Hydrogen Market

The global hydrogen market in terms of revenue was estimated to be worth $242.7 billion in 2023 and is poised to reach $410.6 billion by 2030, growing at a CAGR of 7.8% from 2023 to 2030. The growth in hydrogen demand in recent years is due to the increasing government focus on developing hydrogen-based economies and investment in the hydrogen infrastructure. The market for hydrogen is projected to benefit greatly from the rising usage of low emission fuel.

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Hydrogen Market Dynamics

Driver: Increased greenhouse gas emissions regulations

Infrared radiation (net heat energy) from the earth's surface can be absorbed by greenhouse gases, which can then reradiate it to the surface and increase the greenhouse effect. Most notably as a result of industrialization and the usage of fossil fuels, there is an increase in global green gas emissions. The US Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) have cut the GHG emissions and Corporate Average Fuel Economy (CAFE) standards for automobiles in the US from 2021 to 2026 thanks to the Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule. The 2020 regulation strengthens the CO2 emission and CAFE standards through the target year 2026. The combined GHG and CAFE limits for vehicles and trucks are anticipated to be 202 g/mile of CO2 and 40.4 mpg by 2026.

Nearly all regions reported a rise in CO2 emissions in 2021, with annual changes ranging from more than 10% in Brazil and India to less than 1% in Japan. China saw a 5% increase in emissions, compared to a rise of approximately 7 percent in the US and the EU. The percentage of US industries that contribute to greenhouse gas emissions is shown in the following graph. In 2021, the production of electricity and heat caused a significant increase in CO2 emissions, by sector, of more over 900 million tonnes (Mt). The majority of fossil fuels have been used to satisfy the rising energy demand, which has resulted in a 46% increase in world emissions.

Restraint: Energy loss during hydrogen production

Hydrogen transports energy produced by various other processes, as it is a synthetic energy carrier. Electrical energy is transformed into hydrogen by alkaline electrolysis. However, high-grade electrical energy is also used to compress, liquefy, transport, transfer, or store the medium in addition to creating hydrogen. Hydrogen must be produced using energy. The energy input and the energy content of the synthetic gas should ideally match. Energy transformation occurs throughout any process, including electrolysis and reforming, that produces hydrogen. Electrical energy or the chemical energy of hydrocarbons are both turned into hydrogen's chemical energy. Sadly, energy losses always occur during the production of hydrogen.

Opportunities:  Increasing focus on promoting hydrogen economy development

Various governments are expected to promote hydrogen programmes in the future years. It is difficult to develop the best net-zero CO2 emissions approach, including the most effective green hydrogen strategy. There are decarbonization choices for most applications and end uses, and the relative costs and benefits of each solution are expected to fluctuate over time, depending on the rate of innovation and technical developments. As a result, governments from many nations are investigating technology that are most appropriate for their country while avoiding multiple possible hazards, such as locking in slower or less efficient carbon reduction pathways. As a result, a stronger hydrogen economy is predicted to provide profitable growth opportunities for the hydrogen storage tanks and transportation markets.

Challenges: Hydrogen integration into existing natural gas networks

By operating as a temporary fix until dedicated hydrogen transport systems are created, integrating hydrogen into gas networks can promote the first implementation of low-carbon hydrogen and lead to cost reductions for low-carbon hydrogen generating technologies. Although numerous pilot programmes have already begun, there are still several technological and legal barriers to merging. Integrating hydrogen might be problematic due to the hydrogen purity requirements of some end users, particularly industrial clients. Furthermore, future changes to the gas's physical properties may have an impact on specific activities, such as metering. To avoid interoperability issues caused by fluctuating gas quality, hydrogen mixing will demand closer cooperation among local gas markets.

Hydrogen Market Ecosystem

Hydrogen market has some prominent companies which include well-established, financially stable hydrogen manufacturers. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Key players in this market include Linde plc (Ireland), Air products and Chemicals, Inc. (US), Air Liquide (France), Worthington Industries (US), Cryolor (France), Hexagon Purus (Norway), NPROXX (Netherlands).

The grey hydrogen, by generation type, is expected to be the largest segment during the forecast period.

