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Liquid Hydrogen Market Size - By Production Method (Coal Gasification, SMR), By Distribution Method (Pipelines, Cryogenic Tanks), By End Use (Transportation, Chemical, Metals), Global Industry & Forecast, 2025 – 2034

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Liquid Hydrogen Market Size

The global liquid hydrogen market size was valued at USD 40.5 billion in 2024 and is set to grow at a CAGR of 5.4% from 2025 to 2034. The creation of hydrogen hubs will increase demand as these areas serve as prominent sites for hydrogen production, storage, and distribution. The growth of liquid hydrogen technologies, as well as the collaborations between technology supply and energy industry service companies, will improve the state of the industry. Furthermore, countries and companies are forming international alliances to advance hydrogen technologies and develop global hydrogen supply chains.
 

Liquid Hydrogen Market

Ongoing investments in the production and downstream applications of hydrogen along with the economic and environmental benefits offered as a clean fuel are likely to spur the market size. Strategic steps by government authorities aiming toward the development of hydrogen ecosystem will accelerate the business demand across the country. For instance, in March 2022, the governor of New York signed an agreement with major industry partners to develop regional hydrogen hubs designated through the federal program of Regional Clean Hydrogen Hubs.
 

Liquid Hydrogen Market Trends

Innovations in cryogenic storage tanks and transportation vessels are making it easier and more cost-effective to handle liquid hydrogen will stimulate the product adoption. Firms such as Chart Industries are developing high tech cryogenic tankers and trailers which make the transport of liquid hydrogen safe and efficient.
 

Supportive government policies and initiatives such as funding for R&D, tax benefits, and the proactive use of liquid hydrogen across different industries will improve business prospects. In 2021, the U.S. DOE allocated USD 52.5 million across 31 projects focused on supporting next generation technologies and cost-effective hydrogen solutions.
 

Investment of the liquid hydrogen market is rapidly increasing due to advancements in technology, a growing emphasis in the energy sector for clean fuels, and favorable government policies. It is widely used to store and transport renewable energy along with setting up of ambitious decarbonization targets, will drive the demand for clean hydrogen solutions, thereby augmenting the industry landscape
 

Advances in hydrogen liquefaction technologies are reducing the energy required and the costs associated with producing liquid hydrogen which will drive the business scenario. For instance, in July 2021, the U.S. DOE invested USD 52.5 million for 31 projects aiming to advance next generation technologies and develop cost effective hydrogen solutions.
 

Liquid Hydrogen Market Analysis

Liquid Hydrogen Market Size, By Production, 2022-2034 (USD Billion)
  • Based on Production Method, the market is segmented into Coal Gasification, Electrolysis and SMR. The market accounted for USD 36.4, USD 38.4 and USD 40.5 billion in 2022, 2023 and 2024 respectively. The SMR segment is projected to surpass USD 24.5 billion by 2032.
     
  • Major factors pertinent to its economic viability is the cost competitiveness in comparison to other methods and enhanced process adoption. Compared to other methods, it is the most economical option in regard to large scale production of hydrogen in regions with rich natural gas resources, thus its commercial use.
     
  • In addition, the advancement of catalysts, process scientists, and heat recovery systems are enhancing and streamlining the SMR processes by making them more efficient and less polluting, thus improving the industrial scene.
     
  • Coal gasification will exceed 6% of the overall market share due to innovation gasification technology research and development efforts. Furthermore, the additional innovations in design of reactor, gas cleaning processes, and process engineering will positively impact the business metrics.
     
  • Significant increase in the interest and investment in green hydrogen to comply with the decarbonization goals will stimulate the product adoption. Construction of large electrolyzers capable of producing hydrogen at a commercial scale coupled with decreasing cost of electrolyzers driven by technological advancements, economies of scale, and increased competition in the market will contribute to the business scenario.
     
Liquid Hydrogen Market Share, By Distribution, 2024 (USD Billion)
  • Based on Distribution Method, the market is segmented into pipelines, and Cryogenic Tanks. The cryogenic tanks accounted for 85.9% share of the liquid hydrogen market in 2024. The pipelines segment is projected to witness more than 6% CAGR through 2034.  
     
  • The insulation of cryogenic tanks has become much more efficient, as well as the laying off the materials during store and transport of liquid hydrogen. Advances in insulation materials and technologies have drastically reduced the boil-off rates. Furthermore, the tanks are capable of withstanding the extreme temperatures that is essential to store liquid hydrogen, making transportation safer and more reliable.
     
  • Ongoing development of hydrogen hubs or clusters, where multiple industrial facilities and end-users are connected through a network of pipelines, is set to gain momentum in the coming years. Further, broader strategies incorporated by the industry manufacturers will support leverage the existing infrastructure for hydrogen distribution.
     
