Hydrogen Hubs Market by Industry (Automotive, Aviation, Marine), Supply Technique (SMR, Electrolysis), End Use (Liquid Hydrogen, Hydrogen Fuel Cell) & Region (North America, Europe, APAC, MEA & Latin America) - Global Forecast to 2030
[244 Pages Report] The Hydrogen Hubs Market size is projected to grow from USD 1.9 billion in 2023 to USD 6.3 billion by 2030, growing at a CAGR of 18.7 % from 2023 to 2030. The market for hydrogen hubs and on-site infrastructure is poised for a positive growth outlook in the period spanning 2023 to 2030. This optimistic trajectory is underpinned by several key factors. First and foremost, increased global emphasis on decarbonization and the transition to clean energy sources propels the demand for hydrogen as a versatile and low-carbon fuel. Government initiatives and ambitious climate targets further drive investments in hydrogen-related projects, fostering a conducive regulatory environment.
The growing focus on green and blue hydrogen production methods, coupled with advancements in technology, enhances the efficiency and competitiveness of green hydrogen hubs. As industries recognize the pivotal role of hydrogen in achieving sustainability goals, there is a surge in on-site infrastructure development, ensuring a reliable supply chain. The anticipated expansion of applications, ranging from transportation to industrial processes, reinforces the positive growth trajectory for hydrogen hubs and on-site infrastructure, marking a transformative period in the global energy landscape.
Hydrogen Hubs Market Forecast to 2030
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Hydrogen hubs Market Dynamics
Driver: Increasing Vertical Integration of Hydrogen Production Facilities
Vertical integration of on-site hydrogen production plants enables companies to own all the stages in the hydrogen production process, from the generation of renewable energy to the compression and storage of hydrogen. The strategy offers key advantages to both the end-users and suppliers such as reduced costs associated with the supply-chain, increased control over quality and improved security of supply for downstream industries such as refineries and fertilizers for whom hydrogen is a critical component in the manufacturing process. For instance, in 2022, Air Products and Chemicals Inc. (US) invested $500 million in a greenfield site in Massena, NY, for a 35 metric ton per day green liquid hydrogen facility, targeting operation by 2026-2027.The company is additionally exploring the option of establishing a hydrogen fueling station network in the U.S. northeast, potentially servicing its own hydrogen fuel cell truck fleet. This strategy showcases vertical integration, where Air Products invests across the hydrogen value chain — from production to distribution and end-use.
Restraints: Infrastructure and Production Limitations Based on site Selection
The successful development of H2Hubs is contingent on various factors related to the site selection of the hub, including access to abundant renewable energy resources such as solar and wind power, as green hydrogen production relies heavily on these. Additionally, the availability of sufficient land for essential infrastructure, water resources for electrolysis, and robust grid capacity are crucial considerations. Proximity to demand centers, geological suitability for underground storage, adherence to environmental regulations, community acceptance, and regulatory clarity further influence hub viability. Moreover, the accessibility of transportation infrastructure for hydrogen distribution plays a pivotal role. Overcoming these challenges is essential for the efficient establishment of clean hydrogen hubs, ensuring they align with environmental, economic, and societal considerations.
Opportunities: Reduction of Carbon Footprint For Downstream Industries
Hydrogen hubs, which are centralized locations for hydrogen production, storage, distribution, and utilization, are expected to play a pivotal role in accelerating the adoption of hydrogen across various industries. As such numerous industries that depend on hydrogen as a fundamental feedstock or fuel can benefit from the reduced footprint of hydrogen supplied by these hubs. In refining, hydrogen plays a crucial role in the removal of sulfur from crude oil, contributing to the production of cleaner fuels. The production of ammonia, a vital component in fertilizers, relies predominantly on hydrogen. Additionally, hydrogen is integral to steel production, where it is utilized to reduce iron ore to metallic iron. In the realm of glass manufacturing, hydrogen is employed in the production of float glass, a key component in various glass products, including windows. Furthermore, hydrogen is extensively utilized in chemical production, contributing to the synthesis of diverse chemicals such as methanol, acetic acid, and hydrochloric acid, highlighting its versatility across various industrial processes. These hydrogen-dependent industries are significant contributors to greenhouse gas emissions. Transitioning these industries to green hydrogen can significantly reduce their carbon footprint
Challenges: High Cost of Green Hydrogen production in Hubs
Green hydrogen, produced using renewable energy sources, is a promising alternative to fossil fuels for various applications, including transportation, power generation, and industrial processes. However, the processing of green hydrogen in faces several challenges that hinder its cost-effectiveness. The initial investment required for hydrogen hub infrastructure, including electrolyzers, storage facilities, and distribution networks, is substantial. This can deter potential investors and delay the widespread adoption of green hydrogen. Additionally, electrolyzers, the key component for green hydrogen production, still have limited efficiency, resulting in higher energy consumption and production costs. Advancements in electrolyzer technology are crucial for improving efficiency and reducing costs.
