Hydrogen Generation Market Size to Hit $220.37 Billion by 2028 | exhibiting a CAGR of 5.6%
Fortune Business Insights
7 min read
Fortune Business Insights
The global hydrogen generation market size was valued at USD 150.20 billion in 2021 and is projected to reach USD 220.37 billion by 2028. The global market is expected to grow at a Compound Annual Growth Rate (CAGR) of 5.6% over the forecast period 2021-2028.
Pune, India, Nov. 30, 2023 (GLOBE NEWSWIRE) -- The global hydrogen generation market size was valued at USD 150.20 billion in 2021 and is projected to reach USD 220.37 billion by 2028. The global market is expected to grow at a Compound Annual Growth Rate (CAGR) of 5.6% over the forecast period 2021-2028. This vital information is presented by Fortune Business Insights™, in its report titled, “Hydrogen Generation Market, 2021-2028.”The market is set to gain traction from the high demand for fuel cell-based buses and electric vehicles (EVs), especially in North America and Asia Pacific. In December 2019, Hyundai, for instance, planned to invest around USD 6 billion in the development of hydrogen fuel cell technology to increase the sales of electric vehicles worldwide. This information is given by Fortune Business Insights™ in a study, titled, “Hydrogen Generation Market, 2021-2028.”
Market Drivers & Restraints:
Rising Adoption of Desulfurization in Refining Industry to Boost Growth
To reduce the emissions of sulfur oxides and acid rain, a process called desulfurization is followed. It helps in lowering the sulfur content in hydrocarbons and hence requires hydrogen. This gas is extensively used by the refining industry to break up heavy hydrocarbons. The regulatory bodies worldwide are implementing strict laws and regulations on the application of heavier hydrocarbons, as well as to reduce the emissions in the atmosphere. Such factors are expected to augment the hydrogen generation market growth in the coming years. However, the technologies required for hydrogen generation are expensive. It may obstruct the market growth.
Market Opportunities:
The opportunities in the Hydrogen Generation Market stem from the global push towards clean energy solutions, expanding applications in industries like transportation and power, and advancements in green hydrogen production technologies. Rising investment in research and development, government support for hydrogen initiatives, and international collaborations present avenues for market players to capitalize on the growing demand for sustainable energy alternatives.
Market Challenges:
The challenges in the Hydrogen Generation Market include high initial infrastructure costs, limited hydrogen storage and transportation capabilities, and dependence on fossil fuels for hydrogen production. Technological barriers, intermittent renewable energy sources, and regulatory frameworks hindering large-scale adoption pose obstacles. Addressing these challenges requires innovative solutions and collaborative efforts to establish a robust and sustainable hydrogen ecosystem.
Key Industry Developments:
July 2020: Air Products signed an agreement to join forces with NEOM and ACWA Power to construct a green hydrogen-based ammonia production plant worth about USD 5 billion in Saudi Arabia. The facility will produce 650 tons of hydrogen by utilizing electrolysis by 2025.
The pandemic has severely affected the global hydrogen generation industry, owing to decreased demand and cash-flow among regional players and traders. However, a number of policymakers have announced proposals to take advantage of the reduced carbon emission levels brought about by the closure of the manufacturing and transportation industries, boosting demand for clean fuel alternatives. For example, in December 2020, the Japanese government announced a new fund worth more than USD 19 billion as part of the COVID-19 stimulus package for the hydrogen industry. This will improve the outlook of the hydrogen generation market during the coronavirus outbreak.
This Report Answers the Following Questions:
What are the growth drivers and obstacles in the market?
Which companies would lead the market in terms of revenue?
What are the key strategies adopted by the companies?
How will the ruling bodies promote the usage of hydrogen generation processes?
Hydrogen Generation Market Segmentation:
Ammonia Production Segment to Lead Backed by its Economic Feasibility
In terms of application, the market is divided into power generation, transportation, methanol production, petroleum refinery, ammonia production, and others. Amongst these, the ammonia production generated 37.9% hydrogen generation market share in 2020. The segment is set to retain its dominant position in the near future owing to the increasing usage of hydrogen in the ammonia plants across the globe. Besides, ammonia is experiencing high popularity because of its cost-effective nature and easy adoption.
Asia Pacific to Dominate Fueled by Increasing Refinery Operations
Geographically, Asia Pacific procured USD 50.27 billion in 2020. This growth is attributable to the rising refinery operations in the countries such as China, South Korea, and India to meet the increasing demand for fuels. Japan, for instance, declared that it has planned to bring about 6,000 fuel cell cars and 100 fuel cell buses on the road by the end of 2020. This proves that the popularity of hydrogen generation systems would surge in this region.
In Europe, the countries are persistently investing hefty amounts of money in the development of hydrogen projects. They are looking forward to achieving the targets set by the European Commission to encourage the adoption of sustainable and clean energy sources in future. This would further accelerate the demand for hydrogen generation systems. North America, on the other hand, would showcase considerable growth during the forthcoming years backed by the implementation of strict norms by the governments to curb the emissions of greenhouse gases.
Key Players Focus on Bagging New Orders to Gain Competitive Edge
The major companies present in the market are mainly engaging in receiving new orders from the industry giants for their in-house hydrogen generation systems. As the number of new hydrogen facilities is increasing, the demand for such systems is also surging rapidly.
A List of Key Manufacturers Operating in the Global Market:
Fortune Business Insights™ offers expert corporate analysis and accurate data, helping organizations of all sizes make timely decisions. We tailor innovative solutions for our clients, assisting them address challenges distinct to their businesses. Our goal is to empower our clients with holistic market intelligence, giving a granular overview of the market they are operating in.
