Dublin, Nov. 06, 2023 (GLOBE NEWSWIRE) -- The "Global Hydrogen Market: Analysis By Demand, By Production, By Sector, By Source, By Technology, By Region Size and Trends with Impact of COVID-19 and Forecast up to 2028" report has been added to ResearchAndMarkets.com's offering.
The global hydrogen market, which had a value of $156.76 billion in 2022, is anticipated to experience substantial growth with a Compound Annual Growth Rate (CAGR) of 6.37% during the forecast period from 2023 to 2028.
This growth is attributed to the increasing demand for hydrogen-based fuels, a growing focus on industrial decarbonization and desulfurization to meet sustainability goals, and ongoing developments in steel and power generation industries to address the rising global electricity demand.
Hydrogen as a Clean Energy Solution
Hydrogen, a colorless and odorless gas with the lowest density among all gases, is gaining prominence as a crucial means of decarbonizing the global economy. Its ability to reduce greenhouse gas emissions and mitigate the effects of global warming positions it as a vital component of sustainable energy solutions. While hydrogen has traditionally been used in industries such as refining crude oil, ammonia fertilizer production, and metal processing, efforts are underway to harness it as a renewable energy source. Hydrogen's advantage as an energy carrier lies in the fact that it produces only water and heat as byproducts when it reacts with oxygen, making it a clean energy option.
Market Segmentation Analysis
- By Technology: The global hydrogen market is categorized into four segments based on technology: steam methane reforming (SMR), electrolysis, coal gasification, and others. Steam methane reforming is the largest segment due to factors such as increasing crude oil consumption, government policies favoring hydrogen usage, ongoing research and development efforts to enhance SMR technology's efficiency and environmental performance, and the well-established supply chain for methane extraction and distribution. Electrolysis is the fastest-growing segment driven by the need for renewable energy sources, government incentives, and falling prices of electrolyzer equipment.
- By Sector: Hydrogen demand is segmented into five sectors: existing industry use, mobility, power generation, building and industry heat, and new industry feedstock. Mobility is expected to exhibit rapid growth during the forecast period due to increased investments in fuel cells, the deployment of fuel cell vehicles, the establishment of new hydrogen refueling stations, and the focus on decarbonizing the transportation sector.
- By Source: Hydrogen production is categorized into three segments: grey, renewable, and low carbon. While grey hydrogen, produced from fossil fuels, dominates the market currently, green hydrogen from renewable sources and low carbon hydrogen are expected to grow significantly. Renewable hydrogen production will rise due to the global shift towards sustainable energy and the long-term viability of this production method. Low carbon hydrogen production is also projected to increase, driven by industries' efforts to reduce carbon footprints.
- By Region: The global hydrogen market is analyzed based on regions, including Europe, North America, Asia Pacific, and the rest of the world. Asia Pacific is the largest and fastest-growing region in the global hydrogen market. Factors contributing to its growth include the rising demand for clean energy, a strong presence of refineries in major countries like China and India, favorable government policies, increased hydrogen demand for power generation, investments in hydrogen refueling infrastructure, and the adoption of transportation solutions like electric vehicles and automated buses.
Global Hydrogen Market Dynamics
- Growth Drivers: The global hydrogen market is experiencing robust growth due to increasing demand for hydrogen across various industries, favorable government policies and incentives, the need for decarbonization and achieving net-zero emissions goals, and the rise of hydrogen as a sustainable alternative to fossil fuels. Commitments by major economies to achieve net-zero emissions by 2050, declining costs of renewable energy sources like solar and wind, and emerging applications of hydrogen in sectors like steel manufacturing are contributing to higher hydrogen consumption.
- Challenges: Challenges to the market's growth include energy conversion losses associated with hydrogen production and competition from alternative technologies. Storing hydrogen in gaseous form leads to inherent energy loss during compression, which accounts for a significant portion of the total energy content.
- Market Trends: Emerging trends in the hydrogen market include the increasing adoption of hydrogen fuel cells, a growing number of hydrogen projects, decreasing distribution costs, the use of green hydrogen, a focus on achieving net-zero emissions targets, and ongoing technological advancements in hydrogen generation. Major corporations and organizations are initiating hydrogen projects to boost production and consumption, creating new business opportunities and investment prospects.
Impact Analysis of COVID-19 and Way Forward:
COVID-19 brought in many changes in the world in terms of reduced productivity, loss of life, business closures, closing down of factories and organizations, and shift to an online mode of work. The COVID-19 pandemic had a detrimental impact on the hydrogen market.
The initial shockwave of the pandemic disrupted supply chains and slowed down industrial activities, causing a drop in hydrogen demand across various sectors. Lockdowns and economic uncertainties prompted curbs on investment, causing a slowdown in the expansion of clean energy initiatives, including hydrogen-related projects.
Lockdowns and economic uncertainties led to project delays and cancellations, especially in industries heavily reliant on hydrogen, such as automotive and manufacturing. As governments redirected resources towards pandemic relief efforts, funding for hydrogen research and infrastructure projects often took a backseat, resulting in a slowdown of hydrogen-related initiatives. This lack of financial support hindered the development and scaling up of hydrogen technologies.
Competitive Landscape:
The global hydrogen market is mildly consolidated with the top players of the market acquiring majority of the market share, and increasing number of regional and local players worldwide catering to the local demand and engaging in various research & development activities and initiatives, collaborations and products launches to develop and deploy new and more efficient products in the market.
For instance, On April 20, 2023, Linde plc announced that the company has signed a long-term agreement to supply green hydrogen to Evonik, a specialty chemicals company, where Linde will build, own and operate a nine-megawatt alkaline electrolyzer plant on Jurong Island, Singapore, to produce green hydrogen. Similarly, on May 26, 2022, ACWA power, OQ and Air Products signed joint development agreement toward world-scale green hydrogen-based ammonia production facility in Oman.
The key players of the hydrogen market are:
- BP plc.
- Air Products and Chemicals, Inc.
- Nel ASA
- Linde plc
- FuelCell Energy, Inc.
- Iwatani Corporation
- Messer SE & Co. KGaA
- Air Liquide S.A.
- SOL Group
- First Hydrogen Corp.
- Lhyfe SAS
Key Topics Covered:
1. Executive Summary
2. Introduction
3. Global Market Analysis
4. Regional Market Analysis
5. Impact of COVID-19
6. Market Dynamics
6.1 Growth Drivers
6.1.1 Increasing Usage of Ammonia Based Fertilizers
6.1.2 Favorable Government Policies and Initiatives
6.1.3 Rising Demand to Decarbonize Energy End-Use
6.1.4 Increasing Use Of Hydrogen As Rocket Propellants
6.1.5 Rising Demand Of Hydrogen By Various End User Industries
6.2 Challenges
6.2.1 High Energy Conversion losses
6.2.2 Increased Competition From Alternative Technologies
6.3 Market Trends
6.3.1 Rising Adoption Of Hydrogen Fuel Cells
6.3.2 Increasing Number Of Hydrogen Projects
6.3.3 Falling Distribution Cost Of Hydrogen
6.3.4 Growing Use Of Green Hydrogen
6.3.5 Rising Focus On Achieving Net Zero Emissions Target
6.3.6 Ongoing Technological Advancements In Hydrogen Generation
7. Competitive Landscape
8. Company Profiles
For more information about this report visit https://www.researchandmarkets.com/r/e3o6z2
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