The global hydrogen market size is expected to witness potential gains in the future, and register a significant CAGR of 8.74% over the forecast period (2019 - 2027).

Market Overview

Hydrogen is a colorless, odorless, tasteless, and flammable gaseous substance that exists in molecular forms such as water or organic compounds on the earth. It is used in a wide range of application in industries such as petroleum, chemicals, automotive, power generation, nuclear energy, aerospace, telecommunications, food and beverages, and semiconductor. The reforming of natural gas by applying heat is currently the most economical process for producing hydrogen.

Market Taxonomy:

On basis of Production and delivery mode, the global hydrogen market is segmented into:

  • Centralized production
    • Pipeline
    • Truck
    • Cylinder
  • Distributed production (on-site production)

On basis of End-Use Industry, the global hydrogen market is segmented into:

  • Chemical
  • Petroleum refining
  • Automotive fuel
  • Glass industry
  • Energy
  • Metal processing
  • Others (edible fats and oils, food, electronics, etc.)

On basis of Production Process, the global hydrogen market is segmented into:

  • Steam Methane Reforming
  • Partial Oxidation
  • Coal Gasification
  • Electrolysis of Water
  • Others (biophotolysis, photolysis, etc.)

Market Dynamics

Increasing demand for clean energy is a major factor booting growth of the hydrogen market. Hydrogen is the cleanest form of energy as it does not emit carbon or any residue on combustion. Major economies around the world are focused on mitigating the impact of greenhouse gas emission and carbon footprint on the environment. This in turn is expected to boost use of hydrogen as fuel in the automotive industry. Proton exchange membrane cell uses hydrogen gas and oxygen gas as fuel. These fuel cells only emit water and heat and are therefore convenient as a renewable source of energy.

However, hydrogen is an extremely flammable gas and lacks smell. This makes it challenging to detect leaks.  Its low density poses several difficulties in storage and transport. Moreover, in terms of energy production, electrolysis and steam reforming, the two main processes of hydrogen extraction are extremely expensive. These factors are expected to adversely impact the market size over the forecast period.         

Market Outlook

  • Europe is expected to hold dominant position in the global hydrogen market over the forecast period. This is due to stringent regulations and targets put up by the European Union regarding carbon and greenhouse gas emission.
  • North America is expected to witness significant growth in the market due to increasing demand for ammonia. Moreover, increasing use of fuel cells as a source of energy in the automotive industry is also expected to boost enhance the market share in the region.
  • Increasing demand for petroleum products from refineries is expected to impact the market growth in Asia Pacific. The market in Middle East and Africa is mainly driven by high demand for fertilizers.

Key Players

Major players operating in the global hydrogen market include. Air Liquide, Airgas Inc., Air Products & Chemical Inc., Xebec Adsorption Inc., Hydrogenics Corporation, Avalence LLC, Messer Group GmBH, and H2Scan Corporation.

Key Developments:

  • In January 2019, Air Products Inc. announced that it would build a liquid hydrogen production facility in California with the objective of meeting the increasing product demand from several customer markets, including the growing fleet of hydrogen fuel cell vehicles (FCV).
  • In 2018, Air Liquide signed a contract with Covestro. This would enable the company to produce hydrogen directly on Covestro’s site in Antwerp (Belgium) using its state of the art SMR-X technology. It will allow for hydrogen production while offering increased energy efficiency and a reduced carbon footprint. The unit will start operations in 2020.
  • In September 2018, Air Products announced that it would build a new liquid hydrogen plant at its La Porte, Texas facility which will be supplied hydrogen from Air Products’ extensive Gulf Coast pipeline network. The La Porte project is anticipated to be on-stream from 2021.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users