Hydrogen Market are electrochemical devices that use hydrogen as fuel to generate electricity through an electrochemical reaction with oxygen from the air without any combustion involved. Fuel cells offer several advantages over conventional power generation methods including high efficiency, very low or zero emissions, quiet operation, and versatility. The increasing need for clean energy with minimal emissions is propelling the growth of the global hydrogen fuel cell market. High efficiency of hydrogen fuel cells makes them suitable for diverse applications ranging from portable power to transportation to stationary power generation.
The global Hydrogen Fuel Cell Market is estimated to be valued at US$ 151.5 Bn in 2023 and is expected to exhibit a CAGR of 23% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity
Government policies and subsidies promoting fuel cell electric vehicles adoption are encouraging many leading automakers to invest heavily in developing hydrogen-powered vehicles. Additionally, the establishment of hydrogen refueling infrastructure is helping overcome a major challenge hindering widespread commercialization. As environmental concerns continue to rise globally, the demand for clean mobility using hydrogen fuel cells as an alternative to conventional internal combustion engines is expected to accelerate significantly during the forecast period. This rising demand from the transportation sector offers lucrative opportunities for players in the hydrogen fuel cell market.
Porter’s Analysis:
Threat of new entrants: The threat of new entrants in the hydrogen market is moderate as setting up a new production and distribution facility requires large capital investments. However, scaling up production requires additional CAPEX and can deter new players.
Bargaining power of buyers: The bargaining power of buyers in the hydrogen market is low. The use of hydrogen as fuel is still in a nascent stage and buyers have limited alternatives. Hydrogen producers also offer competitive prices and logistics support to clients.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Key raw materials for hydrogen production like natural gas are produced by few large players globally. However, most established producers have long-term supply contracts in place.
Threat of new substitutes: The threat from substitutes is growing steadily. Alternative clean fuels like battery electric vehicles pose a threat to hydrogen used in transportation. Fuel cells also face competition from technologies with increasing efficiencies like lithium-ion batteries.
Competitive rivalry: The competitive rivalry in the global hydrogen market is high. Major players compete on parameters like technology, production cost, quality, reliability of supply and customer service. Strategic collaborations and M&As are common in the industry.
SWOT Analysis:
Strengths: Hydrogen is a clean fuel and emits only water vapor when used. It can enable deep decarbonization of industries and transport. Production technologies are scalable to meet growing demand.
Weaknesses: Hydrogen infrastructure like production plants, pipelines, and refueling stations needs substantial investment to be built. Producing and transporting hydrogen economically at scale remains challenging. Public awareness about the uses of hydrogen is still low.
Opportunities: Many countries are developing hydrogen economies and policies to facilitate its usage across sectors. Declining costs of electrolyzers and fuel cells will support the commercialization of hydrogen. Growing investments in renewable energy make green hydrogen production viable.
Threats: Established fossil fuel incumbents may pose regulatory and pricing threats. Technology breakthroughs can make other clean alternatives like batteries superior to hydrogen for some applications. Safety standards need to catch up with extensive usage of hydrogen.
Key Takeaways:
The Global Hydrogen Market Size is expected to witness high growth. The global Hydrogen Fuel Cell Market is estimated to be valued at US$ 151.5 Bn in 2023 and is expected to exhibit a CAGR of 23% over the forecast period 2023 to 2030.
Asia Pacific dominates the global hydrogen market currently due to presence of leading producers in countries like China, Japan and the widespread usage of hydrogen in refineries. China has the largest capacity for low-carbon hydrogen production globally and is leading investments in related infrastructure. Europe and North America are also major producers and consumers of hydrogen. Both regions have formulated strategies and policies to boost production of low-carbon hydrogen and build supporting infrastructure for its widespread deployment across industries and transport.
Key players related content comprises Key players related content: Key players operating in the hydrogen market are IBM Corporation, Informatica LLC, Riversand Technologies, Inc., SAP SE, Salsify Inc. IBM aims to leverage its clean hydrogen infrastructure for industrial clients. SAP offers solutions to optimize hydrogen supply chains and production facilities.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
