Hydrogen Market

Hydrogen Market Outlook (2024 to 2034)

The global hydrogen market size is estimated at US$ 18.23 billion in 2024 and is projected to reach a size of US$ 47.83 billion by 2034-end, registering a robust CAGR of 10.4% between 2024 and 2034. The market is expanding rapidly, positioning itself as an essential component in the transition to a more sustainable and carbon-free future.

Need to combat climate change and cut greenhouse gas emissions is driving the world to look for cleaner energy choices. Because of its potential as a zero-emission fuel, hydrogen is a strategic choice for accomplishing environmental goals. From transportation and power generation to industrial processes, the versatility of hydrogen positions it as a promising alternative energy source with zero emissions, fostering a sustainable future.

Ongoing advancements in electrolysis, fuel cells, and storage technologies are poised to drive efficiency, scalability, and cost-effectiveness in hydrogen production and utilization. International partnerships and collaborations among governments, industries, and research institutions are fostering technological advancements and market scalability.

Key Markey Growth Drivers

• Governments worldwide are committed to reducing carbon emissions, driving global demand for clean energy alternatives such as hydrogen.
• Innovations in electrolysis, fuel cells, and storage technologies are enhancing the efficiency and cost-effectiveness of hydrogen production and utilization.
• Industries such as refineries, chemicals, and steel are increasingly adopting hydrogen to lower emissions in their processes.
• Hydrogen fuel-cell vehicles are gaining attention as a zero-emission alternative, promoting investment in hydrogen infrastructure.
• Private and public investments in hydrogen-related projects, R&D, and infrastructure are boosting the market.
• Growing awareness about the environmental benefits of hydrogen is stimulating demand across various industries.

Report Attributes	Details
Hydrogen Market Size (2023A)	US$ 16.51 Billion
Estimated Market Value (2024E)	US$ 18.23 Billion
Forecasted Market Value (2034F)	US$ 47.83 Billion
Global Market Growth Rate (2024 to 2034)	10.4% CAGR
North America Market Share (2034F)	26.4%
East Asia Market Growth Rate (2024 to 2034)	10.6% CAGR
North America Market Growth Rate (2024 to 2034)	10.9% CAGR
Centralized Production Segment Market Share (2024E)	63.4%
Key Companies Profiled	Messer Group GmbH Hydrogenics Corp. Nel ASA Teledyne Technologies Inc. Southern Industrial Gas Sdn Bhd Linde plc Air Products and Chemicals, Inc. Air Liquide Chevron Corporation Saudi Arabian Oil Co. Uniper SE Worthington Industries Gulf Cryo Holding C.S.C Hexagon Purus Bristol Gases - Concorde Corodex Group Oxygen Service Company, Inc. BayoTech Luxfer Gas Cylinders Quantum Fuel Systems LLC AMS Composite Cylinders Weldship Corporation

Why is the Market for Hydrogen Growing Rapidly across the World?

“Rising Need to Reduce Greenhouse Gas Emissions”

Hydrogen, when produced using renewable energy sources or through low-carbon methods such as electrolysis, offers a promising pathway to decarbonize various sectors. The potential of hydrogen to serve as a clean energy carrier without emitting harmful pollutants or CO2 during utilization positions hydrogen as an essential tool in achieving global climate goals.

Governments worldwide are increasingly setting ambitious targets to curb emissions, and hydrogen, particularly green hydrogen, emerges as a viable solution. The emphasis on clean energy alternatives and the drive towards a carbon-neutral economy places hydrogen at the forefront of the energy transition, making it an indispensable element in mitigating the adverse impacts of climate change.

“Industrial Applications Driving Rapid Hydrogen Adoption”

Refineries, chemicals, and steel production have historically relied on fossil fuels, resulting in large carbon emissions. When employed as a feedstock or energy source in these industries, hydrogen provides a cleaner option that can considerably lower carbon footprints. Hydrogen is essential in desulfurization processes such as refining, allowing for the creation of cleaner fuels. Hydrogen is a major component in the synthesis of ammonia, a vital ingredient in fertilizers, and switching to green hydrogen production technologies can significantly reduce the overall carbon intensity of these processes.

