Hydrogen Pipeline Market Size, by Type (Onshore, Offshore) Classification - Growth Trends, Regional Share, Competitive Intelligence, Forecast Report 2025-2037

Hydrogen Pipeline Market: Growth Drivers and Challenges

Growth Drivers

• Increased governmental efforts: Numerous governments worldwide have unveiled plans involving hydrogen to increase gas independence and decarbonize economies. For instance, India set ambitious targets of 50% energy decarbonization and 500 GW of fossil fuel-free generating capacity by 2030 at COP26. Also, in the U.S., the Federal Sustainability Plan was set to attain net-zero emissions across Federal operations by 2050.
  
  Furthermore, The World Economic Forum revealed over 30 projects utilizing green hydrogen have been produced using emissions-free renewable energy, and have been established since 2019. The majority of the nation's production is grey hydrogen, which is produced using fossil fuels like coal. Green hydrogen is produced via electrolysis, which uses electricity to divide water into hydrogen and oxygen while producing zero carbon emissions, to address this problem. The hydrogen pipeline market will expand due to investments in green hydrogen production and the related pipeline infrastructure.
• Retrofitting existing pipelines: Using existing pipelines to transport gaseous hydrogen is an affordable way to distribute huge amounts of hydrogen. One of the main obstacles to expanding the hydrogen pipeline delivery infrastructure is the high initial capital expenditures associated with new pipeline construction. In addition, adapting a portion of the natural gas distribution infrastructure to handle hydrogen can expand the hydrogen delivery infrastructure. It might only be necessary to make minor changes to natural gas pipes to convert them to transport a mixture of natural gas and hydrogen (up to 15% hydrogen).
  
  Major companies are investing and remodeling existing pipelines to meet the surging demand for hydrogen across nations. For instance, in January 2022, MosaHYc converted two existing pipelines into a 70-kilometer pure hydrogen infrastructure connecting Völklingen (Germany), Carling (France), Bouzonville (France), and Perl (Germany). The infrastructure can transport up to 20,000 m³/h (60 MW) of pure hydrogen.
• Growing demand in end-use industries: The demand for a reliable and efficient hydrogen transportation infrastructure, such as pipelines, is being fueled by industries like manufacturing, chemicals, and refining, which are increasingly looking at hydrogen as a cleaner alternative for their operations. Petroleum refineries utilize hydrogen to lower the sulfur content in diesel fuels, as high sulfur levels can negatively impact engine emissions and violate environmental regulations. According to the International Energy Agency (IEA), the demand for hydrogen worldwide surpassed 95 million tons in 2022, a 3% increase over 2021.
  
  Additionally, to reduce emissions, clean hydrogen-such as electrolytic hydrogen, which is produced using water and renewable electricity-can be integrated into the chemical manufacturing process. Therefore, the growing use of hydrogen in various processes will bolster the hydrogen pipeline market growth.

Challenges

• High costs of constructing hydrogen pipelines: Infrastructure for hydrogen pipelines requires large upfront expenditures for construction and installation. Both public and private organizations are considering hydrogen as a vital part of their energy infrastructure. Potential investors and stakeholders may be deterred from pursuing hydrogen projects due to the significant capital needed for designing, engineering, and building these pipelines. This factor may hinder the hydrogen pipeline market.
• Safety concerns related to high flammability: Since hydrogen molecules are so small, they can readily pass through pipeline flaws of any size. The creation of explosive hydrogen-air combinations may result from these leaks. At extremely low concentrations and with very little energy from sources like sparks or static electricity, hydrogen can burn. This implies that explosions can be caused by even minor mishaps or equipment failures. The expansion of the hydrogen pipeline market is being restrained by these accidents, which also influence safety procedures and regulatory considerations in the construction and operation of hydrogen pipelines and contribute to the cautious approach toward hydrogen's flammability.