by The global Hydrogen Market is estimated to be valued at US$ 151.5 Bn or in 2023 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Hydrogen is a zero-emission energy carrier that can be produced from various domestic sources such as natural gas, coal, renewable power including electrolysis of water, and nuclear power. It is used as fuel cells to power vehicles, generators and other equipment with only water and heat emitted as byproducts.
Market key trends:
One of the key trend in the hydrogen market is increasing focus on production of green hydrogen through renewable sources like solar and wind energy. Green hydrogen is produced through electrolysis of water using renewable electricity. Many countries are exploring opportunities to produce green hydrogen at large scale to decarbonize hard-to-abate sectors like long haul transportation. For example, European Union aims to install at least 6GW of renewable hydrogen electrolyzers by 2024 and 40GW of renewable hydrogen electrolyzers by 2030.
Market key trends:
The hydrogen market is witnessing strong growth owing to the increasing demand from petroleum refining applications. Hydrogen is used as a critical feedstock and fuel for petroleum refining processes to lower the sulfur content of refined petroleum products such as gasoline and diesel. The stringent environmental norms regarding sulfur emissions have compelled refiners to increase the usage of hydrogen for desulfurization. This is a major trend driving the demand in the market. Also, heightened focus on utilizing hydrogen as a clean energy fuel is creating new avenues. Several countries are investing heavily in building hydrogen infrastructure to power vehicles, help decarbonize heat and electricity generation.
SWOT Analysis
Strength: Hydrogen has the potential to play a large role in a clean energy future as it can be produced from diverse domestic resources and used in transportation fuels as well as in energy generation with zero direct emissions.
Weakness: High production costs involved make it less competitive than traditional fossil fuels. Transportation and storage of hydrogen is also challenging.
Opportunity: Growing demand from the petroleum refining industry as well as rising focus on utilizing hydrogen as a clean energy fuel can drive significant growth in the sector.
Threats: Availability of cheap natural gas limits the interest in transitioning to hydrogen. Developments that improve the economics of renewable power generation could reduce the need for hydrogen in the longer run.
Key Takeaways
The global hydrogen market is expected to witness high growth, exhibiting CAGR of 7.0% over the forecast period 2023 to 2030, due to increasing demand from the petroleum refining industry.
Regional analysis: Asia Pacific region dominates the global hydrogen market with over 45% share. China, India, and Japan are the major countries contributing to the large market size in the region. APAC is anticipated to continue its dominance due to increasing demand from petroleum refining and presence of leading hydrogen producers.
Key players operating in the hydrogen market are Linde AG, Air Products & Chemicals, Inc., Praxair, Inc., Air Liquide SA, and Airgas Inc. Linde AG is one of the top players with significant global presence and production capacity. Air Products & Chemicals is another major player recognized for its hydrogen supply, equipment, and technology.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
