The global hydrogen market is estimated to witness a rise in revenue from US$ 206.6 billion in 2022 to US$ 761.3 billion by 2040 at a CAGR of 7.5% during the forecast period 2023–2040. Moreover, in terms of volume, the market is projected to grow at a CAGR of 7.1% over the forecast period.
The global hydrogen market is rapidly growing, driven by the increasing demand for clean and sustainable energy sources. Hydrogen is considered as a promising alternative to traditional fossil fuels, as it does not produce harmful emissions and has the potential to reduce greenhouse gas emissions.
According to recent research, the global hydrogen market is projected to grow at a significant rate, with an estimated CAGR of over 7.1% from 2023 to 2040. The growth of the hydrogen market is primarily driven by increasing demand from the transportation and power generation sectors. The transportation sector is expected to be the largest end-user of hydrogen, driven by the increasing demand for hydrogen fuel cell vehicles. On the other hand, the power generation sector is expected to witness significant growth, as hydrogen can be used as a clean energy source for electricity production.
In terms of production, the Asia-Pacific region is the largest producer of hydrogen, accounting for over 50% of the global production. The growth of the hydrogen market in the Asia-Pacific region is driven by the increasing demand from the transportation and power generation sectors, as well as the presence of major hydrogen production facilities in the region. Europe and North America are also significant producers of hydrogen, with a growing number of hydrogen production facilities being established in these regions.
To Get more Insights, Request A Free Sample
China
China, the world's largest hydrogen supplier with an annual production of 25 million tons, is taking steps to establish itself as a leader in the hydrogen industry by creating the "Hydrogen Valley". The China Hydrogen Alliance, a government-supported industry group established in 2018, predicts that China's hydrogen demand will increase significantly in the coming years, reaching 35 million tons by 2030 and 60 million tons by 2050. This growth is expected to be driven by various hydrogen-related applications and initiatives, making China a major player in the global hydrogen market.
U.S.
California in the United States has also announced significant investment in the industry. The state plans to invest US$ 230 Million on hydrogen projects by 2023, signaling a commitment to the growth and development of the hydrogen sector. Furthermore, the world's largest green hydrogen plant is being built, which will produce green hydrogen by using 42,000 tons of recycled paper waste annually. This highlights the increasing focus on sustainable hydrogen production methods and the growing demand for green hydrogen in the market.
Australia
The Desert Bloom hydrogen project aims to construct 2 MW hydrogen production units (HPUs) that will generate multiple resources including water, heat, electricity, and hydrogen. If everything goes as planned, the large-scale hydrogen plant could consist of as many as 4,000 HPUs. This project represents a significant step forward in the production and utilization of hydrogen as a clean and sustainable energy source.
In the global hydrogen market, there are physical-based hydrogen storage and material-based hydrogen storage. The physical-based hydrogen storage consists of compressed gas, cold/cryo compressed and liquid hydrogen. Whereas, the material-based hydrogen storage, consists of absorbent, liquid organic hydrogen carrier (LOHC), metal hydrides and ammonia.
The growth of the hydrogen market is driven by several factors, including the decreasing cost of solar PV and wind energy electricity, and the global shift towards reducing carbon emissions. Solar energy is especially promising due to its high availability and its potential to save energy and reduce carbon emissions. Furthermore, increased investment in research and development to increase hydrogen production is fueling growth in the hydrogen market. However, one of the main barriers to greater demand for hydrogen globally is the high cost of producing green hydrogen through electrolysis.
According to the International Energy Agency, the total global production capacity of hydrogen stands at 75 million tons per year of pure hydrogen, with an additional 200 million tons per year of hydrogen-containing molecules. However, this capacity is expected to rapidly increase in the coming years due to significant investments by governments and businesses worldwide in hydrogen infrastructure and production technologies.
Renewable and non-renewable sources both contribute to the global hydrogen supply. Primary sources of renewable hydrogen include electrolysis of water, steam reforming of biomass, and thermochemical processes. Meanwhile, non-renewable sources include steam reforming of natural gas and coal gasification, biomass gasification, solar thermal processes, and nuclear energy. Countries such as those utilizing wind and solar power are already producing hydrogen from renewable sources.
Governments worldwide are realizing the potential of hydrogen as a clean energy source and investing heavily in research and development efforts to improve efficiency and cost-effectiveness of hydrogen production. This includes the development of fuel cells and other technologies to enable hydrogen to be used as an energy source in various applications. Many countries are also implementing policies such as tax incentives, subsidies, and support measures to encourage hydrogen production and use
The global market can be divided into two segments based on technology: the thermal process and the electrolytic process. The thermal process segment, which involves the production of hydrogen through steam reforming, a high-temperature process that combines steam with hydrocarbon fuel, is expected to have the largest share in the hydrogen market over the forecast period.
