The global Hydrogen Market is estimated to be valued at US$ 151.5 Bn in 2023 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Hydrogen is a clean energy carrier that when used in a fuel cell, produces only water. It is highly energy dense and can be produced from diverse domestic resources. The major end use applications of hydrogen include petroleum refining, ammonia production, methanol production, transportation, energy storage and portable power etc. Growing concerns regarding environmental pollution and transition towards clean fuels is fueling the demand of hydrogen in various sectors especially in transportation.
Market key trends:
With stringent emission norms and rising environmental consciousness, transition towards clean fuel cell vehicles is gaining traction. Major automakers are investing heavily in developing hydrogen fuel cell based vehicles. Recent technological advancements has improved the driving range and reduced the cost of fuel cell vehicles. growing number of hydrogen refueling stations coupled with declining battery cost is expected to boost the adoption of FCVs (Fuel Cell Vehicles) over the forecast period. This in turn will drive the consumption of hydrogen for transportation applications.
Porter’s Analysis
Threat of new entrants: The hydrogen market requires significant investment in infrastructure and R&D to develop new technologies. This high entry barrier prevents many new companies from entering the market easily.
Bargaining power of buyers: There are many industrial buyers in this market who have significant bargaining power due to their large purchase volumes. Buyers can negotiate lower prices from suppliers.
Bargaining power of suppliers: A few major companies dominate the hydrogen supply globally. This gives them strong bargaining power over buyers and allows them to influence prices.
Threat of new substitutes: Currently, there are limited substitutes for hydrogen. However, research is ongoing in the energy industry to develop clean and economical alternative energy sources that could substitute hydrogen in the future.
Competitive rivalry: The global hydrogen market is highly competitive with the presence of many global and regional players striving to gain market share. Intense competition keeps prices low and innovation high.
Key Takeaways
The global hydrogen market is expected to witness high growth, exhibiting CAGR of 7.0% over the forecast period 2023 to 2030, due to increasing demand from transportation sector. The market size for hydrogen in 2023 is estimated to be US$ 151.5 billion.
The Asia Pacific region dominates the global hydrogen market due to significant presence of major industrial hubs and high production facilities in China, Japan and India. Rapid industrialization and growing focus on clean energy in China and India is driving the demand in the region. North America is another major market for hydrogen due to high demand from chemical and refinery industries in U.S and Canada.
Key players operating in the hydrogen market are Linde AG, Air Products & Chemicals, Inc., Praxair, Inc., Air Liquide SA, and Airgas Inc. Linde AG is one of the largest supplier of hydrogen worldwide catering to diverse industries such as healthcare, electronics and chemicals. Air Products & Chemicals, Inc. is a leading producer and supplier of gases, technologies and services including hydrogen.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
