by The global Clean Hydrogen Market is estimated to be valued at US$ 3.81 Billion in 2022 and is expected to exhibit a CAGR of 14.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Clean hydrogen refers to hydrogen produced from renewable energy sources like solar, wind and hydropower without any direct greenhouse gas emissions. It can be used as fuel in transportation like vehicles, ships and planes to reduce emissions. Clean hydrogen provides an alternative eco-friendly fuel for sectors which are hard to electrify like long-haul transportation. It has applications in industries like refineries, chemicals and fertilizers to replace fossil fuels. Countries across the world are supporting production and usage of clean hydrogen to achieve carbon neutrality goals. The advantages of clean hydrogen include renewably produced with zero emissions, high energy density making it suitable for applications requiring large range and flexible to store and transport through pipelines or transport.
Market key trends:
Increasing investments towards green hydrogen projects: Governments worldwide are providing funding and policy support for green hydrogen projects to decarbonize hard-to-abate sectors. For instance, European Union’s Important Projects of Common European Interest (IPCEI) program will invest over €8 billion towards hydrogen projects by 2030.
Rising focus on developing hydrogen infrastructure: Companies are partnering to build hydrogen hubs including production facilities, storage, distribution and refueling stations. For example, Air Liquide is developing a hydrogen mobility corridor along the Rhine axis in Germany.
Growth in hydrogen blending regulations: Countries are introducing mandates to blend hydrogen into natural gas networks. Countries like Germany, France and UK have set targets of blending 20-30% hydrogen into gas grids by 2030.
Advancements in electrolyzer technologies: Efforts are ongoing to develop efficient, durable and affordable electrolyzers for large-scale green hydrogen production. Technologies like alkaline, PEM, and solid oxide electrolysis are witnessing improvements to lower the cost of clean hydrogen.
Increasing orders of hydrogen fuel cell vehicles: Automakers are receiving bulk orders of FCEVs from global shared mobility fleet operators indicating commercialization of the technology. For example, Hyundai received orders for 8000 XCIENT fuel cell trucks from Hindustan Petroleum, India.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the clean hydrogen market is low. High capital requirements and economies of scale act as a barrier for new players.
Bargaining power of buyers: The bargaining power of buyers in the clean hydrogen market is moderate. The availability of substitutes provides some bargaining power to buyers.
Bargaining power of suppliers: The bargaining power of suppliers is high. Suppliers have differentiated technologies and equipment required for production of clean hydrogen giving them an edge.
Threat of new substitutes: The threat of substitutes is moderate. Alternate clean fuels like renewable natural gas offer competition but clean hydrogen complies with decarbonization goals.
Competitive rivalry: The competitive rivalry in the clean hydrogen market is high. Major players compete on technological innovations and strategic partnerships and collaborations.
Key Takeaways
The global Clean Hydrogen Market Size is expected to witness high growth, exhibiting CAGR of 14.1% over the forecast period, due to increasing government investments and initiatives supportive of clean hydrogen economy.
Regional analysis: Asia Pacific dominates the global clean hydrogen market and is expected to grow at the fastest pace during the forecast period. This can be attributed to government focus on developing hydrogen infrastructure and strategic partnerships among regional players in countries like Japan, South Korea and Australia.
Key players analysis: Key players operating in the clean hydrogen market are Linde Plc, Air Liquide, Engie, Uniper Se, Air Products Inc, Clean Hydrogen System, Cummins Inc., Toshiba Energy Systems & Solutions Corporation, Nel Asa, and Sgh2 Energy. These players are focusing on capacity expansion and strategic collaborations with end users to strengthen their positions in the market.
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Source: Coherent Market Insights, Public sources, Desk research
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