Hydrogen is a chemical compound that is widely used across various industries. Majorly it is used in the production of semiconductors, ammonia, carbon steels, methanol for polymer, and special metals. Moreover, it is also used in the electronic industry as a reducing agent and carrier gas. Furthermore, it is also used in refineries in the processing of intermediate oil products.
The global hydrogen market is estimated to be valued at US$ 148.9 Billion in 2021 and is expected to exhibit a CAGR of 2.2% over the forecast period (2021-2028).
Europe region held dominant position in the global hydrogen market in 2020, accounting for 35.21 % share in terms of volume, followed by Middle East and Asia pacific respectively.
Europe has set itself a goal of decarbonising its economy by2050, Hydrogen is likely to play an important role in achieving net zero carbon emission .The European commission has set its hydrogen strategy which provides for addition of 40 gigawatts of Electrolyser by 2030 to meet its hydrogen demand .
Figure 1. Global Hydrogen Market Value (US$ Bn), by Region, 2020
Global Hydrogen Market: Drivers
Increasing desulfurization is driving demand for hydrogen in refineries due to stringent fuel emission norms. For instance, fuel emission norms have become stricter due to global environmental concerns. In order to adhere to norms such as EURO 5 and 6, crude oil refineries around the globe are reducing sulfur content in end products, which in turn driving demand for hydrogen. This is expected to raise the demand for hydrogen over the forecast timeframe.
The growing production of methanol is augmenting the market growth of hydrogen. Hydrogen is largely used in the production of methanol and methanol is widely used as a raw material in the production of various chemicals such as formaldehyde, methanol-to-olefins (MTO), Methyl Tertiary-Butyl Ether (MTBE), and petrol blending. Moreover, methanol is also used in the production of polymers, thus increasing demand for polymers is projected to foster the market growth of hydrogen.
Global Hydrogen Market: Opportunities
The growing use of hydrogen as a fuel in rockets as hydrogen is a highly flammable fuel is projected to bring profitable opportunities in the hydrogen market. Hydrogen is highly powerful for machines such as spaceships. Moreover, it is also an environmentally friendly and ideal choice of fuel when compared to other fuel sources. Furthermore, hydrogen is three times as powerful as gasoline and other fossil fuels. This factor is also projected to serve major growth opportunities.
Researchers around the globe are focusing on developing an efficient storage system for the storage of hydrogen at low pressure without the need for compression. The volume to weight ratio of hydrogen is high which demand high volume capacity for the storage system. This is expected to provide potential market opportunities over the forecast period. Hence growing focus on the development of such advanced technology is projected to offer significant growth opportunities for the hydrogen market in the near future.
|Base Year:||2020||Market Size in 2021:||US$ 148.9 Bn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||2.2%||2028 Value Projection:||US$ 175.1 Bn|
Linde AG, Air Products & Chemicals, Inc., Praxair, Inc., Air Liquide SA, and Airgas Inc
|Restraints & Challenges:||
The development of eco-friendly production technologies such as photo biological, photo bioreactors, etc. is a major trend in the market. Moreover, various companies are undertaking initiatives to modify and develop the existing production process of hydrogen in a carbon-free method which is further projected to upsurge the market growth of hydrogen in the near future.
Many companies are focusing on providing on-site hydrogen generation plant on rent. This is expected to be one of the major trends in the market of hydrogen. According to the Coherent Market Insights, Australia-based Gas Generators International is offering rental plans for on-site hydrogen generators, which is used across various end-use sectors, in which, the company builds, installs, and maintains the complete H2 generation plant while charging only the rental amount from its customers. These generators apply natural gas reforming technology for hydrogen generation.
Figure 2. Global Hydrogen Market Share, By Production Source, 2020
Key Takeaways of the Graph:
According to International Energy Agency, over 96% of the world Hydrogen is produced using the steam Methane Reforming process (SMR) .In this reaction Natural Gas is reacted with steam at an elevated temperature to produce carbon monoxide and hydrogen.
Global Hydrogen Market: Restraints
The high cost of hydrogen production is expected to hinder the market growth. The cost of hydrogen production is very high due to the need for high investment in technologies such as Steam Methane Reforming (SMR). Thus the high cost of production is hampering the product demand.
Hydrogen gas is highly flammable as it is a very powerful source of fuel is estimated to inhibit market growth. Moreover, the production of hydrogen highly depends on the availability of fossil fuels which is again anticipated to restrict the market growth of hydrogen
Global Hydrogen Market: Competitive Landscape
Major players operating in the global hydrogen market include, Linde AG, Air Products & Chemicals, Inc., Praxair, Inc., Air Liquide SA, and Airgas Inc.
November 2019: Linde announced that it has signed a memorandum of understanding (MoU) with Baowu Steel Group's new subsidiary, Baowu Clean Energy Ltd, to jointly cooperate on research and development to further develop China's hydrogen market for industrial and mobility applications.
Hydrogen fuel is simply a zero emission fuel burning with oxygen; as such it is produced in a completely zero carbon manner. It can easily be utilized in internal combustion engines or fuel cells. This type of fuel has no pollutants and no carbon emissions associated with it. Hydrogen is also very easy to manage and handle. The main reason for the rising popularity of hydrogen is because it is an abundant source of energy that can easily be harnessed by our vehicles. Even though there are several other fuels that are much more abundant in terms of volume and use, it still cannot be compared to hydrogen in terms of its availability.
Increasing production of hydrogen is expected to propel growth of the global hydrogen market over the forecast period. For instance, in August 2021, Linde signed a long-term agreement with Infineon Technologies for the on-site production and storage of high-purity green hydrogen. The agreement also involves the supply of other industrial gases.
The global hydrogen market is witnessing rise in prices of products. For instance, from October 2021, or as contracts permit, Air Products announced to increase product pricing, monthly service charges, and surcharges for liquid and bulk industrial gas products for merchant customers in North America.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.