Hydrogen Market Size By Application (Petroleum Refinery, Chemical), Industry Analysis Report, Regional Outlook, Price Trends, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

Hydrogen Market size was valued at over USD 150 billion in 2020 and is anticipated to witness over 9.2% CAGR between 2021 and 2027. Increasing crude oil consumption coupled with rising investments focused on the expansion of the existing refining facilities in emerging countries is set to create substantial market opportunities for numerous hydrogen manufacturers present across the globe.
 

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Hydrogen as an element is available in abundance due to its high chemical affinity. The product is generated using a range of feedstock options using both non-renewable and renewable processes. The major technologies used to produce hydrogen consist of coal gasification, steam reforming, partial oxidation and autothermal reforming of hydrocarbons. The renewable powered production methods include biomass gasification, water electrolysis, and biological production.
 

The safety concerns, production cost, existing regulations and slow infrastructure development are limiting hydrogen adoption. Introduction of a variety of policies aimed at clean fuel adoption along with increasing R&D investments toward advanced production processes will stimulate the industry scenario. Further, introduction of policies and standards to limit the amount of sulfur content in gasoline, diesel fuel, and motor oil will augment the hydrogen industry share in the coming times.
 

The global economy has been hit hard with the outbreak of coronavirus, also known as COVID-19. According to the World Health Organization (WHO), COVID-19 has impacted more than 200 countries and has adversely impacted the economies leading to lockdowns, thereby limiting the industry growth. The growing focus on renewables to tackle the climate targets is set to positively impact the industry landscape.
 

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Technological advancements and utilization in new application areas will augment the global hydrogen market demand

Commercial availability of sustainable technologies varying across sectors including power along with early development is set to enhance the business outlook. Encouraged use of electrolyzers, shifting focus toward fuel cell technologies along with development of hydrogen based synfuels will positively impacting the industry statistics. In addition, blending gaseous H2 into the existing natural gas pipelines along with utilization of blended fuels in existing end user appliances will boost the market demand.
 

Focused investments toward development of early-stage technologies will propel the hydrogen market forecast

Increasing government and public related funding programs directed toward clean energy technologies coupled with growing R&D & demonstration spending from the private companies will accelerate the business landscape. Rising investment in the energy technology startups along with strong growth in the number of patents filed for low-carbon energy technologies will stimulate the market growth in the forecast timeline. For instance, in 2020, a USD 12 billion innovation fund was announced to support the CCUS project development in Europe. Similarly, in Australia, in 2020, AREA announced USD 70 million in funding to support the acceleration of product development in Australia.
 

Shifting focus towards the demonstration & commercialization of new production technologies resulting in zero emissions will enable the usage of H₂ in electricity infrastructure and end-sectors. For instance, the New Infrastructure Action Plan, introduced in China in 2020, will establish national-leading manufacturing centers for hydrogen technologies, thereby making Beijing the hydrogen demonstration city in China primarily for fuel cell vehicles. Furthermore, there have been innumerable projects in operation to produce NH3 utilizing electrolytic hydrogen. An example of this includes the agreement signed by ACWA Power, Air Products with NEOM to invest nearly USD 5 billion to produce ammonia in Saudi Arabia.    
 

Development of decarbonization & climate mitigation policies will propel the hydrogen market share

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Announcement of hydrogen specific standards in certain economies along with review of existing regulations & legislations will support develop a robust and regulatory framework. In 2020, the Korean National Assembly approved the Hydrogen Law, thereby laying the legal foundations for the government's hydrogen commitment along with implementing the safety standards for the facilities. Lowering regulatory barriers in specific areas including pipeline specifications & product purity combined with harmonizing numerous air pollution standards will facilitate trade across economies, thereby augmenting the overall hydrogen market size. The release of H₂ roadmaps primarily in the EU consisting of installation of renewable powered electrolyzers and large-scale deployment in applications including FCEVs, steelmaking & maritime transport among others hold vast potential in developing a competitive hydrogen industry.
 

Long-term energy transition strategy will involve generating hydrogen in a cost-effective way and support develop technology to combine compressed natural gas with hydrogen. Announcement of subsidies on fuel cell vehicles in countries including China will support increase the production of hydrogen powered vehicles, fueling it as a major energy source.
 

Increasing awareness of hydrogen in the Middle East and development of long term energy plans will favor the product adoption in Latin America

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Abundance of renewable energy resources including natural gas reserves, presence of numerous hydrogen storage facilities in UAE, Oman & Kuwait along with well-developed existing natural gas grids will support the Middle East to develop a hydrogen economy. The positive outlook toward the development of pipeline network will foster the demand for low cost hydrogen production across the region. Shifting focus toward utilization of hydrogen in mobility applications coupled with development of fueling stations primarily in UAE & Kuwait will stimulate the green product penetration.
 

Latin America hydrogen market is set to witness substantial growth on account of growing development of green hydrogen. Presence of renewable resources including solar & wind specifically in Chile is set to drive the market growth in the country. For instance, the government of Chile, in 2020, announced to have a minimum of 5 GW of electrolysis capacity in development or operation by 2025. Development of hydrogen export hubs allows easier transport of hydrogen to other major markets globally.
 

Inorganic growth ventures act as the focal point for leading manufacturers

There are numerous manufacturers globally that are focused on developing new hydrogen production & distribution equipment and involved in business expansion initiatives to develop the hydrogen economy. For instance, in April 2020, a number of companies comprising of Jurong Port Pte. Ltd., PSA Corp. Ltd., City Gas Pte. Ltd., Singapore LNG, Sembcorp Industries, Mitsubishi and Chiyoda entered into an MoU to study the use of H₂ as a low-carbon alternative to contribute toward a sustainable energy future for Singapore. The eminent industry players operating in the global hydrogen market include Infinite Blue Energy, Messer Group GmbH, Engie, Nuvera Fuel Cells, Linde, Iwatani Corporation, McPhy Energy S.A., Teledyne Technologies Inc., and Ballard Power Systems among others.
 

Global Hydrogen market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD” from 2017 to 2027, for the following segments:

By Application

• Petroleum Refining
• Chemical
• 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
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • Iran
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina
  • Chile