The U.S. Europe and Asia Industrial Hydrogen Market is estimated to be valued at US$14.7 billion in 2018 and is expected to exhibit a CAGR of 5.0% over the forecast period of 2019-2027, as highlighted in a new report published by Coherent Market Insights.
- A) Market Overview:
Industrial hydrogen is extensively used in various industries such as chemical, oil and gas, electronics, and transportation, among others. It is primarily used for fuel cells to produce electricity and heat. The growing need for clean energy sources and the rising demand for hydrogen as a fuel is driving the growth of the industrial hydrogen market. Hydrogen fuel cells are considered an environmentally friendly alternative to traditional energy sources as they emit only water vapor. Moreover, the increasing focus on reducing greenhouse gas emissions and the implementation of stringent regulations to promote sustainable development are further propelling the demand for industrial hydrogen.
- B) Market Key Trends:
One key trend in the U.S. Europe and Asia Industrial Hydrogen Market is the increasing adoption of hydrogen fuel cells in the transportation sector. Hydrogen fuel cells are being used in electric vehicles as a clean and efficient alternative to traditional internal combustion engines. These fuel cells convert hydrogen and oxygen into electricity, with water as the only byproduct. The adoption of hydrogen fuel cells in vehicles helps reduce greenhouse gas emissions and addresses the issue of air pollution. For example, major automobile manufacturers like Toyota, Honda, and Hyundai are investing in hydrogen fuel cell technology and launching fuel cell electric vehicles (FCEVs) in the market.
- C) Porter’s Analysis:
- Threat of new entrants: Low. U .S. Europe and Asia Industrial Hydrogen Market Size requires significant capital investment and extensive technological expertise, acting as a barrier for new entrants.
- Bargaining power of buyers: Moderate. Buyers have considerable bargaining power due to the existence of multiple suppliers in the market.
- Bargaining power of suppliers: Moderate. Suppliers of industrial hydrogen have moderate bargaining power due to the availability of alternative suppliers and the increasing demand for hydrogen.
- Threat of new substitutes: Low. Hydrogen has unique properties, making it difficult to find alternative substitutes with similar characteristics.
- Competitive rivalry: High. The industrial hydrogen market is highly competitive with the presence of major players and the constant focus on innovation and technological advancements.
- D) Key Takeaways:
In terms of market size, the U.S. Europe and Asia Industrial Hydrogen Market is expected to witness high growth, exhibiting a CAGR of 5.0% over the forecast period. This growth can be attributed to the increasing demand for clean energy sources and the rising adoption of hydrogen fuel cells in the transportation sector. For example, governments worldwide are promoting the use of hydrogen fuel cell vehicles by providing incentives and subsidies. Additionally, the rapid industrialization and infrastructure development in emerging economies in Asia are further fueling the demand for industrial hydrogen.
In terms of regional analysis, Asia is expected to be the fastest-growing and dominating region in the industrial hydrogen market. The region is witnessing significant growth due to the presence of major manufacturing hubs and the increasing demand for hydrogen in various industries. Moreover, government initiatives to promote sustainable development and the implementation of stringent environmental regulations are further driving the growth of the industrial hydrogen market in Asia.
Key players operating in the U.S. Europe and Asia Industrial Hydrogen Market include Air Liquide, Air Products & Chemicals Inc., Praxair Inc., Linde Plc., and Messer Group GmbH. These players are actively involved in strategic collaborations, partnerships, and research and development activities to gain a competitive edge in the market. Additionally, they are focusing on expanding their product portfolios and geographical presence to cater to the growing demand for industrial hydrogen.
In conclusion, the U.S. Europe and Asia Industrial Hydrogen Market is witnessing significant growth due to the increasing demand for clean energy and the adoption of hydrogen fuel cells in the transportation sector. With the support of government initiatives and the focus on sustainable development, the industrial hydrogen market is expected to witness continued growth in the coming years.