Hydrogen Generation Market Highlights 2022-2030
The hydrogen generation market is estimated to grow with a CAGR of ~5% during the forecast period, i.e., 2022-2030. The growth of the market can be attributed to the increasing demand for green energy resources, high requirement to balance demand and supply in the power sector, and the growing need for long term power storage across the world. Along with these, high emissions of greenhouse gases are also expected to drive market growth in the coming years. Greenhouse gases are responsible for rising temperatures globally. Hydrogen is assessed to play a crucial role in facing climate emergency as renewable and nuclear electricity alone will never be able to provide all our energy needs, which in turn is projected to be a major factor to lead to market expansion in the near future.
According to IEA, demand for hydrogen has grown by more than 300% since 1975 and continues to rise globally.
The market is segmented based on source into blue hydrogen, green hydrogen, and grey hydrogen. Among these, the segment for blue hydrogen is anticipated to occupy the largest market share during the forecast period accounting to its low production cost and the usage of energy efficient technology for its production. Additionally, on the basis of application, the transportation segment in the hydrogen generation market is projected to grow with a significant CAGR over the forecast period. The growth of the segment is mainly driven by the rise in demand for fuel cell electric vehicles (FCEV) and increasing requirement of energy in developing countries. CLICK TO DOWNLOAD SAMPLE REPORT
Major Macro-Economic Indicators Impacting the Market Growth
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government-imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
Hydrogen Generation Market Regional Synopsis
Geographically, the market is segmented into North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa region. The market in the Asia Pacific is predicted to grow at the highest CAGR over the forecast period owing to the rising requirement of energy in the region and escalating adoption of greener technologies to fulfil government's targets for reducing GHG emissions, especially in China and India. Furthermore, North America is anticipated to garner the largest market share during the forecast period owing to the growing investment in research and development and the government’s support to promote hydrogen generation using innovation funds, mandatory targets, and public-private partnerships. In 2021, the United States’ hydrogen production is evaluated to constitute to about 12%–15% of global hydrogen production. Similarly, the market in Europe is also anticipated to occupy a significant share in the hydrogen generation market on account of the increasing adoption of electric vehicles in the region.
The global hydrogen generation market is further classified on the basis of region as follows:
- North America (U.S. & Canada) Market size, Y-O-Y growth & Opportunity Analysis
- Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth & Opportunity Analysis
- Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC, Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth & Opportunity Analysis
- Asia-Pacific (China, India, Japan, South Korea, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth & Opportunity Analysis
- Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth & Opportunity Analysis
Market Segmentation
Our in-depth analysis of the global hydrogen generation market includes the following segments:
By Source
- Blue Hydrogen
- Green Hydrogen
- Grey Hydrogen
By Technology
- Steam Methane Reforming (SMR)
- Partial Oxidation (POX)
- Coal Gasification
- Electrolysis
By Application
- Petroleum Refinery
- Ammonia Production
- Methanol Production
- Transportation
- Power Generation
- Others
Growth Drivers
- Rising Demand for Green & Clean Resources of Energy
- Growing Need for Balancing Demand and Supply in the Power Sector
Challenges
- Decarbonizing Hydrogen Production
Top Featured Companies Dominating the Market
- L’AIR LIQUIDE S.A.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Cummins Inc.
- Linde plc
- ITM Power plc
- Nel ASA
- Air Products Inc.
- Iwatani Corporation
- Messer Group
- Taiyo Nippon Sanso Corporation
- Showa Denko K.K.
