Navigating APAC PEM Electrolyzer Market Trends: A Comprehensive Report

28 Nov 2023

The rising needs of various industries like ammonia production, refining, power and energy storage, transportation, methanol production, and more drive the expected surge in PEM electrolyzer demand.  

According to the BIS Research report, the Asia-Pacific PEM Electrolyzer market is projected to reach to reach $306.7 million by 2031 from $14.7 million in 2022, growing at a CAGR of 40.1% during the forecast period 2022-2031. 

Moreover, the period from 2022 to 2031 is expected to see a growth in the use of PEM electrolyzers for producing green hydrogen. This, coupled with government and private sector investments in renewable energy, is anticipated to propel the global PEM electrolyzer market forward significantly. 

APAC PEM Electrolyzer Market Analysis: Drivers, Opportunities and Challenges 

The global market for PEM electrolyzers is currently experiencing growth. Asia-Pacific has the highest demand for mobility, which elevates the region to the status of an automotive hub among consumers. The two main factors influencing the population's growth and rising urbanization are those that have a significant impact on the electric vehicle market. Many small and medium-sized businesses (SMBs) are in the area, and they are transitioning to make novel changes to achieve maximum efficiency and improve product quality.   

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 

Meanwhile, the market is also expected to face some limitations 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 

The primary catalyst behind the driving force for the PEM electrolyzer market is the escalating demand for hydrogen and green hydrogen. Consequently, these technologies are gaining increased attention across various industries, such as transportation, refining, and power and energy storage. Notably, ammonia production is an area where implementation has grown substantially, creating opportunities for existing market players and new entrants. 

The APAC region's PEM electrolyzer market is experiencing a decline due to a lack of grid installation for the transmission of energy from the power plant to the electrolyzer stack.  

PEM Electrolyzer Market Segments: Overview 

BIS Research report on the PEM Electrolyzer market covers the end user, material type, and region segments of the market.  

In 2021, ammonia production emerged as the leading end-user segment in the global PEM electrolyzer market. Platinum was the dominant material type within the market in the APAC region, with a market share of $7.1 million in 2021.  

In the regional segment, APAC attributed to the presence of key companies like Nel Hydrogen, ITM Power PLC, Elogen, Valmax, Cummins Inc., H2U Technologies, and Siemens Energy. A well-established renewable energy market and the increasing adoption of fuel-cell vehicles in the region support this dominance.  

Recent Developments in PEM Electrolyzer Market 

Asia Pacific is the fastest-growing market for PEM electrolyzers, driven by government support for renewable energy and the growing demand for hydrogen fuel cells.  

  • Guangdong Green Hydrogen Technology in January 2023, the company announced plans to build a 1 GW PEM electrolyzer factory in Guangdong Province.  

  • In Japan, the government has set a target of producing 300,000 tons of hydrogen annually by 2030. This will require a significant investment in PEM electrolyzers. 

  • In South Korea, the government is also investing in PEM electrolyzers. In 2022, the government announced plans to invest KRW 2 trillion (USD 1.6 billion) in hydrogen fuel cell technology development, including PEM electrolyzers.  

  • Tianhe No. 1 in April 2023, the company announced plans to build a 1 GW PEM electrolyzer factory in Hubei Province.  

Key Players in the Asia-Pacific and China Region 

  • Nel ASA (Norway) 

  • ITM Power PLC (UK) 

  • Siemens Energy (Germany) 

  • Plug Power Inc. (US) 

  • Cummins Inc. (US) 

  • Hydrogenics Inc. (Canada) 

  • Hitachi Zosen Corporation (Japan) 

  • Elogen (France) 

  • Ningbo Vet Energy Technology Co., Ltd. (China)  

  • Green Hydrogen Systems (Denmark) 

Analyst Take on the PEM Electrolyzer Market 

According to Sachin Singh, Lead Analyst, BIS Research, “PEM electrolysis has grown 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 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.”