Hydrogen Generation Market by Source (Natural Gas, Coal, Biomass, and Others), Delivery Mode (Captive and Merchant), Process (Steam Reformer, Electrolysis, Coal Gasification and Others), Application (Petroleum Refinery, Ammonia Production, Methanol Production, Transportation, and Others): Global Market Size Estimates and Forecast (2022-2030)
The market crossed US$ 140 billion mark in 2022 and is expected to hit US$ 240 billion by 2030, recording a CAGR of 7.0% during the forecast period.
Hydrogen generation market has been significantly growing with extensive development in green hydrogen production technology.
The increasing initiatives for producing green hydrogen without zero carbon emissions and growing demand for hydrogen to carryout complex manufacturing processes in the industries are some of the major factors driving the growth of the market. Hydrogen is mostly utilized in petroleum refineries and fertilizer producing companies. A total of 99% of hydrogen is extracted from fossil fuel reforming, as it is the most conventional and cost-effective method. The process of hydrogen generation form of fossil fuel is not beneficial for the environment due to high CO2 emission. Green hydrogen is produced from electrolysis. In electrolysis method to produce green hydrogen it uses electricity to split water into hydrogen and oxygen and gives out zero carbon emissions. The petroleum refinery segment is expected to pace up with increasing consumption of hydrogen in this industry. Further, other segments such as methanol production, transportation is also expected to gain traction during the forecasted year.
Within the report, the market is segmented into source, delivery mode, process, application, and geography. By source, the market is further segmented into natural gas, coal, biomass, and others. On the basis of delivery mode, the market is bifurcated into captive and merchant. By process, the market is categorized into steam reformer, electrolysis, coal gasification and others. Based on application, the market is further segmented into petroleum refinery, ammonia production, methanol production, transportation, and others. Geographically, the market is sub segmented into North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa.
Growing utilization of hydrogen due to rising industrialization across the globe.
Hydrogen use in applications such as fuel cells, chemical processing, refining, petroleum recovery, and others is anticipated to grow considerably throughout the forecast period. This is due to enforcement stringent environmental regulations. Moreover, chemical processing as well as refining industries are the major consumers of hydrogen. Also, Oil & gas refineries demand hydrogen to lower the sulfur content of diesel for reducing sulfur content. Furthermore, chemical processing industry uses hydrogen to process methanol, ammonia, as well as other chemicals in a petrochemical complex. Also, fuel cells are evolving technologies that are currently used as a source of heat and electricity in buildings as well as commercial sector. The demand for hydrogen by these industries are bolstering the growth of the market.
Rising initiatives on achieving net zero emission target by 2050.
The higher growth in demand of hydrogen and the adoption of cleaner technologies for its production will allow hydrogen and hydrogen-based fuels to prevent up to 60 Gt of CO2 emissions in 2021–2050, or 6.5% of all cumulative emissions reductions. In the net zero emission scenario, when the global output reaches 200 Mt H2 in 2030, low-carbon technologies will account for 70% of that production (electrolysis). By 2050, the amount of hydrogen produced will have increased to about 500 Mt H2, almost entirely due to low-carbon technologies. The rising initiative in developing different technologies is a need to alter the energy system to achieve net zero emissions by 2050. Renewable energy, electrification, Carbon capture, utilization and storage (CCUS) technologies are likely to be the major pillars for decarbonizing the world’s energy system.
Recent strategic developments in hydrogen generation market
The hydrogen generation market has undergone several significant developments, and a few of these have been mentioned below:
- In September 2022, Siemens Energy has decided to build a state-of-the-art combined cycle power plant on a turnkey basis in Ostiglia in Lombardy. The plant will make a significant contribution to reducing CO2 emissions in Italy.
- In September 2022, Linde will build, own, and operate the industrial scale electrolyzer and use hydroelectric power to produce green liquid hydrogen. The plant is expected to start up by 2025. Linde will leverage its existing liquefier and distribution infrastructure to supply existing and new customers.
The hydrogen generation market is driven by several players by implementing strategic activities such as investments, new launches, mergers & acquisitions, and partnerships. Siemens Energy, Linde plc, ENGIE, Air Liquide, and Air Products Inc. are among the prominent players operating in the market.
Target audience for the report:
- Raw material providers
- Hydrogen generation related associations, organizations, forums, and alliances
- Government bodies, such as regulating authorities and policy makers
- Venture capitalists, private equity firms, and start-up companies
- Application industry of hydrogen generation industry
- Research institutes, organizations, and consulting companies
Scope of the report:
In this report, the market has been segmented on the basis of:
- Natural Gas
- Delivery Mode
- Steam Reformer
- Coal Gasification
- Petroleum Refinery
- Ammonia Production
- Methanol Production
- North America
- Asia Pacific (APAC)
- South & Central America
- Middle East & Africa
- Companies profiled
- Siemens Energy
- Linde plc
- Air Liquide
- Air Products Inc.
- Siemens Energy
- Linde plc
- Air Liquide
- Air Products Inc.