Hydrocarbon Membranes in Fuel Cell and Electrolyser Market Size (2025 – 2030)

The Global Hydrocarbon Membranes in Fuel Cell and Electrolyser Market was valued at USD 224.04 million in 2024 and is projected to reach a market size of USD 278.66 million by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 4.46%.   

The growth of hydrocarbon membranes in the fuel cell and electrolyser industry with the increasing global demand for clean energy and decarbonisation has stimulated demand for efficient and sustainable technology like fuel cells and electrolysers. Hydrocarbon membranes, with lower production costs and higher performance than other materials, are increasingly a critical component in Proton Exchange Membrane (PEM) fuel cells and water electrolysers, leading technologies for hydrogen production and fuel cell vehicles. Advances in hydrocarbon membrane technology, including better conductivity, stability, and chemical degradation resistance, have enhanced their efficiency and commercial viability, making them an increasingly appropriate choice for mass production.

Key Market Insights:

• The European Commission approved 'IPCEI Hy2Use' in September 2022 as an addition under IPCEI Hy2Tech. The integration of hydrogen in the industrial complex will induce innovation in new, clean technologies as well as infrastructure creation involving hydrogen. Production of hydrogen infrastructure will significantly drive demand for hydrocarbon membranes for fuel cells and electrolysers.
• In 2023, close to 14 million new electric vehicles were registered worldwide, taking the total on the road to 40 million. With the popularity of electric vehicles rising worldwide, the demand for aromatic hydrocarbon membranes will continue to witness robust growth over the forecast period.
• Global electrolyzer capacity for dedicated hydrogen production has been growing rapidly, reaching an installed capacity of 1.4 GW at the end of 2023, nearly doubling from the previous year.
• Given that approximately 33% of global electricity was sourced from renewables in 2021, it is estimated that only about 1% of global hydrogen output is produced using renewable energy.

Global Hydrocarbon Membranes in Fuel Cell and Electrolyser Market Drivers:

Increasing Deployment of Fuel Cells and Electrolysers Using Hydrocarbon Membranes to Produce Green Hydrogen.

The worldwide hydrocarbon membranes market of fuel cells and electrolytes is experiencing healthy growth, predominantly driven by green hydrogen projects. With nations and industries moving towards decarbonization, green hydrogen has become the key solution given its potential to offer clean and renewable energy across different uses. Hydrocarbon membranes are important in this environment, acting as affordable and effective parts in Electrolysers and fuel cells. Hydrocarbon membranes are more cost-effective compared to perfluorosulfonic acid (PFSA) membranes while providing similar performance in proton conductivity and energy efficiency. This makes them desirable for green hydrogen initiatives, particularly in cost-sensitive applications and developing economies. For example, in August 2023, The recent breakthroughs in the US hydrogen and fuel cell sector highlighted the central position of hydrocarbon membranes in enabling the country's energy transition to cleaner energy. The U.S. Department of Energy (DOE) has invested heavily to advance the hydrogen and fuel cell infrastructure, such as committing $7 billion for Hydrogen Hubs under the Infrastructure and Investment Jobs Act (IIJA) and a further $1.5 billion for RDD&D efforts in clean hydrogen electrolysis, production, and recycling. Of these initiatives, the release of $750 million to support 52 projects in 24 states underscores the federal commitment to such technologies as hydrocarbon proton exchange membranes, which are critical to enhancing the efficiency and scalability of Electrolysers and fuel cells.

The Automotive Industry is driving the Market For Hydrocarbon Membranes In Fuel Cells and Electrolysers. 

The transportation sector is pushing the hydrocarbon membranes for the fuel cell and electrolyser industry with its drive for sustainable mobility and zero-emission technology. With the increased usage of fuel cell vehicles (FCVs) for both light and heavy transport, the need for cost-efficient, high-performance, and durable materials is growing. Hydrocarbon membranes fill the gap as they provide excellent proton conductivity, are cheaper than their traditional fluorinated counterparts, and are suitable for light and compact designs. For example, in September 2022, Ionomr Innovations Inc. launched its paradigm-shifting Pemion™ hydrocarbon-proton exchange membrane and polymer, a significant improvement in materials used for green hydrogen fuel cells for heavy industries. Pemion™ is ideal for large fuel cell applications in heavy-duty transport, automotive, and stationary power. It achieves superior chemical and mechanical stability, high conductivity, improved durability and efficiency, considerably reducing the fuel cell unit cost. This technology is set to propel the development of hydrocarbon membranes in the fuel cell and electrolyser market, responding to the need for cost-efficient and high-performance solutions during the shift towards sustainable energy systems. With the automotive sector fast-tracking the use of hydrogen technologies, hydrocarbon membranes are set to experience more demand. Their affordability, performance, and ability to conform to automotive needs make them a keystone in promoting the global hydrogen economy.