On the other hand, the electrolytic process segment is anticipated to grow at the highest CAGR during the same period. This is because hydrogen produced through electrolysis results in zero greenhouse gas emissions, making it a more environmentally friendly option.
To Understand More About this Research: Request A Free Sample
Based on application, the global hydrogen market is segmented into methanol production, ammonia production, petroleum refinery, heat treatment, transportation, power generation, renewable energy, hydrogen fuel cell and others. The ammonia production segment holds the largest market share in 2022 as most current nitrogen-based fertilizers start with ammonia. Ammonia production is applied at a larger scale due to its potential as a carbon-free fuel, hydrogen carrier, and energy store, renewable hydrogen technologies. Moreover, hydrogen fuel cell segment is anticipated to grow at the highest CAGR over the forecast period as hydrogen used in fuel cells has the energy to weight ratio ten times greater than lithium-ion batteries.
The market is segmented into two main delivery modes: captive and merchant. The merchant segment dominated the market in 2022, with more than 80% of its hydrogen being sold to refineries for a variety of processes, including hydrocracking, ultra-low-sulfur diesel hydrotreating, fluid catalytic cracking (FCC), feed (gas oil) hydrotreating, and naphtha hydrotreating.
Despite its dominance in the hydrogen market, the merchant segment is facing challenges from the captive segment, which is expected to exhibit the highest compound annual growth rate (CAGR) over the forecast period. The captive segment refers to hydrogen production for in-house use by large industrial companies and utilities. This mode of delivery is becoming increasingly popular as companies look for ways to reduce their carbon footprint and achieve energy independence.
Captive hydrogen production is also being driven by the growth of renewable energy sources, such as wind and solar, which produce electricity that can be used to generate hydrogen through electrolysis. This trend is expected to continue in the coming years as countries around the world set ambitious targets for reducing their carbon emissions and transition to a low-carbon economy.
The Asia Pacific region dominates the global hydrogen market in 2022 due to the strong presence of refineries in major countries such as China and India. However, North America is expected to experience the highest growth rate, with a CAGR of 7.7% during the forecast period. The rapid growth of the hydrogen sector can be attributed to advancements in various applications and technologies. In particular, the United States has seen significant growth in the use of hydrogen for the production of methanol and ammonia. The increasing demand for these applications has led to a surge in the demand for hydrogen in the region.
Investment in the hydrogen market is also increasing, with a growing number of companies and governments investing in the development of hydrogen production and distribution infrastructure. Governments in several countries, including the United States, Europe, and Asia-Pacific, have implemented supportive policies and initiatives aimed at promoting the adoption of hydrogen as a clean energy source. This has resulted in increased investment in the hydrogen market, with a growing number of companies entering the market and investing in the development of new technologies and production processes.
Global hydrogen market is very competitive, with several key players and many regional and global manufacturers vying for market share. Major market participants include Air Products and Chemicals Inc., Air Liquide, Linde AG, INOX India Ltd., and Praxair Inc. These five companies are estimated to account for nearly half of the total market value in 2022.
For instance, Air Liquide, Praxair and INOX India have established large-scale hydrogen production facilities in the refining and petrochemical industries. Similarly, Linde AG and Air Products and Chemicals have established state-of-the-art hydrogen plants in the metal processing sector.
Apart from these, the other green hydrogen market players include Siemens AG, ITM Power, Plug Power Inc., Hydrogenics Corporation, and Nel ASA. These companies are actively developing solutions related to electrolysis, fuel cells, and green hydrogen production technologies.
Global hydrogen market is highly competitive in order to increase their presence in the marketplace. Some of the key players operating in the market includes Air Liquide International S.A., Air Products and Chemicals, Inc., Hydrogenics, Linde plc, NEL Hydrogen, Showa Denko, Iwatani CO, Messer Group GmbH, Teledyne Technologies Inc., Claind, Cummins, HyTech Power, Inox, ITM Power, PowerTap and Weldstar, Inc. among others.
Global hydrogen market is segmented based on technology, application, delivery mode and region. The industry trends in the global hydrogen market are sub-divided into different categories in order to get a holistic view of the global marketplace.
