The global clean hydrogen market, valued at US$ 3.81 billion in 2022, is poised for robust growth with an anticipated compound annual growth rate (CAGR) of 14.1% from 2023 to 2029.
This growth is driven by a rising awareness of carbon emissions and sustainable alternatives. Industrialization and modernization have led to increased production of greenhouse gases like nitrous oxide, carbon dioxide, and methane, contributing to global temperature rise and ecosystem harm. Governments worldwide are taking proactive measures to control carbon emissions and combat global warming by promoting the use of hydrogen gas in various sectors, including construction, power generation, industry, and transportation.
Global Clean Hydrogen Market: Regional Highlights
Geographically, Europe is projected to dominate the global clean hydrogen market throughout the forecast period. The region's leadership is attributed to its climate-friendly policies and stringent regulatory frameworks. Countries like France, Spain, Italy, Norway, and the UK have made significant contributions to the global clean hydrogen market. In 2020, Europe accounted for an impressive 82.51% share of the global clean hydrogen market, according to Coherent Market Insights. Additionally, the increasing number of clean hydrogen projects in Europe is expected to drive further market growth. For instance, in January 2021, Essar, an Indian energy company, partnered with UK-based Progressive Energy, a specialist in low-carbon technologies, to construct two plants at Essar's refinery in England. These plants will utilize Johnson Matthey technology to produce low-carbon hydrogen fuel from natural gas or fuel gases.
North America, with an 18.9% share of global revenue in 2022, is the second-largest market for clean hydrogen. Factors such as rising power consumption, population growth, rapid industrialization, and urbanization are fueling the demand for clean hydrogen in the region. Moreover, the increasing deployment of renewable energy resources in residential and commercial sectors, driven by rising consumer purchasing power and regulatory changes, is a key driver of regional market growth.
Global Clean Hydrogen Market Drivers:
- Government Support for Efficient Energy Usage: The global clean hydrogen market is poised for growth due to increasing government support for energy efficiency initiatives. For example, the government of California has planned a substantial $230 million investment in hydrogen projects by 2023. Notably, the world's largest clean hydrogen projects are under development in Lancaster, CA, led by an energy company. Similarly, the Government of India aims to bolster its renewable energy capacity to 450 GW by 2030, leveraging its significant potential in surplus solar and wind power capacity. Such strong governmental backing is expected to drive market expansion.
- Heightened Environmental Concerns: Rising environmental concerns are a significant driver of the growing demand for clean hydrogen. The industry is experiencing rapid growth and has the potential to disrupt conventional energy markets. Clean hydrogen can be produced through electrolysis using renewable or low-carbon sources like water and wind power. This positions it as a viable energy source to replace fossil fuels in power generation and various industrial sectors.
Global Clean Hydrogen Market Opportunities:
- Decarbonization and Climate Goals: Hydrogen stands as a clean and secure energy source with the potential to play a significant role in decarbonizing the global economy. It is a critical component of energy strategies aimed at reducing CO2 emissions and achieving international climate objectives. Governments and businesses are introducing incentives based on technology neutrality and carbon intensity, creating new avenues for market growth.
- Expanding Opportunities in Developing Nations: The clean hydrogen market holds substantial potential, particularly in developing countries. As more of these nations undergo industrialization, leading to heightened energy demands, there is a growing need for clean-energy technologies. This increasing demand in developing countries is making the clean hydrogen market even more attractive, as it aligns with the transition to sustainable and eco-friendly energy solutions.
Global Clean Hydrogen Market Trends:
- Rising Investment in the Sector: A prominent trend in the global clean hydrogen market is the increased investment by various countries. This surge in investment is poised to drive the widespread adoption of hydrogen and play a pivotal role in the large-scale deployment of hydrogen-based solutions. For example, in March 2023, the Biden-Harris Administration, in collaboration with the U.S. Department of Energy (DOE), announced the availability of $750 million for research, development, and demonstration initiatives aimed at significantly reducing the cost of clean hydrogen. This presents an attractive investment opportunity for those seeking to leverage existing infrastructure, economies of scale, and innovative solutions to meet the needs of key end-users.
- Growing Popularity of Clean Hydrogen: Hydrogen, as a clean energy carrier, is gaining increasing favor among governments and various companies. With the global pursuit of net-zero emissions and the decarbonization of economies, hydrogen has emerged as a pivotal alternative fuel. Being a renewable source, it generates no carbon dioxide emissions and finds utility in heating buildings, powering transportation, electricity generation, and chemical production. This positions hydrogen as a valuable bridge toward a low-carbon future.