Global Hydrocarbon Membranes in Fuel Cell and Electrolyser Market Restraints and Challenges:

Companies often face high costs for materials characterization, testing, and prototyping during the development phase, which adds to the overall expense.

Synthesizing advanced hydrocarbon membranes requires a lot of investments in research and development to improve characteristics such as conductivity, stability, and chemical resistance. Businesses tend to incur huge material characterization, testing, and prototyping expenditures during the development stage, contributing to the overall cost. Manufacturing and producing hydrocarbon membranes requires precision engineering and specialized facilities to produce consistent quality and performance. Such advanced processes contribute to higher capital needed for production facilities. Mass production is expensive as it needs to be automated, have quality control systems, and process optimization to satisfy demand at high standards. Although initial expenses are a major hurdle in the use of hydrocarbon membranes in the fuel cell and electrolyser industry, they also underscore the necessity of ongoing investment and innovation. By overcoming these barriers through economies of scale, government incentives, and joint R&D efforts, the industry can lower costs and speed up adoption.

Global Hydrocarbon Membranes in Fuel Cell and Electrolyser Market Opportunities:

The worldwide shift to green hydrogen and clean energy alternatives is among the major drivers of hydrocarbon membrane market growth. Hydrogen is being considered as a clean fuel option more and more, and its uses range from fuel cell electric vehicles (FCEVs) to industrial hydrogen production and energy storage. For example, the European Union has in February 2023 passed two delegated acts with regulations to establish renewable hydrogen and sanctioned funding for the first two waves of hydrogen-related Important Projects of Common European Interest in 2022. Governments globally are investing in and creating hydrogen infrastructure. Efforts such as the EU Hydrogen Strategy, Japan's Hydrogen Roadmap, and U.S. clean hydrogen programs are aimed at positioning hydrogen as a key pillar of clean energy.  For example, in March 2023, the United States Department of Energy launched a $750 million R&D program for next-generation clean hydrogen technologies. With advancing hydrogen technologies, the demand for low-cost, high-performance hydrocarbon membranes will rise, providing considerable market opportunities in fuel cells and electrolysers.

HYDROCARBON MEMBRANES IN FUEL CELL AND ELECTROLYSER MARKET REPORT COVERAGE:

Global Hydrocarbon Membranes in Fuel Cell and Electrolyser Market Segmentation:

Hydrocarbon Membranes in Fuel Cell and Electrolyser Market Segmentation: By Type

• Aromatic Hydrocarbon Membranes
• Aliphatic Hydrocarbon Membranes
• Sulfonated Hydrocarbon Membranes
• Others

Sulfonated Hydrocarbon Membranes dominated hydrocarbon membranes in the fuel cell and electrolyser market in 2024. With their high-performance properties, cost savings, and environmental appeal, sulfonated hydrocarbon membranes are becoming enabling technologies in clean energy technologies like fuel cell electric vehicles (FCEVs), renewable hydrogen production, and water desalination. As per the Hydrogen Council, more than 400 million cars, 15–20 million trucks, and approximately 5 million buses can be powered by hydrogen by 2050, comprising the average global fleet. And 20–25% of the corresponding transport sectors. The market for efficient and cost-saving membranes like sulfonated hydrocarbon membranes is increasing as auto manufacturers are working to lower costs without sacrificing high performance. Such membranes are best suited for applications in PEMFCs as they offer high conductivity, long longevity, and low cost, thereby allowing for mass deployment of FCEVs.

