The global U.S., Europe And Asia Industrial Hydrogen Market is estimated to be valued at US$ 15.5 Bn in 2022 and is expected to exhibit a CAGR of 5.0% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
Industrial hydrogen is used in various chemical and industrial applications including ammonia production, oil refining, methanol production and transportation. It is considered an important clean energy carrier with many advantages such as being more efficient with zero emissions as compared to fossil fuels. Industrial hydrogen is increasingly being used as an alternative to conventional fossil fuels in industries due to stringent environmental regulations regarding decarbonization.
Market key trends:
Green hydrogen adoption is steadily rising across major economies driven by supportive government policies and initiatives regarding transition to clean energy. For instance, Japan, South Korea and China have introduced hydrogen strategies and roadmaps focusing on large-scale deployment of green hydrogen for industrial applications such as steel production and petroleum refining by 2030-2050. Furthermore, Europe has developed a comprehensive hydrogen strategy to invest €470 billion by 2030 to develop hydrogen electrolyzers and transport infrastructure for scaling up green hydrogen economy. Rising investment in renewable energy assets for low-cost production of green hydrogen through water electrolysis is expected to boost the industrial hydrogen market over the forecast period.
Threat of new entrants: Low capital requirements and established customers make it easy for new players to enter the market. However, major players enjoy economies of scale in production and distribution limiting threat from new entrants.
Bargaining power of buyers: Large industrial buyers have significant influence over suppliers due to their demand for customized solutions and large purchase volumes. They negotiate on price and contractual terms thereby increasing their bargaining power.
Bargaining power of suppliers: The industrial hydrogen market has few supplier companies with dominance of Air Products, Air Liquide and Linde accounting for over 50% share. This gives them substantial control over pricing and supply relations with buyers.
Threat of new substitutes: There exist few alternatives to industrial hydrogen in energy-intensive industries like oil refining. However, growing electrification and renewable technologies pose looming substitute threat in long run.
Competitive rivalry: The market is highly concentrated with top players competing on pricing, innovative technology and reliability of supply. They constantly invest in expanding global production capacities and acquiring smaller players to sustain competitive edge.
The global U.S., Europe And Asia Industrial Hydrogen Market is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing demand from refineries and chemical plants. The Asia Pacific region is projected to be the fastest growing market owing to expansion of oil & gas and chemical sectors in China, India and Southeast Asia.
The Asia Pacific region dominates the global industrial hydrogen market led by China, Japan and India. Expanding refining capacity additions coupled with chemical industry growth in developing Asian countries is boosting hydrogen demand. Rapid industrialization and strong government support through policies promoting low carbon technologies also propels the market in the region.
Key players operating in the industrial hydrogen market are Air Liquide, Air Products & Chemicals Inc., Praxair Inc., Linde Plc., and Messer Group GmbH. Air Liquide and Linde Plc. enjoy leadership position while Praxair and Air Products are other major suppliers globally. They cater to energy, metals, and chemical sectors providing gas production, liquefaction, storage and distribution services.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it