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Hydrogen Market

Global Market Study on Hydrogen: Emission Reduction Requirements to Create Increased Demand for Hydrogen

Hydrogen Market Segmentation By Production Method ( Methane Reforming, Oxidation of Oil, Coal Gasification, Electrolysis).

Global Hydrogen Market Snapshot

According to latest market study published by persistence market research, demand for hydrogen is estimated to grow with remarkable growth rate lying around 10.4% during 2023 to 2033 period.

Hydrogen sales (2022A)

US$ 16,224.1 Million

Hydrogen Demand (2023E)

US$ 17,911.2 Million

Hydrogen Market Projections (2033F)

US$ 43,634.2 Million

Value CAGR (2023-2033)

10.4%

Collective Value Share: Top 3 Countries (2023E)

48.6%

Hydrogen is the first element of the periodic table and possess wide spectrum of properties and finds application in numerous end-use industries. Among such wide range of applications, automotive industry is anticipated to provide lucrative growth to hydrogen consumption. Owing to growing trend of sustainability and carbon neutrality of hydrogen, it is used as a conventional fuel substitute and feedstock for fertilizer and the food processing industry. The increasing demand for cleaner fuel and the enforcement of government rules that require the desulfurization of petroleum products and is projected to be the drivers of the global market for Hydrogen evolution. In 2021, the Methane Reforming sector dominated the industry. This is the dominant segment in 2020 to 2021 and is expected to keep its position during the forecast period. Hydrogen can be created via the steam methane reforming process, along with additional gases including carbon dioxide and monoxide.

In order to produce Hydrogen, a cracking method is used called steam methane reforming, Since steam methane reforming is the most practical way to produce Hydrogen, the rising global demand for it is a major driver in the creation of steam methane reformers.

In 2021, The natural gas segment dominated the market in terms of source. When natural gas is reformed, Hydrogen, carbon monoxide, and carbon dioxide are produced. The best value way to produce Hydrogen is from natural gas. Throughout the projected period, natural gas is expected to keep in lead in the production of Hydrogen.

Data shows that in 2022, the retail production segment dominated the market. Hydrogen is generated commercially under a centralized production method. It is shipped in bulk tanks, along pipelines, or in cylinder trucks prior to getting sold to the public. There are substantial natural gas pipeline networks that might be utilised to transport and distribute Hydrogen in several nations, including the U.S., Canada, and Russia.

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Historical (2018 to 2022) v/s Forecast (2023 to 2033) Market Outlook for Hydrogen Market

According to the historical analysis, the market for Hydrogen expanded at a compound annual growth rate (CAGR) of 8.4% from 2018 to 2022. The COVID-19 pandemic caused a major drop and supply chain operations. The COVID-19 pandemic had a detrimental influence on the world economy on various levels, which has also affected fertilizer, and the Food processing industry. Which also had effects on the Hydrogen market.

Owing to various economic slowdowns caused by COVID-19 and the recession during the historical assessment period, the market is anticipated to grow at higher growth rates over the forecast period as compared to the historical growth rate. The market is estimated to expand at a CAGR of 10.4% over the forecast timeframe. The global Natural Gas price is expected to have a high impact on the Hydrogen market due to its use as a substitute fuel. The Fertilizer industry is expected to witness high growth which is driven by the human increasing population and food security, to fulfil the food storage basket there is always a growing demand for fertilizer and that will lead to the use of Hydrogen.

Growing food processing industry expecially in regions such as East Asia, South Asia, Europe, and North America is leading to increasing demand for fertilizers. Owing to these factors the demand for hydrogen is increasing rapidly from fertilizer sector.

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Market Dynamics

Thriving demand for the Ammonia and glass industries creates ample space for the Hydrogen market.

Ammonia (NH3), often referred to as azane, is an integral ingredient of fertilisers used in agricultural businesses, with more than 21.23% of revenue share all over the world. Natural gas is a vital raw ingredient required for ammonia production and Hydrogen is used to manufacture ammonia as a substitute fuel. Ammonia is widely available and used as an eco-friendly refrigerant (R-717) in industrial cold storage segments.

In a steam methane reformer, natural gas, which is mostly composed of methane (CH4), is converted into carbon and hydrogen. The structure of all nitrogen-based fertilisers, ammonia (NH3), is created by combining purified hydrogen and nitrogen. During the projected timespan the renewable hydrogen production methods will initiate the change in the energy mix Hydrogen is one of the high calorific value fuels with no carbon footprints and the new era will dynamically move toward the ESG norms.