As industries face mounting pressure to cut emissions and embrace sustainability, the versatility and eco-friendly attributes of hydrogen make it an attractive option for achieving cleaner and more efficient industrial operations. This growing demand within industrial sectors underscores the pivotal role hydrogen plays in fostering sustainable industrial practices and accelerating the transition towards a low-carbon economy.

Which Factors are Hindering Market Growth to Some Extent?

“High Cost of Production Creating Hurdle for Widespread Adoption of Hydrogen across Industries”

Electrolysis has the ability to produce green hydrogen, which means it does not emit carbon dioxide, especially when powered by renewable energy sources. The procedure, however, necessitates a large quantity of energy, which has a direct impact on the ultimate cost. The capital-intensive aspect of installing electrolyzers, combined with the energy requirements, greatly raises production costs. The high cost is further increased by the infrastructure needed for large-scale production and the upfront expenditures associated with developing and implementing new technologies.

Renewable energy sources, such as wind or solar power, are more environmentally friendly, but can be intermittent, causing changes in production prices and impeding constant and cost-effective hydrogen generation. The high production cost directly impacts the competitiveness of hydrogen compared to other energy alternatives. In sectors where cost-efficiency is crucial, such as transportation or industrial applications, the higher cost of hydrogen production makes it less attractive, especially when compared to conventional fossil fuels or even alternative clean energy sources like batteries for electric vehicles.

How Can New Companies Gain a Competitive Advantage in Hydrogen Production Methods?

“Addressing Challenges of Cost-effectiveness and Scalability”

Start-ups can make significant investments in R&D to create unique and efficient techniques for hydrogen production, storage, and distribution. These start-ups can carve out a space for themselves by developing breakthrough technologies that answer the present difficulties of cost-effectiveness and scalability. Start-ups can target specific niche applications within the hydrogen ecosystem.

By focusing on particular sectors like transportation, industrial processes, or energy storage, they can tailor their offerings to meet the unique needs and demands of these industries. This specialization allows start-ups to develop tailored solutions that are more efficient and cost-effective, attracting clients seeking specialized hydrogen applications.

Given the evolving landscape of the hydrogen market, start-ups must stay agile and flexible in their strategies. Being open to pivoting or adjusting their focus based on market trends, technological advancements, or regulatory changes can help them stay ahead of the curve. Leveraging government incentives, grants, or subsidies for clean energy initiatives can provide start-ups with the necessary financial support to scale their operations and drive market adoption of their hydrogen solutions.

Country-wise Insights

Latest hydrogen market trends reveal that East Asia leads the global market. Countries such as China and South Korea lead the way in hydrogen adoption within the East Asia region. The market in North America is gaining momentum with substantial governmental support and private investments.

Why is China the Frontrunner in the East Asia Market?

“Rising Adoption Due to Technological Advancements, Supportive Policies, and Concerted Efforts towards Sustainability”

Attribute	China
Market Value (2024E)	US$ 3.32 Billion
Growth Rate (2024 to 2034)	10.2% CAGR
Projected Value (2034F)	US$ 8.79 Billion

To combat environmental degradation and achieve its lofty carbon neutrality targets, China, the largest producer of greenhouse gases, has realized how urgently it must switch to cleaner energy sources. One of the pivotal drivers propelling hydrogen market growth of China is its unwavering support through robust policy frameworks and substantial investments.

China has introduced favorable policies, including financial incentives, subsidies, and targets for hydrogen production and utilization, fostering a conducive environment for industry players and investors. Owing to its strong industrial and technological capabilities, China is able to produce hydrogen on a larger scale. This reduces prices and boosts efficiency by utilizing advances in fuel cell, electrolysis, and storage technologies.

Automotive hydrogen fuel-cell vehicles have piqued the interest of China's booming automotive sector, prompting investments in infrastructure development for mass deployment. International collaborations and partnerships are instrumental in hydrogen strategy of China, fostering knowledge exchange, technology transfer, and market expansion. With its vast hydrogen market size, technological advancements, supportive policies, and concerted efforts towards sustainability, China is poised to emerge as a pivotal force propelling the global hydrogen market towards widespread adoption and commercial viability.

How are Hydrogen Market Opportunities Shaping Up in the United States?

“Combination of Policy Support, Abundant Renewable Resources, Infrastructure Readiness, and Collaborative Initiatives”

Attribute	United States
Market Value (2024E)	US$ 3.06 Billion
Growth Rate (2024 to 2034)	11.6% CAGR
Projected Value (2034F)	US$ 9.15 Billion

The United States has a substantial edge when it comes to producing green hydrogen on an extensive scale via electrolysis because of the wide range of renewable energy resources distributed over its broad territory. The wide range of renewable energy, including wind and solar electricity, presents an opportunity to create hydrogen in an economical and ecologically friendly manner. Scaling up hydrogen production, storage, and distribution networks is also advantageous for the nation due to its current infrastructure and energy sector expertise.

The transportation sector, a crucial arena for hydrogen adoption, particularly benefits from the commitment of the United States to hydrogen vehicles. Major automotive manufacturers and IT firms are making significant investments in hydrogen fuel-cell technologies, encouraged by government grants and incentives, as the focus on decarbonizing transportation grows. This collaborative effort is pushing innovation and lowering the costs of hydrogen-powered vehicles, making them more competitive and appealing in the market.

Category-wise Insights

Hydrogen is used in a variety of industries. Fuel-cell vehicles are gaining popularity as a zero-emission alternative in transportation, while hydrogen-powered trains and buses are also showing promising growth. Hydrogen integration benefits in pollution reduction and process efficiency gains in industries ranging from refining processes to ammonia production and steel making.

Which Delivery Mode is Gaining Popularity in the Hydrogen Supply Chain?

“Centralized Production Enhancing Logistical Efficiency in Distribution and Transportation”

Attribute	Centralized Production
Segment Value (2024E)	US$ 11.56 Billion
Growth Rate (2024 to 2034)	10.7% CAGR
Projected Value (2034F)	US$ 31.37 Billion

Centralized production of hydrogen holds a leading position in the market due to several key advantages, especially in comparison to decentralized or on-site production methods. The delivery mode, centered on centralized production facilities, has gained traction owing to its efficiency, economies of scale, and technological advancements.

Centralized production allows for large-scale hydrogen generation, often utilizing advanced technologies like electrolysis, steam methane reforming (SMR), or other methods, resulting in cost efficiencies through bulk production. These facilities benefit from optimized infrastructure, streamlined processes, and enhanced operational control, ensuring consistent and reliable hydrogen supply to meet varying demands across industries.

Centralized production facilities facilitate better integration of carbon capture and storage (CCS) or carbon capture, utilization, and storage (CCUS) technologies. This integration aligns with the growing emphasis on producing low-carbon or even carbon-free hydrogen, a crucial factor in meeting sustainability goals. Large-scale production hubs enable easier management of transportation logistics, reducing costs associated with storage and delivery. This approach allows for the establishment of dedicated transportation networks, including pipelines or bulk transportation methods, enabling efficient supply chains to cater to diverse end-users across industries and geographical regions.

Competitive Landscape

Top companies in hydrogen market include Messer Group GmbH, Nel ASA, Southern Industrial Gas Sdn Bhd, Air Liquide S.A. and The Linde Group are vying for hydrogen market share and have established themselves as leaders in hydrogen production. Their expertise, coupled with substantial investments in research and development, allows them to pioneer efficient and cost-effective production methods, positioning them at the forefront of the market.

The competitive landscape of the market reflects a vibrant ecosystem characterized by innovation, strategic collaborations, and a relentless pursuit of technological advancements to drive sustainable and efficient hydrogen solutions.

• Linde plc inked a long-term agreement with Evonik, a well-known specialty chemicals manufacturer, to deliver green hydrogen in April 2023.
• Air Liquide and KBR announced a partnership in July 2023 to supply fully integrated low-carbon ammonia solutions based on Autothermal Reforming (ATR) technology.

Segmentation of Hydrogen Market Research

• By Production Method:

  • Methane Reforming
  • Oxidation of Oil
  • Coal Gasification
  • Electrolysis
  • Others

• By End Use:

  • Power Generation
  • Petroleum Refineries
  • Metal Processing
  • Automotive Fuels
  • Chemical
  • Glass Industries
  • Edible Fats & Oils
  • Others

• By Delivery Mode:

  • Centralized Production
  • Distributed Production

• By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa