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), 2025 – 2034

PEM Electrolyzer Market Size

The PEM electrolyzer market size was valued at USD 5.24 billion in 2024 and is anticipated to grow at a CAGR of 15.7% from 2025 to 2034. Major economies are continuously developing supportive hydrogen strategies as part of the wider climate & clean energy related targets, thereby supporting the business dynamics. Growing adoption of hydrogen generation along with the rising energy requirement will create better market for the hydrogen & electrolyzer industry. Moreover, technological advancements hold potential to create several opportunities leading to sustainable economic growth by creating more employment in various industries which will strengthen the industry landscape.
 

Favorable government policies & targets including financial incentives & mandates aimed at global investments toward low-emission fuel will continue to drive the demand for electrolyzers. For instance, the U.S. has set technical targets for PEM electrolysis that aims to achieve up to USD 2 per kg of H2 generation by 2026. The leading energy, transport, and industry stakeholders are extensively focused to advance electrolyzer technique and enable low cost hydrogen generation which will accelerate the PEM electrolyzer market outlook.
 

Growing research and development efforts focused on enhancing the efficiency of PEM electrolyzers coupled with scaling up of the production capabilities by major manufacturers to cope up with the growing demand across various industries will stimulate the business landscape. Ongoing integration with renewable energy sources, including solar and wind power, to produce green hydrogen will align the global push toward decarbonization and sustainable energy solutions, thereby driving the industry outlook.
 

PEM Electrolyzer Market Trends

• Close coordination between various industry stakeholders along with the government efforts to further broaden the existing policy framework will contribute to achieve greater energy security and economic development. Ongoing electrification programs across the developing economies has also resulted in the demand for large scale use of efficient and low-cost energy storage sources will complement the product penetration.
   
• Additionally, significant private and public sector efforts across economies to establish a clean, safe, innovative and competitive hydrogen ecosystem to achieve carbon neutrality targets will boost the PEM electrolyzer market statistics. For instance, in March 2022, Air Liquide was granted funding of USD 198.5 million from the French State for the development of its Air Liquide Normand’Hy electrolyzer project in France.
   
• Introduction of favorable government norms and incentives to promote eco-friendly technologies has led to an increased product adoption across the globe. ongoing measures pertaining to the reduction of carbon footprints will expedite the deployment of PEM electrolyzers as a feedstock across various applications, thereby strengthening the business landscape.
   
• Additionally, ongoing adoption of various policies and norms by numerous countries to reduce their carbon footprints along with increasing share of renewables in the overall energy mix is projected to boost the demand for hydrogen, thereby boosting the business scenario in the forecasted timeframe. For citation, in May 2022, the European Commission along with the region’s electrolyzer manufacturers set a target for a tenfold increase in electrolyzer manufacturing capacities by 2025.
   

PEM Electrolyzer Market Analysis

• The global market for PEM electrolyzer accounted for USD 1.66 billion, USD 3.52 billion and USD 5.24 billion in 2022, 2023 and 2024 respectively. Based on capacity, the > 500 kW – 2 MW segment is anticipated to reach more than USD 297 million by 2034.
   
• These systems use a large amount of water as a major feedstock for hydrogen generation and are widely used on-site across numerous industries including glass, metal, food & beverage, transportation, and chemical. Flexible delivery contracts, reduced cost, energy efficient process, compact & modular design, and significant reduction of harmful emissions are some of the key features which will augment the product demand over the forecasted timeline.
   
• The ≤ 500 kW segment will grow at more than 2.5% CAGR till 2034, owing to increasing investments in the development of fuel cell infrastructure. In addition, these systems widely use electrolysis technology including alkaline and PEMFC to generate hydrogen for various end-use applications. Low cost, less flammable, limited area requirements, and reduced weight are some of the other prominent features, which will further complement the business growth.
   
• Above 2 MW is anticipated to grow on account of their deployment across industrial applications including chemical manufacturing, refineries, and steel production. Ongoing research efforts to develop advanced materials that enhance the durability and longevity of large capacity systems, contribute to longer lifespans, reduced maintenance costs, and increased reliability, thereby attributing to higher product penetration.
   

• Based on application, the transportation segment accounted for 67.9% share of the PEM electrolyzer market in 2024 owing to growing investments in innovation and research & development along with increasing demand for FCEVs as an alternative to conventional automobiles. For instance, in February 2023, the Federal Ministry of Digital and Transport (BMDV), Germany announced a funding of up to USD 86.59 million to support electrolyzer plants and accelerate green hydrogen production for transport sector across the country.
   
• PEM electrolyzers are pivotal in producing green hydrogen, a clean fuel alternative for power generation. They facilitate grid stabilization by converting excess renewable energy into hydrogen, which can be stored and converted back to electricity when demand peaks will strengthen the product adoption. For instance, In September 2023, Siemens Energy received an order to supply 12 electrolyzers based on PEM technology to Air Liquide’s plant in Normandy, France, as a part of the Normand'Hy project. The facility will produce 28 thousand tons of hydrogen per year for the industry & mobility sector.
   
• Growing interest in green hydrogen and sustainable industrial processes along with increasing utilization of H2 for ammonia synthesis is set to drive the adoption of PEM electrolyzers across the industry feedstock. Further, incorporation of PEM electrolyzers to produce on-site hydrogen and reducing the reliance on traditional hydrogen production methods will stimulate the industry landscape. 
   

• The U.S. PEM electrolyzer market size surpassed USD 12 million, USD 34.1 million, USD 234.3 million in 2022, 2023 and 2024 respectively. North America dominated more than 5% market share in 2024.
   
• Intensifying demand for hydrogen from the burgeoning industrial sectors including refining, petrochemicals, glass purification, and fertilizers will augment the industry landscape. Active involvement of several government institutions including the U.S. Department of Energy and National Laboratories is dynamically advancing the large-scale transition toward hydrogen technologies. For citation, in October 2023, Air Liquide established a new gas production platform including hydrogen, argon, oxygen, and nitrogen in Canada.
   
• Europe PEM electrolyzer market is set to reach more than USD 19 billion by 2034, driven by significant funding and support for hydrogen-related projects. Investment in the development of hydrogen infrastructure is anticipated to augment the market growth. The infrastructure is critical for the production, distribution, and utilization of hydrogen in various sectors, aligning with the European Union's hydrogen strategy. For an instance, in March 2022, Air Liquide was granted funding of USD 198.49 million from the French State for the development of its Air Liquide Normand’Hy electrolyzer project in France.
   
• Asia Pacific PEM electrolyzer market will grow owing to ongoing implementation and announcements of hydrogen economy initiatives and deployment of PEM electrolyzers for industrial applications. For instance, in July 2023, Plug Power Inc. was selected to supply two 5 MW Proton Exchange Membrane (PEM) electrolyzer systems for green hydrogen projects in Australia, under development by Countrywide Hydrogen Pty Ltd.
   

PEM Electrolyzer Market Share

• Top 5 player operating in the PEM electrolyzer industry include Cummins, Plug Power, Nel ASA, Siemens Energy and Air Products & Chemicals. Collaboration among various firms in the Asia Pacific PEM Electrolyzer industry has recorded innovation, market development, and product diversification.
   
• Development and marketing of tankless water heaters, ongoing expansion into emerging markets in Southeast Asia and development of energy-efficient water heating solutions will drive the business scenario. Further, integration of renewable energy sources with water heating systems along with research on advanced water heating technologies and smart systems is set to augment the business landscape.
   

PEM Electrolyzer Market Companies

• Air Liquid provides a complete range of solutions for the production, distribution, and refueling of liquid hydrogen, thereby providing support for cleaner and more sustainable methods of transportation. The copany noted that revenue in the first half of 2024 was USD 14.8 Billion. Further, it secured a USD 114 million grant from the European Innovation Fund to drive its ENHANCE project at the Port of Antwerp-Bruges, Belgium
   
• Cummins is a global leader in the manufacturing of diesel and natural gas engines, power generation systems, and related technologies. The company reported a revenue of USD 25.6 Billion in Q3 of 2024. Moreover, in March 2024, Tata Cummins opened a new plant at Jamshedpur, which will manufacture hydrogen powered engines, an important step towards the production of cleaner and more efficient technology.
   
• Nel ASA specializes in the production, storage, and distribution of hydrogen from the available renewable energy sources worldwide. The company recorded a revenue of USD 32.2 Million by Q3 of 2024. In addition, in January 2025, Nel ASA received a purchase order for two containerized PEM electrolyzer units for about USD 7 million.
   
• Plug Power is one of the most active companies in the United States focusing on developing hydrogen fuel cell systems for enhancing an electric vehicle's operational capabilities over and above replacing conventional batteries. For the first nine months of the year, 2024 records revenue of USD 437.3 Million. Plug Power's other recent major development was during May 2024, when they received support from the U.S. Department of energy (DOE) for increasing the company’s production capacity of hydrogen and opening new production sites.
   

Eminent players operating in the PEM electrolyzer market are:

• Air Liquide
• Air Products and Chemicals, Inc.
• Cummins Inc.
• Erre Due s.p.a.
• Elogen
• Giner
• ITM Power
• LARSEN & TOUBRO LIMITED
• Nel ASA
• ostermeier H2ydrogen Solutions GmbH
• Plug Power
• Siemens Energy
   

PEM Electrolyzer Industry News

• In December 2023, Erre Due entered into an agreement with Foglia Umberto Srl to deliver PEM electrolysis plant by 2025. The plant will utilize electrolyzer to produce and store green hydrogen within the Waste Disposal Plant Pole in Molise Region. The company’s contribution towards innovative and sustainable projects will allow to showcase its portfolio across the industry.
   
• In March 2023, Siemens Energy signed an agreement with HIF Global to supply Polymer Electrolyte Membrane (PEM) electrolyzers for HIF Matagorda’s eFuels plant in Texas. The electrolyzer will assist in the green hydrogen’s annual production of 300,000 tons, strengthening the company’s presence throughout the US as well as proving its prowess in manufacturing and designing the electrolyzer.
   
• In November 2023, Siemens Energy, in a joint venture with Air Liquide, started its new gigawatt scale plant in Berlin to produce electrolyzer modules with high efficiency. The facility will utilize robotics and automation for the production of PEM electrolyzers. The aim is to manufacture low carbon hydrogen at a competitive cost and boost the innovative ecosystem in Europe. This will allow the companies to significantly contribute to a sustainable hydrogen economy and will mark a strong presence across the region.
   
• In July 2021, Air Liquide developed a renewable hydrogen plant that utilizes electrolysis which transformed its German network. The plant integrated PEM electrolyzers into the company’s infrastructure and local pipeline to deliver sustainable energy to key industries & mobilities all over the country. This helped the company achieve its sustainable development goals and strengthened its market presence.
   

This PEM electrolyzer market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in “USD Billion & MW” from 2021 to 2034, for the following segments:

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Market, By Capacity

• ≤ 500 kW
• > 500 kW – 2 MW
• Above 2 MW

Market, By Application

• Power Generation
• Transportation
• Industry Energy
• Industry feedstock
• Building Heating & Power
• Others

The above information has been provided for the following countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Netherlands
  • Denmark
  • Spain
  • Norway
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
• Rest of World