The Clean Hydrogen Market is estimated to be valued at US$ 81 Billion in 2021 and is expected to exhibit a CAGR of 14.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Clean hydrogen is a carbon-free fuel produced through the electrolysis of water or the reformation of natural gas. It is a versatile energy carrier that can be used in a wide range of applications, including transportation, power generation, and industrial processes. The increasing focus on decarbonization and the shift towards renewable energy sources have led to a surge in demand for clean hydrogen.
Market Dynamics:
The clean hydrogen market is driven by various factors, including government initiatives to reduce carbon emissions, the growing demand for renewable energy, and the need to enhance energy security. Governments around the world are implementing policies and regulations to promote the production and use of clean hydrogen, thereby creating a favorable market environment. Additionally, the rising investments in the development of hydrogen infrastructure and the increasing adoption of hydrogen-powered vehicles are further driving the market growth.
Furthermore, the opportunity lies in the advancements in hydrogen production technologies, such as electrolyzers and hydrogen fuel cells, which are becoming more efficient and cost-effective. These advancements are expected to drive down the production costs of clean hydrogen and make it a viable alternative to conventional fuels in various applications.
Segment Analysis:
The clean hydrogen market can be segmented by production technology, application, and end-user. In terms of production technology, the dominating segment is electrolysis. Electrolysis is the process of splitting water into hydrogen and oxygen using an electric current. It is a clean and sustainable method of hydrogen production, making it the preferred choice for many industries. Electrolysis is gaining traction due to the increasing demand for green hydrogen, which is produced using renewable energy sources. The use of electrolysis technology for hydrogen production is expected to dominate the market due to its environmental benefits and the global shift towards decarbonization.
PEST Analysis:
Political: Governments across the world are implementing policies and regulations to promote the use of clean energy, including hydrogen. Political support and investments in clean hydrogen infrastructure are driving the market growth.
Economic: The clean hydrogen market is experiencing significant growth due to the increasing investments from private and public sectors. The market offers lucrative opportunities for companies involved in hydrogen production, infrastructure development, and related technologies.
Social: There is a growing awareness among individuals and communities about the need for sustainable energy sources. The demand for clean hydrogen is driven by the social consciousness towards reducing carbon emissions and combating climate change.
Technological: Advances in electrolysis technology and renewable energy sources have made the production of clean hydrogen more efficient and cost-effective. The development of hydrogen fuel cells and storage systems is also driving the market growth.
Key Takeaways:
The global Clean Hydrogen Market Demand is expected to witness high growth, exhibiting a CAGR of 14.1% over the forecast period (2023-2030), due to increasing investments in clean energy solutions and the growing demand for decarbonization. The market size for 2021 is estimated to be US$ 81 billion.
In terms of regional analysis, Europe is the fastest-growing and dominating region in the clean hydrogen market. The European Union has set ambitious targets for clean hydrogen production and utilization to achieve its carbon neutrality goals. The presence of major players, supportive government policies, and well-established infrastructure make Europe a key market for clean hydrogen.
Key players operating in the 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. These key players are driving innovation, investing in research and development, and forming strategic partnerships to strengthen their market position and meet the increasing demand for clean hydrogen.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
