June 22, 2024

The Rapidly Growing Renewable Energy Sector Is Anticipated To Open-Up The New Avenue For Hydrogen Market

The Hydrogen Market is estimated to be valued at US$ 151.5 Bn in 2023 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Hydrogen is a clean energy carrier that when used in a fuel cell, produces only water. It is increasingly being used as fuel for transportation including cars, buses and trucks. It can also be used for power generation, industrial processes and residential heating. The global push for clean energy and decarbonization has accelerated research and investments in hydrogen fuel cell technologies.

Market Dynamics:

Stringent emission norms and regulations related to climate change are a key driver for the hydrogen market. Many countries and international agencies have set ambitious targets to achieve carbon neutrality by mid century. This is expected to increase investments in developing hydrogen infrastructure including production facilities, distribution network and fueling stations. Additionally, falling cost of renewables-based hydrogen production is also fueling the growth of the market. Declining price of electrolysers and solar PV modules have made green hydrogen more cost competitive against fossil fuels derived hydrogen. Various pilot projects are underway to demonstrate hydrogen’s potential across different applications at scale.
Segment Analysis
The global hydrogen market is dominated by its application in refineries, which accounts for more than 30% of the overall demand. Hydrogen is widely used in refineries as a feedstock as well as fuel in many desulfurization and catalytic cracking units. Due to stringent environmental norms regarding reduction of sulfur content in transportation fuels, the demand for hydrogen is increasing in refineries globally.

PEST Analysis

Political: Favorable government policies and initiatives towards decarbonization and promotion of clean energy are boosting the hydrogen market. Many countries have announced hydrogen economy roadmaps and investment plans.
Economic: Declining cost of renewable power generation is making hydrogen produced via electrolysis economically viable. Growing demand from industries to curb emission is propelling the hydrogen market.
Social: Rising awareness about climate change and carbon footprint is increasing preference for green and low carbon energy and fuels including hydrogen.
Technological: Technology advancements in hydrogen production via electrolysis and fuel cells is supporting cost reduction. Innovation in storage and transportation of hydrogen will facilitate its large scale adoption.

Key Takeaways

The global hydrogen market is expected to witness high growth, exhibiting CAGR of 7.0% over the forecast period, due to increasing demand from refineries and adoption in transportation sector. The market size is projected to reach US$ 251.5 Bn by 2030 from US$ 151.5 Bn in 2023.

Regional analysis: Asia Pacific dominates the global hydrogen market and is expected to grow at fastest pace owing to strong presence of refineries and increasing renewable electrolysis-based hydrogen production in China. China and Japan are major hydrogen producers and consumers in the region.

Key players: Linde AG, Air Products & Chemicals, Inc., Praxair, Inc., Air Liquide SA, and Airgas Inc. are key players operating in the global hydrogen market. Linde AG commands the largest market share due to its extensive hydrogen production, distribution and applications facilities globally. It is a leader in production of hydrogen for refineries.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it