Hydrogen Generation Market Size By Delivery Mode (Captive, Merchant), By Process (Steam Reformer, Electrolysis), By Application (Petroleum Refinery, Chemical, Metal), Industry Analysis Report, Regional Outlook, Price Trends, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Mar 2020  |  Report ID: GMI1107  |  Authors: Ankit Gupta, Srishti Agarwal

Report Format: PDF   |   Pages: 215   |   Base Year: 2019

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Hydrogen Generation Market size was valued at over USD 140 billion in 2019 and is anticipated to grow at CAGR of 6.25% through 2026. Increasing crude oil consumption along with surging investments toward the expansion of existing refining facilities in developing economies will create significant market opportunities for various hydrogen manufacturers across the globe.

Hydrogen Generation Market

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Hydrogen as an element is available in abundance owing to its high chemical affinity. The product is produced from a range of feedstock options utilizing both renewable and non-renewable processes. The main technologies used for hydrogen generation include Steam Methane Reforming (SMR), partial oxidation and Autothermal Reforming (ATR) of hydrocarbons combined with water electrolysis, biomass gasification, and biological production.

The production cost, safety concerns, slow infrastructure development and existing regulations limiting hydrogen adoption are some of the major concerns associated with the utilization of hydrogen generation. Introduction of various policies aiming toward clean fuel adoption coupled with rising investments across the refining sector is set to stimulate the business scenario. Introduction of regulation of various incentive programs with an aim to limit the amount of sulfur content in diesel fuel, gasoline and motor oil will further stimulate the industry growth over the forecast timeframe.

The hydrogen generation market report features a detailed analysis of industry trends on a global scale segmented on country & regional basis across different delivery modes, processes and applications. Moreover, the industry forecasts & estimates are in line with the data represented by authorities including the International Energy Agency, Department of Energy, International Renewable Energy Agency Association, Hydrogen Council, government regulatory bodies, and company press releases.

Hydrogen Generation Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: 140.9 Billion (USD)
Historical Data for: 2015 to 2019 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 6.25% 2026 Value Projection: 168.2 Billion (USD)
Pages: 215 Tables, Charts & Figures: 279
Geographies covered (19): U.S., Canada, Mexico, UK, Germany, France, Italy, Netherlands, Russia, China, India, Japan, Saudi Arabia, Iran, UAE, South Africa, Brazil, Argentina, Chile
Segments covered: Delivery Mode, Process, Application
Companies covered (19): Air Liquide SA, Air Products & Chemicals, Hydrogenics Corporation, Iwatani Corporation, Messer Group, Showa Denko, Ally Hi-Tech, Caloric Anlagenbau, Nuvera Fuel Cells, Plug Power, Nel ASA, Taiyon Nippon Sanso, Ballard Power Systems, Mahler AGS, Teledyne Energy Systems, Xebec Adsorption, McPhy Energy, Hygear B.V, Claind SRL
Growth Drivers:
  • Shifting focus toward utilization of clean energy sources
  • Stringent norms to desulfurize the petroleum goods
  • Growing demand for hydrogen in oil & gas refineries
  • Strict mandates for emission regulations
  • Expansion of the existing refineries
  • Favorable regulatory policies & norms to boost investment in green hydrogen
  • Rapid industrialization & hydrogen infrastructure development including refueling stations
  • Burgeoning demand for fuel cell vehicles in the transport sector
  • Extensive usage in other applications including semiconductors, pharmaceuticals among others
Pitfalls & Challenges:
  • High capital, installation & maintenance costs
  • Rising demand for batteries along with transport & safety concerns

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Strict government policies & norms coupled with rising demand for onsite generation propelling the merchant hydrogen generation industry share

Merchant segment of the market is projected to witness over 7% CAGR from 2020 to 2026. Stringent norms to curb emissions from the refining sector has led to adoption of various clean energy sources including hydrogen. Policies supporting the use of merchant hydrogen in new applications comprising pharmaceuticals along with their generation from new sources is set to develop the overall industrial & environmental framework. Increasing investments in low risk hydrogen technology projects, equipped with the ability to supply H2 at competitive prices will incentivize the private sector and drive innovation based on market needs & competition.

Incapacity of the medium size industries to afford the high capital expenditure owing to storage & distribution of hydrogen is set to enhance the business outlook. Changing demographics, growing population coupled with improved standard of living across the emerging nations are some of the vital factors positively impacting the industry statistics. Harmonizing various air pollution standards and lowering the regulatory barriers in areas including hydrogen purity & pipeline specifications will facilitate hydrogen trade, thereby augmenting the market outlook. In addition, development of cross sectoral roadmaps along with large scale deployment of hydrogen refueling stations & developing targets for FCEVs will boost the market demand.

