Hydrogen Valve Market Size, Trends & Growth Share

Updated on : Oct 22, 2024

Hydrogen Valve Market Size & Share

The global hydrogen valve market size was worth USD 331 million in 2024 and is anticipated to reach USD 507 million by 2030, growing at a CAGR of 7.4% during the forecast period from 2024 to 2030.

Hydrogen is considered the future’s fuel, and thus, the importance of hydrogen production, transportation, and storage has increased in recent years and may also grow in the future. This hydrogen can be at low-pressure, high-pressure, or cryogenic levels. The system that handles hydrogen at various levels requires a Valve system, apart from other components or equipment. So, the demand for hydrogen valves is expected to increase in the future with the increase in the demand for hydrogen.

Besides applying valves in various industries at various levels, hydrogen valves are also used to produce hydrogen-based IC engines. It has been observed that electric vehicles are not going to sustain much in the future, and they may be replaced by hydrogen IC (internal combustion) based vehicles. Recently, Kawasaki tested hydrogen-powered internal combustion engines for motorcycles, and they are expecting this to be commercialized by 2023.

Impact of Artificial Intelligence on Hydrogen Valve

Artificial intelligence (AI) is a new trend in the market that impacts every industrial manufacturing aspect. Companies related to valves are also trying to implement artificial intelligence at various levels of valve development and its operation in the real world. AI can be used to improve the design, material selection, and other specifications of hydrogen valves.

While in operation, AI can help identify any deviation in the valve operation during the production process. Early detection of such deviations using AI will help ensure the smooth and efficient operation of the production process. AI can have various uses; however, some typical use cases for implementing AI in valve systems can be predictive maintenance, design optimization, failure detection, real-time monitoring, and customer specification analysis.

Attractive opportunities in the hydrogen valve market

Hydrogen Valve Market Forecast to 2029

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Hydrogen Valve Market Trends:

Driver: Increasing Demand for Hydrogen Valves Driven by Clean Energy Adoption and Ammonia Production

The global market for hydrogen valves is poised for significant growth, driven by the increased adoption of hydrogen as a clean energy source and the escalating demand for hydrogen in ammonia production. As the hydrogen infrastructure expands globally, including developing production facilities, storage systems, and distribution networks, there is a growing need for specialized valves designed to manage hydrogen's unique properties.

These valves are essential for preventing leaks, withstanding high pressures, and ensuring the safe and efficient handling of hydrogen across its supply chain. The transportation, industrial, and residential energy sectors are witnessing heightened demand for these crucial components. In particular, the production of green ammonia, which uses hydrogen derived from renewable sources, is becoming increasingly prevalent as industries shift towards sustainable practices.

This transition requires advanced hydrogen valves capable of handling high-purity hydrogen and maintaining stringent operational standards, ensuring safety and efficiency in production processes. Consequently, manufacturers invest heavily in innovative valve technologies to meet these requirements, fostering substantial market growth.

Restraint: Hydrogen Embrittlement and the Need for Standardization in Hydrogen Valves

One of the major problems in the hydrogen industry is hydrogen embrittlement, particularly in metals like steel. This is a process that, under pressure, involves the diffusing of hydrogen molecules into the metal lattice structure to cause hydrogen-induced fracturing. This significantly lowers tensile strength and ductility, leading to their cracking and failure under very low stress levels. An increase in density for hydrogen atoms at imperfections such as grain boundaries or dislocations accelerates the degradation of mechanical properties.

Material selection, surface treatments, design strategies—all these critical choices industries using high-strength steels excel in with great relevance to hydrogen-rich environments, such as storage tanks and pipes. Proper handling and operating procedures must be followed to reduce exposure as much as possible and avoid embrittlement-related risks to the safety and reliability of hydrogen infrastructure and components. Another major challenge facing the hydrogen industry is the lack of universal standards related to design and specifications for hydrogen valves.

This inconsistency thus brings about compatibility problems, operational inefficiencies, and safety concerns. Indeed, the fragmented market requires manufacturers and users alike to deal with several different specifications, thus complicating production and maintenance. Industry groups and regulatory agencies are trying to develop and implement industry-wide standards, but that is quite a heavy and time-consuming process to achieve a high level of adoption. Until these standards are universal, the lack of uniformity will continue to stunt growth and efficiency in the hydrogen sector.

