by The Clean Hydrogen Market is estimated to be valued at US$ 3.81 Billion in 2022 and is expected to exhibit a CAGR of 14.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Clean hydrogen is hydrogen produced through processes that have little to no carbon emissions such as electrolysis powered by renewable electricity. It can be used as an energy carrier in transportation, power generation, and industrial sectors. The transportation sector, particularly heavy duty vehicles like trucks, buses and ships are adopting fuel cell technology which utilizes clean hydrogen as fuel. Countries worldwide are introducing policies and incentives to encourage the deployment of hydrogen fuel cell vehicles and fueling stations to reduce emissions from transportation. Several auto manufacturers have started producing hydrogen fuel cell passenger vehicles and expanding fuel cell bus fleets. Hydrogen is also gaining traction as marine fuel to power ships and ferries.
Market Dynamics:
One of the key drivers for the clean hydrogen market is the strict emission regulations worldwide. Governments are implementing stringent norms on vehicle emissions and increasing fuel efficiency standards which is prompting auto companies and transport operators to adopt low and zero emission fuel options like clean hydrogen. Secondly, declining renewable energy costs are supporting hydrogen production through electrolysis. The costs of solar and wind power have declined substantially over the past decade making renewable hydrogen more competitive compared to hydrogen from natural gas. Lower renewable energy costs are expected to boost green hydrogen production capacities globally driving clean hydrogen demand.
The key players in the market include Linde Plc, Air Liquide, Engie, Uniper Se, Air Products Inc, Clean Hydrogen System, Cummins Inc., Toshiba Energy Systems & Solutions Corporation, Nel Asa, and Sgh2 Energy.
Segment Analysis
The clean hydrogen market is dominated by the green hydrogen segment, which accounted for around 80% share in 2022. Green hydrogen is produced through the electrolysis of water using renewable energy sources such as solar and wind for power generation. It is considered the cleanest form of hydrogen as it does not emit any greenhouse gases. The segment is expected to witness even higher demand over the forecast period due to stringent emission norms and rising focus on decarbonization globally.
PEST Analysis
Political: Many governments are coming up with supportive policies and incentives to boost green hydrogen production and use. For instance, the European Union aims to install at least 6GW of renewable hydrogen electrolyzers by 2024 and 40GW by 2030.
Economic: The declining costs of renewable energy and electrolyzers are making green hydrogen more cost competitive compared to fossil fuel-based hydrogen. Many see green hydrogen becoming price competitive without subsidies by 2030.
Social: There is a growing consumer demand for cleaner sources of energy due to increasing environmental awareness. Hydrogen is considered a promising zero-emission fuel.
Technological: Electrolyzer and fuel cell technologies are advancing rapidly. Efforts are on to develop more efficient and affordable electrolysis technologies capable of producing hydrogen at an industrial scale.
Key Takeaways
The global Clean Hydrogen Market Size is expected to witness high growth, exhibiting CAGR of 14.1% over the forecast period 2023-2030, due to increasing deployment of renewable energy-based hydrogen production facilities. Asia Pacific region is expected to dominate the global clean hydrogen market during the forecast period due to the presence of leading fuel cell manufacturers and electrolyzer producers in countries such as Japan, South Korea and China. China has pledged to realize carbon neutrality by 2060 and expand hydrogen refueling stations to over 1,000 by 2025.
Regional analysis: Europe is also expected to capture a major share of the global market owing to strong government support for scaling up renewable hydrogen. Germany has set a target of building 5GW of green hydrogen electrolyzers by 2030. UK has announced investments worth £240 million to develop hydrogen projects across various sectors of the economy.
Key players operating in the clean hydrogen market are Linde Plc, Air Liquide, Engie, Uniper Se, Air Products Inc, Clean Hydrogen System, Cummins Inc., Toshiba Energy Systems & Solutions Corporation, Nel Asa, and Sgh2 Energy. Major players are investing heavily in expanding green hydrogen production capacities and building hydrogen refueling infrastructure. For instance, Air Liquide aims to invest €8 billion in low-carbon hydrogen energy by 2035.
*Note:
Source: Coherent Market Insights, Public sources, Desk research
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
