by Clean hydrogen has various industrial applications including production of ammonia, methanol, and as a raw material in many chemical processes. It provides clean source of energy with no greenhouse gas emissions or very less emissions during usage. Rising environmental concerns regarding use of fossil fuels and their impact on global warming have increased focus on developing clean and green sources of energy. Countries across the globe are promoting use of clean hydrogen in power generation, transportation and various industries to reduce dependence on conventional fuels and curb emissions.
The global Clean Hydrogen Market is estimated to be valued at US$ 5.02 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major market trends propelling the growth of clean hydrogen market is increasing investments towards developing hydrogen infrastructure including hydrogen production facilities, transportation and distribution networks. Many countries have announced large funding focussed on building hydrogen ecosystems to facilitate usage of clean hydrogen on commercial scale. For instance, European Union’s Hydrogen Strategy plans to invest over €350 billion in scaling up hydrogen technologies and building required infrastructure between 2020 to 2030. Similarly, US government has earmarked over $8 billion since 2020 for advancing hydrogen and fuel cell technology program. This significant investment injection is enabling productive collaborations between industry and research organizations to accelerate commercialization of clean hydrogen production and storage technologies
SWOT Analysis
Strength: Clean hydrogen generated from renewable sources such as wind and solar has zero carbon emissions making it an environmentally friendly alternative to fossil fuels. It can be used across various sectors like transportation, power generation, and industrial applications reducing dependence on oil and gas.
Weakness: Production of clean hydrogen through electrolysis is an expensive process requiring high capital investments. Large scale storage and transportation of hydrogen also pose technological and economic challenges. Reliance on intermittent renewable energy sources for generating hydrogen affects its stable supply.
Opportunity: Many countries and global organizations are announcing policies and investing heavily in clean hydrogen economy to achieve decarbonization targets. Growing demand for emission-free fuels from transport and industry sectors provides huge market potential. Emerging technologies can help reduce costs of clean hydrogen production and distribution in the coming years.
Threats: Safety issues related to flammable nature of hydrogen and lack of existing refueling infrastructure remains a roadblock for uptake in mobility. Competition from other zero-emissions technologies such as batteries threatens clean hydrogen’s role in transport sector. Rising input costs of renewable energy may offset hydrogen’s cost advantages over fossil fuels if not brought down significantly.
Key Takeaways
The Global Clean Hydrogen Market Growth is expected to witness high over the forecast period driven by supportive policies and investments from governments and corporate players.
Regional analysis shows that Europe currently dominates the clean hydrogen market with countries like Germany, France and Netherlands emerging as major hydrogen hubs. However, Asia Pacific region is expected to be the fastest growing market led by initiatives in China, Japan and South Korea to develop clean hydrogen value chains including production, distribution and end-use applications. North America is also ramping up investments to drive the domestic clean hydrogen economy.
Key players operating in the clean hydrogen market are Amyris, BioAmber, Borregaard, Codexis, Deinove, Evolva, Fermentalg, Gevo, Global Bioenergies, Metabolic Explorer, Novozymes, Solazyme, Corbion, ADM, DuPont, Eucodis Biosciences GmbH, Koninklijke DSM NV, BASF SE, Evonik Industries AG. These companies are engaged in innovative clean hydrogen production technologies using renewable feedstock and widening its industrial applications. Partnerships with energy companies and automakers are expanding their global footprint.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