Following are the different segments of the Global Hydrogen Market:
By Technology segment of the Global Hydrogen Market is sub-segmented into:
By Application segment of the Global Hydrogen Market is sub-segmented into:
By Delivery Mode segment of the Global Hydrogen Market is sub-segmented into:
By Region segment of the Global Hydrogen Market is sub-segmented into:
| Report Attribute | Details |
|---|---|
| Market Size Value in 2022 | US$ 206.6 Bn |
| Expected Revenue in 2040 | US$ 761.3 Bn |
| Historic Data | 2018-2022 |
| Base Year | 2022 |
| Forecast Period | 2023-2040 |
| Unit | Value (USD Bn) |
| CAGR | 7.5% |
| Segments covered | By Technology, By Application, By Delivery Mode, By Region |
| Key Companies | Air Liquide International S.A., Air Products and Chemicals, Inc., Aquahydrex, Atawey, Claind, Cummins, Ergousp, Enapter AG, EvolOH, Inc., Fuel Cell Energy , Green Hydrogen Systems, Heliogen, Hydrogenics, HyTech Power, Inox, ITM Power, Linde plc, McPhy Energy, Messer Group GmbH, NEL Hydrogen, Plug Power, PowerTap, Siemens AG, Showa Denko , Starfire Energy , Taiyo Nippon , Uniper , Verdagy , Weldstar, Inc., Xebec Adsorption Inc. , Other Prominent Players |
| Customization Scope | Get your customized report as per your preference. Ask for customization |
Global Hydrogen market generated a revenue of US$ 206.6 billion in the year 2022.
In 2022, the hydrogen industry recorded a volume of 73,844.6 Tons.
Hydrogen has importance in lower emission and cleaner environmental practices. It is also a leading transportation fuel.
Air Liquide International S.A., Air Products and Chemicals, Inc, Hydrogenics, Linde plc, NEL Hydrogen, Showa Denko, Iwatani CO, Messer Group GmbH, Teledyne Technologies Inc, Claind, Cummins, HyTech Power, Inox, ITM Power, PowerTap are some of the companies that manufactures various types of Hydrogen.
The pandemic resulted in curbs on Investment and slowdown of expansion of clean energy. However, global commitment towards mitigating climate change will lead to greater adoption of hydrogen and will boost the market growth further in the coming years.
The market witnessed a presence of nine major companies with 68.50% of shareholding. Some of these are Air Liquide International S.A., Air Products and Chemicals, Inc, Hydrogenics, Linde plc, NEL Hydrogen, Showa Denko, Iwatani CO.
Hydrogen is used as a reagent in many industrial sectors, including chemicals, textile fibre, manufacturing, glass, electronics, and metallurgy. Hydrogen-powered fuel cells are being used in the automotive industry for their lower emission producing properties.
The Global Hydrogen Market is estimated to grow at a CAGR of 7.5% during the forecast period of 2023-2040.
In terms of revenue, the market is estimated to generate a total of US$ 761.3 Bn by the year 2040.
Asia Pacific dominates the global hydrogen market with a total share of 71% in the year 2022.
The hydrogen market has huge future potential with estimated demand of 183.2 Mn tons by the year 2050.
Currently, Grey Hydrogen is the cheapest among all of these with cost of less than US $1 to US $2/kg. Although Blue and Green Hydrogen are more efficient, their cost, technology, and infrastructure constraints their market share and demand.
LOOKING FOR COMPREHENSIVE MARKET KNOWLEDGE? ENGAGE OUR EXPERT SPECIALISTS.
SPEAK TO AN ANALYST
.png)
Features | Type of License | |||
 Single User |   Multi User |  Corporate | ||
| e-Access | ✓ | ✓ | ✓ | |
User Sharing | 1 User Only | 2-6 Users | Unlimited within Company/Enterprise | |
⨉ | ⨉ | ✓ | ||
Free Customization | Up To 30 hrs work | Up To 60 hrs work | Up To 80 hrs work | |
Deliverable |
| ✓ | ✓ | ✓ |
| ⨉ | ✓ | ✓ | |
| ⨉ | ⨉ | ✓ | |
Analyst Support | 4 Month Post purchase | 7 Month Post purchase | One Year Post purchase | |
Free Report update in next update cycle | ⨉ | ⨉ | ✓ | |
Free Industry Update (Within 180 days) | ⨉ | ⨉ | ✓ | |
Benefit | Up to 20% off on next purchase | Up to 30% off on next purchase | Up to 40% off on next purchase | |
| Report ID: AA1221107 
.svg)