Market ecosystem map
Based on the industry, the automotive segment to lead the market for the Hydrogen hubs in 2023
Based on the industry, the hydrogen hubs market has been segmented broadly into automotive, aviation, marine and others(space, defense). The automotive segment is projected to grow from USD 1,162 million in 2023 to USD 4,299 million by 2030, at the highest CAGR of 20.5%The increasing use cases for hydrogen based mobility markets is expected to fuel this growth in the forecast period. The demand fuel cells as well as the rapid development of hydrogen hubs by Hydrogen Hubs Companies for hydrogen fuel stack supply is the reason this segment is expected to grow rapidly compared to other segments.
Based on the supply technique, the electrolysis segment is estimated to lead the hydrogen hubs marketing 2023.
Based on supply technique, the hydrogen hubs market has been segmented into steam methane reforming(SMR) and electrolysis. The electrolysis segment is projected to grow from USD 1,190 million in 2023 to USD 3,982 million by 2030, at the highest CAGR of 18.8%. electrolysis, linked to green hydrogen, utilizes renewable energy to split water into hydrogen and oxygen. While offering a cleaner alternative, electrolysis faces challenges related to high energy costs and the need for significant renewable energy infrastructure. The choice between these methods reflects the ongoing industry debate regarding trade-offs between cost efficiency and environmental impact in the pursuit of a sustainable hydrogen economy.
The Asia-Pacific market is projected to have the largest share in 2023 in the hydrogen hubs market
Hydrogen Hubs Market by Region
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Based on region, the hydrogen hubs market has been segmented into North America, Europe, Asia Pacific, Middle East & Africa and Latin America. Asia-Pacific region seems to dominate the market in 2023. The Asia-Pacific region is experiencing significant growth in the burgeoning hydrogen hub market, primarily fueled by the heightened commitment of regional governments towards sustainable fuels and reduced carbon emissions. Governments across the Asia-Pacific are increasingly recognizing the pivotal role of hydrogen in addressing environmental concerns and achieving long-term sustainability goals. With a growing emphasis on green and blue hydrogen production methods, the region is witnessing a surge in investments and initiatives aimed at establishing comprehensive green hydrogen hubs. This strategic focus aligns with global trends towards cleaner energy sources, positioning the Asia-Pacific as a key player in the emerging hydrogen economy. The region's concerted efforts underscore a proactive approach towards fostering innovation and advancing the transition to a more sustainable and low-carbon energy landscape.
Key Market Players
The Hydrogen hubs companies are dominated by a few globally established players such as ARAMCO(Saudi Arabia), Shell plc. (UK), Linde plc. (UK),Airbus (Netherlands) and Sinopec(China), among others, are the key manufacturers that secured hydrogen hub contracts in the last few years.
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Report Metric |
Details |
| Estimated Value | USD 1.9 Billion in 2023 |
| Projected Value | USD 6.3 Billion by 2030 |
| Growth Rate | CAGR of 18.7 % |
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Market size available for years |
2021–2030 |
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Base year considered |
2022 |
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Forecast period |
2023-2030 |
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Forecast units |
Value (USD Million/Billion) |
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Segments Covered |
By Industry, Supply Technique, End-Use and region |
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Geographies covered |
North America, Europe, Asia Pacific, Middle East& Africa and Latin America |
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Companies covered |
ARAMCO(Saudi Arabia), Shell plc. (UK), Linde plc. (UK), Airbus (Netherlands) and Sinopec(China) are some of the major players in the hydrogen hubs market. (27 Companies) |
Hydrogen Hubs Market Highlights
The study categorizes the hydrogen hubs market based on offering, platform, application, frequency, and region.
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Aspect |
Details |
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By Industry |
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By Supply Technique |
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By End -Use |
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By Region |
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Recent Developments
- In April 2023, Linde entered a long-term agreement to provide green hydrogen to Evonik, a prominent specialty chemicals company. The plant aims to produce green hydrogen for Evonik's methionine production, a crucial component in animal feed, supporting Evonik's expansion plans and contributing to greenhouse gas emissions reduction in Singapore. Beyond servicing Evonik, Linde will also cater to the growing local demand for green hydrogen through the Jurong Island electrolyzer plant, expected to be operational in 2024 and becoming the largest electrolyzer installation in Singapore, revealed the inauguration of its production facilities in Bruchsal
- In July 2022, Shell Nederland B.V. and Shell Overseas Investments B.V., subsidiaries of Shell plc, made the investment decisions to construct Holland Hydrogen I, Europe's largest renewable hydrogen plant by 2025. The hydrogen produced will be utilized in the Shell Energy and Chemicals Park Rotterdam, replacing grey hydrogen in the refinery and contributing to the partial decarbonization of energy product production. This includes petrol, diesel, and jet fuel. Additionally, the renewable hydrogen can be directed towards decarbonizing commercial road transport as heavy-duty trucks and refueling networks expand.
Frequently Asked Questions (FAQs) Addressed by the Report:
Which are the major companies in the hydrogen hubs market? What are their major strategies to strengthen their market presence?
Some of the key players in the hydrogen hubs market are ARAMCO(Saudi Arabia), Shell plc. (UK), Linde plc. (UK),Airbus (Netherlands) and Sinopec(China), among others, are the key manufacturers that secured hydrogen hub contracts in the last few years. Contracts were the key strategies these companies adopted to strengthen their hydrogen hubs market presence.
What are the drivers and opportunities for the hydrogen hubs market?
The hydrogen hubs market experiences robust growing demand with drivers such as the rapidly increasing demand for hydrogen infrastructure, development of hydrogen fueling station facilities, and adoption of hydrogen hubs as a hydrogen strategy by key nations.
Which region is expected to grow most in the next five years?
The market in Asia Pacific is projected to grow at the highest CAGR from 2023 to 2030, showcasing strong demand for hydrogen hubs in the region. One key factor driving the APAC market is the increasing need to reduce carbon emissions and increase the adoption of green fuels in the region by all major industries.
What challenges does the hydrogen hub market face?
Challenges include high cost of green hydrogen and maturation of fuel cell technologies. These factors can impact the widespread adoption of hydrogen hubs.
What are the key technology trends prevailing in the hydrogen hubs market?
The emerging hydrogen hub market is witnessing transformative technological trends that are shaping its landscape. Advanced electrolysis technologies, such as high-temperature and solid oxide electrolysis, are bolstering the efficiency and cost-effectiveness of green hydrogen production, positioning electrolysis as a more competitive and sustainable method. The increasing demand for blue hydrogen is driving the integration of crucial carbon capture and storage (CCS) technologies, with ongoing developments enhancing methods to capture and store carbon emissions from hydrogen production. A notable shift towards decentralized hydrogen production, often coupled with renewable energy sources, is optimizing efficiency by offering localized solutions and reducing the reliance on extensive infrastructure and transportation. Additionally, advancements in hydrogen storage technologies, encompassing liquid and solid-state storage, are addressing transportation and storage challenges, rendering hydrogen a more accessible and secure option for diverse applications. These trends collectively underscore the dynamic evolution of the hydrogen hub market towards enhanced sustainability and efficiency.
What is the future outlook for hydrogen hubs?
The future of hydrogen hubs looks promising, with ongoing advancements in technology and regulatory frameworks, improved fuel cell technology and maturation of electrolyzers for scale production, and expanded use cases are expected to drive the growth of this market.
