The hydrogen generation market is projected to grow considerably during the forecast period.
Demand for cleaner fuel and tightening government guidelines for petroleum product desulfurization is increasing the hydrogen generation market growth.
Because it is a highly efficient energy carrier, hydrogen is anticipated to continue to expand into previously untapped markets. Throughout the forecast period, it is expected that the global electricity demand will increase by almost two-thirds of its current level. It is expected that concentrating on distributed power and utility projects will support the industry’s expansion. The market is also dominated by a shift in emphasis toward cleaner energy sources and by regulations that are favourable to the industry. The global energy crisis has sparked investigations into alternate energy sources and several sustainable conservation projects.
The rising use of hydrogen in fuel cell-powered vehicles is anticipated to propel the blue hydrogen. Fossil fuels can be replaced by fuel cells, an environmentally friendly form of transportation. In addition, governments everywhere encourage the use of fuel-cell automobiles as a way to reduce greenhouse gas emissions. Tax breaks and subsidies are being provided, and more funds are being allocated to the infrastructure development of fuel-cell automobiles. Therefore, throughout the forecast period, it is anticipated that the growing use of hydrogen in the automotive industry will propel demand for blue hydrogen and lead to market growth.
As a clean energy source, hydrogen is becoming more popular, particularly in industries where decarbonization is a top concern. Since hydrogen can produce energy with no emissions, it is viewed as a promising alternative to fossil fuels by the industrial sector.
Moreover, hydrogen is being invested in by numerous governments across the globe as a means of mitigating the effects of climate change. Market expansion is being promoted by tax breaks, subsidies, and regulatory frameworks that encourage the development and application of hydrogen in a variety of industries.
Hydrogen generation techniques are becoming more efficient and economical due to ongoing research and technological advancements. The viability of producing hydrogen is increasing with developments in electrolysis, catalysts, and the integration of renewable energy sources. Furthermore, within the chemicals and materials sector, hydrogen is used in several industries, such as methanol production, ammonia production, refining, and other chemical processes. The market is growing because of the need for hydrogen as a feedstock for these processes.
Infrared radiation, also known as net heat energy, can be absorbed by greenhouse gases from the earth's surface, re-radiated there, and added to the overall effect. The use of fossil fuels and the world's fast industrialization are the main causes of the ongoing increase in greenhouse gas emissions. For instance, the Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule was created by the National Highway Traffic Safety Administration (NHTSA) and the US Environmental Protection Agency (EPA) in response to this problem. This rule establishes lower standards for Corporate Average Fuel Economy (CAFE) and GHG emissions for cars built in the United States between 2021 and 2026.
The use of ammonia as a carbon-free fuel, hydrogen carrier, and energy store presents a chance to further expand the use of renewable hydrogen technologies. At ammonia plants, hydrogen is usually produced on-site using a feedstock of fossil fuels. The most popular feedstock for a steam methane reforming (SMR) unit is natural gas. Through a partial oxidation (POX) process, ammonia can also be produced from coal. As the need for hydrogen grows, the market is expected to grow steadily across all segments. Presently regarded as one of the most valuable chemical products, methanol holds great potential as a building block for the synthesis of more complex chemical compounds.
This procedure involves heating gases, like methane, with steam and a catalyst to produce an endothermic reaction. It is expected that this reaction will further break down the methane molecule into hydrogen and carbon monoxide. It is expected that the carbon monoxide will undergo a water gas shift reaction to release hydrogen gas. The Middle East and African countries' abundant fossil fuel reserves may present the best chance for the market to expand. The advancement of carbon capture technology in recent times has the potential to create additional avenues for the expansion of hydrogen production via the steam reforming process.
The fastest-growing market is in the Asia-Pacific area because of the growing demand for hydrogen in China and India for electricity generation.
Additionally, countries like Australia, Japan, and India are seeing an increase in government initiatives to support clean and green energy, which is driving market expansion. A strong economic development that supported the expansion of the hydrogen-generating industry in this region was evidenced by the quick development of multiple sectors in different economies, including South Korea, China, Japan, and India. The area's attractive growth is mostly due to the growing demand for electric vehicles that run on fuel cells. In addition, the area is seeing an increase in the production of electricity through renewable sources.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Growth Rate | CAGR during the forecast period |
| Study Period | 2019 to 2029 |
| Historical Data | 2019 to 2022 |
| Base Year | 2024 |
| Forecast Period | 2024 – 2029 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Hydrogen Generation Market |
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| Customization Scope | Free report customization with purchase |
Hydrogen Generation Market is analyzed into the following segments:
Key questions answered in this report: