Hydrogen Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Hydrogen market size was estimated at USD 208 billion in 2023 and is projected to reach USD 327.5 billion in 2030 at a CAGR of 6.7% during the forecast period 2024-2030.

The global hydrogen market is experiencing significant growth driven by the ongoing energy transition towards cleaner fuels and aggressive climate control initiatives worldwide. Governments and agencies are actively promoting clean energy solutions, with substantial investments and incentives aimed at boosting hydrogen production and achieving climate-neutral targets. For instance, the U.S. Department of Energy's $7 billion funding for hydrogen hubs underscores this commitment. Technological advancements are also expanding hydrogen production capacities, further fuelling market expansion. However, challenges such as privacy concerns, high production costs, and safety issues pose hurdles to widespread adoption. Safety risks associated with hydrogen gas handling and transportation, along with the substantial costs involved in large-scale production facilities, particularly impact developing regions. Despite these challenges, the demand for hydrogen remains strong across industries like petroleum refining, where it is crucial for reducing carbon footprints by removing sulphur from fuels. The shift towards green hydrogen, exemplified by initiatives like India's plans to establish green hydrogen plants in refineries, highlights growing efforts towards sustainability. In the transportation sector, hydrogen fuel cell vehicles (FCVs) are emerging as competitors to battery electric vehicles (BEVs), especially for heavy-duty vehicles like trucks and buses due to their longer range and faster refuelling times. Industries such as cement and steel, which struggle with high carbon emissions, are increasingly turning to hydrogen for emission reduction. Moreover, hydrogen's role in electricity generation, energy storage, and grid strengthening further underscores its versatility and potential across various sectors. the hydrogen market is poised for growth as global efforts intensify towards reducing carbon emissions and achieving energy sustainability goals, supported by technological advancements and increasing industrial adoption across diverse applications.

Delvens Industry Expert's Standpoint

The hydrogen generation market is poised for significant growth driven by global shifts towards cleaner energy and supportive government regulations. With the ongoing global energy crisis prompting exploration into alternative energy sources, hydrogen stands out as a key contender due to its sustainability and potential environmental benefits. Technologies like steam methane reforming (SMR) and coal gasification are leading the charge, offering mature and economical methods for hydrogen production. SMR, in particular, benefits from high conversion efficiency and operational reliability, making it a preferred choice in the market. Looking ahead, innovations in electrolysis and emerging technologies like pyrolysis are expanding the market's horizon. Electrolysis, especially using PEM technology, is gaining traction for its ability to produce hydrogen from water with minimal carbon emissions, aligning well with global sustainability goals. While natural gas currently dominates as the primary feedstock for hydrogen production, there is growing interest in diversifying feedstocks to include renewable sources and waste materials, which could further enhance the market's environmental credentials. The application landscape is also promising, with ammonia production leading in revenue share due to its role as a carbon-free fuel and hydrogen carrier. This segment is expected to maintain its dominance as hydrogen's versatility in various industrial processes continues to be explored. Moreover, the merchant generation segment, supported by existing natural gas pipeline networks, is poised to maintain its lead by facilitating efficient distribution and uptake of hydrogen across industries. Opportunities abound in expanding hydrogen's applications beyond traditional sectors like ammonia production, into transportation, energy storage, and even residential uses. As countries invest in infrastructure and regulatory frameworks to support hydrogen adoption, particularly in regions like Europe, Australia, China, and America, the market presents fertile ground for technological advancements and strategic partnerships. The ongoing advancements in technology and increasing global focus on reducing carbon footprints ensure a robust outlook for the hydrogen generation market, offering compelling opportunities for stakeholders across the value chain.

Market Portfolio

Key Findings

• On the basis of Sector, the hydrogen market is segmented into three main sectors: generation type, storage, and transportation. Within the generation type segment, hydrogen is categorized into gray, blue, and green hydrogen. Gray hydrogen is anticipated to maintain its position as the largest segment throughout the forecast period. This is largely driven by the availability of low-cost natural gas, which serves as the primary feedstock for Gray hydrogen production. Natural gas, abundant in various regions, becomes economically attractive for hydrogen synthesis when its prices are low.

• On the basis of Application, this report segments the hydrogen market based on application into four key segments: energy, mobility, chemical & refinery, and others, which encompass applications in the industrial sector, aerospace, and defense, among others. Mobility is projected to experience the highest growth rate throughout the forecast period, driven by increasing investments in fuel cells. Governments and organizations worldwide are actively supporting hydrogen fuel cell development through incentives, funding, and initiatives aimed at advancing clean energy technologies and mitigating climate change. These efforts are expected to propel the hydrogen market forward, fostering innovation and adoption across diverse applications.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America is poised to lead the hydrogen market during the forecast period, driven by rising applications of fuel cells, stringent environmental regulations, and a growing preference for cleaner fuels. Government policies are actively promoting the adoption of clean energy solutions like hydrogen across diverse energy sectors.

Regional Analysis

North America to Dominate the Market

• North America leads the global hydrogen market with increasing adoption of fuel cells and stringent environmental regulations driving demand. The region benefits from progressive policies and substantial government support, exemplified by initiatives like the USD 750 million funding from the Biden-Harris Administration for hydrogen R&D.

• Asia-Pacific emerges as the fastest-growing market, propelled by industrialization, urbanization, and strong commitments from countries like China, Japan, and South Korea to develop robust hydrogen infrastructures and sustainable production capabilities, fostering both domestic growth and international partnerships.

Competitive Landscape

• Air Liquide
• Air Products and Chemicals Inc.
• Linde plc
• Chevron Corporation
• Saudi Arabian Oil Co.,
• Uniper SE
• Worthington Industries
• INOX India Limited
• Cryolor
• Pragma Industries
• BNH Gas Tanks
• Hexagon Purus
• NPROXX
• Oxygen Service Company, Inc.
• BayoTech
• Luxfer Gas Cylinders
• Chart Industries
•  Quantum Fuel Systems LLC
• AMS Composite Cylinders
• Weldship Corporation

Recent Developments

• In July 2023, Air Products & Chemicals, Inc. was selected as the hydrogen and technology provider for Alberta's inaugural hydrogen fuel cell passenger vehicle fleet at Edmonton International Airport. Air Products will install a mobile hydrogen refueler at the airport to supply hydrogen for the Toyota Mirai fleet of hydrogen fuel cell vehicles.

• In July 2023, Air Liquide and KBR announced a collaboration to offer fully integrated low-carbon ammonia solutions utilizing Autothermal Reforming (ATR) technology. Air Liquide, renowned for its expertise in ATR technology, employs it for large-scale production of low-carbon hydrogen (H2), which is subsequently combined with nitrogen (N2) to produce low-carbon ammonia (NH3).

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
   
• Gain authentic and granular data access for the Hydrogen Market to understand the trends and the factors involved in changing market situations.
   
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
   
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope