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

Overview

The Hydrocarbon membranes in fuel cell and electrolyser market size is forecast to reach USD 278.66 million by 2030, after growing at a CAGR of 4.46% during 2025-2030. The growth of hydrocarbon membranes in the fuel cell and electrolyzer industry due to the increasing global emphasis on clean energy and decarbonization has driven the demand for efficient and sustainable technologies like fuel cells and electrolyzers. Hydrocarbon membranes, known for their lower cost and high performance compared to alternative materials, are becoming crucial components in Proton Exchange Membrane (PEM) fuel cells and water electrolyzers, which are key technologies for hydrogen production and fuel cell vehicles. Advances in hydrocarbon membrane technology, including improvements in conductivity, durability, and resistance to chemical degradation, have enhanced their efficiency and commercial viability, making them a more attractive choice for large-scale applications. 

Report Coverage

The report “Hydrocarbon Membranes in Fuel Cell and Electrolyser Market– Forecast (2025-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Hydrocarbon Membranes in Fuel Cell and Electrolyser market.

By Type: Aromatic Hydrocarbon Membranes, Aliphatic Hydrocarbon Membranes, Sulfonated Hydrocarbon Membranes, Others.

By Application: Fuel Cells, Electrolysers.

By Mode of Operation: Automotive Applications, Power Generation Applications, Industrial Applications, Commercial Applications, Others.

By Geography:  North America, South America, Europe, Asia-Pacific, RoW

Key Takeaways

•    the European Commission authorized 'IPCEI Hy2Use' in September 2022 as an addition to IPCEI Hy2Tech. Integrating hydrogen into the industrial sector will encourage the development of new and sustainable technologies as well as the building of infrastructure associated with hydrogen. The development of hydrogen infrastructure is projected to significantly boost demand for hydrocarbon membranes in fuel cells and electrolyzers.

•    According to IEA (International Energy Agency), in 2023, about 14 million new electric vehicles were registered worldwide, increasing the total number of these vehicles on the road to 40 million. With the increasing adoption of electric vehicles globally, the demand for aromatic hydrocarbon membranes is projected to witness significant growth over the forecast period.

•    In September 2021, Toray Industries, Inc., and Siemens Energy K.K., the Japanese subsidiary of Siemens Energy AG, have been selected for the Green Hydrogen Project under Japan's Green Innovation Funding Program. This initiative is organized by the Ministry of Economy, Trade and Industry (METI) in collaboration with the New Energy and Industrial Technology Development Organization (NEDO). As part of this collaboration, Toray will supply Siemens Energy with its proprietary hydrocarbon electrolyte membranes for use in the development and demonstration of Japan's largest multi-megawatt class PEM (Polymer Electrolyte Membrane) water Electrolyser. This initiative highlights the pivotal role of hydrocarbon membranes in the fuel cell and electrolyser markets, as they provide a cost-effective and high-performance solution for green hydrogen projects. 

By Type - Segment Analysis

Sulfonated Hydrocarbon Membranes dominated the hydrocarbon membranes in fuel cell and electrolyzer market in 2024. With their excellent performance characteristics, cost-effectiveness, and environmental benefits, sulfonated hydrocarbon membranes are emerging as key enablers in clean energy technologies, such as fuel cell electric vehicles (FCEVs), renewable hydrogen production, and water desalination. According to the Hydrogen Council, over 400 million automobiles, 15–20 million trucks, and roughly 5 million buses could be powered by hydrogen by 2050, making up the average worldwide fleet. and 20–25% of the corresponding transportation sectors. The demand for efficient and cost-effective membranes, such as sulfonated hydrocarbon membranes, is growing as automakers look for ways to reduce costs while maintaining high performance. These membranes are ideal for use in PEMFCs due to their high conductivity, durability, and reduced cost, thus supporting the widespread adoption of FCEVs.

By Application- Segment Analysis

Fuel cells dominated the hydrocarbon membranes in fuel cell and electrolyser market in 2024. The fuel cell segment is growing in the hydrocarbon membranes in the fuel cell and electrolyzer market due to several key drivers. First, fuel cells are gaining traction as a clean, efficient alternative to traditional energy sources, particularly in transportation (e.g., hydrogen fuel cell vehicles) and stationary power generation. Hydrocarbon membranes are favored in these applications because they offer a more cost-effective solution compared to other membrane types, such as perfluorinated ones, while still providing strong performance characteristics like high ionic conductivity and good chemical stability.

By Mode of Operation - Segment Analysis

Industrial applications dominated the Hydrocarbon Membranes in Fuel Cell and Electrolyser market in 2024. The industrial applications of hydrocarbon membranes are witnessing significant growth due to their role in advancing clean energy solutions and addressing environmental concerns. These membranes are critical in facilitating efficient electrochemical processes, such as water electrolysis and fuel cells, which are increasingly being integrated into industrial settings. For instance, hydrocarbon membranes like Ionomr Innovations' Pemion™ offer superior performance by reducing gas crossover, improving conductivity, and extending system lifetimes. These benefits are pivotal for industries aiming to transition to green hydrogen technologies, as highlighted by collaborations with companies like Shell and Nouryon to develop advanced electrolysis systems. 

By Geography - Segment Analysis

APAC dominated the Hydrocarbon Membranes in Fuel Cell and Electrolyser market in 2024. The APAC region is emerging as a global hub for the hydrogen economy, with a strong focus on green hydrogen production, using renewable energy sources to produce hydrogen. This is driving the demand for fuel cells, which utilize hydrocarbon membranes for efficient energy conversion. As hydrogen is seen as a key solution for decarbonizing sectors like transport, industry, and power generation, there is a significant push for both fuel cell vehicles and stationary fuel cells across the region. The development of several green hydrogen projects in regions such as Inner Mongolia and Xinjiang, supported by major state-owned energy enterprises like Sinopec, presents a significant driver for the hydrocarbon membranes market in China’s fuel cell and electrolyzer sectors. With the recently unveiled 2021-2035 hydrogen plan, China aims to produce 0.1-0.2 million tons of green hydrogen annually by 2025 and to increase the share of green hydrogen in its overall energy consumption. 

