Industrial Hydrogen Market

Industrial Hydrogen Market Study by Electrolysis, Conventional, and Others for Chemicals, Electronics, F&B, Glass, Metal Production, Pharmaceuticals & Biotechnology, and Others from 2024 to 2034

Analysis of Industrial Hydrogen Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Industrial Hydrogen Market Outlook (2024 to 2034)

The global industrial hydrogen market size is forecasted to reach a valuation of US$ 19,800 million in 2024, showing a consistent growth trajectory with a projected CAGR of 4.9% until 2034. This anticipated expansion is expected to raise the market to a size of US$ 31,946.3 million by 2034.

Industrial hydrogen market growth is fueled by rising demand in crucial sectors like energy, refining, and electronics, where hydrogen holds a pivotal role. This demand surge is attributed to the increasing emphasis on cleaner energy sources globally.

Advances in hydrogen production technologies further bolster the positive outlook, enhancing efficiency and sustainability. The market's evolving landscape underscores the essential role of hydrogen in the global industrial sector.

As industries prioritize environmentally friendly practices, hydrogen's versatile applications position it as a key component in the transition to sustainable solutions. The market's trajectory reflects a sustained growth pattern, propelled by the ongoing pursuit of cleaner energy alternatives and innovations in hydrogen-related technologies, highlighting its enduring significance in the industrial landscape.

Key Market Growth Drivers

  • The market is driven by growing demand across pivotal sectors such as energy, refining, and electronics, where hydrogen serves essential functions.
  • The global push toward cleaner energy sources acts as a significant driver for industrial hydrogen, as it is a versatile and clean energy carrier.
  • Ongoing advancements in hydrogen production technologies contribute to the market's growth by enhancing efficiency, lowering costs, and improving overall sustainability.
  • Hydrogen's pivotal role in various industrial applications underscores its importance, promoting consistent demand across diverse sectors.
  • The evolving market landscape is shaped by a global emphasis on sustainable practices, where hydrogen's clean and efficient characteristics align with environmental priorities.

Continuous advancements in hydrogen production technologies, driven by innovation and research initiatives, enhance efficiency and sustainability, further fueling market growth.

The evolving trend in the industrial hydrogen sector involves a shift towards broader applications and increased integration into various industrial processes, driven by the ongoing pursuit of eco-friendly alternatives and the development of novel hydrogen-based solutions.

As governments worldwide implement supportive policies to encourage clean energy adoption, the market is poised to experience sustained growth in the near future.

Report Attributes Details
Estimated Market Value (2024E) US$ 19,800 million
Forecasted Market Value (2034F) US$ 31,946.3 million
Global Market Growth Rate (2024 to 2034) 4.9% CAGR
Electrolysis Segment Growth Rate (2024 to 2034) 4.9% CAGR
Electronics Segment Growth Rate (2024 to 2034) 7.6% CAGR
North America Market Share (2024) 28.6%
East Asia Market Share (2024) 21.5%
Key Companies Profiled
  • Taiyo Nippon Sanso
  • Messer Group
  • Air Products
  • Yingde Gases
  • Air Water
  • Linde Group
  • Air Liquide
  • Reliance Industries Ltd.
  • Mitsubishi Gas Chemical Company Inc.
  • Evonik Industries AG

Don't Need a Global Report?

save 40%! on Country & Region specific reports

What Drives the Global Surge in the Industrial Hydrogen Market?

“Surge in Demand for Hydrogen”

The global surge in the market is primarily propelled by the increasing emphasis on transitioning towards cleaner and more sustainable energy sources.

As industries worldwide prioritize environmental responsibility, hydrogen emerges as a key component due to its versatility and eco-friendly characteristics. The demand surge is particularly notable in crucial sectors such as energy, refining, and electronics, where hydrogen plays a pivotal role in various applications.

This heightened focus on cleaner energy sources reflects a broader global commitment to reducing carbon emissions and embracing more sustainable practices, driving the sustained growth of the industrial hydrogen market.

“Ongoing Technological Advancements in Hydrogen Production”

Another driving force behind the surge in the market is the ongoing technological advancements in hydrogen production. Continuous innovation and research initiatives have led to the development of more efficient and cost-effective methods for producing hydrogen.

Advanced technologies, such as electrolysis and steam methane reforming, have enhanced hydrogen production's overall sustainability and scalability. These technological advancements contribute to the industrial hydrogen market's positive outlook and make hydrogen a more viable and competitive option in meeting the increasing energy demands of diverse industries. The convergence of technological progress and environmental awareness positions hydrogen as a key player in the evolving global energy landscape.

