Global Hydrogen Generation Market to Exhibit Brilliant Growth: Projected to Grow at a CAGR of 9.4% by 2027
Published | 20 September 2021
Global hydrogen generation market is growing at a high CAGR because of the increasing demand for hydrogen fuel in fuel cell electric vehicles and other industries, such as steel manufacturing, data centers, etc...
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that global hydrogen generation market was worth USD 130.4 billion in the year 2020. The data yielded by the study reveals that the market is estimated to grow at a CAGR of 9.4%, earning around USD 244.0 billion by the end of 2027. The global hydrogen generation market is gaining significant traction because of the driving factors such as the shift towards sustainability, growing demand for clean and green fuel, and the flourishing hydrogen fuel cell vehicles industry. Hydrogen can be used in a variety of chemical and industrial processes, as well as integrated renewable energy systems and transportation to achieve zero or near-zero emissions. Furthermore, the wide application of hydrogen for converting heavy petroleum fractions into lighter ones via hydrocracking is another significant factor driving the demand for hydrogen generation. However, the high capital involved in establishing hydrogen plants and implementing the entire process may act as a major deterrent to the market's growth during the forecast period.
Growing Demand for Hydrogen Fuel Cell Vehicles Is Expected to Drive Global Hydrogen Generation Market
Recently, hydrogen-powered fuel-cell cars have seen steady growth in demand. Leading automobile manufacturers such as Tesla, Hyundai, etc., have invested significantly in bringing hydrogen fuel cells to market. This is due to the fact that hydrogen fuel cells are more efficient than traditional engines and emit no pollutants other than harmless water vapor and warm air. The global hydrogen generation market will likely grow further due to expanding manufacturing capacity and developing hydrogen infrastructure. This development is expected to raise the demand for hydrogen fuel cell vehicles.
Expanding Demand for Cleaner Sources of Fuel Is Projected to Boost the Global Hydrogen Generation Market
Data centers, ports, steel manufacturing, medium & heavy-duty trucks are among the industries experiencing an increase in hydrogen demand. The hydrogen in a fuel only emits water vapor and warm air when burned. Additionally, hydrogen fuel can be produced from a variety of domestic sources, such as natural gas, nuclear power, biomass, and renewable energy sources like solar and wind. Moreover, with growing environmental consciousness and an increasing shift towards sustainability, the demand for green fuel such as hydrogen is estimated to grow significantly, propelling the market growth.Green hydrogen is produced by water electrolysis using renewable energy sources such as offshore /onshore wind and solar energy. From industrial feedstock to energy storage and fuel cell vehicles, green hydrogen can be used almost anywhere. Though the concept of green hydrogen is still at a nascent stage, many forward-thinking organizations have invested in building green hydrogen production plants to help reduce GHG emissions.
Ammonia Production Segment Dominates the Global Hydrogen Generation Market Based on Applications
Based on applications, the global hydrogen generation market is segmented into ammonia production, methanol production, petroleum refinery, transportation, power generation, and others. The ammonia production segment dominates the market because of its wide application in agriculture as fertilizer. About 80% of the ammonia produced in the industry is used as fertilizer. Furthermore, the use of ammonia in the manufacturing of a wide range of products such as plastics, explosives, textiles, pesticides, dyes, and other chemicals, contributes to the growing demand for ammonia production in the global hydrogen generation market. On the other hand, the petroleum refinery segment also covers a substantial share of the market. Refineries are designed or enhanced to make various products such as gasoline, fuel oil, lube, solvents, diesel, asphalt, etc. The high demand for such products in industrial applications contributes to the growth of the global hydrogen generation market.
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Global Hydrogen Generation Market - Regional Insights
Geographically, the global hydrogen generation market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. The Asia-Pacific region dominated the global hydrogen generation market in 2020 with the largest market share. The industrial growth in emerging economies like China, India, Japan, South Korea, etc., is significantly propelling the demand for hydrogen as an energy source, which is driving the market growth. China is emerging as a leading nation for hydrogen generation with impressive large-scale investments in the fuel and petroleum industry. The high concentration of automobile manufacturers that are increasingly shifting towards hydrogen fuel cells is likely to offer lucrative growth opportunities to the hydrogen generation market in the Asia-Pacific region in the forecast period.
Impact of COVID-19 on Global Hydrogen Generation Market
The initial phase of the COVID-19 outbreak negatively impacted the global hydrogen generation market. Several levels of the hydrogen generation process and the distribution channels were temporarily halted, which led to severe losses for manufacturers. However, the market is expected to recover in the post-COVID-19 period and is anticipated to flourish during the forecast period. Governments of different countries are now focusing on sustainable development and promoting green energy sources, which is expected to drive the global hydrogen generation market.
Global Hydrogen Generation Market: Competitive Landscape
The leadingplayers in the global hydrogen generation market are Air Liquide, Green Hydrogen Systems, ITM Power, Mcphy Energy, Cummins, Linde, Starfire Energy, Engie, Nel Hydrogen, Air Products & Chemicals, Uniper, Fuel Cell Energy, Iwatani, Showa Denko, Xebec, Messer Group, Electrochaea, Taiyo Nippon Sanso, Aquahydrex, and other prominent players.
The market is highly fragmented with the presence of several industry participants and high penetration of regional players in the market. The companies consistently focus on improving their hydrogen generation capacity with more efficiency and high quality. Furthermore, the adoption of competitive strategies like partnerships, mergers, acquisitions, collaborations, etc., is also very prominent in the market.
The report’s in-depth analysis provides information about growth potential, upcoming trends, and the global hydrogen generation market statistics. It also highlights the factors driving forecasts of total market size. Additionally, the report promises to provide detailed information about the recent trends of the hydrogen generation market to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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