Explore PEM Electrolyzer Market - With Key Players & Market Trends

PEM electrolyzers offer a convincing value proposition for developing a sustainable energy ecosystem driven by their ability to produce clean hydrogen using renewable energy sources such as wind and solar energy. They are known for their high efficiency in converting water into oxygen and highly pure hydrogen. As these electrolyzers can be quickly ramped up and down based on specific applications, they are very responsive to power supply fluctuations due to the intermittent availability of renewable energy sources. These value propositions are likely to support the adoption of PEM electrolyzers worldwide in the coming years.

In this blog, we will explore the market dynamics, growth factors, and key players in the PEM Electrolyzer global market.

According to BCC Research’s estimates, the global value of the PEM electrolyzer market is expected to reach $507.6 million in 2029, growing at a CAGR of 43.4% between 2024 and 2029.

Market Dynamics and Growth Factors

The PEM electrolyzer market growth is primarily driven by supportive government policies to encourage hydrogen infrastructure development worldwide. Many countries aim to reach large-scale hydrogen production levels by 2030 and deviate significant energy consumption from traditional fossil fuels. Another major factor supporting the growing interest in green hydrogen is the rising uptake of fuel-cell electric vehicles (FCEVs). With an increasing network of hydrogen refueling stations globally, the adoption of electrolyzer technology to support the stations is also expected to grow consistently over the forecast period (2024 to 2029).

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Regional Insights and Emerging Markets

Europe dominated the global PEM electrolyzer market in 2023 due to the extensive deployment of electrolysis plants in the region, strong technological readiness of the market players, and consistent support through government initiatives and funding. In the U.S., government policies such as the Energy Earthshots Initiative and the Inflation Reduction Act support the rapid adoption of green hydrogen solutions for deployment in various applications. Asia-Pacific is expected to register the fastest growth during the forecast period due to the accelerated growth of electrolyzer deployments in China, favorable government initiatives in India, and the increasing popularity of fuel-cell electric vehicles (FCEVs) in Japan and South Korea.

Top 5 Leading Companies in PEM Electrolyzer Market

Cummins Inc. (1919)

The company has worldwide operations and designs, manufactures, and commercializes powertrains for diesel, natural gas, electric, and hybrid transmissions. It specializes in powertrain components such as turbochargers, filtration, after-treatment, valvetrain technologies, control systems, fuel systems, axles, automated transmissions, brakes, suspension systems, hydrogen production technologies, and fuel cell products.

Its Accelera segment designs, builds and sells hydrogen production solutions and electrified power systems. It is still in the early stages of commercializing these solutions worldwide, primarily focusing on developing electrolyzers and power systems. As the adoption of hydrogen and electric solutions grows in the market, the company intends to build relationships in the industry to target the green hydrogen market effectively.

ITM Power Plc (2000)

ITM develops and produces hydrogen energy systems to generate clean fuel and energy storage. The company has expertise in developing water electrolysis-based, clean, and sustainable energy solutions. Its key focus is designing energy systems with zero carbon emissions that offer energy security and independence from fossil fuels. Most projects being developed by the company are deployed in Germany, followed by wider installations in the EU and Norway.

The most notable projects undertaken by the company are the two modular 100MW electrolyzer plants, which it is deploying for RWE in Lingen, Germany.

Ohmium (2019)

Ohmium’s PEM electrolyzers run on 100% renewable energy to produce clean hydrogen. It focuses on offering modular systems in the form of interlocking units that can be stacked up to scale from MW to GW capacity. The systems also feature a rack-in rack-out design, which enables optimized production and minimum downtime. Its modular units are compact in size which are easy to transport and quick to install. Ohmium focuses on small and large industries, power and the transportation sector to offer its electrolyzer solutions.

Plug Power Inc. (1997)

Plug Power is building an end-to-end green hydrogen ecosystem from production, storage, and delivery to energy generation. Through its direct sales channels and joint venture partnerships, the company intends to offer its hydrogen solutions to customers in various sectors such as stationary power generation, e-mobility, supply chain & logistics, and industrial applications. The hydrogen solutions provided by the company include fuel cells, PEM electrolyzers, hydrogen liquefiers, liquid hydrogen cryogenic solutions, and hydrogen production at its plants.

Siemens Energy (2020)

Siemens Energy operates along the entire value chain of energy technology and services to support the rising demand for energy while reducing greenhouse gas emissions. A significant share of its business is implemented through high-volume projects characterized by multi-year customer orders. Such lengthy projects and long-term service contracts lead to stable and recurring income for the company over several reporting periods. Hence, the company considers its services business a significant strength for sustainable business growth.

The company operates through four major business segments: gas services, grid technologies, transformation of industry (TI), and Siemens Gamesa. Under the TI business, Siemens Energy offers electrolyzers and a portfolio of steam turbines, compressors, and related products.

Conclusion:

The PEM electrolyzer market is experiencing consistent growth due to rising awareness regarding green energy technologies worldwide. Strong government support in various countries to grow the hydrogen energy ecosystem also contributes steadily to the growing demand for PEM electrolyzers. In terms of environmental impact and sustainability, PEM electrolysis is considered a promising approach to reducing GHG emissions, as it only releases oxygen as a derivative without any hazardous emissions. These supportive factors are contributing to the growing interest in PEM electrolysis technology around the world.

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