This report segments the hydrogen market based on sector into three subsegments: generation type, storage and transportation. The generation type segment is bifurcated into the gray, blue and green hydrogen. Gray hydrogen is expected to be the largest segment during the forecast period. The availability of low-cost natural gas is the primary driver of grey hydrogen generation. Natural gas is a hydrocarbon resource that is abundant in many areas, and when it is cheap, it becomes an economically appealing feedstock for hydrogen synthesis.

By application, the mobility is expected to be the fastest growing during the forecast period

This report segments the hydrogen market based on application into four segments: energy, mobility, chemical & refinery and other. Others segment include industrial sector, aerospace and defense etc. application. The mobility is expected to grow at the fastest rate during the forecast period. The increasing investments in the fule cells are expected to drive the market for hydrogen. Many governments and organizations worldwide are providing support, incentives, and funding for the development, deployment, and commercialization of hydrogen fuel cells as part of their efforts to promote clean energy and address climate change.

North America is expected to be the largest region in the hydrogen market

North America is expected to be the largest hydrogen market during the forecast period. The region's market growth can be ascribed to an increase in fuel cell applications, stringent pollution control rules, and a preference for cleaner fuels. Policies are also being developed to investigate and promote the usage of clean fuels such as hydrogen for a variety of energy demands. For example, in March 2023, the Biden-Harris Administration announced the availability of USD 750 million for research, development, and demonstration initiatives to substantially cut the cost of clean hydrogen through the US Department of Energy (DOE).

Key Market Players

The hydrogen market is dominated by a few major players that have a wide regional presence. The major players in the hydrogen market include Linde plc (Ireland), Air products and Chemicals, Inc. (US), Air Liquide (France), Worthington Industries (US), Cryolor (France), Hexagon Purus (Norway), NPROXX (Netherlands). Between 2019 and 2023, these companies followed strategies such as contracts, agreements, partnerships, mergers, acquisitions, and expansions to capture a larger share of the market.

Hydrogen Market Report Scope

This research report categorizes the hydrogen market by type, portability, application, and region.

On the basis of Sector:

• Generation Type
  • Gray Hydrogen
  • Blue Hydrogen
  • Green Hydrogen
• Storage
  • Physical
  • Material-based
• Transportation
  • Long Distance
  • Short Distance

On the basis of application:

• Energy
  • Power Generation
  • CHP
• Mobility
• Chemical & Refinery
  • Petroleum Refinery
  • Ammonia Production
  • Methanol Production

On the basis of region:

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

Recent Developments

• In July 2023, Air Products & Chemicals, Inc. announced that it has been chosen as the hydrogen and technology provider for Alberta's first hydrogen fuel cell passenger vehicle fleet by Edmonton International Airport. Air Products will deploy a mobile hydrogen refueler at the airport to deliver hydrogen for the Toyota Mirai hydrogen fuel cell vehicle fleet.
• In July 2023, Air Liquide and KBR collaborated to provide fully integrated low-carbon ammonia solutions based on Autothermal Reforming (ATR) technology. Air Liquide is a global leader in ATR technology, which is one of the best options for large-scale production of low-carbon hydrogen (H2), which is then mixed with nitrogen (N2) to make low-carbon ammonia (NH3).
• In April 2023, Linde plc has signed a long-term arrangement with Evonik, a well-known specialty chemicals firm, to supply green hydrogen. Linde will build, own, and operate a nine-megawatt alkaline electrolyzer facility on Jurong Island in Singapore under this arrangement. This plant's major output will be green hydrogen, which Evonik wants to employ in the synthesis of methionine, an essential element in animal feed.
• In April 2023, Air Liquide entered into an agreement with TotalEnergies to create an equally owned joint venture to develop a network of hydrogen stations. This initiative will help facilitate access to hydrogen, enabling the development of its use for goods transportation and further strengthening the hydrogen sector.
• In October 2022, Hexagon Purus and Lhyfe collaborated for the production of green and renewable hydrogen for transportation and industrial applications.
• In May 2022, Air Products Inc, OQ, and ACWA Power jointly signed an agreement for the world’s largest green hydrogen-based ammonia production powered by renewable energy.

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