Hydrogen Technology TIC Market Size & Share

Updated on : Oct 22, 2024

Hydrogen Technology TIC Market Size & Share

The global hydrogen technology testing, inspection, and certification (TIC) market size is valued at USD 4.1 billion in 2024 and is projected to reach USD 9.2 billion by 2029; growing at a CAGR of 17.8% during the forecast period.

The increase in demand for cleaner fuels and the presence of favourable government polices with respect to decarbonising several sectors, increase in development of hydrogen infrastructure like refueling stations, pipelines and storage facilities, increasing inherent risks and strict regulations in hydrogen processes and progression of technologies that would be instrumental in the advancement of green hydrogen are some of the factors that catalyse the growth of hydrogen technology TIC industry constantly.

Hydrogen Technology Testing, Inspection and Certification (TIC) Market Forecast to 2029

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Hydrogen Technology TIC Market Market Dynamics:

Driver: Increasing demand of net zero emission fuels

Hydrogen is viewed as an efficient way of generating ‘clean’ power since many nations and corporations seek to minimize their emissions. Green hydrogen has the potential of improving development of renewable energy sources, making the power system more flexible, and providing long-term energy storage mechanism.

While the current cost is higher than that of grey and blue hydrogen, the cost of green hydrogen is expected to reduce and approximate the cost of grey and blue hydrogen by 2030. In 2023, it makes up only 0. Aims to produce 1% of the overall hydrogen in the world. Nevertheless, constant reduction of the costs of renewable electricity, which constitutes approximately 70% of hydrogen production costs, and development of electrolysis technologies mean that green hydrogen will become one of the best investment in the sphere of clean energy . Of all the industries, oil and gas, large utilities, and industrial sectors such as steel and fertilizers, have espoused green hydrogen as a solution for managing the variability of renewable power sources as well as decarbonizing industries that are hard to abate such as industrial, chemical, and transport sectors. As of now, almost all the hydrogen being used is grey hydrogen, which is approximately 90 Million tons per year (Mtpa). However, this is expected to reduce as the demand for clean hydrogen increases and the costs of green hydrogen continue to drop. Clean hydrogen share in the total hydrogen demand could be 73 – 100% by 2050, amounting 125 – 585 Mtpa, while grey hydrogen could account for only 1 – 50 Mtpa.

Restraint: Impacts of hydrogen projects on water supply and land use

Green hydrogen production calls for high amounts of renewable energy and water to feed electrolyzers which may put pressure on the available land and water resources. Some inexperienced developing nations with scarce energy may harm the social structure by diverting the power and water to green hydrogen schemes; this may jeopardize the energy transformation and destabilize the society.

Electrolysis of water to produce hydrogen is another important process that requires water and approximately one liter of water is required to generate one kilogram of hydrogen. It similarly asserts that a stable and sufficient water supply must be maintained, particularly in arid areas. Desalination of sea water could be used for green hydrogen production but this should not affect water requirements for other purposes like domestic uses or for agricultural purposes.

For example, some countries in the Middle East and North Africa are already experiencing water scarcity for domestic and agricultural purposes which may make it difficult to supply water for the production of hydrogen without regard to other competing uses. Secondly, there is the factor of land usage and management. Although the built area of electrolysis plants is small, the renewable energy systems supporting them demand considerable land. Such processes might change the land usage for social and ecological parameters. The analysis and proper selection of locations should be considered in order to use these territories for the implementation of green hydrogen projects according to the principles of the United Nations Sustainable Development Goals.

Opportunity: Emergence of hydrogen fuel cells for the automotive sector

Hydrogen is projected to be adopted in the near future in such sectors as heavy duty vehicles including trucks and buses through a hydrogen fuel cell system for transportation sectors. This market is one where hydrogen and hydrogen fuel cells are to make its significant contribution. Thus, while battery electric vehicles have many advantages over BEVs, hydrogen fuel cell electric vehicles offer their drivers more immediate refueling times and longer distances.

Public transportation FCEV buses are already existing in places such as Japan and even the costs of manufacturing these vehicles are steadily declining and are expected to decline steeper as more and more vehicles are produced. Currently hydrogen fuel cell trucks are not very common but forecasts have predicted that they will be around in the coming years. Same also applies to such markets like that of taxis whereby frequent refueling can be very costly and therefore FCEVS have an added advantage over BEVS. This will lead to the creation of reputable hydrogen fuelling stations to accommodate these vehicles. Conversely, low-carbon hydrogen does significantly cut emissions in other industries like the rail, marine transport, and aviation industries.

Challenge: High hydrogen generation, storage, and transportation costs

Creating a hydrogen low-carbon system is extremely challenging because there is no clean hydrogen value chain, while fossil fuels are currently dominating the market, and the number of pilot projects of low-carbon hydrogen is limited.

A global market for clean hydrogen must first be developed, and this requires establishing completely new value chains; key issues here include the absence of a hydrogen infrastructure that enables the self-propelled use of fuel cell vehicles. Challenges like hydrogen transport and storage, and the fact that on-site production is very costly are contentious. However, because hydrogen is abundant in the universe, cost can fluctuate significantly depending on how it is developed.