Drivers – Hydrocarbon Membranes in Fuel Cell and Electrolyser Market

•    Increasing Deployment of Fuel Cells and Electrolysers Using Hydrocarbon Membranes to Produce Green Hydrogen.
The global hydrocarbon membranes market in fuel cells and Electrolysers is witnessing robust growth, significantly propelled by green hydrogen initiatives. As countries and industries transition toward decarbonization, green hydrogen has emerged as a pivotal solution due to its ability to provide clean, renewable energy for various applications. 

Hydrocarbon membranes play a crucial role in this ecosystem, serving as cost-effective and efficient components in Electrolysers and fuel cells. Unlike perfluorosulfonic acid (PFSA) membranes, hydrocarbon membranes are more economical while offering comparable performance in proton conductivity and energy efficiency. This makes them attractive for green hydrogen projects, especially in cost-sensitive applications and emerging economies.

For instance, in August 2023, The recent advancements in the hydrogen and fuel cell industry in the United States underscore the pivotal role of hydrocarbon membranes in supporting the nation’s transition to clean energy. The U.S. Department of Energy (DOE) has made substantial investments to enhance the hydrogen and fuel cell ecosystem, including the allocation of $7 billion for Hydrogen Hubs under the Infrastructure and Investment Jobs Act (IIJA) and an additional $1.5 billion for RDD&D activities in clean hydrogen electrolysis, manufacturing, and recycling. Among these efforts, the announcement of $750 million to fund 52 projects across 24 states highlights the federal commitment to advancing technologies such as hydrocarbon proton exchange membranes, which are essential for improving 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 automotive industry is driving the hydrocarbon membranes in the fuel cell and electrolyser market due to its commitment to sustainable mobility and zero-emission technologies. With the rising adoption of fuel cell vehicles (FCVs) in both passenger and heavy-duty applications, there is a growing demand for high-performance, cost-effective, and durable materials. Hydrocarbon membranes meet these needs by offering superior proton conductivity, reduced costs compared to traditional fluorinated alternatives, and compatibility with lightweight, compact designs.

For instance, in September 2022, Ionomr Innovations Inc. introduced its breakthrough Pemion™ hydrocarbon-based proton exchange membrane and polymer, representing a major advancement in materials for green hydrogen fuel cells in heavy-duty industries. Pemion™ is designed for large-scale fuel cell applications, including heavy-duty transport, automotive, and stationary power. It delivers exceptional chemical and mechanical stability, high conductivity, enhanced durability, and efficiency, significantly lowering the unit cost of fuel cells. This innovation is poised to drive the growth of the hydrocarbon membranes in fuel cell and electrolyser market, meeting the demand for cost-effective and high-performance solutions in the transition to sustainable energy systems. As the automotive industry accelerates the adoption of hydrogen technologies, hydrocarbon membranes are poised to see increased demand. Their affordability, performance, and adaptability to automotive requirements make them a cornerstone in advancing the global hydrogen economy.

Challenges – Hydrocarbon Membranes in Fuel Cell and Electrolyser Market

•    High Initial Costs

Developing advanced hydrocarbon membranes involves significant investments in research and development to enhance properties like conductivity, durability, and chemical stability. Companies often face high costs for materials characterization, testing, and prototyping during the development phase, which adds to the overall expense.

The production of hydrocarbon membranes involves precision engineering and specialized equipment to achieve consistent quality and performance. These sophisticated processes increase the capital required for manufacturing setups. Scaling production is costly as it requires automation, quality control systems, and process optimization to meet demand while maintaining high standards. While high initial costs present a significant challenge in the adoption of hydrocarbon membranes in the fuel cell and electrolyser market, they also highlight the need for continued investment and innovation. By addressing these barriers through economies of scale, government support, and collaborative R&D efforts, the industry can reduce costs and accelerate adoption.

Market Landscape

Technology launches and R&D activities are key strategies adopted by players in the Hydrocarbon Membranes in Fuel Cell and Electrolyser market. In 2024, the Hydrocarbon Membranes in Fuel Cell and Electrolyser market share has been consolidated by the major players accounting for 72% of the share. Major players in the Hydrocarbon Membranes in Fuel Cell and Electrolyser are Toray Industries, Inc., Ionomr Innovations Inc., AGC Engineering, Juta Ltd, Cordek , Industrial Textiles & Plastics Ltd, Versogen, Permagard Products Ltd, among others.

Developments:

•  In March 2023, Toray Industries, Inc. announced that its subsidiary, Greenerity GmbH, has expanded its catalyst-coated membrane (CCM) production capacity. CCMs are key components of solid polymer electrolyte (PEM) water electrolytes for green hydrogen production. Greenerity develops and manufactures hydrogen fuel cell components, including hydrocarbon electrolyte membranes with high proton conductivity, carbon fiber and resin for high-pressure hydrogen tanks, and carbon materials for electrodes and gas diffusion layers.
•   In September 2022, Ionomr Innovations Inc. launched Pemion™, a hydrocarbon-based proton exchange membrane, marking a major advancement for green hydrogen fuel cells, especially in heavy-duty applications like transportation and stationary power. Pemion™ offers improved stability, conductivity, durability, and efficiency, significantly reducing fuel cell costs. This innovation enhances the hydrocarbon membranes market by making hydrogen fuel cells more viable and affordable, driving growth in the hydrogen energy sect

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