The global merchant hydrogen market is estimated to garner a sizeable revenue by growing at a CAGR of ~8 % over the forecast period, i.e., 2022–2030. The growth of the market can be attributed to the increasing use of hydrogen as a clean fuel, along with other applications of hydrogen. The growing environmental awareness among people, combined with government initiatives to curb the ozone depletion is estimated to boost the market growth. Following the Paris Agreement session of 2019, where 189 countries joined the commitment to reduce carbon emission by 2030, governments of various nations are investing in the achievement of sustainable development goals. This is estimated to boost the market growth.
The global merchant hydrogen market is segmented by source into steam methane reforming, electrolysis, and other, out of which, the steam methane reforming segment is anticipated to hold the largest share in the market during the forecast period on account of abundant availability of methane. However, this is costly, and alternative economically feasible methods are being developed, which can impact the growth of the segment. On the basis of application, the market is segmented into jet fuel, gasoline, metallurgy, drugs & medicines, and others, out of which, the gasoline segment is estimated to garner the highest revenue by the end of 2030, owing to the increasing demand for hydrogen for refining petroleum and production of gasoline. The drugs & medicines segment is also foreseen to gain significant share during the forecast period, on the back of increasing cases of CVD and other heart diseases. CLICK TO DOWNLOAD SAMPLE REPORT
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.
Regionally, the global merchant hydrogen market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in North America region is estimated to garner largest share over the forecast period on the back of growing oil & gas industry in countries, such as, Canada, and the U.S. Canada is the 4th largest producer and exporter of oil, globally, and holds over 10% of the world’s share for oil wells. This is estimated to act as the major growth factor for the market. Furthermore, innovation in the healthcare sector, combined with the presence of major pharmaceutical companies in the region, is estimated to boost the market growth.
The market in the Europe region is estimated to witness highest CAGR over the forecast period on the back of high number of oil wells and oil refineries, along with growing international investment in the oil & gas industry in countries, such as, Russia, Poland, and Germany. Additionally, the rising automotive industry, along with the increasing environment awareness among manufacturers is estimated to raise the demand for hydrogen as a fuel. This is further projected to boost the market growth in the region.
The global merchant hydrogen market is further classified on the basis of region as follows:
Our in-depth analysis of the global merchant hydrogen market includes the following segments:
FREQUENTLY ASKED QUESTIONS
Growing demand for clean fuel in vehicles and increasing use of hydrogen for petroleum refining are the major factors driving the market growth.
The market is anticipated to attain a CAGR of ~8% over the forecast period, i.e., 2022-2030.
Very high cost of obtaining hydrogen is one of the major factors estimated to hamper the market growth.
The market in the North America will provide the highest growth opportunities for the market during the forecast period on the back of large number of oil refineries in the region.
The major players in the market are Airgas, Inc., Air Products Inc., Praxair Technology, Inc., Linde plc, L’air Liquide S.A., FuelCell Energy, Inc., Bloom Energy Corporation, and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by source, application, and end-user industry, and by region.
The gasoline segment is anticipated to hold the largest market size over the forecast period owing to the increasing demand for hydrogen to refine petroleum.
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