Green energy generation and storage technologies are poised for significant growth over the coming decade - and are redefining material opportunities along the way. Ion exchange membranes used as solid electrolytes in emerging green energy technologies are specialty polymers set to gain from changing material requirements.
Ion exchange membranes are emerging as key future materials and critical components in hydrogen fuel cell, water electrolyzer, and redox flow battery technologies, as outlined in the IDTechEx market report, "Ion Exchange Membranes 2025-2035: Technologies, Markets, Forecasts".
Membranes widely employed for selective ion conduction in water treatment and chemicals industries are applicable in hydrogen and energy storage applications. IDTechEx latest research forecasts that green hydrogen and energy storage applications will grow to represent 48% of global ion exchange membrane annual revenue by 2035.
With innovations in ion exchange membrane materials satisfying key performance targets in integrated products, the next decade looks to be characterized by their rising adoption in decarbonized energy and transport markets.
Ion exchange membrane market annual revenue by application. Source: IDTechEx.
Transport applications drive growth for ion exchange membranes in hydrogen fuel cells
Hydrogen fuel cells are an important growth market for ion exchange membranes, expected to exceed $380M in annual revenue by 2035. Fuel cells employ proton exchange membranes for the electrochemical reaction of hydrogen and oxygen to produce electricity and deliver power. Proton exchange membrane fuel cells (PEMFCs) are used in transport and mobility, as well as stationary energy storage in commercial, utilities and telecommunication applications.
Perfluorinated ion exchange membranes are the dominant technology used in PEMFCs, balancing high performance with robust durability. Perfluorosulfonic acid (PFSA) membranes are resilient to chemical degradation and have high dimensional stability, enabling fuel cells to operate better for longer. A key design trend focusses on the development of ultrathin reinforced membranes which reduce the size of fuel cell stacks - and thus increase overall power density.
In 2025, demand for proton exchange membrane fuel cells in automotive applications far exceeds that of stationary energy storage. Fuel cell electric vehicles (FCEVs) are seen as more viable options than battery electric vehicles for longer ranges and heavy-duty vehicles. Adoption of FCEVs is highest in Japan, Korea, and China, due to favorable regulatory landscapes. In contrast, stationary fuel cell applications contribute a negligible share of overall hydrogen fuel cell market revenue. This is attributed to the high cost of PEMFCs compared with other stationary power technologies - such as redox flow batteries - and the limited availability of high purity hydrogen fuel.
Water electrolyzer technology to capitalize on increasing green hydrogen demand
Water electrolyzers represent a significant growth opportunity for ion exchange membranes, as regulatory, economic, and technological drivers increase demand for green hydrogen production globally. Over 75 countries have announced national hydrogen strategies, creating market demand for hydrogen production. This demand is motivating major private sector investment, often through public-private partnerships. And amongst increased market activity: water electrolyzer technologies are advancing quickly, with efficiency and hydrogen production costs improving.
Ion exchange membrane area demand in water electrolyzer applications is set to increase 22x by 2035, with PFSA and hydrocarbon membranes remaining critical electrolyzers stack components. PFSA membranes are the industry standard material choice for proton exchange membrane electrolyzers (PEMEL), offering high proton conductivity, durability, chemical and temperature stability. Another advantage of PFSA membranes is that their dual applicability in PEMELs and PEMFCs means that material cost reductions are synergistically realized from the scaling up of fuel cell manufacturing. While most PFSA membranes are supplied by major materials companies such as Chemours, AGC, Gore, and Asahi Kasei, the development of reinforced membrane designs presents opportunities for emerging players to disrupt the market.
Ion exchange membrane demand forecast in water electrolyzer applications, by material and technology. Source: IDTechEx.
Anion exchange membrane electrolyzers (AEMELs) are still a relatively new technology, but represent an important growth market for hydrocarbon ion exchange membranes. AEMELs are poised to combine the economic advantages and common construction materials of alkaline water electrolyzers with the superior performance of PEMELs. Hydrocarbon anion exchange membranes (AEMs) used for hydroxide ion conduction and gas separation offer low cost per area, minimizing overall stack costs, while importantly avoiding potential PFAS restrictions faced by PFSA membranes.
The development of hydrocarbon AEMs is largely being driven by start-ups who seek to leverage low material costs and comparable performance attributes to PFSA membranes to penetrate the green hydrogen production market. However, current challenges and active innovation areas remain improving hydrocarbon membrane stability in alkaline conditions and realizing cost benefits through high volume manufacturing.
Membrane demand in the redox flow battery market set to take off by 2030
Ion exchange membranes are key materials employed in redox flow batteries (RFBs) for the generation or storage of electrical energy. Cation exchange membranes with good ion conductivity and chemical stability are widely employed in emerging RFB technologies. Specialty ion exchange membranes are also high value materials in RFBs, representing between 30-50% of overall stack costs.
Vanadium RFBs (VRFBs) are the most commercially mature technology and will drive demand for cation exchange membranes, as the number of installations is set to take off in 2030. VRFBs typically employ PFSA membranes as solid electrolytes due to their high ionic conductivity and chemical stability. IDTechEx forecasts that redox flow battery applications will represent 13% of global ion exchange membrane area demand in 2035, with vanadium RFBs commanding the majority of this.
Outlook for the ion exchange membrane market
The ion exchange membrane market is at an inflection point, with green hydrogen and energy storage applications poised to usher in the next era of growth. IDTechEx forecasts that ion exchange membrane demand by area will exceed 5.3 million m2 by 2035, with hydrogen fuel cells, water electrolyzers, and redox flow batteries representing key growth markets.
With ion exchange membranes set to be critical components in future water electrolyzer and fuel cell systems, material suppliers are preparing to meet increased demand. Market leaders are investing US$100Ms into scaling up membrane production to service anticipated demand from PEMFC, PEMEL, and AEMEL applications. Commercial activity extends to start-ups and emerging players, with development increasingly supported through partnerships with established materials suppliers and climate technology funds.
IDTechEx's report, "Ion Exchange Membranes 2025-2035: Technologies, Markets, Forecasts", provides an extensive survey of ion exchange membrane market trends, players, regional dynamics, and 10-year granular forecasts. For more information on this report, including downloadable sample pages, please visit www.IDTechEx.com/IEMs.
IDTechEx's research also provides technical analysis on perfluorinated and hydrocarbon ion exchange membrane technology and critical analysis of applications in emerging green hydrogen, redox flow battery, carbon capture and storage markets. See www.IDTechEx.com/Research for the full portfolio of market intelligence available.
