Hydrogen Generation Market Size, Trends, Share, Growth, and Opportunity Forecast, 2023 - 2030 Global Industry Analysis By Production Method (SMR, Electrolysis, Biomass Gasification, Coal Gasification, Others), By End-User Application (Transportation, Power Generation, Industrial Processes, Chemical Processing, Residential/Commercial Heating, Energy Storage, Aerospace, Others), By Hydrogen Types (Grey, Blue, Green) and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

The Global Hydrogen Generation Market was valued at USD 140,231.4 Million in 2022 and is anticipated to reach a value of USD 228,613.4 Million by 2030 expanding at a CAGR of 6.4% between 2023 and 2030.

Hydrogen is a highly inflammable gas which after combustion produces water vapor and doesn’t release any toxic emission. Thus, hydrogen gas as a fuel is an important pillar in achieving sustainable development. Hydrogen is getting traction due to its versatility and ecological viability in reducing emission of greenhouse gases and can help in combating climate change. Hydrogen finds its application in an array of fields such as transportation, power generation and industrial processes. Various countries across the world are suffering to contain and limit their carbon footprints which in turn puts them under huge geopolitical pressure. Hence, hydrogen as a fuel is an important step in reducing global carbon footprints of a country. This thriving industry of hydrogen market is very well positioned to play a vital role in achieving substantial expansion for its contribution towards low carbon energy generation. As technological advancements are persistent in bringing down the production cost and increasing the efficacy of hydrogen production techniques, the market for hydrogen generation is bound to increase.

Hydrogen Generation Market Major Driving Forces

Decarbonization Objectives: Numerous nations across the globe are striving to cut down carbon emissions and achieve challenging decarbonization goals. When produced with green technologies, hydrogen is a sought- after weapon to combat climate change. It is well poised to play an important role in decarbonizing sectors such as transportation, energy production and industrial processes.

Hydrogen in Transportation: In contrast to traditional internal combustion engine vehicles, hydrogen fuel cell vehicles (FCVs) offers absolutely zero carbon emission. Demand for hydrogen is propelled by the growing technological advancements in FCV technology.

Industrial Usage: Hydrogen finds its usage as a raw material in an array of industrial operations such as steel manufacturing, chemical manufacturing, refineries. Hydrogen is becoming a more appealing option for the industries striving to cut down emissions and increase efficacy.

Technological Advancements: The cost effectiveness of hydrogen production processes, especially electrolysis and sustainable hydrogen processes, is being improved through continuous R&D These technologies are driving market expansion as they grow and become more competitive.

Hydrogen Generation Market Key Opportunities

Green Hydrogen Production: Green hydrogen is the process of production hydrogen gas via renewable energy sources owing to growing emphasis on sustainable energy alternatives. This has a very large market potential as it helps in mitigating carbon emission and develop the sustainable energy industry.

Industrial Application: Hydrogen serves as a cleaner alternative for the various industrial applications such as manufacturing of steel, chemicals and in refineries. This presents prospects for the development of hydrogen generation technologies and related infrastructure.

Transportation: Hydrogen fuel cells vehicles are becoming increasingly popular as a sustainable energy alternative as compared to traditional internal combustion engine vehicle. This industry has significant potential for the development of infrastructure for hydrogen delivery and generation.

Hydrogen Generation Market Key Trends

·         Green hydrogen which is generated by using renewable methods in electrolysis is getting traction as it is a key in minimizing the dependency over fossil fuels and carbon emissions

·         Hydrogen is playing a vital role in decarbonizing industrial process by being employed in chemical, steel and refining industries.

·         Hydrogen fuel cell vehicles are another trend in the market of hydrogen. These are vehicles that reduces dependency of vehicles over fossil fuels and uses hydrogen as a fuel.

·         Blending of hydrogen with natural gas is getting popular. It is a seamless method of cutting carbon emissions without a significant energy transition.

·         Hydrogen is an excellent way to store excess energy especially in case of renewable energy sources such as solar and wind. Excess energy generated by renewable sources can be used to produce hydrogen and when the weather is not cooperative, hydrogen produced can be used to turn it back into electricity.

Region-Wise Market Insights

North America accounted for the largest market share at 48.7% in 2022 whereas, Asia Pacific is expected to register the fastest growth, expanding at a CAGR of 6.9% between 2023 and 2030.

A growing number of people in North America, especially in the United States and Canada, are interested in producing hydrogen due to significant investments in green hydrogen production and aspirational decarbonization targets. In Europe, countries such as Germany, France, Netherlands and others are setting up the norms and rules & regulations for the providing financial incentives for the production of hydrogen. In Asia, countries such as Japan and South Korea have invested heavily in the research and development of hydrogen and reduced overdependence over traditional energy sources. On the other hand, Chinese government also has invested heavily in developing hydrogen infrastructure. Oceania, especially Australia, has an abundance of renewable resources and is becoming a significant player in the production of green hydrogen. In an effort to expand its energy portfolio and reach new markets abroad, the Middle East, which has long been a center for the production of conventional hydrogen from hydrocarbons, is investigating the move toward green hydrogen.

Market Competition Landscape

The global hydrogen generation market is characterized by high degree of competition among a large number of manufacturers. Key players in the hydrogen generation market engage in strategies aimed at gaining a competitive edge. Numerous industry giants are seeking to establish their strong foothold over this industry. The highly dynamic and competitive market of hydrogen generation will be shaped by technological advancements, scalability and cost reduction.

Key players in the global hydrogen generation market implement various organic and inorganic strategies to strengthen and improve their market positioning. Prominent players in the market include:

·         Air Liquide S.A.

·         Linde plc

·         Air Products and Chemicals, Inc.

·         Hydrogenics Corporation

·         Plug Power Inc.

·         Nel ASA

·         Iwatani Corporation

·         Praxair, Inc. (acquired by Linde plc)

·         Mitsubishi Gas Chemical Company, Inc.

·         Showa Denko K.K.

·         Green Hydrogen Systems

·         Ballard Power Systems Inc.

·         Engie SA

·         Siemens Energy AG

·         ITM Power plc

Air Products and Chemicals, Inc. is among the top players competing in the market of hydrogen production. The company is specialized in various methods of hydrogen production including steam methane reforming and electrolysis. Siemens Energy, on the other hand, has expertise in the creation of cutting-edge electrolysis systems for the production of green hydrogen and the integration of hydrogen into the current energy infrastructure. Siemens is known for its advance electrolyzer technology that can provide efficient and scalable solutions for hydrogen production.