Hydrogen Market Size to Hit USD 556.56 Bn by 2034
Hydrogen Market Key Takeaways
- Asia Pacific dominated the hydrogen market and recorded the highest market share of 36% in 2023.
- North America is observed to be the fastest growing in the market during the forecast period.
- By sector, the gray hydrogen sub-segment dominated the hydrogen market in 2023.
- By application, the chemical & refinery segment dominated the hydrogen market in 2023.
Market Overview
Green hydrogen, or hydrogen derived from renewable resources, is a clean fuel that only releases water in fuel cells. It plays a crucial role in assisting nations and businesses in achieving their decarbonization goals and cutting greenhouse gas emissions, which is essential for addressing climate change. Numerous resources, including nuclear power, renewable energy sources, and natural gas, can be used to create it domestically. This variety of production techniques improves countries’ energy security, lessening reliance on imported fossil fuels.
Global investments in hydrogen projects are surging, with countries like Germany, Japan, and Australia committing billions to develop hydrogen infrastructure. For example, the European Union has announced plans to invest over €400 billion in hydrogen technologies by 2030.
Many governments are implementing hydrogen strategies. The U.S. Department of Energy launched the Hydrogen Shot initiative, targeting a significant reduction in the cost of clean hydrogen production. Countries like Japan are enhancing their hydrogen roadmaps, focusing on domestic production and international partnerships.
Drivers
Accelerated policy initiatives, declining costs of renewable energy, and growing collaboration among nations are driving the hydrogen market forward. Increasing pressure on industries to reduce carbon footprints and enhance energy efficiency has led to a surge in demand for hydrogen, especially in transportation and industrial applications.
Opportunities
Opportunities abound in retrofitting existing industrial plants with hydrogen-ready technologies and developing hydrogen export corridors to regions with less renewable capacity. There’s growing interest in hydrogen blending in natural gas pipelines and its potential in decentralized power generation systems, offering resilience and energy independence.
Challenges
A fragmented regulatory environment and uncertainty around long-term policy support present major obstacles. The hydrogen market also grapples with limited end-user adoption, technological gaps in hydrogen storage, and issues surrounding water usage for electrolysis in arid regions.
Regional Insights
The Middle East is emerging as a competitive player in hydrogen production due to its solar energy potential and strategic geographic location for exports. Europe continues to be a policy leader, while North America is catching up through targeted investments and innovation programs. Africa and Latin America are exploring hydrogen as part of their sustainable development agendas.
Recent Developments
- In September 2023, Honda unveiled its first V engine, the new Honda Marine BF350, at the Genoa Boat Show.
- In October 2023, Atlas Copco acquired William G Frank Medical Gas Testing and Consulting. The business contributes to New England customers’ medical and laboratory gas services, including inspections, consulting, equipment sales, parts supply, and training.
- The Bosch Group increased its sales and earnings in 2023 and is successfully implementing its growth strategy despite a challenging environment.
- In January 2023, ECL disclosed hydrogen-powered data center modules.
Hydrogen Market Companies
- Linde plc
- Chevron Corporation
- Saudi Arabian Oil Co.,
- Worthington Industries
- INOX India Limited
- Hexagon Purus
- NPROXX
- Cryolor
- Pragma Industries
- BayoTech
- Luxfer Gas Cylinders
- Chart Industries
- Weldship Corporation
Segments Covered in the Report
By Sector
- Generation Type
- Gray Hydrogen
- Blue Hydrogen
- Green Hydrogen
- Storage
- Physical
- Material-Based
- Transportation
- Long Distance
- Short Distance
By Application
- Energy
- Power Generation
- CHP
- Mobility
- Chemical & Refinery
- Petroleum Refinery
- Ammonia Production
- Methanol Production
By Geography
- North America
- Asia Pacific
- Europe
- Latin America
- Middle East and Africa
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