Hydrogen Generation Market Size Worth USD 220.37 Billion, Globally, by 2028 at 5.6% CAGR: Fortune Business Insights™
Fortune Business Insights
6 min read
Fortune Business Insights
Hydrogen Generation Market to Exhibit 5.6% CAGR till 2028; Need to Curb Emissions of Greenhouse Gases will Aid Growth
Pune, India, April 08, 2022 (GLOBE NEWSWIRE) -- The global hydrogen generation market size was USD 145.67 billion in 2020. Hydrogen Generation Market is projected to grow from USD 150.20 billion in 2021 to USD 220.37 billion in 2028, exhibiting a CAGR of 5.6% during the forecast period. This information is given by Fortune Business Insights™ in a study, 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.
Key Players Focus on Bagging New Orders to Gain Competitive Edge
Rising Adoption of Desulfurization in Refining Industry to Boost Growth
COVID-19 Impact:
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.
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. Below are two of the latest 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
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.
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.
Regional Analysis-
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.
List of Key Companies Profiled in the Market Report:
Air Liquide
Air Products
Iwatani Corporation
Hydrogenics
Linde
Praxair, Inc
Messer Group
Showa Denko K.K.
Epoch Energy Technology Corporation
Idroenergy Spa
McPhy
Proton OnSite
LNI Swissgas
Airgas
Parker Hannifin
FuelCell Energy
Table of Contents:
1. Introduction 1.1. Research Scope 1.2. Market Segmentation 1.3. Research Methodology 1.4. Definitions and Assumptions 2. Executive Summary 3. Market Dynamics 3.1. Market Drivers 3.2. Market Restraints 3.3. Market Opportunities 4. Key Insights 4.1 Key Industry Developments - Merger, Acquisitions, and Partnerships 4.2 Technological Developments 4.3 Porter’s Five Forces Analysis 4.4 SWOT Analysis 4.5 Impact of COVID-19 5. Global Hydrogen Generation Market Analysis, Insights and Forecast, 2017-2027 5.1. Key Findings / Summary
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