AEM Multicore Market

Market Definition

The AEM multicore market involves the use of Anion Exchange Membrane (AEM) electrolysis technology for hydrogen production, utilizing multicore systems for scalability and efficiency.

This technology offers cost-effective, flexible, and high-performance solutions, particularly in industries focused on green hydrogen production, energy storage, and fuel cell applications, driving the transition to sustainable energy.

AEM Multicore Market Overview

The global AEM multicore market size was valued at USD 903.2 million in 2023, which is estimated to be valued at USD 953.9 million in 2024 and reach USD 1,480.1 million by 2031, growing at a CAGR of 6.48% from 2024 to 2031.

Energy storage solutions drive growth in the market by enabling hydrogen energy storage. AEM-based systems efficiently store energy from intermittent renewable sources, enhancing grid stability and providing scalable, flexible solutions for large-scale energy storage.

Major companies operating in the global AEM multicore industry are YEST Coporation, H2 Core Systems GmbH, Sumitomo Electric Industries, Ltd., VFlowTech Pte Ltd., VRB ENERGY, Enapter S.r.l., Hygreen Energy, Cipher Neutron, Hydrolite, Ionomr Innovations Inc, Versogen, and SunGreenH2.

The market represents a dynamic and evolving sector within the hydrogen production industry, characterized by the integration of AEM electrolysis systems in multicore configurations.

These systems offer enhanced scalability and efficiency for large-scale hydrogen production, particularly in applications requiring high performance and flexible energy solutions.

With increasing demand for clean energy, AEM electrolysers in multicore setups are positioned as a critical technology for industrial hydrogen production, supporting the transition to sustainable energy infrastructures globally.

• In September 2024, Enapter AG received its largest European order for 4 MW of AEM electrolysers to support Hydrogen Valley projects in Italy. The order emphasizes the growing adoption of AEM multicore systems in large-scale hydrogen production and infrastructure development.

Key Highlights:

1. The global AEM multicore market size was valued at USD 903.2 million in 2023.
2. The market is projected to grow at a CAGR of 6.48% from 2024 to 2031.
3. North America held a market share of 40.11% in 2023, with a valuation of USD 362.3 million.
4. The medium-scale (above 1 MW) segment garnered USD 587.9 million in revenue in 2023.
5. The hydrogen production (electrolyzers) segment is expected to reach USD 506.2 million by 2031.
6. The automotive & transportation segment is anticipated to register the fastest CAGR of 7.67% during the forecast period.
7. The market in Asia Pacific is anticipated to grow at a CAGR of 7.74% during the forecast period.

Market Driver

"Rising Demand for Green Hydrogen"

The rising demand for green hydrogen is a significant driver of the AEM multicore market.

• According to the International Energy Agency (IEA), the demand for global hydrogen grew by 2.5% in 2023, reaching a total of 97 million tons (Mt), compared to the previous year. This growth reflects the increasing adoption of hydrogen  globally.

The need for low-cost, high-efficiency hydrogen production becomes essential as industries shift toward sustainable energy solutions. AEM-based electrolysis systems, known for their scalability, cost-effectiveness, and operational flexibility, are well-positioned to meet this demand.

With green hydrogen playing a crucial role in decarbonizing sectors like transportation, manufacturing, and energy storage, the increased focus on sustainable hydrogen production fuels the market.

• In December 2024, Horizon Fuel Cell Group launched the world’s first 5MW AEM electrolyser, designed to lower green hydrogen costs. This system enhances efficiency, flexibility, and scalability, supporting large-scale projects in sectors like green steel, ammonia, and transport.

Market Challenge

"High Production Costs"

A significant challenge for the AEM multicore market is the high initial capital investment required for large-scale AEM electrolysers, despite their potential for cost reduction in the long term. This high upfront cost can limit adoption, particularly for smaller players or emerging markets.

Continued innovation in manufacturing processes and economies of scale is crucial, as well as government incentives and subsidies to offset initial costs. Competitive pricing and cost efficiencies will make the large-scale adoption of AEM multicore more feasible as the market grows.

Market Trend

"Advancements in AEM Technology"

A significant trend in the AEM multicore market is the continuous advancement in AEM technology. The innovations are driving improvements in the efficiency, durability, and overall performance of electrolysis systems.

As these technologies evolve, they contribute to lower operational costs, longer system lifespans, and greater scalability in large-scale hydrogen production. Such advancements are pivotal in making AEM electrolysers more viable for a wide range of industrial applications, supporting the transition to sustainable energy solutions.