Ease of availability of conventional fuels propelling the SMR hydrogen generation market trends

SMR segment of the market is set to achieve over 6% CAGR from 2020 to 2026. Abundant availability of traditional fuels leading to reduced operational costs combined with improvement in economic & operational benefits will boost the demand for SMR. Majority of the hydrogen production facilities including central oil plants and gas refineries use the reforming technology. Greater focus on funding programs with the aim to tap the regional product demand will create enhanced opportunities for hydrogen generation.

Favourable regulatory initiatives to reduce the fossil fuel consumption across the industries is anticipated to create more opportunities for clean energy manufacturers. In addition, adoption of various desulfurization & upgradation units in accordance with the changing reforms will support adapt to the increasing demand. For instance, the IEA, in 2018, announced approximately 70% of investments in refining units primarily in the Asia Pacific & Middle East.

Escalating demand for fuel cells and heat & power generation propelling transport segment of hydrogen generation market statistics

U.S. Hydrogen Generation Market

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Others segment includes glass, agriculture, pharmaceuticals, semiconductors and transport. It holds a vast potential in the upcoming years owing to upcoming opportunities in buildings, power industry and the transport sector. Utilization of hydrogen beyond the traditional existing industrial applications will augment the global market growth. Industries comprising aviation along with shipping have limited options in terms of low carbon fuel and thus hydrogen can support in addressing the environmental targets. Although, hydrogen-based fuels have higher energy consumption along with higher costs but policy changes to achieve low carbon targets is set to substantially support the market demand.

Growing demand for hydrogen-based fuels in power generation combined with its utility in commercial buildings will drive the business growth. For instance, as per the IEA, in 2030, nearly 4 metric tons of blended hydrogen will be potentially utilized for heating buildings. Infrastructural upgrades and enhanced safety measures is projected to further boost the direct use of hydrogen in boilers which will drive the commercial hydrogen demand across various applications.

Asia Pacific to take over the regional market share due to economic development

India Hydrogen Generation Market, By Process

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North America, Asia Pacific and Europe jointly account for more than 80% of the global hydrogen generation market share. High population density, presence of numerous manufacturing facilities along with substantial investments toward fuel cell development has made Asia Pacific one of the major stakeholders across the globe. The positive outlook toward the refining sector along with the government focus on the development of new industrial facilities including chemical, automotive and power among others will foster the demand for hydrogen generation across the region.

The market statistics for hydrogen generation in Asia Pacific is anticipated to witness substantial growth owing to rising energy demands. Growing refinery operations in countries including China and India is set to drive the market growth. According to IEA 2019, Japan and China are the largest LNG importers with the highest potential for hydrogen development. Ongoing pilot projects including the supply of hydrogen from natural gas for power plant use in Japan will further support the hydrogen trade in the country. The manufacturers operating across the region are concentrating on international hydrogen trade to achieve the low carbon hydrogen economy.

Inorganic growth ventures act as the focal point for leading manufacturers

The key market players operational across the industry are currently targeting at inorganic growth ventures including collaborations & acquisitions to achieve a competitive edge. Various merger & acquisitions aim at improving the profitability and capturing a larger proportion of the market share. The eminent industry players include Hydrogenics Corporation, Showa Denko K.K, Nuvera Fuel Cells, Caloric Anlagenbau, Iwatani Corporation, Air Products & Chemicals Inc., Air Liquide SA, Messer Group GmbH and Ally Hi-Tech Co. Ltd.

Hydrogen generation market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD” from 2015 to 2026, for the following segments:

By Delivery Mode

  • Captive
  • Merchant

By Process

  • Steam Reforming
  • Electrolysis
  • Others

By Application

  • Petroleum Refining
  • Chemical
  • Metal
  • Others

The above information has been provided for the following regions and country:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Netherland
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
  • Middle East & Africa
    • Saudi Arabia
    • Iran
    • UAE
    • South Africa
  • Latin America
    • Brazil
    • Argentina
    • Chile

Frequently Asked Questions (FAQ) :

Rapid shift from fossil fuels to renewable energy sources along with the extensive applications in industries including semiconductors will be key driving factors for the growth of global market.
Major challenges likely to impact the global market size include high capital, installation & maintenance costs along with transport & safety concerns.
Hydrogenics Corporation, Showa Denko K.K, Nuvera Fuel Cells, Caloric Anlagenbau, Iwatani Corporation, Air Products & Chemicals Inc., Air Liquide SA, Messer Group GmbH and Ally Hi-Tech Co. Ltd. are top companies operating in the global market for hydrogen generation.

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