Significant Market Traction from global logistics, aviation, power generation fuel usage in the U.S. to World Market Growth for Hydrogen

Since its early usage in the Saturn rocket's secondary stage during NASA's Apollo programme, liquefied Hydrogen (LH2) energy has been essential to space exploration. Government and private institutions including U.S. aviation are now using it as well. Several research projects, including the Finder unmanned long-range aircraft, have used Hydrogen fuel cells. The "ZEROe" aircraft, which runs on liquefied Hydrogen to drive a modified gas turbine engine, is a Hydrogen recently announced by Airbus. Numerous businesses with substantial storage and delivery demands are using Hydrogen fuel cells to power lorries, lifts, and other equipment.

If Hydrogen Compared to diesel, which only retains roughly 12–14 kWh per kilogramme, Hydrogen has an energy density of 33.6 kWh of useful energy per kg. This actually means that a gallon of diesel and one kilogramme of Hydrogen, when utilised in a fuel cell to power an electric motor, have roughly equal amounts of energy.

Manufacturers of trucks and vans driven by Hydrogens, like Nikola Motors, Hyundai, Toyota, Kenworth Truck Co., and UPS, have expectations in this area. Which are projected to generate profitable expansion opportunities for the Hydrogen market.

Substitute fuels and production inefficiency restrain the growth of the market

The substitute fuels like Natural Gas (CH4), and LPG (propane+Butane) are throwing direct competition in the end-use consumption of Hydrogen, the fuel cells (used to create chemical to electrical energy) lack efficiency and their accessibility cost is too high to use in power generation or logistics daily use.

Large amounts of Hydrogen storage in any factory will lead to dangerous conditions for cooling storage tanks, it is used to store at high pressure and negligence in operation may lead to severe hazards to humans and infrastructure, these are the operating and economical restraints of the Hydrogen market.

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Country-wise Insights

What is the market scenario of Hydrogen in the U.S. and China market?

U.S. and China are expected to be major stakeholder countries in the global Hydrogen market in terms of value and volume due to the increased demand from application sectors such as food, fertilizer, glass, logistics, metalwork, agrochemicals, and fuel cell industries. Nearly 90% of the ammonia used in the United States in 2021 went towards the production of fertilizer. As per the recent price of natural gas in Henry Hub rises to 3.65 $/MMBtu, due to the rise in natural gas price ammonia plants were shut down after 2005 and 37% of U.S. ammonia demands were fulfilled by import, currently, ammonia import rate is turned down at 14% that can initiate the pure hydrogen demand in the U.S. as a secondary feedstock for the future.

Hydrogen sales are projected to increase in China at a constant 10.3% annual growth rate, Due to key players' increasing investment activity across a variety of application sectors, particularly in the food, fertilizer, glass, logistics, and metalwork industries. China's large manufacturing bases are the reason for the market's large share and rapid expansion. Fuel Cell methods are driven by Toyota and Hyundai in China and they are willing to provide a new renewable unmanned vehicle transport system in China which will be completely based on Hydrogen Fuel.

What will be the future of the Hydrogen market in India as the world’s second population?

India has announced the creation of a green hydrogen hub up to 2030, and hydrogen production costs will be minimized to steam methane reforming hydrogen production cost between 1.90$ to 2.45$ with help of renewable energy hydrogen production methods and in the current situation India has approximately 6 MMTPA hydrogen demand which will turn in to 13+ MMTPA under projected timeline. The Indian fertilizer industry is dependent upon the grey Hydrogen method (Methane reforming), Green Hydrogen will be achieved by the National Hydrogen Mission technological redemption.

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Category-wise Insights

What is the demand outlook for Hydrogen in the fertilizer industry?

Hydrogen is available as a feedstock for the fertilizer industry which is growing at a CAGR of 5.3%, The fertilizer business is by far the biggest consumer of Hydrogen, using more than 30 million metric tonnes per year. All of the Hydrogen needed to make ammonia is created from conventional fuels like coal and natural gas. A large-scale electrolysis, hydrogen generation plant, that can reduce the total cost of ownership and is cost-competitive with reformers like a renewable energy-based hydrogen generation method to create hydrogen for the fertilizer industry will add to the growth of the hydrogen outlook. With the low prices of solar and wind energy, Hydrogen generation turns into an efficient move.

