Hydrogen Generation Market Report

Market Insights

"The global hydrogen generation market size was estimated at USD 149 billion in 2022 and is likely to grow at a CAGR of 8.45% during 2023-2028 to reach USD 241.74 billion by 2028."

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Hydrogen generation is basically an industrial method to generate hydrogen gas. It can be generated with the help of various domestic resources, including fossil fuels, biomass, and water electrolysis with electricity.

Market Dynamics

Market Drivers

The global electricity demand is expected to rise by nearly two-thirds over the forecast period, driven by increased demand for cleaner fuel and government regulations for desulfurization of petroleum products. Hydrogen's effectiveness as an energy carrier is expected to further penetrate new markets

Growing consumption of crude oil coupled with an increase in investments toward expanding existing refining facilities in developing economies, the introduction of various policies focusing on the adoption of clean fuel along with increasing investments across the refining sector, and limiting the amount of sulfur content in diesel fuel, gasoline, motor vehicles, etc. are some of the major factors expected to accelerate global hydrogen generation market growth over the forecast period.

Opportunities

Surging investments in low-emission fuels. Hydrogen and hydrogen-derived fuels are low-emission alternatives for industries like heavy industry and long-distance transport, reducing carbon emissions. Currently accounting for only 1% of global final energy consumption, hydrogen is a clean transportation fuel with fewer CO2 emissions compared to other fossil fuels. Increased production is driven by strict environmental regulations and engine manufacturer specifications.

Challenges

Hydrogen infrastructure and high-cost production techniques. The lack of a clean hydrogen value chain poses a significant challenge to developing a low-carbon hydrogen economy. Fossil fuels dominate hydrogen value chains, and only a few pilot projects exist. A global clean hydrogen market requires creating new value chains, particularly in choosing the right pathway for hydrogen's supply, handling, and demand chains. Fuel cell vehicles cannot operate autonomously due to a lack of infrastructure. Addressing transportation and storage challenges and expensive on-site hydrogen production techniques are essential for accelerating the commercialization of hydrogen and fuel cell technology.

Key Players

The following are the key players in the hydrogen generation market (arranged alphabetically).

• Air Liquide S.A.
• Air Products & Chemicals Inc.
• Caloric Anlagenbau GmbH
• Hydrogenics Corporation
• Iwatani Corporation
• Nel ASA
• Nuvera Fuel Cells, LLC
• Plug Power Inc.
• Showa Denko K.K.
• The Messer Group GmbH.

Note: The above list does not necessarily include all the top players in the market.

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Segments Analysis

Delivery Mode Trends

"The merchant segment accounted for the largest market share."

The market is segmented as captive and merchant. The merchant segment is estimated to witness significant growth in the market owing to various favorable policies supporting the use of merchant hydrogen in new applications including pharmaceuticals coupled with their generation from new sources, fueling the overall industry growth over the forecast period.

Process Trends

"The steam methane reforming segment accounted for the largest market share."

The market is segmented as steam methane reforming, electrolysis, and others. Steam methane reforming process is estimated to be the fastest-growing segment of the hydrogen generation market during the forecast period on account of the ease of availability of conventional fuels, resulting in minimized operational costs along with improvement in economic advantages.

Application Trends

"The chemicals segment accounted for the largest market share."

The market is segmented as petroleum refining, chemicals, metal, and others.  Moreover, the chemicals segment is divided into ammonia, methanol, and others. Ammonia production led the revenue share in 2022, accounting for over 20%. Its potential as a carbon-free fuel, hydrogen carrier, and energy store presents an opportunity for renewable hydrogen technologies.  Hydrogen is typically produced on-site at ammonia plants from fossil fuel feedstock, such as natural gas or coal, which can be used for partial oxidation (POX) processes.

The hydrogen generation market for methanol is expected to grow as hydrogen demand increases. Methanol is a useful chemical product and a promising building block for complex compounds like acetic acid and methylamine. It is the simplest alcohol and can be produced by converting CO2 and H2, significantly reducing atmospheric CO2 emissions. Its unique smell and colorless liquid make it a promising alternative.

Regional Insights

"Asia-Pacific accounted for the largest market share."

Asia-Pacific accounted for more than 40% market share in 2022 and is estimated to be the leading region in the market owing to the presence of various manufacturing facilities coupled with economic development in the regional market. China and India being the major countries with growing energy demands are expected to fuel the regional market growth. North America and Europe are also estimated to offer substantial growth opportunities in the hydrogen generation market over the forecast period.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s hydrogen generation market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the global hydrogen generation market. The following are the key features of the report:

What Deliverables Will You Get in this Report?

Market Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision making and growth strategy formulation based on the opportunities present in the market.

The hydrogen generation market is segmented into the following categories.

By Delivery Mode Type

• Captive
• Merchant

By Process Type

• Steam Methane Reforming
• Electrolysis
• Others

By Application Type

• Petroleum Refining
• Chemicals
• Metal
• Others

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Customization Option

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players).
• SWOT analysis of key players (up to 3 players).

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.

Recent News

July 2022: Air Liquide to build two new hydrogen production units with carbon capture technology in Shanghai Chemical Industry Park

Shanghai Chemical Industry Park Industrial Gases Co., Ltd (SCIPIG), a subsidiary of Air Liquide, will invest more than 200 million euros to build two hydrogen production units and related infrastructure in Shanghai Chemical Industry Park (SCIP). Read more..