by Hydrogen is a zero-emission energy carrier that can power fuel cells for portable, stationary and transportation applications. It is produced from diverse domestic resources including natural gas, nuclear power, biomass and renewable power like solar and wind. This makes hydrogen vital for transitioning to a low carbon economy. Hydrogen fuel cells are highly efficient, clean and reliable. They can be used to power forklifts, backup power generators, cars, buses, trucks, trains, boats, and more.
The global hydrogen market is estimated to be valued at US$ 151.5 Bn in 2024 and is expected to exhibit a CAGR of 23% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
With growing concerns about climate change and sustainability, the demand for renewable sources like solar and wind energy is increasing substantially. However, solar and wind energy come with an intermittent nature which poses challenges in balancing energy supply and demand. This is where hydrogen plays a vital role by acting as an energy carrier that can help store excess renewable energy during off-peak periods and feed it back to the grid when required. This enables greater adoption of renewable resources. Thus, the rising deployment of renewable energy worldwide is estimated to boost the demand for hydrogen over the forecast period.
SWOT Analysis
Strength: Hydrogen has a very high energy density per unit weight and can be produced from various domestic resources such as natural gas and biomass, making supply stable and secure. It can also be generated from renewable resources such as solar and wind energy, giving it a potential advantage in reducing reliance on fossil fuels. Government support for developing hydrogen infrastructure and fuel cell vehicles in countries worldwide is contributing to market growth.
Weakness: High production and transportation costs currently limit the widespread use of hydrogen. Producing hydrogen is more expensive than extracting and refining fossil fuels. Storing and transporting hydrogen also poses technical challenges due to its physical properties. Achieving economies of scale to lower costs requires bigger investments in production plants and distribution networks.
Opportunity: Growing consumer awareness about environmental protection and interest in green technologies offer scope for hydrogen to penetrate new applications and markets. Rising demand for cleaner sources of energy across sectors such as industrial, transportation, commercial, and residential provides an opportunity to adopt hydrogen on a larger scale. Development of advanced fuel cells with higher efficiencies could drive adoption in mobility and portable power industry.
Threats: Availability of cheaper alternatives such as natural gas may restrict wide commercialization of hydrogen. Electric vehicles gaining faster acceptance compared to hydrogen-powered vehicles also poses a threat. Dependence on fossil fuels for producing hydrogen currently limits its environmental benefits. Uncertain regulatory conditions and lack of funding commitments in some countries act as deterrents to long-term investments.
Key Takeaways
The Global Hydrogen Market Size is expected to witness high growth over the forecast period driven by supportive government policies and investments to develop clean energy infrastructure. The global hydrogen market is estimated to be valued at US$ 151.5 Bn in 2024 and is expected to exhibit a CAGR of 23% over the forecast period 2023 to 2030.
Regions like North America, Europe and Asia Pacific are at the forefront in developing production facilities, distribution networks and demonstration projects involving hydrogen use across different industry verticals and transportation sector. Various initiatives such as hydrogen strategy and roadmap adopted by governments are aimed at commercially deploying the fuel across steel, refining and transportation sectors. For instance, Japan has set a target of achieving commercialization of fuel cell vehicles powered by hydrogen by 2025.
North America is anticipated to witness robust growth supported by significant research funding and public-private pilot projects involving transportation and material handling equipment. Infrastructure development initiatives proposed under Hydrogen Shot by the US Department of Energy aims to lower costs of producing, storing and using hydrogen across diverse applications.
Key players:
Key players operating in the hydrogen market are IBM Corporation, Informatica LLC, Riversand Technologies, Inc., SAP SE, Salsify Inc. They are focused on advancing technologies to lower production costs through renewable hydrogen generation and enhancing fuel cell efficiencies required for transportation and other mobile uses. Collaborations between fuel cell manufacturers, mobility players and energy companies will be crucial for successful adoption.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