Global Clean Hydrogen Market Restraints:
- Challenges Due to Physical and Chemical Properties: Clean hydrogen possesses physical and chemical properties that present challenges to its handling and use. It is highly flammable and has a low density, making its transportation a complex task. Additionally, clean hydrogen exhibits a higher flammability compared to other fuels like natural gas, gasoline, and propane. These properties are anticipated to impede market growth.
- High Production Costs: The production cost of clean hydrogen typically falls within the range of $2.5/Kg to $6/Kg. In contrast to other hydrogen variants such as grey and blue hydrogen, clean hydrogen production is considerably more expensive. This high production cost represents another significant factor expected to hinder market expansion.
Global Clean Hydrogen Market Segmentation:
The global clean hydrogen market report is categorized based on technology, end-user, and geography.
In terms of technology, the market is segmented into Alkaline Electrolyzer, PEM Electrolyzer, and SOE Electrolyzer. Among these, Alkaline Electrolyzer is anticipated to lead the global market during the forecast period, primarily due to its straightforward design and relatively effortless operation compared to other technologies.
Pem Electrolyzer segment is poised for substantial growth in the near future due to the increasing popularity of this technology across various sectors.
Regarding end-users, the market is categorized into Transport, Industrial, Power Generation, and Others. Among these, Transport is expected to take the lead in the global market throughout the forecast period. The transport sector holds significant promise for the advancement of hydrogen technologies due to its heavy reliance on oil-based products and limited low-carbon alternatives in various applications. Furthermore, hydrogen-powered vehicles offer distinct advantages over electric vehicles, as they can be utilized to fuel a wide range of vehicles, including cars, trucks, buses, and freight trains.
The Power Generation segment is also anticipated to experience substantial growth in the near future, driven by the increasing demand for clean energy sources.
Key Developments in the Global Clean Hydrogen Market:
- In September 2022, Linde unveiled plans for the construction of a 35-megawatt PEM (Proton Exchange Membrane) electrolyzer facility to produce green hydrogen in Niagara Falls, New York. This new plant will stand as Linde's largest electrolyzer installation worldwide and is set to more than double the company's green liquid hydrogen production capacity in the United States.
- In March 2022, Honeywell announced the development of innovative catalyst-coated membrane (CCMs) technology for the production of Green Hydrogen. The company is planning to further test this technology in collaboration with electrolyzer manufacturers.
Key Insights into Companies in the Global Clean Hydrogen Market:
The global clean hydrogen market is characterized by intense competition, driven by the continuous launch of new technologies resulting from ongoing research and development efforts by participants in the value chain. Moreover, key players are adopting diverse business growth strategies to expand their footprint both regionally and globally. Some of the prominent companies operating in the global clean hydrogen market include Linde Plc, Air Liquide, Engie, Uniper SE, Air Products Inc., Clean Hydrogen System, Cummins Inc., Toshiba Energy Systems & Solutions Corporation, Nel ASA, and Sgh2 Energy.
1 Market Overview
1.2 Market Analysis by Type
1.2.1 Overview: Global Revenue by Type: 2022 Versus 2023 Versus 2029
1.3 Market Analysis by Application
1.3.1 Overview: Global Revenue by Application: 2022 Versus 2023 Versus 2029
1.4 Global Market Size & Forecast
1.4.1 Global Sales in Value (2017-2029))
1.4.2 Global Sales in Volume (2017-2029)
1.4.3 Global Price by Type (2017-2029) & (US$/Unit)
1.5 Global Production Capacity Analysis
1.5.1 Global Total Production Capacity (2017-2029)
1.5.2 Global Production Capacity by Geographic Region
1.6 Market Drivers, Restraints and Trends
1.6.1 Market Drivers
1.6.2 Market Restraints
1.6.3 Trends Analysis
2 Manufacturers Profiles
