Hydrogen Market by Sector (Generation Type (Gray, Blue, Green), Storage (Physical, Material), Transportation (Long, Short)), Application (Energy (Power, CHP), Mobility, Chemical & Refinery (Refinery, Ammonia, Methanol)), Region - Global Forecast to 2030
The global hydrogen market in terms of revenue was estimated to be worth $242.7 billion in 2023 and is poised to reach $410.6 billion by 2030, growing at a CAGR of 7.8% from 2023 to 2030. The growth in hydrogen demand in recent years is due to the increasing government focus on developing hydrogen-based economies and investment in the hydrogen infrastructure. The market for hydrogen is projected to benefit greatly from the rising usage of low emission fuel.
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Hydrogen Market Dynamics
Driver: Increased greenhouse gas emissions regulations
Infrared radiation (net heat energy) from the earth's surface can be absorbed by greenhouse gases, which can then reradiate it to the surface and increase the greenhouse effect. Most notably as a result of industrialization and the usage of fossil fuels, there is an increase in global green gas emissions. The US Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) have cut the GHG emissions and Corporate Average Fuel Economy (CAFE) standards for automobiles in the US from 2021 to 2026 thanks to the Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule. The 2020 regulation strengthens the CO2 emission and CAFE standards through the target year 2026. The combined GHG and CAFE limits for vehicles and trucks are anticipated to be 202 g/mile of CO2 and 40.4 mpg by 2026.
Nearly all regions reported a rise in CO2 emissions in 2021, with annual changes ranging from more than 10% in Brazil and India to less than 1% in Japan. China saw a 5% increase in emissions, compared to a rise of approximately 7 percent in the US and the EU. The percentage of US industries that contribute to greenhouse gas emissions is shown in the following graph. In 2021, the production of electricity and heat caused a significant increase in CO2 emissions, by sector, of more over 900 million tonnes (Mt). The majority of fossil fuels have been used to satisfy the rising energy demand, which has resulted in a 46% increase in world emissions.
Restraint: Energy loss during hydrogen production
Hydrogen transports energy produced by various other processes, as it is a synthetic energy carrier. Electrical energy is transformed into hydrogen by alkaline electrolysis. However, high-grade electrical energy is also used to compress, liquefy, transport, transfer, or store the medium in addition to creating hydrogen. Hydrogen must be produced using energy. The energy input and the energy content of the synthetic gas should ideally match. Energy transformation occurs throughout any process, including electrolysis and reforming, that produces hydrogen. Electrical energy or the chemical energy of hydrocarbons are both turned into hydrogen's chemical energy. Sadly, energy losses always occur during the production of hydrogen.
Opportunities: Increasing focus on promoting hydrogen economy development
Various governments are expected to promote hydrogen programmes in the future years. It is difficult to develop the best net-zero CO2 emissions approach, including the most effective green hydrogen strategy. There are decarbonization choices for most applications and end uses, and the relative costs and benefits of each solution are expected to fluctuate over time, depending on the rate of innovation and technical developments. As a result, governments from many nations are investigating technology that are most appropriate for their country while avoiding multiple possible hazards, such as locking in slower or less efficient carbon reduction pathways. As a result, a stronger hydrogen economy is predicted to provide profitable growth opportunities for the hydrogen storage tanks and transportation markets.
Challenges: Hydrogen integration into existing natural gas networks
By operating as a temporary fix until dedicated hydrogen transport systems are created, integrating hydrogen into gas networks can promote the first implementation of low-carbon hydrogen and lead to cost reductions for low-carbon hydrogen generating technologies. Although numerous pilot programmes have already begun, there are still several technological and legal barriers to merging. Integrating hydrogen might be problematic due to the hydrogen purity requirements of some end users, particularly industrial clients. Furthermore, future changes to the gas's physical properties may have an impact on specific activities, such as metering. To avoid interoperability issues caused by fluctuating gas quality, hydrogen mixing will demand closer cooperation among local gas markets.
Hydrogen Market Ecosystem
Hydrogen market has some prominent companies which include well-established, financially stable hydrogen manufacturers. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Key players in this market include Linde plc (Ireland), Air products and Chemicals, Inc. (US), Air Liquide (France), Worthington Industries (US), Cryolor (France), Hexagon Purus (Norway), NPROXX (Netherlands).
The grey hydrogen, by generation type, is expected to be the largest segment during the forecast period.
This report segments the hydrogen market based on sector into three subsegments: generation type, storage and transportation. The generation type segment is bifurcated into the gray, blue and green hydrogen. Gray hydrogen is expected to be the largest segment during the forecast period. The availability of low-cost natural gas is the primary driver of grey hydrogen generation. Natural gas is a hydrocarbon resource that is abundant in many areas, and when it is cheap, it becomes an economically appealing feedstock for hydrogen synthesis.
