PEM Electrolyzer Market - By Capacity (≤ 500 kW, > 500 kW - 2 MW, Above 2 MW), By Application (Power Generation, Transportation, Industry Energy, Industry Feedstock, Building Heating & Power), 2023 - 2032

PEM Electrolyzer Market - By Capacity (≤ 500 kW, > 500 kW - 2 MW, Above 2 MW), By Application (Power Generation, Transportation, Industry Energy, Industry Feedstock, Building Heating & Power), 2023 - 2032

Global PEM Electrolyzer Market size will expand substantially through 2032. Rising electricity demand globally is creating lucrative opportunities for industry growth. PEM electrolyzers play a significant role in energy storage by converting excess electricity into hydrogen, which can be stored to be used later. The produced hydrogen can be stored in tanks or underground caverns, providing a means of storing large quantities of energy for extended periods.
Moreover, favorable initiatives for the electrification of the transportation sector are further presenting growth opportunities to the industry. The electrification of transportation, particularly the adoption of fuel-cell electric vehicles (FCEVs), has increased the demand for hydrogen. PEM electrolyzers play a crucial role in producing high-purity hydrogen for FCEVs. As the number of electric vehicles on the road grows, so does the demand for PEM electrolyzers to support the expansion of hydrogen refueling infrastructure.
The overall PEM electrolyzer market is categorized based on capacity, application, and region.
Based on capacity, the PEM electrolyzer market value from the ≤ 500 kW segment will register notable gains through 2032. The compact and lightweight nature of PEM electrolyzers with ≤ 500 kW capacity, in line with their fast response time, makes them suitable for mobile or remote hydrogen production applications. They can be integrated into portable hydrogen refueling stations, enabling on-site hydrogen generation for fuel cell vehicles or remote power generation. This mobility and remote operation capability enhances the flexibility and accessibility of hydrogen production.
With respect to application, the industry size from the industry energy segment will expand significantly through 2032. PEM electrolyzers help produce renewable hydrogen by utilizing electricity derived from renewable energy sources. By using clean and sustainable power, the production of hydrogen through electrolysis becomes environmentally friendly and supports the transition to a low-carbon energy system. Growing emphasis on renewable hydrogen production will contribute to segment growth.
On the regional front, Europe PEM electrolyzer market share will grow at a considerable CAGR from 2023 to 2032. Rising demand for clean and sustainable energy sources in the wake of the energy crisis has increased the adoption of PEM electrolyzers in the region. In fact, economies such as France and Germany have set a target to achieve carbon neutrality. Moreover, Europe has a strong presence of leading industry players such as Ostermeier H2ydrogen Solutions GmbH and others focusing on product innovations constantly, which will propel industry growth across the region.