The cost structures of types like black, gray, blue, and green hydrogen vary greatly, with green hydrogen, which is critical for attaining Net Zero targets around the globe, being the most expensive due to costs accrued on electrolyzers and renewable power resources.

Hydrogen technology TIC market Ecosystem

Prominent companies in this market include well-established TIC service providers offering services for energy & power sector. These companies have been operating in the market for several years and possess a diversified service portfolio, state-of-the-art technologies, and strong global sales and marketing networks.

Prominent companies in this market include SGS SA (Switzerland), Bureau Veritas (France), Intertek Group plc (UK), DEKRA (Germany), TÜV SÜD (Germany), DNV GL (Norway), TÜV RHEINLAND (Germany), Applus+ (Spain), TÜV NORD Group (Germany), Element Materials Technology (UK), and UL LLC (US).

Hydrogen Technology TIC Market Segmentation

By Generation, Gray hydrogen is anticipated to maintain its position as the largest segment by generation type throughout the forecast period.

This report segments the hydrogen market based on sector into three subsegments: generation type for storing and transporting. The generation type segment is further sub-divided in the gray, blue and green hydrogen.

The segments for hydrogen consumption are based on the type of hydrogen produced, namely brown, gray, green, and blue hydrogen. Pricing natural gas is comparatively cheaper or low-cost and this is a main reason why grey hydrogen is produced. Natural gas is a hydrocarbon resource that exists in large quantities across the globe and when the price is low, it can be an economically viable hydrogen feed.

In terms of application, mobility is projected to experience the most rapid growth throughout the forecast period.

This report categorizes the hydrogen market by application into four segments: energy, mobility, chemical & refinery, and others. The "others" segment includes applications in industries such as aerospace and defense. Mobility is anticipated to show the highest growth rate during the forecast period.

Increased investments in fuel cells are expected to propel the hydrogen market forward. Governments and organizations worldwide are offering support, incentives, and funding to foster the development, deployment, and commercialization of hydrogen fuel cells, aligning with efforts to promote clean energy and combat climate change.

During the forecast period Asia Pacific is projected to record highest growth rate of the overall hydrogen technology TIC market.

The Asia-Pacific’s hydrogen TIC market is the largest in the world, driven by rapid industrialization particularly in sectors such as chemicals, manufacturing and energy. The region’s strict regulatory landscape focusing on safety, environmental protection and quality standards boosts the demand for TIC services.

Also, there are sizeable investments in hydrogen infrastructure inclusive of manufacturing, storage and transportation that require stringent testing and observation of international specifications. Similarly, initiatives from governments to promote clean energy and sustainable development also increase the need for TICs services to ensure that hydrogen technologies remain safe and reliable. These put together make Asia Pacific the dominant market for hydrogen TIC services.

Hydrogen Technology Testing, Inspection and Certification (TIC) Market by Region

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Top Hydrogen Technology TIC Companies - Key Market Players

• SGS SA (Switzerland),
• Bureau Veritas (France),
• Intertek Group plc (UK),
• DEKRA (Germany),
• TÜV SÜD (Germany),
• DNV GL (Norway),
• TÜV RHEINLAND (Germany),
• Applus+ (Spain),
• TÜV NORD Group (Germany), and
• UL LLC (US) are some of the key players in the hydrogen technology TIC companies.

Hydrogen Technology TIC Market Report Scope

Hydrogen Technology Testing, Inspection and Certification (TIC) Market Highlights

This research report categorizes the hydrogen technology TIC market based process, service type, testing type, application, and region.

Recent Developments in Hydrogen Technology TIC Industry

• In December 2023, Bureau Veritas and Avance Labs, the accredited I-REC (International Renewable Energy Certificate) code manager for tracking and certifying attributes related to hydrogen and its derivative fuels and products, have entered into a memorandum of understanding (MoU). This MoU acknowledges their shared interest and the potential benefits of collaborating in the verification and certification of attributes. Bureau Veritas will serve as the exclusive Assurance Service Provider during the pilot phase of the I-REC (HX) Hydrogen Code.
• In November 2023, DEKRA has been appointed by the Clean Energy Partnership (CEP) to independently test and certify hydrogen refueling stations following ISO 19880-1c standards. This designation makes DEKRA one of the initial testing organizations authorized by CEP for this role. Additionally, DEKRA has established a formal supply agreement with the Center for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW) in Ulm for comprehensive testing services, including acceptance testing, of these refueling stations.
• In September 2023, Intertek, a leading total quality assurance provider, has launched its Hydrogen Assurance platform to deliver comprehensive advisory and assurance solutions for hydrogen-based projects.
• In January 2023, Bureau Veritas has launched a certification scheme dedicated to renewable hydrogen to support the growing renewables sector and accelerate the energy transition. The scheme aims to ensure that hydrogen is produced under safe and sustainable practices, and from renewable energy sources.

Frequently Asked Questions (FAQs):

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