By application, the mobility is expected to be the fastest growing during the forecast period
This report segments the hydrogen market based on application into four segments: energy, mobility, chemical & refinery and other. Others segment include industrial sector, aerospace and defense etc. application. The mobility is expected to grow at the fastest rate during the forecast period. The increasing investments in the fule cells are expected to drive the market for hydrogen. Many governments and organizations worldwide are providing support, incentives, and funding for the development, deployment, and commercialization of hydrogen fuel cells as part of their efforts to promote clean energy and address climate change.
North America is expected to be the largest region in the hydrogen market
North America is expected to be the largest hydrogen market during the forecast period. The region's market growth can be ascribed to an increase in fuel cell applications, stringent pollution control rules, and a preference for cleaner fuels. Policies are also being developed to investigate and promote the usage of clean fuels such as hydrogen for a variety of energy demands. For example, in March 2023, the Biden-Harris Administration announced the availability of USD 750 million for research, development, and demonstration initiatives to substantially cut the cost of clean hydrogen through the US Department of Energy (DOE).
Key Market Players
The hydrogen market is dominated by a few major players that have a wide regional presence. The major players in the hydrogen market include Linde plc (Ireland), Air products and Chemicals, Inc. (US), Air Liquide (France), Worthington Industries (US), Cryolor (France), Hexagon Purus (Norway), NPROXX (Netherlands). Between 2019 and 2023, these companies followed strategies such as contracts, agreements, partnerships, mergers, acquisitions, and expansions to capture a larger share of the market.
Hydrogen Market Report Scope
Report Metric |
Details |
Market Size Value in 2023 |
USD 242.7 billion |
Revenue Forecast in 2030 |
USD 410.6 billion |
CAGR |
7.8% |
Years considered for the study |
2021-2030 |
Base year |
2022 |
Forecast period |
2023-2030 |
Units considered |
Value (USD Million); Value (Thousand Metric Tons) |
Segments |
by Sector, Storage, Application,Mobility, Chemical & Refinary and Region. |
Regions |
Asia Pacific, North America, Europe, South America, and Middle East & Africa. |
Companies |
Linde plc (Ireland), Air products and Chemicals, Inc. (US), Air Liquide (France), Chevron Corporation (US), Saudi Arabian Oil Co., (Saudi Arabia), Uniper SE (Germany), Worthington Industries (US), INOX India Limited (India), Cryolor (France), Pragma Industries (France), BNH Gas Tanks (India), Hexagon Purus (Norway), NPROXX (Netherlands), Oxygen Service Company, Inc. (OSC) (US), BayoTech (US), Luxfer Gas Cylinders (UK), Chart Industries (US), Quantum Fuel Systems LLC (US), AMS Composite Cylinders (UK), Weldship Corporation (US) |
This research report categorizes the hydrogen market by type, portability, application, and region.
On the basis of Sector:
-
Generation Type
- Gray Hydrogen
- Blue Hydrogen
- Green Hydrogen
-
Storage
- Physical
- Material-based
-
Transportation
- Long Distance
- Short Distance
On the basis of application:
-
Energy
- Power Generation
- CHP
- Mobility
-
Chemical & Refinery
- Petroleum Refinery
- Ammonia Production
- Methanol Production
On the basis of region:
- Asia Pacific
- Europe
- North America
- South America
- Middle East & Africa
Recent Developments
- In July 2023, Air Products & Chemicals, Inc. announced that it has been chosen as the hydrogen and technology provider for Alberta's first hydrogen fuel cell passenger vehicle fleet by Edmonton International Airport. Air Products will deploy a mobile hydrogen refueler at the airport to deliver hydrogen for the Toyota Mirai hydrogen fuel cell vehicle fleet.
- In July 2023, Air Liquide and KBR collaborated to provide fully integrated low-carbon ammonia solutions based on Autothermal Reforming (ATR) technology. Air Liquide is a global leader in ATR technology, which is one of the best options for large-scale production of low-carbon hydrogen (H2), which is then mixed with nitrogen (N2) to make low-carbon ammonia (NH3).
- In April 2023, Linde plc has signed a long-term arrangement with Evonik, a well-known specialty chemicals firm, to supply green hydrogen. Linde will build, own, and operate a nine-megawatt alkaline electrolyzer facility on Jurong Island in Singapore under this arrangement. This plant's major output will be green hydrogen, which Evonik wants to employ in the synthesis of methionine, an essential element in animal feed.
- In April 2023, Air Liquide entered into an agreement with TotalEnergies to create an equally owned joint venture to develop a network of hydrogen stations. This initiative will help facilitate access to hydrogen, enabling the development of its use for goods transportation and further strengthening the hydrogen sector.
- In October 2022, Hexagon Purus and Lhyfe collaborated for the production of green and renewable hydrogen for transportation and industrial applications.
- In May 2022, Air Products Inc, OQ, and ACWA Power jointly signed an agreement for the world’s largest green hydrogen-based ammonia production powered by renewable energy.
Frequently Asked Questions (FAQ):
What is the current size of the hydrogen market?
The current market size of the hydrogen market is USD 222.0 billion in 2022.
What are the major drivers for the hydrogen market?