**This is for each company**
2.1.1 Company Details
2.1.2 Company Major Business
2.1.3 Company Product and Services
2.1.4 Company Sales, Price, Revenue, Gross Margin and Market Share (2019-2022)
3 Sales by Manufacturer
3.1 Global Sales in Volume by Manufacturer (2020-2022)
3.2 Global Revenue by Manufacturer (2020-2022)
3.3 Key Manufacturer Position in Market
3.4 Market Concentration Rate
3.4.1 Top 3 Manufacturer Market Share
3.4.2 Top 6 Manufacturer Market Share
3.5 Global Production Capacity by Company
3.6 Manufacturer by Geography: Head Office and Production Site
3.7 New Entrant and Capacity Expansion Plans
3.8 Mergers & Acquisitions
4 Market Analysis by Region
4.1 Global Market Size by Region
4.1.1 Global Sales in Volume by Region (2017-2029)
4.1.2 Global Revenue by Region (2017-2029)
4.2 North America Revenue (2017-2029)
4.3 Europe Revenue (2017-2029)
4.4 Asia-Pacific Revenue (2017-2029)
4.5 South America Revenue (2017-2029)
4.6 Middle East and Africa Revenue (2017-2029)
5 Market Segment by Type
5.1 Global Sales in Volume by Type (2017-2029)
5.2 Global Revenue by Type (2017-2029)
5.3 Global Price by Type (2017-2029)
6 Market Segment by Application
6.1 Global Sales in Volume by Application (2017-2029)
6.2 Global Revenue by Application (2017-2029)
6.3 Global Price by Application (2017-2029)
7 North America by Country, by Type, and by Application
7.1 North America Sales by Type (2017-2029)
7.2 North America Sales by Application (2017-2029)
7.3 North America Market Size by Country
7.3.1 North America Sales in Volume by Country (2017-2029)
7.3.2 North America Revenue by Country (2017-2029)
7.3.3 United States Market Size and Forecast (2017-2029)
7.3.4 Canada Market Size and Forecast (2017-2029)
7.3.5 Mexico Market Size and Forecast (2017-2029)
8 Europe by Country, by Type, and by Application
8.1 Europe Sales by Type (2017-2029)
8.2 Europe Sales by Application (2017-2029)
8.3 Europe Market Size by Country
8.3.1 Europe Sales in Volume by Country (2017-2029)
8.3.2 Europe Revenue by Country (2017-2029)
8.3.3 Germany Market Size and Forecast (2017-2029)
8.3.4 France Market Size and Forecast (2017-2029)
8.3.5 United Kingdom Market Size and Forecast (2017-2029)
8.3.6 Russia Market Size and Forecast (2017-2029)
8.3.7 Italy Market Size and Forecast (2017-2029)
9 Asia-Pacific by Country, by Type, and by Application
9.1 Asia-Pacific Sales by Type (2017-2029)
9.2 Asia-Pacific Sales by Application (2017-2029)
9.3 Asia-Pacific Market Size by Region
9.3.1 Asia-Pacific Sales in Volume by Region (2017-2029)
9.3.2 Asia-Pacific Revenue by Region (2017-2029)
9.3.3 China Market Size and Forecast (2017-2029)
9.3.4 Japan Market Size and Forecast (2017-2029)
9.3.5 Korea Market Size and Forecast (2017-2029)
9.3.6 India Market Size and Forecast (2017-2029)
9.3.7 Southeast Asia Market Size and Forecast (2017-2029)
9.3.8 Australia Market Size and Forecast (2017-2029)
10 South America by Country, by Type, and by Application
10.1 South America Sales by Type (2017-2029)
10.2 South America Sales by Application (2017-2029)
10.3 South America Market Size by Country
10.3.1 South America Sales in Volume by Country (2017-2029)
10.3.2 South America Revenue by Country (2017-2029)
10.3.3 Brazil Market Size and Forecast (2017-2029)
10.3.4 Argentina Market Size and Forecast (2017-2029)
11 Middle East & Africa by Country, by Type, and by Application
11.1 Middle East & Africa Sales by Type (2017-2029)
11.2 Middle East & Africa Sales by Application (2017-2029)
11.3 Middle East & Africa Market Size by Country
11.3.1 Middle East & Africa Sales in Volume by Country (2017-2029)
11.3.2 Middle East & Africa Revenue by Country (2017-2029)
11.3.3 Turkey Market Size and Forecast (2017-2029)
11.3.4 Egypt Market Size and Forecast (2017-2029)
11.3.5 Saudi Arabia Market Size and Forecast (2017-2029)
11.3.6 South Africa Market Size and Forecast (2017-2029)
12 Sales Channel, Distributors, Traders and Dealers
12.1 Sales Channel
12.1.1 Direct Marketing
12.1.2 Indirect Marketing
12.2 Typical Distributors
12.3 Typical Customers
13 Research Findings and Conclusion
14.2 Research Process and Data Source
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analysing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.