PEM Water Electrolyzers Market Size, Share, Growth, and Industry Analysis, By Type (Small Scale Type, Middle Scale Type and Large Scale Type), By Application (Hydrogen Refueling Station, Laboratory, Petrochemical Industry, Electronics and Semiconductor and Power to Gas), Regional Insights, and Forecast From 2024 To 2032

Updated On: 06 May 2024

PEM Water Electrolyzers Market REPORT OVERVIEW

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The global PEM water electrolyzers market size was USD 166.8 million in 2022. As per our research, the market is projected to touch USD 2396.5 million by 2029, exhibiting a CAGR of 44.8% during the forecast period.

The global COVID-19 pandemic and Russia-Ukraine war has been unprecedented and staggering, with the PEM water electrolyzers market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

Proton exchange membrane (PEM) electrolysis is the electrolysis of water in a cell equipped with a solid polymer electrolyte (SPE) that conduct protons and separates the gases. These devices use electricity to split water into hydrogen and oxygen. They can produce high purity hydrogen at high pressure and are compatible with renewable energy sources. The PEM electrolyzer was introduced to overcome the issues of partial load, low current density, and low pressure operation currently plaguing the alkaline electrolyzer. Electrolysis of water is an important technology for the production of hydrogen to be used as an energy carrier. With fast dynamic response times, large operational ranges, and high efficiencies, water electrolysis is a promising technology for energy storage coupled with renewable energy sources. In terms of sustainability and environmental impact, PEM electrolysis is considered as a promising technique for high purity and efficient hydrogen production since it emits only oxygen as a by-product without any carbon emissions.

COVID-19 Impact: Imposed Restrictions in the Economy Resulted in Decline in the Market

The COVID-19 problem has had an impact on the global economy, especially on healthcare industries causing a strict lockdown and a halt to day-to-day activities in every industry. With the limits imposed by the government, the panic scenario has had a negative influence on the industries. This has resulted in a market drop as well; there was a direct and indirect impact from numerous sectors producing PEM Water Electrolyzers. With the revival of the market following COVID-19, we are seeing a recovery of the market where the blanks are restructured with product innovation and investments into R&D activities to develop advanced technologies to meet advanced requirements, which will project a proposed increase in the PEM Water Electrolyzers market share in the forecasted period.

LATEST TRENDS

"Growing Demand for Green Energy in PEM Water Electrolyzers Market:"

The growing demand for green energy is a notable trend in the PEM Water Electrolyzer market. As global awareness about the harmful effects of fossil fuels increases, renewable energy sources are becoming more desirable. PEM Water Electrolyzers, which produce hydrogen, are particularly attractive. Hydrogen, when used in fuel cells, only produces water as a byproduct, contributing zero emissions. These qualities make PEM Water Electrolyzers an essential part of sustainable energy, driving their market growth. This trend is expected to continue as the shift towards clean energy persists, making it a key player in the energy market.

PEM Water Electrolyzers Market SEGMENTATION

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• By type

Based on type PEM Water Electrolyzers market is classified as Small Scale Type, Middle Scale Type and Large Scale Type

• By application

Based on application PEM Water Electrolyzers market is classified as Hydrogen Refueling Station, Laboratory, Petrochemical Industry, Electronics and Semiconductor and Power to Gas

DRIVING FACTORS

"Growing Demand for Clean Hydrogen Driving New Innovations:"

Increasing global concerns about climate changes and the need of clean sustainable energy sources have led to a growing demand for clean hydrogen production methods.  Hydrogen generated from PEM water electrolyzers is considered "green hydrogen" because it utilizes electricity from renewable energy sources like solar, wind, or hydropower to split water into hydrogen and oxygen, producing no greenhouse gas emissions in the process resulting in government and industries are investing heavily in clean energy technologies, including PEM water electrolyzers, to produce green hydrogen as an alternative to traditional fossil fuel-based hydrogen production methods. This demand is driving innovation, cost reduction, and scale-up of PEM electrolyzer technologies, leading to a significant growth in the PEM water electrolyzers market.

"Supportive Government Policies and Incentives creating a Conducive Environment for Businesses:"

Governments around the world are recognizing the potential of hydrogen as a key enabler for decarbonization and are implementing supportive policies and incentives to promote the adoption of clean hydrogen technologies, including PEM water electrolyzers. These policies may include financial subsidies, tax incentives, feed-in tariffs, carbon pricing mechanisms, and research grants to encourage investment in hydrogen infrastructure and electrochemical technologies.

RESTRAINNG FACTORS

"High Initial Capital Costs Restraining Small and Medium Businesses:"

The upfront capital costs associated with installing PEM water electrolyzer systems can be substantial. The technology involves sophisticated components, including the proton exchange membrane, electrodes, and catalysts, which require advanced materials and manufacturing processes. Additionally, the integration of safety features, control systems, and infrastructure for renewable energy sources further contributes to the initial investment which acts as a significant barrier, especially for small and medium-sized enterprises (SMEs) and developing economies, limiting their ability to adopt PEM water electrolyzers on a large scale

PEM Water Electrolyzers Market REGIONAL INSIGHTS

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"Europe Region to Dominate the Market with Extensive Utilization and Multiplying Manufacturers"

The global PEM Water Electrolyzers market is classified into North-America, Europe, Asia pacific, South-America and Middle east and Africa where the market in Europe has projected to continue expand and dominate the market because of paradigm shift towards hydrogen economy is being effectively prioritized in Europe, thereby paving the way for wide-scale product adoption. Hydrogen-based technologies are emerging as a key to empower a feasible energy transition enabling zero emission across power, transport and heating industry are some of the key factors accountable for its large share in the market. In addition, encouraging government initiatives and a rise in research collaboration numbers are other factors anticipated to boost market expansion.

KEY INDUSTRY PLAYERS

"Financial Players to Contribute Towards Expansion of Market"

The PEM Water Electrolyzers market is extremely competitive and consists of various global and regional players.  Major players are involved in strategizing various plans such as mergers and acquisitions, partnerships, introduction of new and enhanced treatments, along with joint ventures. The report is an extensive research of a list of market players who contribute towards the expansion of the market. The information is a collusion of latest technological developments, trends, production lines mergers and acquisitions, market study and others. Other factors such as regional wise analysis and segment wise analysis are also considered to understand the market share, product growth, revenue growth and others during the forecasted period.

List of market players profiled:

• Proton On-Site (U.S)
• Cummins (U.S)
• Siemens (Germany)
• Toshiba ( Japan)
• Kobelco Eco-Solutions (Japan)
• Elogen (Canada)
• Shandong Saksay Hydrogen Energy (China)
• ITM Power (U.K)
• Elchemtech (South Korea)
• 718th Research Institute of CSIC (China)
• H2PEM Water Electrolyzers (U.S)

REPORT COVERAGE:

The SWOT analysis and information on future developments are covered in the study. The research report includes a study of a number of factors that promote market growth. This section also covers the range of numerous market categories and applications that could potentially affect the market in the future. The specifics are based on current trends and historical turning points. The state of the market's components and its potential growth areas over the following years. The paper discusses market segmentation information, including subjective and quantitative research, as well as the impact of financial and strategy opinions. Additionally, the research disseminates data on national and regional assessments that take into account the dominant forces of supply and demand that are influencing market growth. The competitive environment, including market shares of significant competitors, is detailed in the report along with fresh research methodology and player strategies for the anticipated time.