Increasing regulations concerning GHG emissions will be major drivers for the hydrogen market.
Which is the largest region during the forecasted period in the hydrogen market?
Asia Pacific is expected to dominate the hydrogen market between 2023–2030, followed by Europe and North America. The increase in demand of hydrogen from the industrial sector in recent years is driving the region's market.
Which is the largest segment, by application, during the forecasted period in the hydrogen market?
The chemical & refinery is expected to be the largest market during the forecast period. Increased demand for low sulfur disel fuel due to the increasing investments in renewable energy sources and the easy availability of natural gas are expected to drive the market for the chemical & refinery hydrogen segment.
Which is the fastest transportation segment during the forecasted period in the hydrogen market?
The short distance segment is expected to be the fastest market during the forecast period. The increasing investment in advancing hydrogen methods to meet the hydrogen demand used in consumer automotive, chemical & refinery etc. would drive the hydrogen market.
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The study involved major activities in estimating the current size of the hydrogen market. Exhaustive secondary research was done to collect information on the peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of the segments and subsegments.
Secondary Research
This research study on the hydrogen market involved the use of extensive secondary sources, directories, and databases, such as Bloomberg, Factiva, IRENA, International Energy Agency, Statista Industry Journal, and IEA, to collect and identify information useful for a technical, market-oriented, and commercial study of the hydrogen market. The other secondary sources included annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturer associations, trade directories, and databases.
Primary Research
The hydrogen market comprises several stakeholders, such as hydrogen manufacturers, technology providers, and technical support providers in the supply chain. The demand side of this market is characterized by the rising demand for hydrogen in automotive, aerospace, defense & government services, wireless communication & infrastructure, consumer electronics, medical equipment manufacturing and energy sector applications. The supply side is characterized by rising demand for contracts from the industrial sector and mergers & acquisitions among big players. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of primary respondents:
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the hydrogen market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and market have been identified through extensive secondary research, and their market share has been determined through primary and secondary research.
- The industry’s value chain and market size, in terms of value, have been determined through both primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Hydrogen Market Size: Top-Down Approach
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Hydrogen Market Size: Bottom-Up Approach
Data Triangulation
After arriving at the overall market size from the above estimation process, the total market has been split into several segments and subsegments. Data triangulation and market breakdown processes have been employed to complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand- and supply sides. Along with this, the market has been validated using both the top-down and bottom-up approaches.
Market Definition
Hydrogen is the lightest and most abundant element in the universe. Hydrogen gas has an excellent energy carrying capacity. It can be produced in large quantities and supplied to large-scale industries for various operations. It can be produced as a principal and by-product from various primary energy sources (such as wind, solar, coal, natural gas, and nuclear). Currently, hydrogen is produced in bulk for many value-added uses and chemical substances. It delivers power for various applications, including fuel cells and combined heat and power technologies.
The growth of the hydrogen market during the forecast period can be attributed to the rising increasing adoption of renewable energy sources like wind, solar, and hydroelectric power for hydrogen production across major countries in North America, Europe, Asia Pacific, South America, and Middle East & Africa.
Key Stakeholders
- Manufacturers of fuel cell electric vehicles (FCEVs)
- Government organizations
- Owners of hydrogen charging stations
- Developers and operators of hydrogen fuel pumps
- Manufacturers and suppliers of hydrogen generation equipment
- Developers of hydrogen generation infrastructure
- Institutional investors
- Merchant hydrogen producers
- Methanol producers
- Refinery operators
- Research institutes
Objectives of the Study
- To define, describe, segment, and forecast the hydrogen market size, by sector, by application and region, in terms of value and volume
- To define, describe, segment, and forecast the market size, by application, in terms of value
- To forecast the market size across five key regions, namely North America, Europe, Asia Pacific, Middle East & Africa, and South America in terms of value
- To provide detailed information about the key drivers, restraints, opportunities, and industry-specific challenges influencing the growth of the market
- To strategically analyze the market with respect to individual growth trends, prospects, and contributions of each segment to the market
- To provide information pertaining to the supply chain, trends/disruptions impacting customer business, market map, pricing of hydrogens, and regulatory landscape pertaining to the market
- To strategically analyze the micromarkets with respect to individual growth trends, upcoming expansions, and their contributions to the overall market
- To analyze opportunities for stakeholders in the market and draw a competitive landscape for market players
- To benchmark players within the market using the company evaluation quadrant, which analyzes market players on various parameters within the broad categories of business and product strategies
- To compare key market players with respect to the market share, product specifications, and applications
- To strategically profile key players and comprehensively analyze their market ranking and core competencies.
- To track and analyze competitive developments in the hydrogen market, sales contracts, agreements, investments, expansions, product launches, alliances, mergers, partnerships, joint ventures, collaborations, and acquisitions
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Product Analysis
- Product Matrix, which provides a detailed comparison of the product portfolio of each company
Company Information
- Detailed analyses and profiling of additional market players
Growth opportunities and latent adjacency in Hydrogen Market