN)
12 Global PEM Electrolyzer Market Outlook, By Capacity (2024-2032) ($MN)
13 Global PEM Electrolyzer Market Outlook, By Small Scale (< 1 MW) (2024-2032) ($MN)
14 Global PEM Electrolyzer Market Outlook, By Medium Scale (1 MW - 10 MW) (2024-2032) ($MN)
15 Global PEM Electrolyzer Market Outlook, By Large Scale (> 10 MW) (2024-2032) ($MN)
16 Global PEM Electrolyzer Market Outlook, By Application (2024-2032) ($MN)
17 Global PEM Electrolyzer Market Outlook, By Power Generation (2024-2032) ($MN)
18 Global PEM Electrolyzer Market Outlook, By Transportation (2024-2032) ($MN)
19 Global PEM Electrolyzer Market Outlook, By Industry Energy Storage (2024-2032) ($MN)
20 Global PEM Electrolyzer Market Outlook, By Hydrogen Generation for Industrial Use (2024-2032) ($MN)
21 Global PEM Electrolyzer Market Outlook, By Other Applications (2024-2032) ($MN)
22 Global PEM Electrolyzer Market Outlook, By End User (2024-2032) ($MN)
23 Global PEM Electrolyzer Market Outlook, By Industrial (2024-2032) ($MN)
24 Global PEM Electrolyzer Market Outlook, By Chemical (2024-2032) ($MN)
25 Global PEM Electrolyzer Market Outlook, By Petrochemical (2024-2032) ($MN)
26 Global PEM Electrolyzer Market Outlook, By Fertilizer (2024-2032) ($MN)
27 Global PEM Electrolyzer Market Outlook, By Steel & Metal (2024-2032) ($MN)
28 Global PEM Electrolyzer Market Outlook, By Mobility (2024-2032) ($MN)
29 Global PEM Electrolyzer Market Outlook, By Fuel Cell Vehicles (2024-2032) ($MN)
30 Global PEM Electrolyzer Market Outlook, By Aerospace & Marine (2024-2032) ($MN)
31 Global PEM Electrolyzer Market Outlook, By Power & Energy (2024-2032) ($MN)
32 Global PEM Electrolyzer Market Outlook, By Other End Users (2024-2032) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
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