Hydrogen Generation Market Size (2023-2028):

The Hydrogen Generation Market was worth US$ 154.3 billion in 2022 and is projected to reach a valuation of US$ 270.05 billion by 2028 and is predicted to register a CAGR of 10.12% during 2023-2028.

Market Overview:

One of the key elements driving the demand for sustainable energy sources like hydrogen is increased energy demand, which coincides with growing environmental concerns. Furthermore, governments in a number of nations are enacting strict rules to limit carbon emissions in the automobile sector, which is driving up EV sales around the world. This, together with the widespread use of hydrogen as a coolant in power plant generators, is fuelling market expansion. Aside from that, various projects are being supported to reduce the costs of hydrogen production technologies as well as their environmental implications. For example, hydrogen production via nuclear energy is viewed as a cost-effective way to reduce carbon emissions and address the important global climate crisis. As a result, demand for hydrogen generation in glass purification, fertiliser production, and semiconductor manufacturing is expected to increase around the world.

Market Growth:

The market for hydrogen generation is predicted to be driven by an exponential increase in demand for clean and green fuel due to rising pollution levels, as well as expanding government laws to control and restrict sulphur content in fuels.

Market Drivers:

The demand for fuel cell electric vehicles (FCEVs) such as passenger cars, buses, lorries, and other heavy-duty vehicles is expected to grow rapidly. FCEVs are equipped with a fuel cell device that allows them to function without emitting harmful emissions by using hydrogen as a primary fuel. Furthermore, various governments' massive FCEV deployment targets have resulted in a large increase in the number of FCEVs on the road.

As a result of continuous industrial and urban expansion, countries have been forced to adopt various power generation systems in order to meet demand. In addition, rapid population growth and development activities in the Asia Pacific the Middle East and Africa. Concerns about the use of sustainable energy to minimise reliance on fossil fuels such as crude oil and natural gas are growing in importance in the worldwide market.

Market Restraints:

H2 fuel is commercially manufactured using a variety of technologies that need a large amount of cash to set up and manage, slowing down the worldwide market. Furthermore, the significant energy consumption required to create hydrogen via technologies such as water electrolysis is exceedingly expensive, as additional electricity is required to break water molecules into hydrogen and oxygen.

Market Key Developments:

• Atawey, a leader in hydrogen refuelling stations in France, is introducing a new mobile hydrogen station. It eliminates the constraints associated with hydrogen refuelling and project setup by being able to supply multiple heavy goods vehicles and being ready to function in about half a day, the fastest on the market.

HYDROGEN GENERATION MARKET REPORT COVERAGE:

Market Segmentation: 

Hydrogen Generation Market - By Application:

• Petroleum Refinery
• Ammonia and Methanol production
• Transportation
• Power Generation

The market is segmented into Petroleum Refinery, Ammonia and Methanol Production, Transportation, and Power Generation based on application. During the projected period, the transportation category is expected to increase at the fastest rate. In the future years, the market for hydrogen generation is projected to be driven by the rapid rise in demand for Fuel Cell Electric Vehicles (FCEV) in the Asia Pacific. Hydrogen is used in a variety of types of transportation, including buses, trains, and fuel cell electric vehicles (FCEV) (including marine, aeroplane, and drones). Hydrogen is used to power FCEVs. They are more fuel efficient than traditional internal combustion engines and release no tailpipe pollutants, merely water vapour and warm air.

Hydrogen Generation Market - By Generation & Delivery Mode:

• Captive
• Merchant

The market is divided into Captive and Merchant segments based on generation and delivery mode. The merchant market is likely to be driven by increased large-scale hydrogen production via water electrolysis and natural gas processes. Both water electrolysis and natural gas methods can yield merchant hydrogen. This strategy eliminates the demand for fuel transportation and, as a result, the need for new hydrogen-producing infrastructure to be built. However, compared to captive hydrogen generation, its low production capacity results in higher hydrogen costs.

Hydrogen Generation Market - By Source:

•     Blue Hydrogen

•     Green Hydrogen

•     Grey Hydrogen

The market is divided into three categories, according to Source: blue hydrogen, green hydrogen, and grey hydrogen. From 2022 to 2027, the blue hydrogen segment is expected to increase at a faster rate. Steam methane reforming is used to create blue hydrogen from natural gas (SMR). SMR combines natural gas with extremely hot steam using a catalyst, which results in hydrogen and carbon monoxide. After adding water to the mix, the carbon monoxide is converted to carbon dioxide and more hydrogen is produced. CO2 emissions are absorbed and stored underground using carbon capture, utilisation, and storage (CCUS) technology, leaving practically pure hydrogen in the process. The cost of producing blue hydrogen is rather inexpensive.

Market Regional Analysis:

The Hydrogen Generation Market Report includes the segmentation of regions:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

The Asia Pacific contributed over 35.0 per cent of sales in 2021, and this trend is likely to continue through 2027. China, Japan, South Korea, India, and Australia are all part of the Asia Pacific Market growth is expected to be boosted by strong economic performance and large-scale R&D investments in Asia Pacific developing countries. China is making major reforms to its petroleum and gasoline industries in order to address a variety of problems. Furthermore, governments in Asia Pacific countries such as Japan and Australia are considering greener and cleaner hydrogen-producing technologies, which are projected to enhance regional market growth.

The government is utilising the potential of hydrogen in order to meet the regional population's fuel requirements. The metal and chemical industries are two additional key applications that can provide significant growth potential for the hydrogen-generating market in North America.

Due to the existence of several industrial units around the country, the hydrogen-generating business in Canada has been steadily growing over the last few years.

Because of the implementation of numerous energy efficiency regulations, the hydrogen generation business in the United Kingdom will continue to grow at a stable rate in the future. Many end-users in the region are seeing a significant increase in demand for zero-carbon fuels. All of this is being done in accordance with the United Nations' Sustainable Development Goals (SDGs) and the Paris Climate Agreement. The country's main goal is to totally phase out the usage of fossil fuels and attain zero carbon emissions by implementing eco-friendly measures and adhering to EU rules. These factors will help the hydrogen-generating market in the United Kingdom grow.

The Middle East and Africa Hydrogen Generation Markets are expected to expand at a fixed rate, with growth rates varying depending on the degree of natural resources available in each nation and access to energy at cheap rates. The need for power and energy has been increasing in the region, with some countries seeing particularly high demand due to their high levels of economic growth.

Market Key Players:

1. Praxair
2. Air Liquide S.A
3. Air Products and Chemicals
4. INOX Air Products Ltd.
5. Airgas, Inc.
6. Hydrogenics Corporation
7. Messer Group GmbH
8. CLAIND srl
9. Starfire Energy
10. Enapter