The global Clean Hydrogen Market is estimated to be valued at US$ 4.35 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Clean hydrogen is defined as hydrogen produced using renewable resources, such as solar, wind and hydroelectric power. Clean hydrogen has a wide range of industrial uses including oil refining, ammonia production, methanol production and transportation fuel. It provides advantages over conventional fossil fuels as it produces no carbon emissions and only water vapour when used in a fuel cell. Clean hydrogen is considered a critical component for decarbonizing transportation and industrial sectors to meet climate targets.
Market key trends:
One of the key trends in the clean hydrogen market is increasing investment and focus on developing large-scale production using electrolysis. Electrolysis uses renewable electricity to split water into hydrogen and oxygen and is seen as one of the most viable routes for clean hydrogen production at scale. Major companies are partnering with electrolyser manufacturers to develop gigawatt scale projects. Government policies are also driving the adoption of clean hydrogen with Production and fuel cell based transportation programs.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate due to the high capital requirement for setting up manufacturing plants and infrastructure for clean hydrogen.
Bargaining power of buyers: The bargaining power of buyers is high as clean hydrogen has numerous applications and end-use industries. Buyers can negotiate on price and demand value-added services.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as increasing investments are encouraging new players to enter the market. However, intellectual property rights and regulations provide some bargaining power to existing suppliers.
Threat of new substitutes: The threat of substitutes is low as clean hydrogen has inherent advantages over other energy sources and no direct substitution is available for its wide ranging applications.
Competitive rivalry: Competition in the clean hydrogen market is intensifying.
Key Takeaways
The global clean hydrogen market is expected to witness high growth, exhibiting CAGR of 14% over the forecast period, due to increasing investments by governments and private bodies to tide over the issues of environmental pollution and dependency on fossil fuels.
The Asia Pacific region is expected to dominate the global clean hydrogen market during the forecast period. This is attributed to the rising demand for clean energy from various end-use industries in emerging economies like China and India. Increasing government support in the form of initiatives and investments towards clean energy generation is also driving the Asia Pacific clean hydrogen market.
Key players operating in the clean hydrogen market are 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. Linde Plc, Air Liquide and Engie collectively account for over 35% share of the global clean hydrogen market. Major players are investing heavily in capacity expansion and developing new technologies to strengthen their position in the clean hydrogen space.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it