The Hydrogen Market size was valued at USD 242.7 billion in 2023 and is projected to reach USD 410.6 billion by 2030, exhibiting a robust compound annual growth rate (CAGR) of 7.8% during the forecast period.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.
This report segments the hydrogen market based on sector into generation type, storage and transportation. Gray hydrogen is expected to hold the largest share of the hydrogen market during the forecast period. The growth in the gray hydrogen market can be attributed to its low cost and the wide area of its application. However, demand for green hydrogen is on the rise due to the rising focus on the reduce green house gas emissions.
The hydrogen market is poised for substantial growth in the coming years, driven by several key factors:
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Renewable Energy Integration: As the world moves towards decarbonization, there's a growing emphasis on renewable energy sources like wind and solar. Hydrogen serves as a crucial medium for storing excess renewable energy generated during peak times for later use, especially when the sun isn't shining or the wind isn't blowing.
Climate Change Mitigation: Governments and industries worldwide are increasingly committing to reducing carbon emissions to combat climate change. Hydrogen offers a clean energy alternative, as its combustion emits only water vapor. This makes it attractive for sectors like transportation, where electrification may not be as feasible.
Industrial Applications: Hydrogen is extensively used in various industrial processes, including refining, ammonia production, and steel manufacturing. As industries seek to decarbonize and adopt cleaner technologies, hydrogen becomes integral, particularly with the development of low-carbon hydrogen production methods like electrolysis using renewable energy.
Transportation: Hydrogen fuel cell electric vehicles (FCEVs) are gaining traction, particularly in heavy-duty transport like trucks and buses. FCEVs offer long ranges and quick refueling times, making them competitive with conventional vehicles. Moreover, hydrogen-powered trains, ships, and airplanes are also under development, further driving demand for hydrogen as a transportation fuel.
Government Support and Investments: Many governments are rolling out policies, incentives, and funding to support hydrogen technology development and deployment. These include subsidies for hydrogen production, tax incentives for hydrogen infrastructure, and mandates for renewable hydrogen adoption in certain sectors.
Emerging Technologies: Ongoing research and development are leading to advancements in hydrogen production, storage, and utilization technologies. Innovations such as solid-state hydrogen storage, high-efficiency electrolyzers, and novel catalysts are making hydrogen more cost-effective and practical across various applications.
Hydrogen Market Ecosystem
The hydrogen market ecosystem comprises various stakeholders involved in the production, distribution, storage, and utilization of hydrogen. Here's an overview of the key components:
Hydrogen Producers:
Hydrogen Storage and Transportation:
End Users:
Technology Providers:
Research and Development Institutions:
Regulatory Bodies and Policy Makers:
Related Reports:
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
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