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Hydrogen Market Size Worth USD 286,789.2 Million by 2027 | CAGR: 6.6%

According to research study by Astute Analytica, the Global Hydrogen Market is estimated to grow at a CAGR of 6.6% during the forecast period of 2021-2027. The market size was US$ 187,517.3 million in the year 2020. Hydrogen market is witnessing an opportunity of US$ 91,890.2 million during 2021-2027. 

Hydrogen is the lightest and the most abundant chemical element in the universe. As a solution to climate change, hydrogen is starting to attract a lot of attention and investment at global level. There is an extensive research and development trend towards improving hydrogen production and technologies with lower cost solutions.

Among various technologies for hydrogen production, thermal process holds the maximum share with a value of US$ 1,62,528.7 million in 2020. Among various thermal process, steam reforming, a high-temperature process in which steam combines with a hydrocarbon fuel to produce hydrogen, is the most common technique for hydrogen production. Today, natural gas steam reforming produces around 95% of all hydrogen. 

But electrolytic process is growing at the highest CAGR of 9.3% owing to promising result that hydrogen produced via electrolysis can result in zero greenhouse gas emissions soon. This and the fact that it will reduce the cost of producing clean hydrogen, electrolytic process is attracting a lot of attention currently.

Hydrogen-powered fuel cells are being used in the automotive industry due to its high efficiency and being a zero-emission source of energy for electrical vehicles. Hydrogen fuel cells is estimated to project the highest CAGR of 10.7% among all other applications of Hydrogen. This is because Hydrogen-powered fuel cells has the energy to weight ratio ten times higher than lithium-ion batteries.

During the Covid-19 pandemic, lockdown and limited mobility in some countries caused market suppliers and manufacturers to encounter disruption in the hydrogen supply chain. The pandemic resulted in curbs on investment and slowdown of expansion of clean energy. The global hydrogen market experienced negative growth rate during the pandemic. But the challenge of climate change and lower future cost in production of hydrogen will boost the global hydrogen market in the upcoming years. The market is estimated to generate a revenue US$ 91,890.2 million during 2021-2027.

Drivers and Restraints: Rise in ammonia, iron and steel and other valuable chemicals where hydrogen is used as a prime source of production has increased the industrial demand for hydrogen. Solar and wind energy can run Electrolyzer that converts water into clean hydrogen. The high availability of these sources of energy drives the demand for cleaner hydrogen. Also, the increasing need for cleaner sources of energy to meet the greenhouse gas (GHG) emissions reduction targets has made Hydrogen critically important. But high cost of electrolysis process to produce clean hydrogen gas restraints the hydrogen production. Although, cost of electrolyzer has decreased significantly over the past decade, it is still far too expensive to meet cost parity with fossil-derived hydrogen for most applications.

Opportunities and Trends: Hydrogen has emerged as a potential fuel in the aviation industry. Many companies are striving to invest and develop techniques to increase the use of hydrogen in aviation and maritime sector. Shipping and aviation have limited low-carbon fuel options available therefore, there is possible opportunity for hydrogen-based fuels in these sectors. It eliminates CO2 emissions in flight and can be produced carbon-free. The latest estimates show that hydrogen combustion could reduce climate impact in flight by 50-75% and the fuel-cell propulsion by 75-90%. Fuel cell electric vehicles (FCEVs) powered by hydrogen are more efficient than conventional internal combustion engine vehicles and produce no tailpipe emissions. Companies like Toyota and Hyundai are commercializing hydrogen powered engines to increase their market presence and popularity.

Market Players and Recent Developments

Many companies are engaging in extensive R&D in the global hydrogen market. Companies like Air Liquide International S.A and Linde plc are investing heavily to improve research and development in hydrogen market. The cumulative market share of the four major players is close to 48.8%, hence there is Oligopoly Nature in the market. The market witnessed a key presence of nine major companies with 68.50% of shareholding. Some of the major market players are Air Products and Chemicals, Inc, Hydrogenics, NEL Hydrogen, Showa Denko, Iwatani CO, Messer Group GmbH, Teledyne Technologies Inc, Claind, Cummins, HyTech Power, Inox, ITM Power, PowerTap, Weldstar, Inc., Uniper, etc.

Recent developments in the Global Hydrogen Market are:

  • Toyota Motor Corporation recently announced that it is testing their Hydrogen Engines in motorsports. After successful testing, the company hopes to use the technology in commercial vehicles.
  • Woodside Petroleum recently announced that it will invest more than US$ 1 Billion to build a plant for Hydrogen and Ammonia production. The constructing is set to kick off in the year 2024.
  • Saudi Arabia announced that it will use one of its US$ 110 billion Gas project for production of Blue Hydrogen as an initiative towards cleaner source of energy. The production is expected to start by 2024.
  • Hyundai collaborates with Doosan Fuel Cell to test hydrogen-powered fuel cells as a distributed energy source that will help power generation system for microgrids.
  • INEOS announced that it will invest more than 2 billion euros to produce emission free Green Hydrogen using electrolysis process.

Market Segmentation

The market for Hydrogen is segmented based upon Technology, Application, Delivery Mode and Region. In terms of volume hydrogen market is estimated at 67,672.9 tons of production in the year 2020. Ammonia Production segment holds highest share of 54% in the global hydrogen market. It is expected to grow at a CAGR of 6.3% and generate a revenue of US$ 153,178.1 million by 2027. This is due to ammonia’s potential as a carbon-free fuel hydrogen carrier, and energy store.

In 2020, Asia-Pacific hold the largest share of 71% of total revenue of global hydrogen market. 

By Technology 

  • Thermal Process
    • Steam Methane Reforming (SMR)
    • Partial Oxidation (POX)
    • Coal Gasification
    • Biomass Gasification
  • Electrolytic Process
    • SOEC
    • SOFC
    • PEM
  • Others

By Application

  • Methanol Production
  • Ammonia Production
  • Petroleum Refinery
  • Heat Treatment
  • Transportation
  • Power Generation
  • Renewable Energy
  • Hydrogen Fuel Cell
    • Fuel Cell Vehicles
    • Fuel Cell Ships
    • Fuel Cell Battery
    • Mobile Power Generation
  • Others

By Delivery Mode

  • Captive
  • Merchant

By Region/ Country 

  • North America
    • The U.S.
    • Canada
  • Europe
    • The UK
    • Germany
    • France
    • Norway
    • The Netherlands
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • Rest of Asia Pacific
  • Rest of the World
    • Middle East & Africa (MEA)
    • Latin America

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