In 2020, the market for hydrogen generation was worth USD 145.67 billion. The impact of COVID-19 on the world has been unprecedented and catastrophic, with the pandemic having a negative demand shock on hydrogen generation in every region. According to our data, the global market had a growth rate of 2.4% less in 2020 than it did on average between 2017 and 2019. The market is anticipated to expand at a CAGR of 5.6% between 2021 and 2028, rising from USD 150.20 billion in 2021 to USD 220.37 billion in 2028. When the pandemic is gone, this market’s demand and growth will resume to pre-pandemic levels, which explains the abrupt increase in CAGR over the projected period.
A plentiful and flavourless element, hydrogen, often known as H2, can be found in nature in a variety of forms. The chemical element can be created as a result of several processes and is typically present in the environment in a gaseous state. Additionally, hydrogen is widely employed to power automobiles and generate energy as a clean fuel substitute. Since it only produces heat and water vapour as an output and may prevent dangerous discharges, the H2 fuel is frequently employed in fuel cell technology. Additionally, other FC manufacturing firms, like Nuvera Fuel Cells, LLC and Ballard Power Systems, among others, are always working to create cutting-edge systems that are practical to integrate in a variety of applications. Additionally, several techniques, including electrolysis and steam methane reforming, are used throughout the sector to produce H2 in order to meet the rising demand for it in a variety of applications.
Disruptions in Supply Chains to Intermittently Halt the Technology Demand amid COVID-19 Pandemic
The world’s economic systems have gotten worse as a result of the sudden SARS-CoV-2 (Severe Acute Respiratory Syndrome Coronavirus 2) outbreak that swept from China to every country in the world. The financial stability of nations has been adversely affected by severe government laws designed to contain the virus, such as national and state lockdowns, restricted foreign travel, and social distance norms. To stop the spread of infection to humans, all industrial facilities, manufacturing plants, and road transportation operations have come to a complete halt.
As a result of the declining demand and cash-deficit issues among small businesses and clients, the global market for hydrogen generation has also been affected by the pandemic. However, a number of nations have made public their plans to take advantage of the low carbon pollution conditions brought on by the shutdown of the industrial and transportation sectors, which will increase demand for clean fuel alternatives like hydrogen in a post-COVID future.
For instance, as part of the COVID-19 stimulus package for the hydrogen industry, the government of Japan unveiled a new fund in December 2020 with a USD 19 billion sum. In order to start using hydrogen as a dependable power source, the financial support seeks to introduce H2 powered cargo ships and planes over the course of the next ten years.
Scope of Report
The research on the global market for hydrogen generation provides a thorough analysis of the market by providing insightful information, statistics, industry-specific data, and historical data. After reviewing annual reports, speeches, press releases, and other technical studies by significant firms and organizations, a number of procedures and approaches are utilised in order to form meaningful hypotheses and viewpoints. The market research study also provides a thorough industry analysis and information broken down by section, which helps our readers obtain a thorough understanding of the global market.
KEY INDUSTRY PLAYERS
Air Liquide is focusing on looking into new opportunities to expand its capabilities.
Multiple players operating at various levels and supply chain stages make up the competitive environment for the global hydrogen generator market. The market participants also place a lot of emphasis on the expansion of generation capacity while enhancing effectiveness and quality. The businesses are also concentrating on starting collaboration agreements to increase production capabilities and create low-carbon generation technologies.
A French producer and supplier of industrial gas, Air Liquide, is concentrating on enhancing its H2 generating capabilities to support energy sector decarbonization initiatives. For instance, the business announced a Memorandum of Understanding (MoU) with Siemens Energy in February 2021 to establish a massive electrolyzer production unit and research and development center for cutting-edge electrolyzer technology. The partnership seeks to build a 200 MW industrial-scale electrolyzer facility in Normandy, France, to promote sustainable hydrogen production.
LIST OF KEY COMPANIES PROFILED:
- Air Liquide (France)
- Iwatani Corporation (Japan)
- Hydrogenics (Canada)
- Messer Group (Germany)
- Showa Denko K.K. (Japan)
- Linde (UK)
- Epoch Energy Technology Corporation (Taiwan)
- Idroenergy Spa (Italy)
- Praxair, Inc (U.S.)
- Air Products (U.S.)
