Hydrogen Market Analysis

Hydrogen Market Analysis

The industry share from petroleum refining reached 100 MMT in 2022. The surging demand for hydrogen across refineries due to extensive carbon footprint reduction efforts will positively influence the industry outlook. Refineries use hydrogen to reduce the amount of sulfur in diesel fuel and gasoline produced from crude oil. Several refineries worldwide are utilizing green hydrogen to achieve net-zero emission targets. However, in February 2023, the Indian Oil Corporation (IOC), one of India’s largest oil firms announced plans to establish green hydrogen plants across all of its refineries by 2047.
 

The grey hydrogen market is projected to observe 3% growth rate during 2023-2032. The increasing crude oil consumption and favorable efforts toward the refurbishment of existing refining facilities will proliferate the product demand. Additionally, processes such as steam methane reformation (SMR) are widely used to produce grey hydrogen. However, these processes are relatively carbon-intensive and are therefore driving preference toward green hydrogen, which may impact the business dynamics by 2032.
 

Asia Pacific hydrogen industry is estimated to amass USD 11 billion by 2032. The region is set to emerge as a lucrative hotspot for the development of the global market with significant efforts by multiple government agencies. Moreover, in January 2023, the Union Cabinet of India rolled out the National Green Hydrogen Mission with an initial outlay of USD 2.38 billion to create a green hydrogen production capacity of 5 MMT per annum along with a renewable energy capacity expansion of 125 GW in the country. Hence, the growing demand for hydrogen across refineries, and chemical sectors, and supportive government policies and funding will enhance the regional sector growth.