What Challenges the Expansion of the Market?

“Soaring Cost of Hydrogen Production Hinders the Market from Growing”

The current limitations and costs of hydrogen production and infrastructure development hinder the market. Establishing a widespread hydrogen infrastructure, including production, storage, and transportation facilities, requires substantial investments.

Additionally, the efficiency and cost-effectiveness of hydrogen production methods, such as electrolysis or steam methane reforming, need further optimization to compete with conventional energy sources.

Overcoming these challenges is crucial to unlocking the full potential of industrial hydrogen, ensuring its seamless integration into various sectors, and contributing to a more sustainable energy landscape.

More Insights, Lesser Cost (-50% off)

Insights on import/export production,
pricing analysis, and more – Only @ Fact.MR

How can Start-Ups Maximize Industrial Hydrogen Opportunities?

“Push towards Sustainable Practices Allows Startups to Maximize"

To maximize industrial hydrogen opportunities, start-ups can focus on developing innovative and cost-effective hydrogen production technologies. By introducing advancements that enhance efficiency, reduce costs, and promote sustainability in hydrogen production, start-ups can position themselves as key contributors to the growing demand for clean energy solutions.

This strategic approach aligns with the global push towards sustainable practices. It allows start-ups to carve a niche in the competitive market, attracting attention from industries seeking innovative and efficient hydrogen solutions for various applications.

Country-wise Insights

North America’s industrial hydrogen market is poised for exceptional growth, projecting a CAGR of 5.1% through 2034. The surge is primarily attributed to increasing demand for industrial hydrogen users in key countries, notably the United States and Canada. In 2024, the United States dominates the industrial hydrogen industry with an estimated 77.4% market share.

The East Asia industrial hydrogen market is anticipated to exhibit substantial progress, aiming for a 3.8% CAGR in 2024. In East Asia, China is emerging as the key player in the industrial hydrogen industry, commanding a significant share of 57.8% in 2024.

Why is Canada Dominating the Industrial Hydrogen Market?

“Government Support and Initiatives Encourage the Adoption of Hydrogen Technologies”

Attribute Canada
Market Value (2024) US$ 889.1 million
Growth Rate (2024-2034) 5.8% CAGR
Projected Value (2034) US$ 1,561.8 million

Canada is estimated to expand at a CAGR of 5.8% by 2034. Canada is making significant strides in the market due to its strategic focus on promoting clean energy initiatives. The country's dominance is attributed to government support and initiatives encouraging hydrogen technology development and adoption.

With a commitment to reducing carbon emissions and fostering sustainability, Canada has become a leader in promoting hydrogen as a clean energy solution. This emphasis, coupled with advancements in hydrogen production and utilization technologies, positions Canada at the forefront of the global market, attracting investments and driving widespread adoption.

Which Factors Position China as a Thriving Market for Industrial Hydrogen Producers?

“Prioritization of Industrial Hydrogen Producers Raises the China Market”

Attribute China
Market Value (2024) US$ 2,460.5 million
Growth Rate (2024-2034) 3.6% CAGR
Projected Value (2034) US$ 3,495.4 million

The industrial hydrogen market in China is poised for significant growth, with a forecasted CAGR of 3.6%. China stands out as a thriving market for industrial hydrogen producers due to its strategic prioritization of hydrogen in the energy transition. The Chinese government's comprehensive policies and substantial investments in fostering a hydrogen economy have created a conducive environment.

With a focus on reducing carbon emissions and advancing sustainable practices, China's commitment to hydrogen as a key component of its energy landscape creates abundant opportunities for industrial hydrogen producers to thrive in this dynamic and rapidly growing market.

Know thy Competitors

Competitive landscape highlights only certain players
Complete list available upon request

Category-wise Insights

Based on production method, the electrolysis segment is anticipated to hold a 53.4% market share in 2024. The increasing focus on green hydrogen production, aligning with global efforts to adopt cleaner and more sustainable methods of hydrogen generation.

Based on end-use, the electronics segment in the industrial hydrogen industry accounts for a market share of 16.5% in 2024. The robust market share of the electronics segment is driven by the growing demand for hydrogen in semiconductor manufacturing and other electronic applications, where hydrogen plays a crucial role in various processes, contributing to the segment's significant market presence.

How is the Increasing Adoption of Electrolysis Impacting Growth?