• In June 2024, Cipher Neutron Inc. achieved a groundbreaking 94.36% efficiency with its AEM electrolyser stack, reducing energy consumption to 41.754kWh/kg for hydrogen production. This advancement significantly lowers production costs, increases green hydrogen output, and enhances scalability for large-scale projects.

AEM Multicore Market Report Snapshot

Market Segmentation:

• By Capacity Type [Small-Scale & Medium Scale (0-1MW), Medium-Scale (Above 1 MW)]: The medium-scale (above 1 MW) segment earned USD 587.9 million in 2023, due to the increasing demand for large-scale, efficient AEM electrolysis systems in green hydrogen production.
• By Application [Hydrogen Production (Electrolyzers), AEM Fuel Cells, Redox Flow Batteries, Others]: The hydrogen production (electrolyzers) segment held 38.13% share of the market in 2023, due to the growing demand for green hydrogen and the cost-efficiency of AEM electrolysis technology.
• By End-use Industry (Energy Storage, Automotive & Transportation, Industrial Process, Others): The energy storage segment is projected to reach USD 598.9 million by 2031, owing to the increasing adoption of AEM systems for grid stability and efficient storage of renewable energy.

AEM Multicore Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

North America accounted for a AEM multicore market share of around 40.11% in 2023, with a valuation of USD 362.3 million. North America has emerged as the dominant region in the market, due to robust investments in green hydrogen technologies and significant government support for sustainable energy projects.

The region’s focus on decarbonizing industries and advancing clean energy solutions, particularly in hydrogen production, is driving the demand for AEM electrolysers.

North America benefits from high adoption rates of advanced hydrogen technologies, creating a favorable environment for AEM electrolyser deployment in various sectors, including energy storage and industrial applications.

• In May 2024, Cipher Neutron and the Energy Materials Research Group (NRGMATs) at the University of Alberta, Canada secured funding from Alberta Innovates. The collaboration focuses on enhancing AEM electrolyser efficiency with 3D-CAT technology to support large-scale green hydrogen production and commercialization.

The AEM multicore industry in Asia Pacific is poised for significant growth at a robust CAGR of 7.74% over the forecast period. Asia Pacific is the fastest-growing region in the AEM multicore market, driven by increasing energy demand and rapid industrialization.

The region’s commitment to reducing carbon emissions and expanding green hydrogen infrastructure, particularly in countries like Japan, South Korea, and China, is propelling the market. AEM electrolysers are being increasingly adopted for large-scale hydrogen production projects.

The market in Asia Pacific is poised for rapid expansion in the coming years, due to significant investments in clean energy and government support for sustainable energy development.

Regulatory Frameworks

• The U.S. Department of Energy Hydrogen Program, led by the Hydrogen and Fuel Cell Technologies Office (HFTO) within the Office of Energy Efficiency and Renewable Energy (EERE), conducts research and development in hydrogen production, delivery, infrastructure, storage, fuel cells, and multiple end uses across transportation, industrial, and stationary power applications.
• The Renewable Energy Directive establishes targets for increased renewable energy use, supporting cooperation between EU countries toward this goal.

Competitive Landscape:

The global AEM multicore market is characterized by a large number of participants, including established corporations and rising organizations. In the market, companies are forming strategic joint ventures to accelerate technological advancements and enhance their market reach.

These collaborations foster innovation in AEM electrolysis systems, enabling more efficient production of green hydrogen. By pooling resources, expertise, and capabilities, companies are expanding their global presence and driving growth in the renewable energy and hydrogen sectors.

• In Oct 2024, Wolong Enapter Joint Venture began the series production of AEM megawatt electrolysers for China. This marks a major step in Enapter's expansion, capitalizing on China's green hydrogen sector potential and fostering growth through strategic collaborations with key industry players.

List of Key Companies in AEM Multicore Market:

• YEST Coporation
• H2 Core Systems GmbH
• Sumitomo Electric Industries, Ltd.
• VFlowTech Pte Ltd.
• VRB ENERGY
• Enapter S.r.l.
• Hygreen Energy
• Cipher Neutron
• Hydrolite
• Ionomr Innovations Inc
• Versogen
• SunGreenH2

Recent Developments (New Product Launch)

• In May 2023, Enapter AG unveiled the AEM Multicore, the world’s first megawatt-class AEM electrolyser. This cost-effective solution for green hydrogen production, featuring 420 AEM stacks, offers high efficiency and scalability, with significant demand already registered across Europe, Asia, and North America.
• In September 2024, Hygreen Energy introduced its first-ever AEM electrolyzer system, expanding its portfolio to meet diverse hydrogen production needs. The system offers efficiency, safety, and flexibility, with a wide load range and plug-and-play installation, securing its first customer in China’s “Hydrogen into Ten Thousand Homes” project.