Hydrogen is a non-toxic gas that can be produced from both fossil fuels and renewable resources and generates only water when used in a fuel cell for power generation, making it a key enabler of the energy transition to net zero. Hydrogen has applications across various end-use industries such as transportation, power generation, chemicals, and metal production. It can replace fossil fuels by providing zero-emission power to fuel cell electric vehicles.
The Global Hydrogen Market is estimated to be valued at US$ 174.53 Billion in 2024 and is expected to exhibit a CAGR of 23% over the forecast period 2024 to 2030.
Key players operating in the Hydrogen Market are IBM Corporation,,Informatica LLC,,Riversand Technologies, Inc.,,SAP SE,,Salsify Inc. The growing energy demand worldwide along with stringent regulations to curb carbon emissions are driving demand for low-carbon technologies such as hydrogen fuel cells for power generation and transportation. Technological advancements in proton exchange membrane fuel cells and electrolyzers have increased the efficiency and reduced the cost of hydrogen production from renewable resources.
One of the major drivers for the hydrogen market is increasing application of fuel cells in electric vehicles and material handling equipment. Hydrogen fuel cells provide higher driving range and faster fueling time than batteries, making them an attractive option for commercial vehicles, buses, trains and ships. Growing investments by governments and companies in building hydrogen refueling infrastructure are also positively impacting the demand. Countries worldwide have announced plans to transition to clean energy economy by leveraging hydrogen as an alternative fuel. Stringent emission regulations coupled with falling battery prices are propelling automakers to adopt hydrogen fuel cell technology.
Current Challenges in Hydrogen Market
The Hydrogen Market Demand is still at a nascent stage and facing numerous technical and economic challenges for widespread commercialization and large scale adoption. One of the major challenges is high production cost of hydrogen compared to conventional fossil fuels. Transportation and storage of hydrogen is also a significant hurdle due to its low density, flammability and potential safety issues. Creating affordable fuel cells and improving its efficiency to make hydrogen powered vehicles more competitive is work in progress. Further research is needed to develop cost effective technologies for carbon capture and storage to produce blue hydrogen. Achieving economies of scale to lower the renewable energy and electrolysis costs will be critical for green hydrogen to gain traction globally. Standardization of technologies and infrastructure models across regions and countries is another challenge for the hydrogen industry.
Strength: Hydrogen has potential to reduce carbon emissions across sectors and provides energy security. It can be locally produced and distributed through pipelines or vehicles.
Weakness: Production of hydrogen from fossil fuels leads to greenhouse gas emissions. High storage and transportation costs due to low volumetric density of hydrogen compared to liquid fuels.
Opportunity: Growing support through policies and funding from governments worldwide to boost clean hydrogen economy. Emerging opportunities for hydrogen applications in mobility, industry, power generation and numerous other uses.
Threats: Uncertainties around technologies and costs may slowdown large scale infrastructure investments. Dependency on fossil fuels like natural gas poses risks of supply disruptions and price volatility in transition phase.
Geographical Regions in terms of value
North America and Europe currently account for more than 50% of the global hydrogen market value, driven by supportive government policies and initiatives. The United States has seen major investments from both public and private sectors to expand hydrogen applications for fuel cell vehicles as well as development of production facilities, pipelines and filling stations. Countries across Europe are also actively working on hydrogen strategies and targets as part of their decarbonization roadmaps.
Fastest Growing Geographical Region
Asia Pacific region is expected to be the fastest growing market for hydrogen during the forecast period. Presence of major economies like China, Japan and South Korea which are aggressively pursuing clean hydrogen economy targets presents significant growth opportunities. Large scale renewable energy projects also provide an attractive base to produce green hydrogen commercially. Rising demand for hydrogen powered mobility and focus towards importing hydrogen via shipping are driving growth across emerging Asian nations.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it