Hydrocarbon Membranes in Fuel Cell and Electrolyser Market Segmentation: By Application

• Fuel Cells
• Electrolysers

Fuel cells dominated hydrocarbon membranes in the fuel cell and electrolyser market in 2024. The fuel cell segment is expanding in the hydrocarbon membranes in the fuel cell and electrolyser market because of some major drivers. First, fuel cells are increasingly being recognized as a clean, efficient option to conventional energy sources, especially in transportation (e.g., hydrogen fuel cell vehicles) and stationary power generation. Hydrocarbon membranes are preferred in these applications because they provide a less expensive solution than other types of membranes, including perfluorinated ones while retaining robust performance properties such as high ionic conductivity and good chemical stability.

Hydrocarbon Membranes in Fuel Cell and Electrolyser Market Segmentation: By Mode of Operation

• Automotive Applications
• Power Generation Applications
• Industrial Applications
• Commercial Applications
• Others

Industrial uses accounted for the majority of Hydrocarbon Membranes in the Fuel Cell and Electrolyser market in 2024. Industrial applications of hydrocarbon membranes are seeing considerable growth because they play a crucial role in the development of clean energy solutions and environmental mitigation. The membranes play a key role in enabling efficient electrochemical processes, including water electrolysis and fuel cells, which are increasingly being incorporated into industrial environments. For example, hydrocarbon membranes such as Ionomr Innovations' Pemion™ provide better performance by minimizing gas crossover, enhancing conductivity, and prolonging system lifetimes. These advantages are critical for companies to pursue a shift towards green hydrogen technologies, as evidenced in partnerships with firms such as Shell and Nouryon to build advanced electrolysis systems.

Hydrocarbon Membranes in Fuel Cell and Electrolyser Market Segmentation: Regional Analysis:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

APAC held the largest Hydrocarbon Membranes in Fuel Cell and Electrolyser market share in 2024. The APAC region is evolving as a global hydrogen economy hub with a strong emphasis on the production of green hydrogen, employing renewable energy sources to generate hydrogen. This is fueling the need for fuel cells, which employ hydrocarbon membranes for energy conversion with efficiency. With hydrogen being regarded as a vital answer to decarbonizing transport, industry, and power generation sectors, there is considerable pressure on both fuel cell cars and stationary fuel cells throughout the region. The growth of several green hydrogen projects in Inner Mongolia and Xinjiang, aided by key state-owned energy companies like Sinopec, represents a key stimulus for the hydrocarbon membranes market in China's fuel cell and electrolyser industry. With the just-released 2021-2035 hydrogen strategy, China plans to produce 0.1-0.2 million tons of green hydrogen per year by 2025 and will raise the proportion of green hydrogen in its total energy consumption.

COVID-19 Impact Analysis on the Global Hydrocarbon Membranes in Fuel Cell and Electrolyser Market:

The COVID-19 pandemic affected the global hydrocarbon membranes market for fuel cells and electrolysers unevenly. Supply chain issues, lack of labour, and disruptions in raw material acquisitions initially stalled production and project installations. Hydrogen and fuel cell projects were slowed down by limitations on manufacturing operations and decreased investments in clean energy infrastructure. But the crisis also hastened international interest in green energy solutions, with governments and industries giving top priority to hydrogen technologies for sustainable recovery. In the post-pandemic era, higher funding, policy support, and an emerging drive for energy security have fueled the fast growth of fuel cell and electrolyser deployment, favourably influencing the hydrocarbon membrane market.

Latest Trends/ Developments:

The worldwide hydrocarbon membranes market for fuel cells and electrolysers is experiencing major growth fueled by increasing demand for green hydrogen and clean energy solutions. Some of the major trends involve the creation of next-generation hydrocarbon membranes with better proton conductivity, durability, and thermal stability, thus improving overall efficiency. Scientists are working on low-cost, high-performance polymer membranes to avoid reliance on costly perfluorosulfonic acid (PFSA)-based options. In addition, ion-conducting nanocomposites and reinforced hydrocarbon structures are also being investigated to improve longevity and performance in harsh environments. Governments and private investors are investing heavily in hydrogen economy projects, promoting the uptake of fuel cells in transportation, industrial, and stationary applications. The transition to alkaline and solid-state electrolysers is also accelerating innovations in hydrocarbon membranes, making them pivotal enablers in the transition to a hydrogen-based future.

 Key Players:

1. Toray Industries Inc.
2. AGC Engineering
3. Juta Ltd
4. Cordek
5. Versogen
6. Permagard Products Ltd
7. Ionomer Innovations
8. Industrial Textiles & Plastics Ltd