Hydrogen Market

Market Definition:

The global Hydrogen Market size was valued at USD 186.00 billion in 2022 and is predicted to reach USD 294.67 billion by 2030 with a CAGR of 5.9% from 2023-2030. The hydrogen market refers to the industry involved in the production, distribution, and utilization of hydrogen as an energy carrier. Hydrogen is a versatile and clean energy source that can be generated through various processes, such as electrolysis of water or reforming of natural gas.

The market encompasses applications in sectors such as transportation, power generation, industrial processes, and heating. Hydrogen can be utilized in fuel cells to generate electricity, providing a zero-emission alternative to traditional fossil fuel-based technologies.

Market Dynamics and Trends

The rising demand for hydrogen is be attributed to various government initiatives aimed at promoting electric vehicles (EVs) and addressing environmental concerns. For instance, in March 2022, the Indian government introduced the Toyota Mirai, a green hydrogen-based fuel cell electric vehicle. This launch signifies India's commitment to harnessing the potential of green hydrogen as a means to ensure a clean and affordable energy future for the country. Such government initiatives drive the adoption of hydrogen-based technologies and highlight the importance of sustainable energy solutions in mitigating environmental challenges.

Also, the increasing investment in hydrogen infrastructure in several countries such as India, the U.S., and China for the development of production facilities, establishment of pipelines for efficient transportation, and the creation of refueling stations to meet the increasing demand for hydrogen as a clean energy source is further boosting the hydrogen market growth. For instance, the government of India is investing in the National Green Hydrogen (NGH) Mission to position itself as a global hub for green hydrogen production. The country has set a target to achieve a green hydrogen production capacity of 5 million metric tons per annum by 2030, aligning with its efforts to reduce carbon emissions, enhance renewable energy capacity, and drive decarbonization across various sectors.

Moreover, the rising efforts in countries such as the UK., France, and Germany to reduce reliance on fossil fuels and achieve net-zero emission targets is further boosting the growth of the hydrogen market. For instance, the European Union (EU) is ambitiously striving to produce and utilize hydrogen as a clean energy carrier to facilitate the integration of renewable energy sources, support energy-intensive industrial processes, and contribute to the overall decarbonization of its energy system.  The EU aims to achieve a significant milestone in its hydrogen strategy by producing 10 million tons and importing an additional 10 million tons of hydrogen by the year 2030.

However, the high production cost of hydrogen and safety related concerns due to its highly flammable nature are the major factors restraining the growth of the hydrogen market. On the contrary, as the demand for clean and renewable energy continues to rise, the exploration and advancement of thermochemical, that utilize heat and chemical reactions to produce hydrogen, are poised to create significant opportunities for market players in the coming years.

Market Segmentations and Scope of the Study

The hydrogen market share is analysed based on type, technology, application, and geography. On the basis of type, the market is divided into grey, blue, and green. On the basis of technology, the market is segmented into steam reforming, oil reforming, coal gasification, and water electrolysis. On the basis of application, the market is divided into petroleum refining, chemicals, ammonia production, methanol production, transportation, power generation, and others. The geographical segment of the hydrogen market covers North America, Europe, Asia Pacific, and Rest of the World.

Geographical Analysis

Asia-Pacific region holds the dominant share of hydrogen market and is expected to continue its dominance during the forecast period. This can be attributed to growing environmental concerns, the imperative for sustainable energy solutions, and proactive government policies aimed at combating climate change and facilitating the transition to greener energy sources. According to the latest report published by the Ministry of New and Renewable Energy of India, the government of India approved the National Green Hydrogen Mission with an investment of USD 2.4 billion from 2023-24 to 2029-30.

Moreover, the hydrogen market in the Asia-Pacific region is being propelled by the significant presence of large oil refining industries in countries such as China, India, and Indonesia. For instance, China is the world's largest oil refining country, with a capacity of refining 924 million metric tons or 18.5 million barrels per day in 2022. It contributes to the growing demand for hydrogen as a cleaner and more sustainable energy alternative.

On the other hand, North America is expected to show a steady rise in the hydrogen market. This is due to the significant presence of large oil industries seeking cleaner and sustainable energy solutions. According to the latest report by the Council on Foreign Relations, the US is the world's top producer of oil & natural gas, producing 11 barrels of oil and 100 billion cubic feet of natural gas daily in 2021.

Moreover, the presence of key market players such as Air Products & Chemicals Inc, Cummins Inc., and NUVERA Fuel Cells, LLC plays an important role in the growth of the hydrogen market in this region. For instance, in October 2021, Air Products & Chemicals Inc. invested USD 4.5 billion for establishing blue hydrogen clean energy complex in Louisiana. This ambitious project aims to make a significant impact in advancing the use of clean energy solutions, contributing to environmental sustainability and promoting economic growth in the region.

Competitive Landscape

The hydrogen industry comprises of various market players such as Air Liquide, Air Products and Chemical Inc., Cummins Inc, Messar Group GmBH, Plus Power Inc, Taiyo Nippon Sanso Corporation, Teledyne Technologies Inc, BASF SE, Dow Chemical Company, Nuvera Fuels Cells LLC and others. These market players are adopting various joint venture strategies and planning expansion of business across various regions to maintain their dominance in the hydrogen market.

For instance, in April 2023, Air Products announced the construction of the first commercial-scale hydrogen refueling station in Edmonton, Alberta, Canada. This significant move aims to support the growing demand for hydrogen fuel and promote the adoption of hydrogen-powered vehicles in the region.

Moreover, in January 2022, Dow partnered with New Hope Energy to promote sustainability in the field of hydrogen production. Through this collaboration, the companies aim to recycle plastic waste into renewable energy, with a particular emphasis on utilizing hydrogen as an eco-friendly alternative for energy generation and storage.

Additionally, in September 2020, BASF partnered with German start-up GPHILOS to advance the Power-to-Gas businessP2G systems for green hydrogen production. This collaboration aims to develop innovative solutions that convert excess electricity into hydrogen, contributing to sustainable energy storage and utilization.

Key Benefits

• The report provides a quantitative analysis and estimations of the hydrogen market from 2023 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the hydrogen industry, including the current and future market trends to depict prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the hydrogen market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and the Porter's Five Forces model is elaborated on in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Hydrogen Market Key Segments

By Type

• Grey

• Blue

• Green

By Technology 

• Steam Reforming

• Oil Reforming

• Coal Gasification

• Water Electrolysis

By Application 

• Petroleum Refining

• Chemicals

• Ammonia Production

• Methanol Production

• Transportation

• Power Generation

• Others

By Region

• North America    

  • The U.S.

  • Canada

  • Mexico

• Europe    

  • The UK

  • Germany

  • France

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific    

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW    

  • Latin America

  • Middle East

  • Africa

KEY PLAYERS

• Air Liquide

• Air Products and Chemical Inc

• Cummins Inc

• Messar Group GmBH

• BASF SE

• Dow Chemical Company

• Nuvera Fuels Cells LLC

• PlusPower Inc

• Taiyo Nippon Sanso Corporation

• Teledyne Technologies Inc

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2022	USD 186.00 Billion
Revenue Forecast in 2030	USD 294.67 Billion
Growth Rate	CAGR of 5.9% from 2023 to 2030
Analysis Period	2022–2030
Base Year Considered	2022
Forecast Period	2023–2030
Market Size Estimation	Billion (USD)
Growth Factors	Government initiatives to promote EVs and addressing environmental concerns Net zero emission target across the globe Increasing utilization of hydrogen in petroleum industry
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.