The increasing use of hydrogen in petroleum industries to process crude oil into refined fuels, and for eliminating impurities, such as sulfur, from this fuel is driving the growth of the hydrogen market. Also, growing demand from various end-use industries such as metals, glass industry, semiconductor, and chemical will further trigger the growth and growing awareness towards reducing the carbon footprint on earth is further adding impetus growth to the market. However, growing adoption of hydrogen as a fuel in automotive, government initiatives towards clean energy coupled with promoting to use fuel cell electric vehicles (FCEVs) will offer new opportunity growth to the market.
As per the new market study added by Value Market Research, the Global Hydrogen Market was valued USD 140.1 MN (by revenue) in 2017 and is anticipated to reach USD 214.5 MN by 2024 with a CAGR of 6.0%. By volume, the market was estimated at XX.X Billion Cubic Meters in 2017 and is expected to reach XX.X Billion Cubic Meters by 2024 with a CAGR of X.X%.
COMPRESSED HYDROGEN IS THE HIGHLY PREFERRED TYPE OF HYDROGEN
Compressed gas is leading the segment owing to the rising application of compressed hydrogen gas in the automotive sector. The segment is expected to reach USD XX.X MN by end of 2024. Basically, it is used in hydrogen pipeline transport and in compressed hydrogen tube trailer transport. Moreover, it is also used for moveable hydrogen storage in hydrogen vehicles. Consequently, transportation is the major sector which is likely to drive the growth of compressed hydrogen gas. Also, rising demand for H2fuel cells for fuelling stations is expected to augment the growth.
REFINERY IS THE LARGEST APPLICATION AREA
Currently, hydrogen is of great importance in refining industry for upgrading heavy crude oils into refined fuels, helping to meet increasingly tight transportation fuel specifications and different refining processes such as hydrocracking, hydroisomerization, and hydrodealkylation. The segment is expected to reach USD XX.X MN by end of 2024. The demand for hydrogen in refinery has increased as the demand for diesel fuel has risen both domestically and internationally, and as sulfur-content regulations have become more stringent is likely to drive the growth of the segment.
ASIA-PACIFIC EMERGES AS THE LUCRATIVE MARKET FOR HYDROGEN
The Asia-Pacific has planted its dominance in 2017 and expected to maintain its dominance by end of 2024. The Asia-Pacific market is mainly growing on the ground owing to the rising demand for hydrogen-based fuel vehicle in the region. Also, the manufacturer is likely to establish auto fueling stations in the region is another major factor fueling the market growth.
Air Liquide, Air Products, Air Water, Linde Industrial Gas, Messer, Praxair, Taiyo Nippon Sanso, and Yingde Gases.
Global Hydrogen Market Overview
The global Hydrogen Market was valued at USD 51.7 MN in 2019 and is predicted to reach USD 70.7 BN by 2026 with a CAGR of 4% during the forecast period. By Volume, the market was stood 69,508.6 BN Cubic Meter and is estimated to grow at a CAGR of 3.8% between 2020 and 2026. Hydrogen is considered as a promising source of clean energy on the earth. A positive outlook towards metals, the glass industry, semiconductors, propellant fuel, and chemicals will stimulate business growth. Several aspects are contributing to the growth of the global hydrogen market. Factors such as a growing preference for on-site generation systems for hydrogen, rising technological advancements, and increasing adoption of hydrogen in various applications across several end-user industries are expected to push the market's growth in the coming years.
Hydrogen is used to process crude oil into refined fuels, such as diesel and gasoline, and eliminate contaminants, such as sulphur, from these fuels. Strong oil demand growth is contributing to a more optimistic outlook for the European refinery market. Rising investment by refiners towards upgradation and expansion of refineries to meet sulfur and emission regulation will positively encourage the hydrogen generation market size in coming years.
The rising demand for ammonia, owing to the increasing use of ammonia-based fertilizers to enhance productivity and maintain crop nutrition, and growing demand for the gas from the refinery sector due to the stringent sulfur reduction regulations, are some of the key attributable factors that are driving the growth of hydrogen industry. In the transport sector, electric vehicles driven by hydrogen fuel cells hold the potential to replace existing vehicles, wherein water would be the only exhaust. This can transform the automotive industry, which currently solely depends on fossil fuel. However, high cost of hydrogen as compared to fossil fuels may act as restrain for hydrogen generation market growth in near future. Key participants in the industry are focusing on technological advancements and innovation to minimize the cost of renewable-powered electrolysis and largely commercialize the production of hydrogen. The key players operating in the market includes Air Liquide, Air Products, Air Water, Linde Industrial Gas, Messer, Praxair, Taiyo Nippon Sanso, and Yingde Gases.
In this research report, the hydrogen market is segmented by type, application and region.
Analysis by Type
Based on types, the market of hydrogen is bifurcated into compressed hydrogen and liquid hydrogen. The Compressed hydrogen type dominates the segment accounting for more than 55% market revenue share in 2019 due to increasing industrialization and rising adaption of fuel cell technology. In addition to this, transportation is the major sector which is likely to drive the segment of compressed hydrogen gas. Also, the rising demand for H2fuel cells for fuelling stations is expected to augment the growth.
Moreover, the liquid hydrogen has great importance in space-exploration programs as a rocket fuel with oxygen or fluorine as the oxidizer. Mainly, the segment is growing on account of the growing usage of green products as the combustion of liquid hydrogen does not produce any pollutants. Simultaneously, the increasing demand for renewable energy is expected to impel the demand for the product in the near future. Therefore, the rising demand for green power and the ongoing industrialization, and the increasing importance of renewable energy storage are expected to impact the growth positively.
Analysis by Application
By application, the market of hydrogen is bifurcated into refining, metalworking, and others. Owing to the growing demand for hydrogen from the refining industry, the segment is a dominating segment with an accounted market share of 49.61% in 2019 in terms of revenue and is projected to maintain its dominancy over the forecast period. Generally, it is used to process crude oil into refined fuels, such as gasoline and diesel, and it is also used to lower the sulfur content of diesel fuel. Approximately half of the hydrogen is currently consumed worldwide by oil refineries only. Refinery demand for hydrogen has increased as demand for diesel fuel has risen both domestically and internationally, and as sulfur-content regulations have become more stringent is likely to drive the growth of the segment.
Analysis by Region
In terms of region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. The Asia Pacific is dominating the global hydrogen market. The consumption of hydrogen has increased significantly in the Asia Pacific region. This is attributed to the healthy economic growth rate and growth of various end-use industries such as chemicals, electronics, and petrochemicals owing to cheap labor costs coupled with low stringent regulation as compared to Western regions. In addition to this, the pharmaceutical industry is booming in the region.
Moreover, the refinery and metal processing sectors in the region are likely to experience notable growth, mainly in developing economies such as India and China, owing to support being offered to industries by government and private organizations. With the growth of end-use industries, the adoption of raw material used here is estimated to increase in the predictable future, hence fuelling the hydrogen market in the region. APAC had the maximum hydrogen market share of over 40% in 2019 in terms of volume and revenue.
Market Segmentation covered in the Report:
- Metal Working
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.