Hydrogen Market Analysis, Trends and Forecasts to 2029: Surging Interest in "Green Hydrogen" Harnessed from Renewable Energy - ResearchAndMarkets.com

DUBLIN--()--The "Hydrogen Market: Analysis By Demand, By Production, By Sector, By Source, By Technology, By Region Size and Trends - Forecast up to 2029" report has been added to ResearchAndMarkets.com's offering.

Although hydrogen is currently a relatively small market, pollutive, and dedicated to specific industries (refineries, chemical production), it has become the source of a lot of hope for the energy transition, as it represents a key solution for the storage of energy and does not emit CO2 when it is "green". The global hydrogen market demonstrated a consistent growth, primarily driven by increasing demand for hydrogen-based fuels, growing focus on industrial decarbonization and desulfurization to meet sustainability goals, and ongoing developments in steel and power generation industries to meet with the growing global electricity demand.

The global hydrogen market value stood at US$216.19 billion in 2023, and is expected to grow at a CAGR of 7.63% over the projected period of 2024-2029. The global hydrogen market production is anticipated to be 685.18 million metric tons in 2050.

The global hydrogen market demand has been rapidly growing in recent years due to hydrogen's potential to act as a sustainable alternative to fossil fuels, particularly in the power generation and transportation sectors. The increasing proliferation of applications is a major driver behind the growing demand, although industrial demand itself (virtually the only major consumer today) will also rise.

Commitments by major economies to achieve net-zero emissions by 2050, declining costs of renewable energy sources, like solar and wind, and emerging applications of hydrogen in sectors like steel manufacturing, which traditionally relied heavily on coal, present new avenues for hydrogen consumption. The global hydrogen market demand is projected to increase to 138.81 million metric tons by 2030.

Global commitment to reduce carbon footprints leading to investments in cleaner production methods like electrolysis, a surging interest in "green hydrogen" harnessed from renewable energy, and the unmatched flexibility of hydrogen in energy storage and release, vital for grid stabilization amid the influx of variable renewable energy, have been some of the pivotal reasons associated with increased hydrogen production in the market.

Key Market Dynamics:

Growth Drivers: The global hydrogen market has been rapidly growing over the past few years, due to factors such as increasing usage of ammonia-based fertilizers, rising demand of hydrogen by various end user industries, favorable government policies and initiatives, rising demand to decarbonize energy end-use, increasing use of hydrogen as rocket propellants, etc. Mushrooming demand for hydrogen in refining industry for cracking long-chain hydrocarbons into shorter chains, and removing sulfur compounds from crude oil during the production of gasoline have been positively contributing to the increased demand for hydrogen.

Also, increased emphasis on fuel gas desulphurization, significant interest in achieving carbon neutrality by government of major economies, and various government authorities and agencies introducing favorable initiatives, investments, funds, and incentives to spur hydrogen production and meet ambitious climate-neutral targets, will continue to boost the growth of global hydrogen market in the forecasted period of 2024-2029.

Challenges: However, the market growth would be negatively impacted by various challenges such as high energy conversion losses, increased competition from alternative technologies, etc. Hydrogen must be stored in gaseous form to be used as a fuel cell, and this method of hydrogen storage leads to inherent loss of energy as compressing hydrogen utilizes 13% of total energy content by itself and if it is liquified, then it loses about 40% of energy.

Trends: The market is projected to grow at a fast pace during the forecasted period, due to rising adoption of hydrogen fuel cells, increasing number of hydrogen projects, falling distribution cost of hydrogen, growing use of green hydrogen, rising focus on achieving net zero emissions target, ongoing technological advancements in hydrogen generation, etc.

Major corporations and organizations are undertaking an increasing number of hydrogen projects to boost the overall production and consumption of hydrogen, while creating new business opportunities and investment prospects in the hydrogen market in the forecasted period. In addition, there has been an increase in the number of initiatives by both developed and developing countries to generate green hydrogen in order to meet the rising global demand for green hydrogen, thus augmenting the growth of the global hydrogen market in the years to come.

Competitive Landscape:

The global hydrogen market is mildly consolidated with the top players of the market acquiring majority of the market share, and increasing number of regional and local players worldwide catering to the local demand and engaging in various research & development activities and initiatives, collaborations and products launches to develop and deploy new and more efficient products in the market.

For instance, On April 20, 2023, Linde announced that the company has signed a long-term agreement to supply green hydrogen to Evonik, a specialty chemicals company, where Linde will build, own and operate a nine-megawatt alkaline electrolyzer plant on Jurong Island, Singapore, to produce green hydrogen. Similarly, on May 26, 2022, ACWA power, OQ and Air Products signed joint development agreement toward world-scale green hydrogen-based ammonia production facility in Oman.

The key players of the hydrogen market are:

  • BP
  • Air Products and Chemicals, Inc.
  • Nel ASA
  • Linde plc
  • FuelCell Energy, Inc.
  • Iwatani Corporation
  • Messer SE
  • Air Liquide S.A.
  • SOL Group
  • First Hydrogen Corp.
  • Lhyfe SAS

Key Topics Covered:

1. Executive Summary

2. Introduction

2.1 Hydrogen Overview

2.2 Hydrogen Market Segmentation Overview

3. Global Market Analysis

3.1 Global Hydrogen Market Analysis

3.2 Global Hydrogen Market Demand Analysis

3.3 Global Hydrogen Market Production Analysis

3.4 Global Hydrogen Market Technology Analysis

3.5 Global Hydrogen Market Demand Sector Analysis

3.6 Global Hydrogen Market Production Source Analysis

4. Regional Market Analysis

4.1 Asia Pacific Hydrogen Market

4.2 North America Hydrogen Market

4.3 Europe Hydrogen Market

4.4 Rest of the World Hydrogen Market

5. Impact of COVID-19

5.1 Impact of COVID-19 on Hydrogen Market

5.2 Post-COVID-19 Impact on Hydrogen Market

6. Market Dynamics

6.1 Growth Drivers

6.1.1 Increasing Usage of Ammonia Based Fertilizers

6.1.2 Favorable Government Policies and Initiatives

6.1.3 Rising Demand to Decarbonize Energy End-Use

6.1.4 Increasing Use Of Hydrogen As Rocket Propellants

6.1.5 Rising Demand Of Hydrogen By Various End User Industries

6.2 Challenges

6.2.1 High Energy Conversion losses

6.2.2 Increased Competition From Alternative Technologies

6.3 Market Trends

6.3.1 Rising Adoption Of Hydrogen Fuel Cells

6.3.2 Increasing Number Of Hydrogen Projects

6.3.3 Falling Distribution Cost Of Hydrogen

6.3.4 Growing Use Of Green Hydrogen

6.3.5 Rising Focus On Achieving Net Zero Emissions Target

6.3.6 Ongoing Technological Advancements In Hydrogen Generation

7. Competitive Landscape

7.1 Global Hydrogen Market: Competitive Landscape

8. Company Profiles

  • BP
  • Air Products and Chemicals, Inc
  • Nel ASA
  • Linde
  • FuelCell Energy, Inc.
  • Iwatani Corporation
  • Messer SE
  • Air Liquide S.A.
  • SOL Group
  • First Hydrogen Corp.
  • Lhyfe SAS

For more information about this report visit https://www.researchandmarkets.com/r/r37y8y

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Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com

For E.S.T Office Hours Call 1-917-300-0470
For U.S./ CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900