Hydrogen Pipeline Market

The Hydrogen pipeline market is projected to grow from USD 9.1 billion in 2023 to USD 25.7 billion by 2030, at a CAGR of 16.0% from 2023 to 2030. The growing demand for hydrogen as a clean energy carrier is a significant growth factor for the hydrogen pipeline market. Various sectors, including power generation, transportation, and industrial applications, are increasingly relying on hydrogen to meet their energy needs. This surge in demand necessitates the development of extensive pipeline networks to efficiently transport hydrogen from production facilities to end-users.

Attractive Opportunities in the Hydrogen Pipeline Market

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Market Dynamics:

Driver: Global initiatives in decarbonization to reduce impact of climate change

Decarbonization has emerged as a critical global initiative to reduce the impact of climate change and transition toward more sustainable and environmentally friendly energy systems. As nations strive to reduce their carbon footprints, hydrogen has gained significant attention as a versatile and clean energy carrier. Hydrogen is considered a clean energy source for several reasons, and its adoption is being explored in various sectors to contribute to a more sustainable and low-carbon energy landscape. Therefore, such decarbonization initiatives worldwide underscore the growing importance of hydrogen pipelines in facilitating the widespread adoption of clean hydrogen as a sustainable energy solution enhancing growth for hydrogen pipeline market.

Restraint: Risk of accidents and explosions due to high flammability of hydrogen

The flammability of hydrogen poses a significant challenge to the development of the hydrogen pipeline market. Hydrogen is among the most flammable elements, with a wide explosive range, meaning it can ignite at relatively low concentrations and with minimal energy. This property raises concerns about potential accidents and explosions if hydrogen pipelines are not designed, constructed, operated, and maintained to the highest safety standards. Hydrogen molecules are very small and can easily leak through even the smallest cracks or imperfections in pipelines. These leaks can lead to the formation of explosive hydrogen-air mixtures. Hydrogen can ignite at very low concentrations and with minimal energy sources, such as sparks or static electricity. This means that even small incidents or equipment malfunctions can trigger explosions. These incidents contribute to the cautious approach toward hydrogen's flammability, influencing regulatory considerations, and safety protocols in the development and operation of hydrogen pipelines restraining the hydrogen pipeline market’s growth.

Opportunity: Governments net emission targets leading to enhanced focus on green hydrogen

Hydrogen production is going through an unprecedented revolution under the net zero emissions scenario. By 2050, most hydrogen production is expected to be through low-carbon technologies. According to the European Commission, Europe aims to be climate-neutral by 2050, an economy with net-zero greenhouse gas emissions. According to The Climate Action Tracker organization, The US government is committed to reaching net zero emissions by 2050. This has driven the focus on the usage and expansion of green hydrogen production. The majority of hydrogen that is produced is used by petroleum refineries and companies that manufacture fertilizers. Unfortunately, almost all this hydrogen is created through fossil fuel reforming, which is not environmentally friendly due to the production of CO2 emissions. To combat this issue, green hydrogen is produced through electrolysis, which splits water into hydrogen and oxygen using electricity and results in zero carbon emissions. This includes investments in green hydrogen production and the associated pipeline infrastructure which will eventually drive the growth in the hydrogen pipeline market.

Challenge: High initial cost of construction of hydrogen pipelines

The construction and installation of hydrogen pipeline infrastructure involves significant upfront costs. This factor can be a deterrent, especially in regions where financial commitment is a challenge. The high initial cost associated with developing hydrogen pipelines poses a significant barrier to entry for both, public and private entities interested in embracing hydrogen as a key component of their energy infrastructure. The substantial capital required for planning, engineering, and constructing these pipelines can strain budgets and financial resources, preventing potential investors and stakeholders from pursuing hydrogen projects.

Hydrogen pipeline market: ecosystem

Prominent companies in this market include well-established, and financially stable manufacturers of hydrogen pipeline market. These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Prominent companies in this market include Hexagon Purus (Norway), ArcelorMittal (Luxembourg), Salzgitter AG (Germany), Tenaris (Luxembourg), GF Piping Systems (Switzerland), and others.

Based on type, the fixed pipelines segment is projected to register the highest CAGR during the forecast period.