“Preference for Electrolysis Reflects Environmental Consciousness”

Attribute Electrolysis
Market Value (2024) US$ 10,573.2 million
Growth Rate (2024-2034) 4.9% CAGR
Projected Value (2034) US$ 17,698.3 million

In 2024, the electrolysis segment is expected to dominate the market, holding a 53.4% market share based on the production method. This signifies the growing significance of electrolysis as a preferred method for hydrogen production, driven by its environmentally friendly attributes. Electrolysis involves using renewable energy sources to split water into hydrogen and oxygen.

What Drives the Steady Expansion of the Electronics Segment?

“Versatility and Importance of Electronics Commands a Significant Presence”

Attribute Electronics
Market Value (2024) US$ 3,267 million
Growth Rate (2024-2034) 7.6% CAGR
Projected Value (2034) US$ 4,919.7 million

By end use, the electronics segment plays a noteworthy role, accounting for a market share of 16.5% in 2024. This indicates a substantial demand for hydrogen within the electronics industry, where it serves various applications such as semiconductor manufacturing and as a reducing agent in specific processes.

The electronics sector's reliance on hydrogen underscores its versatility and importance in facilitating crucial industrial processes within this particular domain.

Competitive Landscape

The competitive analysis of the industrial hydrogen market reveals a landscape shaped by key players vying for prominence. These companies focus on strategic positioning through technological innovation and diversified applications across energy, refining, and electronics.

Adapting and enhancing production efficiency remains a key factor in staying competitive. As the market experiences continuous advancements in hydrogen production technologies, companies engaging in research and development initiatives gain a strategic edge.

Government policies supporting clean energy adoption further influence competitive dynamics. Overall, a balance between technological innovation, application versatility, and regulatory compliance among industry leaders characterizes the market’s competitiveness.

Some of the recent developments are:

  • In July 2023, a notable collaboration emerged as Air Liquide and KBR joined forces, offering comprehensive low-carbon ammonia solutions. This partnership reflects a strategic initiative to integrate their expertise, contributing to developing sustainable solutions in the ammonia sector.
  • In July 2023, Air Products & Chemicals, Inc. made headlines by securing the hydrogen and technology provider role for Alberta's inaugural hydrogen fuel cell passenger vehicle fleet, a project led by Edmonton International Airport.

Segmentation of Industrial Hydrogen Market Report

  • By Production Method:

    • Electrolysis
    • Conventional & Others
  • By End Use:

    • Chemicals
    • Electronics
    • Food & Beverages
    • Glass
    • Metal Production
    • Pharmaceuticals & Biotechnology
    • Welding & Fabrication
    • Others
  • By Region:

    • North America
    • Latin America
    • Western Europe
    • Eastern Europe
    • South Asia and Pacific
    • East Asia
    • Middle East and Africa

- FAQs -

What was the value of the industrial hydrogen market in 2019?

The global market was worth US$ 15,810.8 million in 2019.

What is the sales outlook for the industrial hydrogen in 2024?

The sales outlook for industrial hydrogen is likely to be valued at US$ 19,800 million in 2024.

What is the demand forecast for industrial hydrogen for the decade?

Demand for industrial hydrogen is projected to reach a market value of US$ 31,946.3 million by the end of 2034.

What is the projected forecast CAGR for the market from 2024 to 2034?

The market is anticipated to expand at a CAGR of 4.9% from 2024 to 2034.

At what rate is the market in North America predicted to grow?

The market in North America is forecasted to expand at a CAGR of 5.1% through 2034.

- Also of Interest -

Hydrogen Market

Hydrogen Market Study by Methane Reforming, Oxidation of Oil, Coal Gasification, and Electrolysis for Power Generation, Petroleum, Metal Processing, Automotive Fuels, and Others from 2024 to 2034

Hydrogen Generation Market

Hydrogen Generation Market Analysis by Technology (Coal Gasification, Steam Methane Reforming), by System (Merchant, Captive), by Application (Methanol Production, Ammonia Production, Petroleum Refining) & by Region - Global Insights 2022-2032

Green Hydrogen Market

Green Hydrogen Market Analysis by Alkaline Electrolyzers and Polymer Electrolyte Membrane Electrolyzers for Power Generation and Transportation from 2023 to 2033

Liquid Organic Hydrogen Carriers Market

Liquid Organic Hydrogen Carriers Market Share & Trends Analysis, By Compound Type (Hydrogenated, Unhydrogenated), By Composition Type (Cyclohexane-Benzene, Methylcyclohexane-Toulene), By Process (Hydrogenation, Dehydrogenation) & By Region Forecast- Global Review 2021-2031

Industrial Hydrogen Market

Schedule a Call