- McPhy (France)
- LNI Swissgas (Switzerland)
- Airgas (U.S.)
- Parker Hannifin (U.S.)
- FuelCell Energy (U.S.)
SEGMENTATION
By Type Analysis
With An on Segment is Supported by its Operational Benefits and Cost-Effectiveness
The market can be divided primarily into portable and on-site categories based on kind. Due to its affordable installations and safe and effective operations, the on-site hydrogen production segment is predicted to keep a sizable market share. Furthermore, the portable type is predicted to have significant increase over the projection period as a result of the expanding use of FCEVs with a range of fuel cell power ratings.
By Technology Analysis
Greater Energy Efficiency Will Support the Growth of the Steam Methane Reforming Segment.
Technology-based divisions of this sector include steam methane reforming, coal gasification, water electrolysis, and partial oil oxidation. A substantial share is anticipated to come from the steaming methane reforming segment because of its superior output, affordable operations, and adaptability in input fuel. Additionally, the expansion of the partial oil oxidation market is projected to be aided by the rising need for automotive fuel cells to power fleets of personal and professional vehicles.
The vast availability of various coal reserves and the great reliance of various countries on coal as a principal fuel support coal gasification technology. The capacity to create H2 with no emissions while retaining technical performance will likely lead to the water electrolysis segment growing at a consistent rate, which has enormous potential.
Ammonia Production Segment to Lead Stoked by Cont
The petroleum refinery, ammonia production, transportation, methanol production, power generation section, and others comprise the majority of the global market for hydrogen generation. Since ammonia may be produced in huge quantities and can be produced using a variety of methods, this application is anticipated to have the largest market size.
The use of petroleum refineries is also anticipated to expand significantly as a result of the ongoing need for H2 to desulfurize diesel fuel and meet strict standards. The transportation sector is expected to grow as a result of the widespread use of fuel cell vehicles and the construction of new hydrogen recharging stations that offer clients easily accessible fuel.
REGIONAL INSIGHTS
Geographically speaking, the market has been examined across five important regions, including Europe, North America, Asia Pacific, the Middle East and Africa, and Latin America. The market in the Asia Pacific region, which was valued at USD 50.27 billion in 2020, is expected to rule the industry over the coming years. Favorable government regulations, sizable fuel cell car targets, increasing energy consumption, and expanding expenditures in infrastructure for hydrogen refuelling are a few of the main drivers of the regional outlook. For instance, the national hydrogen plan was modified by the Ministry of Economy, Trade, and Industry (METI) in March 2019 to include the deployment of 200,000 FCEV units by 2025 and 800,000 units by 2030.
The North American market size is being stimulated by the increasing attention of many organisations to switch primary energy generating to cleaner fuels. The regional authorities have also established specialised research and development initiatives to assist hydrogen-based activities and applications. For instance, the Hydrogen Program has been established by the Hydrogen and Fuel Cell Technologies Office of the U.S. Department of Energy (DoE) to support H2 production, infrastructure, delivery, storage, and other uses across various sectors, including stationary, industrial, and transportation.
The countries of Europe also make significant investments to increase their hydrogen production capabilities and adhere to the strict carbon emission reduction targets driving the regional environment. Europe has seen a significant uptake of hydrogen-powered vehicles, a surge in energy demand, and a spurt in the construction of hydrogen infrastructure. For instance, the French government released its national hydrogen strategy in September 2020 with the goal of increasing the 6.5 GW of hydrogen generating capacity and earning an investment of around EUR 7.2 billion by 2030.
By Type
- On-site
- Portable
By Technology
- Steam Methane Reforming
- Water Electrolysis
- Partial Oil Oxidation
- Coal Gasification
By Application
- Ammonia Production
- Petroleum Refinery
- Methanol Production
- Transportation
- Power Generation
- Others
By Geography
- North America
- By Type
- By Technology
- By Application
- By Country
- U.S
- Canada
- Europe
- By Type
- By Technology
- By Application
- By Country
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia Pacific
- By Type
- By Technology
- By Application
- By Country
- China
- India
- Japan
- Australia
- Southeast Asia
- Rest of Asia Pacific
- Latin America
- By Type
- By Technology
- By Application
- By Country
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- By Type
- By Technology
- By Application
- By Country
- GCC
- South Africa
Rest of the Middle East & Africa