Clean hydrogen involves the production of hydrogen fuel using renewable energy sources like water electrolysis without directly emitting any greenhouse gases. Hydrogen fuel cells can be used in various industrial sectors like transportation, power generation, and chemicals to reduce carbon emissions. Hydrogen enables decarbonization of industries through flexible energy storage and use across multiple end-use applications. It can be produced using renewable energy, integrated into existing natural gas infrastructure, or utilized directly in fuel cell vehicles. The global clean hydrogen market encompasses technologies and solutions for the production, storage, transport, and usage of clean hydrogen.
The global clean hydrogen Market is estimated to be valued at US$ 5.02 Bn in 2024 and is expected to exhibit a CAGR of 12.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The rising demand for green and sustainable energy solutions is a key driver boosting the clean hydrogen market. Stringent regulations regarding carbon emissions from industries are compelling companies to adopt clean technologies. Many countries have announced ambitious targets and investment plans to develop hydrogen economies and decarbonize industries through hydrogen as an alternative fuel. For instance, the European Union’s hydrogen strategy aims to install at least 6 GW of renewable hydrogen electrolyzers and produce up to 1 million tons of renewable hydrogen in the EU by 2024.
The increasing focus on using hydrogen for transportation applications such as fuel cell vehicles, trains, and ships is also propelling the clean hydrogen market growth. Many automobile manufacturers have unveiled plans for mass production of hydrogen fuel cell vehicles. However, high production costs and lack of hydrogen refueling infrastructure continue to hamper the widespread adoption of clean hydrogen currently.
Segment Analysis
The clean hydrogen market is dominated by the green hydrogen sub-segment owing to increasing focus on developing renewable and clean sources of energy globally to reduce carbon emissions. Green hydrogen produced through electrolysis of water using renewables such as solar and wind as the electricity source is gaining prominence as it has zero carbon footprint compared to blue and grey hydrogen.
PEST Analysis
Political: Many governments are coming up with supportive policies and regulations to boost production of clean hydrogen such as targets for installing electrolyzers, carbon pricing mechanisms, funding for projects etc. This is promoting investments in the sector.
Economic: Transition to clean hydrogen from fossil fuels is capital intensive but offers long term economic and environmental benefits. Falling costs of renewable energy and electrolyzers is making green hydrogen more affordable.
Social: Rising environmental consciousness is driving demand for cleaner sources of energy. Hydrogen seen as a solution to decarbonize hard to abate sectors.
Technological: Continuous technological advancements such as more efficient electrolyzers and fuel cells, improving renewable energy storage etc. are helping overcome challenges and make clean hydrogen economically viable.
Key Takeaways
The Global Clean Hydrogen Market Demand is expected to witness high growth over the forecast period driven by supportive policies and regulations, falling costs of key technologies, and initiatives by major companies.
Regional analysis: The Asia Pacific region dominates the global clean hydrogen market currently led by China and Japan. Both countries have ambitious targets for installing electrolyzers and using hydrogen in transportation and industry in line with their decarbonization goals. Europe is also emerging as a major market for clean hydrogen supported by the EU’s hydrogen strategy and funding for projects. Countries such as Germany and France are actively working to develop hydrogen valleys and build associated infrastructure.
Key players operating in the clean hydrogen market are Amyris, BioAmber, Borregaard, Codexis, Deinove, Evolva, Fermentalg, Gevo, Global Bioenergies, Metabolic Explorer, Novozymes, Solazyme, Corbion, ADM, DuPont, Eucodis Biosciences GmbH, Koninklijke DSM NV, BASF SE, Evonik Industries AG. Major clean hydrogen companies are investing heavily in building production facilities, partnering with end-users, and developing refueling stations. Hydrogen Europe, an association of over 100 companies, is also playing a role in shaping policies and developing common standards.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
