June 16, 2024

U.S., Europe And Asia Industrial Hydrogen Market Estimated To Witness Significant Growth Due To Rising Demand For Clean Energy And Wide Applications In Refineries

The U.S., Europe And Asia Industrial Hydrogen Market is estimated to be valued at Us$ 15.5 Billion in 2022 and is expected to exhibit a CAGR Of 5.0% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Industrial hydrogen is widely used as a chemical feedstock and fuel in various industries such as refineries, chemical processing and fertilizers production. It is considered an important building block for clean fuel and is used in hydrogenation, cracking and other petrochemical processes. Key end use industries for industrial hydrogen include refineries, methanol production, ammonia production and edible fats and oils production. With growing energy and environmental concerns, industrial hydrogen is gaining traction as a clean source of energy.

Market Dynamics:

 

Rising demand for clean energy: Hydrogen has enormous potential as an alternative clean fuel for the future. It can be produced from renewable resources such as solar and wind power, thus reducing dependence on fossil fuels. Many countries are investing heavily in developing hydrogen infrastructure to switch to hydrogen as motor fuel for automobiles and ships. This is expected to drive the demand for industrial hydrogen over the coming years.

Wide applications in refineries: Refineries constitute a major end use industry for industrial hydrogen, where it is used for various processes such as hydrocracking, hydrotreating and hydrodesulfurization. With growing transportation fuel demand worldwide, refinery capacity expansion is underway. This is anticipated to boost the consumption of industrial hydrogen in refineries during the forecast period. Furthermore, low carbon fuel standards in various regions are prompting refiners to increase cleaner fuel output, thus favoring the market.

Segment Analysis

The U.S., Europe and Asia industrial hydrogen market is dominated by the refining sub-segment. Hydrogen is used as a feedstock for various refinery processes such as hydrotreating, hydrocracking and catalytic reforming. It improves product quality by removing impurities such as sulfur, nitrogen and olefins. As refining capacities continue to expand in developing nations to cater to growing fuel demand, consumption of hydrogen in this sub-segment is also projected to rise significantly over the forecast period.

PEST Analysis

Political: Supportive government policies encouraging industrial gas usage and investments in hydrogen infrastructure are boosting the market. For instance, emission regulations are promoting clean hydrogen in transport.

Economic: Growth in end-use industries such as chemical, electronics and automotive is driving hydrogen demand. The market is expected to benefit from cost reduction due to technology innovations.

Social: Increasing awareness about greenhouse gas emissions is fueling demand for green hydrogen produced via renewable energy.

Technological: Advancements in carbon capture utilization and storage (CCUS) and water electrolysis technologies are making hydrogen production processes more economical and environment-friendly.

Key Takeaways

The global Industrial Hydrogen Market size was valued at US$ 14.7 billion in 2018. The market is expected to witness high growth, exhibiting a CAGR of 5.0% over the forecast period due to increasing demand from chemicals and refining sectors.

The Asia Pacific region is projected to grow the fastest during the analysis period owing to brisk industrial expansion, especially in China and India. countries in the region are ramping up investments in hydrogen infrastructure to meet rising energy needs.

Key players operating in the industrial hydrogen market are Air Liquide, Air Products & Chemicals Inc., Praxair Inc., Linde Plc., and Messer Group GmbH. These leading companies account for over 50% of the global market share and are focusing on capacity expansions and cost optimization initiatives to strengthen their positions.

*Note:

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