The fixed pipeline segment is estimated to be the fastest-growing segment of the global hydrogen pipeline market in the forecast period by type. Constructed from durable materials such as steel or plastic. With a key role in transporting hydrogen from production sites to diverse end-users, including industrial plants and refineries, fixed pipelines emerge as a practical and viable choice, especially in regions expecting significant growth in hydrogen demand.

Based on pipeline structure, the plastics & composites segment is expected to grow at the fastest rate during the forecast period.

Plastics & composites accounted for the fastest growing segment of the global hydrogen pipeline market in the forecast period by pipeline structure. Fiber-reinforced Polymer (FRP), is a composite material gaining attention for constructing hydrogen pipelines. As an alternative to traditional metal, FRPs also offer advantages in hydrogen transport due to their corrosion resistance, lightweight nature, and high strength-to-weight ratio. For preventing hydrogen embrittlement, FRPs provide a durable solution, and their flexibility ensures cost-effectiveness and adaptability in various lands and grounds. Ongoing research focuses on optimizing the design and material composition of FRP pipelines to meet stringent safety standards for hydrogen transportation.

Based on region, Europe region is projected to be the largest market for hydrogen pipeline market during the forecast period .

Europe is projected to be the largest market from 2023 to 2030. The key driving factor in this region is the diverse stages of development in new energy policies among European countries. With the Europe region committed to a binding target of at least a 40% reduction in greenhouse gas emissions by 2030, it positions itself as a significant player. Furthermore, as one of the oldest oil-producing regions globally, Europe is witnessing rapid adoption of fuel cells driven by increasing projects and government initiatives in residential and commercial sectors. This surge in fuel cell growth is expected to fuel the demand for hydrogen, consequently propelling the hydrogen pipeline market.

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Key Market Players

Cenergy Holdings (Belgium), SoluForce B.V. (The Netherlands), Salzgitter AG (Germany), Gruppo Sarplast S.r.l (Italy), Tenaris (Luxembourg), Hexagon Purus (Norway), Pipelife International GmbH (Austria), Europe Technologies (France), H2 Clipper, Inc. (US), NPROXX (The Netherlands), GF Piping Systems (Switzerland), ArcelorMittal (Luxembourg), and Jindal Saw Limited (India), and others are among the major players leading the market through their innovative offerings, enhanced production capacities, and efficient distribution channels.

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Scope of the Report

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This research report categorizes the hydrogen pipeline market  based on type, textile type, application, and region.

Based on type, the hydrogen pipeline market  has been segmented as follows:

• Mobile Pipelines
• Fixed Pipelines

Based on distance, the hydrogen pipeline market  has been segmented as follows:

• Upto 300 Km
• More than 300 Km

Based on hydrogen form, the hydrogen pipeline market  has been segmented as follows:

• Gas
• Liquid

Based on pipeline structure, the hydrogen pipeline market  has been segmented as follows:

• Metal
• Plastics & Composites

Based on the region, the hydrogen pipeline market  has been segmented as follows:

• Asia Pacific
  • China
  • India
  • Australia
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Europe
  • Belgium
  • Denmark
  • Greece
  • Spain
  • Germany
  • France
  • Rest of Europe
• North America
  • US
  • Canada
  • Mexico
• South America
  • Brazil
  • Rest of South America
• Middle East & Africa
  • GCC Countries (UAE & Saudi Arabia)
  • Rest of GCC
  • South Africa
  • Rest of the Middle East & Africa

Recent Developments

• In October 2022, Hexagon Purus and Lhyfe entered into a collaborated on the production of green and renewable hydrogen for transportation and industrial applications.
• In June 2022, SoluForce BV entered into an agreement with ADNOC to set up a local manufacturing facility for reinforced thermoplastic pipes and non-metallic solutions. This will help SoluForce B.V. expand the manufacture of H2T pipes in Abu Dabi.
• In March 2021, Salzgitter AG and seven companies namely, BP, Evonik, Nowega, OGE, RWE, and Thyssengas, entered a partnership to build a cross-border infrastructure for hydrogen, from the production of green hydrogen to transport and industrial use. This partnership aims to create the basis of a European infrastructure for green hydrogen.

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