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  • Published On : Aug 2023
  • Code : CMI2759
  • Pages :150
  • Formats :
      Excel and PDF
  • Industry : Energy

The global hydrogen market is estimated to be valued at US$ 141.59 Bn in 2022 and is expected to exhibit a CAGR of 7% over the forecast period (2023-2030).

Global Hydrogen Market: Drivers

Increasing desulfurization

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 is driving demand for hydrogen.

Growing production of methanol

The growing production of methanol is augmenting the hydrogen market growth. 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 used in the production of polymers, and thus, the increasing demand for polymers is projected to foster the hydrogen market growth. 

Global Hydrogen Market: Opportunities

Growing use of hydrogen as a fuel in rockets

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 environment 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.

Increasing development in efficient storage system for hydrogen

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 demands 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. 

Figure 1. Global Hydrogen Market Value (US$ Billion), by Region, 2022


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Europe region held a dominant position in the global hydrogen market in 2022, accounting for 37% share in terms of volume, followed by Middle East and Asia Pacific.

Europe has set itself a goal of decarbonizing its economy by 2050. Hydrogen is likely to play an important role in achieving net zero carbon emission. The European commission has set its hydrogen strategy which includes the addition of 40 gigawatts of electrolyser by 2030 to meet its hydrogen demand.

Global Hydrogen Market: Restraints

High cost of hydrogen production

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.

Highly flammability of hydrogen

Hydrogen gas is highly flammable as it is a very powerful source of fuel, which is estimated to inhibit the market growth. Moreover, the production of hydrogen highly depends on the availability of fossil fuels which is anticipated to restrict the hydrogen market growth

Hydrogen Market Report Coverage

Report Coverage Details
Base Year: 2022 Market Size in 2022: US$ 141.59 Bn
Historical Data for: 2018 to 2021 Forecast Period: 2023 to 2030
Forecast Period 2023 to 2030 CAGR: 7% 2030 Value Projection: US$ 242.68 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East and Africa: GCC Countries, Israel, and Rest of Middle East,  South Africa, North Africa, and Central Africa
Segments covered:
  • By Production Source: Natural gas, Coal, Other Hydrocarbons, Electrolysis & other sources
  • By Application : Refineries, Ammonia, Methanol and other Chemicals, Metals & Fabrication, Electronics, Food & Beverages, Glass & Ceramics, Others
  • By Mode Of Delivery: Merchant, Captive
Companies covered:

Linde AG, Air Products & Chemicals, Inc., Praxair, Inc., Air Liquide SA, and Airgas In

Growth Drivers:
  • Increasing desulfurization
  • Growing production of methanol
Restraints & Challenges:
  • High cost of hydrogen production
  • Highly flammability of hydrogen

Market Trends:

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 hydrogen market growth in the near future.

Many companies are focusing on providing on-site hydrogen generation plants on rent. This is expected to be one of the major trends in the hydrogen market. According to the Coherent Market Insights, Australia-based Gas Generators International is offering rental plans for on-site hydrogen generators, which are used across various end-use sectors, in which, the company builds, installs, and maintains the complete Hydrogen 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, 2022


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Key Takeaways of the Graph:

Among the production source segment, the Natural Gas sub-segment held a dominant position in the market and accounted for 52 % share in the global hydrogen market in 2022.

According to the International Energy Agency, over 96% of the world’s 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: 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.

Recent Developments:

  • In October 2021, New Mexico positioned itself as a ‘Hydrogen Energy leader ‘Industry and Government Officials, both state and Federal level, believe hydrogen could provide a powerful tool to accelerate the transition to a clean energy system
  • In December 2021, Mitsubishi Power and Magnum developments are working on a project in Utah to build a storage facility of 1,000 megawatt of clean power in the form of hydrogen generated from the electrolysis process. The hydrogen would be stored in the salt caverns and then utilized, and this plant could be in operation from 2025.
  • In January 2021, Linde to build its own PEM (Proton exchange Membrane) to produce Green Hydrogen, the 24 megawatt electrolyser produce Green Hydrogen to supply Lindes Industrial customers through companies existing pipelines .

*Definition: Hydrogen is a chemical compound that is widely used across various industries. Majorly, it is used in the production of semiconductors, ammonia, carbon steel, 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.

Frequently Asked Questions

The global hydrogen market size is estimated to be valued at US$141.59 Billion in 2022 and is expected to exhibit a CAGR of 7% between 2022 and 2030.

Increasing desulfurization is fueling the growth of the hydrogen market 

The natural gas segment is the leading component segment in the market 

High cost of hydrogen production is the major factors restraining growth of the market 

Linde AG, Air Products & Chemicals, Inc., Praxair, Inc., Air Liquide SA, and Airgas In  

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