U.S., Europe, and Asia Market Study on Industrial Hydrogen: Electronics Segment is Estimated to Dominate with 22.0% Market Share in 2016


  • Published On : Sep-2016 |
  • Pages : 101 Pages |
  • Format :

Hydrogen is undoubtedly the clean fuel of the future and finds wide application in various industries including chemical, electronics, glass, metal production, pharma and biotech, and welding and metal fabrication. In a recent study, Persistence Market Research analyzes the adoption of hydrogen across various industries and presents a forecast of the industrial hydrogen market for the period 2016–2024. The primary objective of the report is to highlight factors and trends influencing the industrial hydrogen market over the forecast period and present market projections for industrial hydrogen across different production methods and applications, for a few specific global regions. A special attention has been given on production of hydrogen by electrolysis of water owing to a global focus on the development of green production technologies. The report specifically focuses only on those industrial applications of hydrogen where a small volume of hydrogen is consumed and does not cover large volume end uses of hydrogen such as refinery, ammonia production, energy applications, etc.

To understand and evaluate the demand and opportunities in this market, the report is categorically split into three sections – by production method, by application, and by region. The report studies the industrial hydrogen market both in terms of market value and market volume.

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The report starts with a market summary and market definition and provides a detailed analysis of the key drivers, restraints, opportunities, and trends governing the industrial hydrogen market over the forecast period. The subsequent sections include an in-depth analysis of the industrial hydrogen market by production method, by application, and by region; and present a granular detail of the market size in terms of value and volume for the period 2016-2024. All the three sections assess the market on the basis of various factors affecting the market, covering the present scenario and future prospects. The report also includes an overview of production technologies, supply chain management analysis, and a list of major hydrogen producers and consumers in each region. For market data analysis, the report considers 2015 as the base year, with market numbers estimated for 2016 and a detailed forecast provided for the period 2017–2024. 

Research Methodology

The report tracks the industrial hydrogen market in terms of volume consumption and is calibrated to obtain the market revenue estimates by multiplication of weighted average prices. The report uses in-depth secondary research to ascertain overall market size, top industry players, top production method, and top application. The findings are also based on extensive primary research conducted by interacting with key industry players including manufacturers, distributors, retailers, and industry experts in the industrial hydrogen market. The report relies on information procured from industry association publications and the annual reports, publications, and presentations of hydrogen manufacturers to derive key insights based on the current market scenario and future prospects of the industrial hydrogen market. Data acquired through primary and secondary research is triangulated and further scrutinized using advanced tools and processes to obtain qualitative and quantitative insights into the industrial hydrogen market. When determining the market size, the report forecasts hydrogen sales volume at the country level and utilizes average country level prices to arrive at a revenue estimate. CAGR and Y-o-Y growth is used to arrive at market projections for each segment in the industrial hydrogen market.

The report ends with a study of key players operating in the industrial hydrogen market – both producers and consumers. Key producers of industrial hydrogen profiled in this study include Air Liquide, Air Products and Chemicals Inc., The Linde Group, Praxair Inc., and Messer Group GmbH.

The industrial hydrogen market for U.S., Europe (U.K. & Germany), and Asia (South Korea & Japan) is anticipated to grow from US$ 13.6 Bn in 2016 to US$ 19.8 Bn by 2024, expanding at a CAGR of 4.9% in terms of revenue during the forecast period (2016–2024). The Electrolysis production method segment is expected to expand at a higher CAGR over the forecast period while the Electronics application segment is expected to expand at the fastest value CAGR over the forecast period.

Factors and trends impacting the market

Increasing demand from various end-use industries such as electronics, glass, metal production, welding, and metal fabrication is anticipated to boost growth of the industrial hydrogen market over the forecast period. Preference for onsite hydrogen generation systems and increasing technological advancements that promote reduction in the overall hydrogen production cost by electrolysis of water are other factors likely to push the demand for industrial hydrogen through 2024. However, a high cost of hydrogen production by electrolysis of water as compared to other conventional methods of production is likely to pose a challenge for the sustained growth of the electrolytic hydrogen market.

Market projections by segmentation

The Electrolysis segment in the industrial hydrogen market is estimated to expand at the fastest CAGR over the forecast period in terms of revenue. Sales revenue from this segment is expected to reach a market value of US$ 1.49 Bn by 2024, increasing at a CAGR of 5.2% over the forecast period. The Conventional & Others segment is expected to hold a market value share of 92.5% by the end of 2024, representing a sales revenue of US$ 18.3 Bn. This segment is likely to expand at a CAGR of 4.8% over the forecast period.

The Electronics segment is estimated to dominate the industrial hydrogen market with 22.0% market share, valued at US$ 2.98 Bn by the end of 2016. The Electronics segment is expected to expand at the highest CAGR in terms of value during the forecast period. In terms of revenue, this segment is expected to reach a market value of US$ 4.69 Bn by 2024, expanding at a CAGR of 5.8%. In terms of value CAGR, the Electronics segment is anticipated to be followed by the Metal Production and the Pharmaceuticals & Biotechnology segments respectively. The Glass, Metal Production, and Welding & Metal Fabrication segments are estimated to collectively account for a market volume share of 46.2% in the industrial hydrogen market by the end of 2016. The Glass, Metal Production, and Welding & Metal Fabrication segments are also expected to create significant opportunities in the industrial hydrogen market between 2016 and 2024.

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Key regions

In 2016, the U.S. dominated the overall industrial hydrogen market – accounting for more than 50% market share – owing to a high demand for hydrogen from across various end-use industries. The U.S. market is expected to expand at a higher CAGR than that of the Europe and Asia markets over the forecast period. A rising demand from the electronics industry is expected to drive growth of the U.S. industrial hydrogen market. In the Europe market, sales of industrial hydrogen in Germany are expected to increase at a higher CAGR than that of the U.K. due to a strong economic outlook of the country over the forecast period. In Asia, the industrial hydrogen markets in Japan and South Korea are expected to expand significantly over the forecast period, owing to a strong presence of electronics and glass industries in both countries.

Air Liquide, Air Products and Chemicals Inc., The Linde Group, Praxair Inc., and Messer Group GmbH are some of the primary producers of industrial hydrogen across the world.

Producer Analysis

  • Air Liquide
  • Air Products & Chemicals Inc.
  • Praxair inc.
  • The Linde group
  • Messer Group GmbH
  • Others.
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