Opportunity: Growing Adoption of Hydrogen Fuel Cell Systems and Strategic Partnerships in the Hydrogen Valve Market

Increasing application of hydrogen fuel cell systems opens up huge potential in the valve market. As automotive manufacturers invest in hydrogen fuel cell technology to advance zero-emission vehicle production, the demand has been building up for specialized valves within fuel cell vehicles that would ensure efficient hydrogen gas flow into the fuel cell stack. During the growth of hydrogen refueling infrastructure, growth opportunities include valves developed by manufacturers to be dispensed at high pressure and comply with rigorous safety standards.

Stationary fuel cell applications require backup power and distributed energy generation with valves optimized for reliability and varying operating conditions. Hydrogen fuel cells integrated with energy storage systems increase the valves needed to transfer hydrogen between storage tanks, fuel cells, and electrolyzers. Upgrades and expansions in hydrogen infrastructure entail the addition of new production plant distribution pipelines, which, in turn, create demand for valves resilient to hydrogen embrittlement compatible with high-pressure conditions.

That implies that new valve technologies developed for hydrogen service conditions can make a big case for growth potential in this emerging market. Strategic collaboration is needed between hydrogen manufacturers and valve manufacturers to spur innovation and accelerate market growth. 

Such partnerships pool skills and resources for developing standardized hydrogen valves, whose compatibility and reliability have become very advanced across the industry. Valve manufacturers design and build components capable of withstanding hydrogen systems. In contrast, hydrogen infrastructure developers and fuel cell vehicle OEMs provide the holistic framework for producing, storing, distributing, and using hydrogen in transport.

Challenge: Hydrogen System Integrity Challenges and High Valve Cost

The handling of hydrogen comes with peculiar challenges due to its lightness, which makes it highly prone to leak through packings and joints; this calls for extra careful design considerations in order not only to assure the integrity of the system but also to eliminate safety risks. Another problem with hydrogen lies in its small molecules, which makes them easily diffuse through the materials, affecting the valves' size and efficiency and calling for special engineering solutions.

Tight sealing at all the interfaces is essential, especially during refueling, as it prevents leakage and maximizes the safety aspect related to the flammability factor of hydrogen. Not only safety but leakage also causes loss in the economy. The high initial cost of hydrogen valves adds to the woes. These valves require special materials—stainless steel and nickel alloys—to prevent embrittlement and leakage, as well as precision engineering, close tolerance, and advanced machining.

Moreover, adding tests for pressure resistance, leak detection, and durability increases their complexity and, thus, cost, with safety features such as redundant seals and pressure relief mechanisms. High costs, therefore, result from continuous research and development aimed at bettering materials and manufacturing processes, creating a barrier for any new market entrants; this definitely slows down the diffusion of hydrogen technology. Key reductions in these areas must thus be achieved through material innovations, economies of scale, and improved manufacturing techniques to realize the broader use of hydrogen as a clean energy source.

Hydrogen Valve Market Ecosystem

Prominent companies in this market include well-established, financially stable hydrogen valve providers such as Emerson Electric Co. (US), IMI (UK), SLB (US), Valmet (Finland), and Crane Company (US). These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Along with the well-established companies, many small and medium companies operate in this market, such as Hartmann Valves GmbH (Germany) and Vexve Oy (Finland).

Hydrogen Valve Industry Segmentation

Ball Valve to hold largest market share among valve type of hydrogen valve market in 2023

The hydrogen ball valve market is growing on the back of a growing hydrogen economy across energy, automotive, and industrial applications. Some of the key drivers include technological development, government policy, and deep investments in hydrogen infrastructure. Innovation in these products comes from some leading regions like North America, Europe, and Asia-Pacific to ensure efficient and reliable hydrogen distribution. This means that these developments are fueling the growth of the market and creating sustainable energy solutions, and the need for hydrogen ball valves will be of increased priority to the development of future energy systems.

The new installment is expected to have a larger market share by implementation in 2023.

The hydrogen valve industry for new installations has a high market share driven by various factors. The latest installation segment holds a significant market share in the market due to the rising adoption of hydrogen technologies and substantial investments in clean energy infrastructure.

This segment is marked by considerable capital expenditure and long-term contracts essential for developing hydrogen economies. One of the major reasons is the growing projects of hydrogen production globally. The market for new installations is also driven partly by substantial government funding to advance hydrogen infrastructure.

By material, stainless steel is expected to grow with the highest CAGR in the forecast period (2024 – 2030).

In 2023, stainless steel hydrogen valves held the largest market share and are expected to grow at the highest CAGR. Stainless steel is a material of choice for hydrogen valves because it resists hydrogen embrittlement. Since stainless steel resists corrosion, it should work fine in service involving hydrogen production, storage, and transport, where safety and reliability are critical. Regarding pressure rating and temperature tolerance, stainless steel is more robust than other metals such as cast iron, ductile iron, brass, and copper. The property of resisting corrosion has made stainless steel mostly preferred in many applications.

Hydrogen Valve in Hydrogen storage to hold largest market share in 2023

There is vast potential for hydrogen storage in the hydrogen valve market because of the increased demand, which will require efficient, safe, and scalable storage solutions. With the development of advanced storage technologies and infrastructure, it becomes necessary to have valves that can sustain heavy pressures without leaking a single drop. Development in storage systems—compressed hydrogen tanks, cryogenic storage, and others—pushes the demand for trustworthy hydrogen valves.

Hydrogen Valve Industry Regional Analysis

In 2023, Asia Pacific will have the largest market share of the overall hydrogen valve market.

Hydrogen Valve Market by Region

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Asia Pacific held the largest share, approximately 34.8% of the hydrogen valve market 2023. Rapid population growth and urbanization in developing economies such as China, Japan, and India have led to the development of the energy & power, water & wastewater treatment, chemicals, pharmaceuticals, and oil & gas industries.

The Asia Pacific region has witnessed a significant increase in the market due to expanding industrial sectors such as power generation, as hydrogen is primarily used in industrial applications. Asia Pacific emerges as a promising region for hydrogen valves due to its significant potential for both hydrogen production and consumption.

Top Hydrogen Valve Companies - Key Market Players

• Emerson Electric Co. (US),
• SLB (US), IMI (UK),
• Valmet (Finland),
• Crane Company (US),
• Westport Fuel Systems Inc.. (Canada),
• KITZ Corporation (US),
• PARKER HANNIFIN CORP. (US),
• Baker Hughes Company (US), and
• Swagelok Company (US) are some of the key players in the hydrogen valve companies.

Hydrogen Valve Market Report Scope

Hydrogen Valve Market Highlights

This research report categorizes the hydrogen valve market based on by valve type, material. size, pressure range, implementation, application, end-user industry, and region.
Hydrogen valve market:

Recent Developments in Hydrogen Valve Industry

• In May 2024, Crane Company announced its acquisition of CryoWorks Inc., a leading manufacturer specializing in storing, distributing, and transferring cryogenic fluids. This strategic move aims to strengthen Crane’s position in the energy transition and cryogenic sectors. CryoWorks Inc. is renowned for its expertise in vacuum-insulated pipe systems and overcoming cryogenics and hydrogen industry challenges.
• In February 2024, Valmet introduces the Neles XH series ball valve for hydrogen applications. Along with its emission control capabilities, the new XH series enables raw material savings, resulting in a weight reduction of up to 30 percent. Enhanced material efficiency also boosts the efficiency and sustainability of related processes, from transportation and logistics to installation and commissioning.
• In February 2024, Westport Fuel Systems Inc. announced an investment of up to $10 million in a manufacturing facility in Changzhou, China. According to the investment agreement, the City of Changzhou will construct a new hydrogen innovation center and manufacturing facility in the Changzhou Hydrogen Valley. The new Westport facility will support Westport’s current and expanding customer base by providing key hydrogen components for various applications, including commercial vehicles, material handling, and stationary power generation.
• In November 2023, Parker Hannifin Corp's Instrumentation Products Division announced the launch of Hi-Pro Series ball valves and HNV Series needle valves with fully integrated O-LOK O-Ring Face Seal (ORFS) fitting connections. This addition enhances the company's already successful valve lineup, which features A-LOK two-ferrule connections.

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