Competitive Landscape

Hydrogen Market has evolved into one of the most critical aspects influencing how well organisations operate in this area. The company that makes Hydrogen, Carbon Monoxide, or Syngas, Linde HyCO, was acquired by Matheson Tri-Gas, Inc. Hydrogen producer companies are working incredibly hard to create technological advancement for an economic way of production and enhance fuel cell technology to get the overall efficiency of hydrogen in energy and automotive sector. All of these trends related to renewable energy-based green hydrogen production will imply that the market has enormous potential for global hydrogen market expansion in the future years.

Scope of Report

Attribute

Details

Forecast Period

2023–2033

Historical Data Available for

2018–2022

Market Analysis

  • USD Million for Value
  • Tons for Volume

Key Countries Covered

  • U.S.
  • Canada
  • Brazil
  • Mexico
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Australia and New Zealand
  • Gulf co-operation council countries
  • Türkiye
  • Northern Africa
  • South Africa

Key Segments Covered

  • Production Method
  • End Use
  • Delivery Mode
  • Region

Key Companies Profiled

  • The Linde Group
  • Air Liquide S.A.
  • Air Products and Chemicals, Inc.
  • Iwatani Corporation
  • Showa Denko K.K.
  • Teledyne Technologies Inc.
  • Messer Group GmbH
  • Hydrogenics Corp.
  • Nel ASA
  • Southern Industrial Gas Sdn Bhd
  • Hy.Gear B.V.
  • Xebec Adsorption Inc.
  • ALLY HI-TECH CO., LTD
  • Ellenbarrie Industrial Gases Ltd
  • CLAIND Srl
  • Bristol Gases – Concorde Corodex Group
  • Taiyo Nippon Sanso Corporation
  • Yateem Oxygen
  • Nuvera Fuel Cells, LLC
  • Gulf Cryo Holding C.S.C

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & Pricing

Available Upon Request

Hydrogen Market Segmentation

By Production Method:

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

By End Use:

  • Power Generation
  • Petroleum Refinery
  • Metal Processing
  • Automotive Fuel
  • Chemical
    • Ammonia
    • Methanol
    • Resin
    • Polymer
  • Glass Industry
  • Edible Fats & Oils
  • Others

By Delivery mode:

  • Centralized Production
    • Pipelines
    • Trucks
    • Cylinders
  • Distributed Production
    • Captive Storage

By Region:

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

- Companies Covered in This Report -

  • The Linde Group
  • Air Liquide S.A.
  • Air Products and Chemicals, Inc.
  • Iwatani Corporation
  • Showa Denko K.K.
  • Teledyne Technologies Inc.
  • Messer Group GmbH
  • Hydrogenics Corp.
  • Nel ASA
  • Southern Industrial Gas Sdn Bhd
  • Hy.Gear B.V.
  • Xebec Adsorption Inc.
  • ALLY HI-TECH CO., LTD
  • Ellenbarrie Industrial Gases Ltd
  • CLAIND Srl
  • Bristol Gases – Concorde Corodex Group
  • Taiyo Nippon Sanso Corporation
  • Yateem Oxygen
  • Nuvera Fuel Cells, LLC
  • Gulf Cryo Holding C.S.C

- Frequently Asked Questions -

The global market of Hydrogen is reported to reach a valuation of US$ 16,224.1 Million in 2022.

The global market of Hydrogen is estimated to reach a valuation of US$ 17,911.2 Million in 2023.

The global market of Hydrogen is expected to reach a valuation of US$ 43,634.2 Million in 2023.

The Hydrogen demand is anticipated to witness a growth rate of 10.4% over the forecast period of 2023 and 2033 in terms of value.

According to PMR analysis, The Linde Group, Air Liquide S.A., Air Products and Chemicals, Inc., Iwatani Corporation, Showa Denko K.K. Teledyne Technologies Inc., Messer Group GmbH, Hydrogenics Corp., Nel ASA, Southern Industrial Gas Sdn Bhd, Hy. Gear B.V., Xebec Adsorption Inc., ALLY HI-TECH CO., LTD, Ellenbarrie Industrial Gases Ltd, CLAIND Srl, Bristol Gases – Concorde Corodex Group, Taiyo Nippon Sanso Corporation, Yateem Oxygen, Nuvera Fuel Cells, LLC, Gulf Cryo Holding C.S.C and others are identified as the key manufacturers in the Hydrogen Market.

Key players in the global Hydrogen Market are expected to account for about 60-65% of the overall market share.

 

The top countries driving the global Hydrogen demand are China, the U.S., India, and Russia.

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