February 25, 2024
Hydrogen Market

The Global Hydrogen Market Is Estimated To Fuel By Growing Demand For Sustainable Future

The global hydrogen market is experiencing trends driven by climate action. Hydrogen is emerging as a clean energy alternative fostered by increasing investments in green hydrogen production technologies.

Hydrogen has a diverse range of industrial applications and can be used as fuel in various sectors. It is used as feedstock in the production of ammonia for fertilizers and methanol for plastics. As a fuel, it can replace fossil fuels and power fuel cells for transportation, grid storage and buildings. The pure form is considered the cleanest burning fuel and only produces water vapor as byproduct.

The global hydrogen market is estimated to be valued at US$ 174.53 billion in 2024 and is expected to exhibit a CAGR of 23% over the forecast period 2024 to 2030.

Key Takeaways

operating in the hydrogen market include IBM Corporation, Informatica LLC, Riversand Technologies, Inc., SAP SE, and Salsify Inc. Key players are investing in electrolyzer technologies to produce green hydrogen using renewable energy sources like solar and wind power.

There is growing demand for hydrogen as countries push decarbonization goals and transition to a low carbon future. Policies supporting green hydrogen production and use across industries are boosting the adoption of hydrogen technologies. Transport sector is increasingly exploring hydrogen fuel cell vehicles and buses to reduce emissions.

Countries and major companies are also announcing partnerships and investments to establish inter-regional hydrogen trade and transport infrastructure. This will facilitate global supply and demand of clean hydrogen. Japan, Australia and European nations have committed over $15 billion towards developing hydrogen economies and export corridors.

Market key trends

Electrolyzers are scaling up dramatically driven by declining renewable energy costs and hydrogen production targets. Large electrolyzer plants of 100s of megawatts capacity are being planned and built globally to harness intermittent renewable power for hydrogen generation. Majority of upcoming projects feature alkaline and PEM technologies suited for large-scale production. This is likely to drive down the production costs of green hydrogen in the coming years.

Porter’s Analysis

Threat of new entrants: The Hydrogen Market Demand requires high initial investments in production plants, distribution infrastructure and research which poses significant barriers for new companies.

Bargaining power of buyers: There are a few large buyers in industries such as chemicals, oil refining and metals which gives them some negotiating power against producers.

Bargaining power of suppliers: Suppliers of key raw materials such as natural gas and electrolyzers have some control over pricing and supply which influence hydrogen production costs.

Threat of new substitutes: Technological innovations in electricity storage and renewable energy pose a potential long term threat to replace hydrogen in some applications.

Competitive rivalry: Competition in the hydrogen production industry is intense with the involvement of major energy companies.

Geographical regions for hydrogen market value:

North America accounts for the largest share of the global hydrogen market presently owing to significant production capacities and demand from oil refineries and chemical plants in US and Canada.

Fastest growing region for hydrogen market:

The Asia Pacific region excluding China is expected to be the fastest growing regional market for hydrogen during the forecast period due to increasing electrolyzer installations and fuel cell deployment enabled by supportive government policies and investments in countries like Japan, South Korea and India.

Porter’s Analysis

Threat of new entrants: The hydrogen market requires high initial investments in production plants, distribution infrastructure and research which poses significant barriers for new companies.

Bargaining power of buyers: There are a few large buyers in industries such as chemicals, oil refining and metals which gives them some negotiating power against producers.

Bargaining power of suppliers: Suppliers of key raw materials such as natural gas and electrolyzers have some control over pricing and supply which influence hydrogen production costs.

Threat of new substitutes: Technological innovations in electricity storage and renewable energy pose a potential long term threat to replace hydrogen in some applications.

Competitive rivalry: Competition in the hydrogen production industry is intense with the involvement of major energy companies.

Geographical regions for hydrogen market value:

North America accounts for the largest share of the global hydrogen market presently owing to significant production capacities and demand from oil refineries and chemical plants in US and Canada.

The Asia Pacific region excluding China is expected to be the fastest growing regional market for hydrogen during the forecast period due to increasing electrolyzer installations and fuel cell deployment enabled by supportive government policies and investments in countries like Japan, South Korea and India.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it