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The study involved extensive data collection, refinement and analysis to estimate the current size of the market for hydrogen hubs. This included exhaustive secondary research using various paid and open source databases to collect qualitative and quantitative information on the hydrogen hubs market, its adjacent markets as well as the parent markets. The next step was the validation of data, findings, assumptions of estimations, and sizing through primaries with industry experts across the hydrogen hub value chain. The demand analysis was carried out to arrive at the overall market size and was followed by market segmentation and data triangulation procedures to drill down on the sizes of segments and sub-segments of the hydrogen hubs market.
Secondary Research
Both paid and unpaid secondary data sources were used to determine the market positions of key players in the industry value chain such as automotive, aviation, marine among others (space, defense)- examining their product portfolios and operational segments. These companies were then ranked basis their sales performance and the strength of their product portfolios. These rankings were validated by primary sources.
The secondary data sources used for the study include financial statements, filings and annual reports of major companies that are vertically integrated in their hydrogen operations including production, conversion and storage of hydrogen. The collected data was analyzed to arrive at the overall size of the hydrogen hubs market, which is then validated via primaries.
Primary Research
Primary research with market players and participants was conducted after acquiring information on the key influencers and players in hydrogen hub market through secondary research. Several primary interviews were conducted with experts from both demand and supply sides across major regions such as North America, Europe, Asia Pacific, Middle East & Africa and Latin America. This primary data was collected in the form of questionnaires, emails and telephonic interviews.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Market estimation is done using a bottom-up approach and validated by a top-down approach. Contracts and developments of on-site hydrogen infrastructure and hub based hydrogen supply contracts were mapped to determine the size of the market, based on the Industry segment. Such data sets provide information on each application's demand aspects Hy drogen hubs. For each Industry sub-segment, all possible end users in the market were identified.
Hydrogen Hubs Market Size: Bottom-up Approach
Hydrogen Hubs market Size: Top-Down Approach
Data Triangulation
After arriving at the overall size of the market, the total market was split into several segments and subsegments. The data triangulation and market breakdown procedures explained below were implemented wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for various market segments and subsegments. The data was triangulated by studying various factors and trends from both, the demand and supply sides. Along with this, the market size was validated using both the top-down and bottom-up approaches.
The following figure indicates the market breakdown structure and the data triangulation procedure implemented in the market engineering process used to develop this report.
Market Definition
A hydrogen hub is an end-to-end facility for the on-site production, storage and effective utilization of hydrogen for end users across various mobility sectors such as Aviation, Marine, Automotive and Defense. The inclusions to the market will be the airports, marine ports, automotive hydrogen refueling stations that are capable of producing hydrogen on-site, storing it & make it available to the end users dependent on it such as Hydrogen powered vehicles, aircraft, ships.
Market Stakeholders
- Hydrogen Supplier
- On site hydrogen production companies
- Refineries and Chemical Companies
- Research Bodies
- Automobile Manufacturers
- Fuel Cell manufacturers
- Defense Organizations
Report Objectives
- To define, describe, segment, and forecast the size of the hydrogen hubs market based on industry, supply technique, end use and region.
- To analyze the degree of competition in the market by mapping the recent developments, products, and services of key market players
- To understand the structure of the hydrogen hubs market by identifying its various segments and subsegments
- To identify and analyze key drivers, restraints, opportunities, and challenges that influence the growth of the market.
- To provide an overview of the tariff and regulatory landscape for the adoption of hybrid boats across regions
- To forecast the size of market segments across North America, Europe, Asia Pacific, Latin America and Middle East &Africa along with major countries in each region
- To identify transportation industry trends, market trends, and technology trends currently prevailing in the market
- To analyze micromarkets1 with respect to individual technological trends and their contribution to the total market
- To analyze opportunities in the market for stakeholders by identifying key market trends
- To profile key market players and comprehensively analyze their market share and core competencies
- To provide a detailed competitive landscape of the market, along with an analysis of business and strategies such as mergers and acquisitions, partnerships, agreements, and product developments in the hydrogen hubs market
- To identify detailed financial positions, key products, and unique selling points of leading companies in the market
Available Customizations
MarketsandMarkets offers the following customizations for this market report:
- Additional country-level analysis of the Hydrogen Hubs market
- Profiling of other market players (up to 5)
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company in the Hydrogen Hubs market.
Growth opportunities and latent adjacency in Hydrogen Hubs Market