Industrial hydrogen has wide range of applications in oil refining, petrochemicals, and other heavy industries. It is used as feedstock in many chemical and refinery processes. Hydrogen helps eliminate sulfur from fuels and also upgrades crude oil in refineries. It acts as a reducing agent and helps modify and purify petroleum and natural gas. Hydrogen-based processes have significantly enhanced efficiency and productivity in these sectors. The growing demand from oil refining and petrochemical industries is expected to drive growth of the industrial hydrogen market in the coming years.
The global U.S., Europe and Asia Industrial Hydrogen Market is estimated to be valued at US$ 242.7 billion in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2024.
Market key trends:
One of the key trends in the industrial hydrogen market is the growing production of hydrogen via electrolysis powered by renewable energy sources. Hydrogen production via electrolysis uses renewable electricity to split water into hydrogen and oxygen. Many countries in Asia, Europe and North America are investing heavily in increasing electrolyzer manufacturing capacity to produce low carbon hydrogen. For instance, China allocated over $800 million funding for green hydrogen projects using electrolysis powered by renewable sources like solar and wind energy. Low carbon hydrogen has potential to decarbonize hard-to-abate sectors like steel and chemical industries and aid countries’ energy transition goals. This is expected to drive significant capacity additions of renewable-powered hydrogen electrolyzers in the coming years.
Threat of new entrants: The threat of new entrants is moderate as the industrial hydrogen market requires large investments in infrastructure for production and distribution. However, government support for clean energy is encouraging new players to enter.
Bargaining power of buyers: The bargaining power of buyers is high given the presence of numerous industrial hydrogen producers providing substitutable products.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as industrial hydrogen is dependent on fossil fuels for production and few suppliers have integrated operations.
Threat of new substitutes: The threat of substitutes is high with alternative cleaner sources of energy like renewable hydrogen gaining traction over the forecast period.
Competitive rivalry: Competition is high among industrial hydrogen producers to cater to the requirements of diverse end-use industries.
The Global U.S., Europe and Asia Industrial Hydrogen Market Size is expected to witness high growth over the forecast period.
Regional analysis: Asia Pacific dominates the industrial hydrogen market led by China, India, and Japan. This can be attributed to growing demand from refineries, chemical processing industries and increasing focus on cleaner energy. Government initiatives to encourage green hydrogen adoption will further aid regional growth.
Key players: Key players operating in the U.S., Europe and Asia Industrial Hydrogen Market are Air Liquide, Linde plc, Air Products and Chemicals Inc., Nexair LLC, Taiyo Nippon Sanso Corporation. Air Liquide is one of the global leaders in industrial gas with an integrated hydrogen production and distribution network. Linde plc supply industrial gases including hydrogen as feedstock, carrier and fuel to multiple industries.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it