Ion exchange membrane market to exceed US$2.9B by 2035

IDTechEx forecasts that the ion exchange membrane market will exceed US$2.9B in revenue annually by 2035, driven by growth in decarbonized energy and transport applications. Water electrolyzers for green hydrogen production, hydrogen fuel cells, and redox flow batteries represent key ion exchange membrane growth markets. This IDTechEx report provides comprehensive analysis of current and emerging ion exchange membrane material markets, including chemical production and processing, water treatment, green hydrogen economy, redox flow batteries (RFBs), carbon capture and utilization, and sustainable metals processing. In addition, granular 10-year ion exchange membrane market forecasts, including demand in area (m2), weight (tonnes), and annual revenue forecasts (US$M), are presented for perfluorinated and hydrocarbon ion exchange membrane materials.

Perfluoroalkyl sulfonate (PFSA) cation exchange membranes (CEMs) continue to dominate the market, whose chemical and mechanical stability ensure performance in high temperature and corrosive applications. Market leading material suppliers, including Chemours, W.L. Gore, and AGC, are developing reinforced membranes using multilayer structures (e.g., with PTFE) or composite materials (woven supports). Membrane reinforcement enables sheet thicknesses to be reduced to as low as 5-10 um, which is highly desirable for improving power density in fuel cell applications.

 

The increasing threat of restrictions on PFAS-based membranes (per- and poly-fluoroalkyl substances) is driving a rise in alternative hydrocarbon ion exchange membranes. Start-ups are leading this charge, developing novel polybenzimidazole (PBI), polyether ether ketone (PEEK) and other polycyclic membrane materials for hydrogen fuel cell, water electrolysis, and redox flow battery applications. However, with smaller players focussed on emerging markets, lean business models are required until high volume membrane demand is realized. This report evaluates emerging ion exchange membrane materials, including innovations in composition, composite design, manufacturing, and key target markets.

 

Sustainability megatrends renew growth in established ion exchange membrane markets

Sustainability megatrends are driving growth in high volume chemicals and water treatment markets, where ion exchange membranes are routinely applied in electrodialysis, electrolysis, and deionization. Reducing ion exchange membrane thickness will be key to improving the energy efficiency of electrolyzer stacks widely used in chloralkali production (NaOH/Cl2) and other acid/base recovery circuits. Looking towards the future, the production of battery grade lithium hydroxide by salt splitting will be an emerging application for ion exchange membrane materials with high pH stability. Within water treatment, IDTechEx predicts that demand for membranes used in electro-deionization and electro-desalination technologies will steadily increase, as water consumption in semiconductor manufacturing is expected to double by 2035.

Transport drives growth for proton exchange membrane fuel cells (PEMFCs)

Proton exchange membranes (PEMs) are critical components in PEMFCs used in transportation and stationary energy applications. PFSA PEMs are overwhelmingly employed due to their high chemical stability, mechanical strength, and ionic conductivity. Reducing PEM thickness towards 10 um and below is an active development area and will be key to unlocking greater power density in PEMFCs necessary for transportation applications.

 

While fuel cell electric vehicle adoption is limited in 2025, IDTechEx predicts that transport applications will be a key growth market for proton exchange membranes (PEMs), poised to take-off in the 2030s. This report reviews technology trends in proton exchange membrane materials and provides an overview of emerging fuel cell stack supply chains.

 

Water electrolyzers for green hydrogen production

Water electrolyzers rely on anion exchange membranes (AEMs) and proton exchange membranes (PEMs) to produce green hydrogen. PEM electrolyzer (PEMEL) systems are the most established water electrolysis systems using ion exchange membranes. PFSA-based PEMs continue to dominate the market due to the relatively low commercial readiness of hydrocarbon-based PEMs as well as the harsh conditions seen in the PEMEL.

 

Nevertheless, AEM electrolyzer (AEMEL) systems hold significant promise for hydrocarbon membranes. Emerging membrane suppliers (e.g., Ionomr Innovations, Dioxide Materials, and Orion Polymers) look to capitalize on AEMEL system developer interest, who generally prefer to avoid PFSA membranes in the face of potential PFAS bans. In this report, IDTechEx provides extensive analysis of membrane requirements, innovation areas, and design trends in water electrolyzer systems.

 

Redox flow batteries, carbon capture and utilization: Membranes for decarbonization

Beyond green hydrogen, decarbonization is driving demand for ion exchange materials in redox flow batteries and carbon capture and utilization technologies.

Redox flow batteries (RFBs) are rechargeable devices that provide stationary energy storage solutions for remote, off-grid and, microgrid applications. PFSA cation exchange membranes are commercially deployed in vanadium redox flow batteries (VRFBs) to separate electrolyte solutions. This report explores the role of ion exchange membranes in RFBs and strategies for reducing their high contribution to overall cell stack cost, which can comprise 30-50% across different chemistries.

 

Membrane technologies are also being adapted for carbon capture and utilization; however, this market remains in a nascent stage. Electrolysis is increasingly being used for direct air capture, while (bipolar) electrodialysis is gaining traction for direct ocean capture. But carbon capture is only the beginning. PFSA and hydrocarbon membranes are also applied in prototype electrolyzers for carbon utilization, primarily for production of C1 feedstocks such as methanol and formic acid.

 

Key aspects of this report

This report provides the following information:

Overview of ion exchange materials in chemical production and water treatment markets, including trends in PFAS remediation, semiconductor manufacturing, and critical lithium recovery.

Comprehensive overview of ion exchange membrane technology in the hydrogen economy.

Technical analysis of proton exchange membrane fuel cells (PEMFCs), material benchmarking, and trends in transportation and stationary fuel cell applications.

Critical analysis of proton exchange membrane electrolyzers (PEMELs) and anion exchange membrane electrolyzers (AEMELs) for green hydrogen production.

Discussion on membrane development and application in redox flow batteries and carbon capture and utilization, including direct ocean capture, direct air capture, and electrosynthesis.

Exploration of innovations in reinforced, composite, and ultrathin ion exchange membranes.

Identification of PFAS alternatives, including emerging hydrocarbon membranes, metal-organic framework membranes, organic-inorganic hybrid membranes.

Comprehensive overview of the ion exchange market, key players, value chain analysis, regional dynamics, investments and partnerships, and expansion plans.

Granular forecasts 10-year forecasts of material demand by area, weight, and revenue, segmented by applications and membrane chemistry.