  • Growing demand for hydrogen as a clean energy carrier will accentuate the requirement for efficient, large-scale transportation methods. Ongoing efforts to integrate hydrogen pipelines with existing natural gas pipelines is set to drive the business scenario. According to the Hydrogen Council, the number of hydrogen pipeline projects rose from 228 to 1,572 from 2020 to 2024.
     
U.S. Liquid Hydrogen Market Size, 2022-2034 (USD Billion)
  • The U.S. liquid hydrogen market accounted for USD 7.4, USD 7.8 and USD 8.2 billion in 2022, 2023 and 2024. North America contributed over 77% of the overall market share by 2034 on account of rising government support, industrial initiatives, and growing environmental awareness. For instance, the U.S. DOE, in 2022, released a guidance for Clean Hydrogen Production Standard that establishes a goal of 4.0 kg of CO2 emission per kg H2 for the lifecycle GHG emission associated with hydrogen generation.
     
  • Europe will grow on account of introduction of targets, incentives, and regulations to encourage the production and use of liquid hydrogen. Large scale public and private investments across the region in sustainable development coupled with enhanced use of liquid hydrogen across industrial applications including metal processing and chemical manufacturing is set to augment the industry landscape.
     
  • Asia Pacific liquid hydrogen market is set to grow at more than 4.5% CAGR through 2034 owing to ambitious government policies and initiatives along with growing industry collaborations and ventures will contribute to the business scenario. The constant progress of technology, together with the rising focus on investment for infrastructure development, will benefit the growth of the industry.
     
  • Expansion of hydrogen refueling infrastructure is important to the uptake of hydrogen vehicles. As well, Japan, South Korea, and China are aggressively increasing the rate of construction of hydrogen refueling stations to stimulate product demand. For example, Japan is planning to build over 1,000 hydrogen refueling stations for fuel-cell vehicles within the country by the year 2030.
     

Liquid Hydrogen Market Share

  • The top 3 companies operating in the liquid hydrogen industry include Shell, Air Products and Chemicals, and Air Liquide, provide a competitive edge in the industry. Significant rise in collaborations and ventures owing to the increasing demand for clean energy solutions along with advancements in technology, and supportive policies are expected to drive the expansion of the hydrogen economy globally.
     
  • These partnerships allow companies to integrate their strengths, mitigate risks, and foster innovation more proficiently, ultimately propelling the entire industry towards sustainable development. Furthermore, it allows companies to pool together, and resource and financial abilities, therefore lessening the burden each firm has to tackle singlehandedly and allowing for larger projects to be completed.
     
  • Mergers and acquisitions with an aim to diversify technological portfolio along with strategical associations have been primary phenomenon across the industry landscape. However, strengthening of R&D facilities along with advancement of the hydrogen infrastructure further influence the product penetration.

     
  • Air Products and Chemicals is one of the key players engaged in the liquid hydrogen industry, with the revenue of 12.1 billion dollars in 2024. Moreover, the company provided a statement claiming the intention to construct HRS (Hydrogen Refueling Stations) in permanent multi-modal commercial cap in California, Canada, and Europe which would be supplied through their global hydrogen supply chain.
     
  • Shell continued to have a strong position in the liquid hydrogen sector accruing net revenue of $316.6 billion in 2023. In addition, the company further invested 1.28 billion dollars in R&D to improve as well as decarbonize the complete hydrogen ecosystem.
     
  • Air Liquide focuses on offering solutions for the climate and energy transition garnering a total revenue of 214.9 billion euros in 20204. Lately, the revenue of the Asia Pacific segment grew over 6% due to an expansion in the Chinese market and the establishment of a hydrogen production plant in China.
     
  • Linde contributed with sales of USD 8.35 Billion in the Q3 of 2024, contributing a marginal share in the North American Liquid hydrogen industry. In 2023, the company announced plans to expand its green hydrogen production capacity in order to reduce more than seventy-five thousand metric tons of carbon dioxide annually. These measures are planned to be implemented in the second half of 2024.
     

Liquid Hydrogen Market Companies

Eminent players operating in the liquid hydrogen industry are:

  • Air Products and Chemicals, Inc.
  • Air Liquide
  • Chart Industries
  • ENGIE
  • GE Appliances
  • GENH2
  • INOX India Limited
  • Iwatani Corporation
  • Kawasaki Heavy Industries, Ltd.
  • Linde plc
  • Messer
  • Plug Power Inc.
  • Praxair Technology, Inc.
  • Salzburger Aluminium Group
  • Shell plc
  • Wuxi Yuantong Gas Co., Ltd
     

Liquid Hydrogen Industry News:

  • In July 2024, Air Products unveiled their intention to construct a network of permanent, commercial-scale HRSs at key junctions along major transportation corridors serving the Trans-European Transport Network (TEN-T). These infrastructures will aid in seamlessly connecting hydrogen airports across Europe and thereby contribute to the development of a safe and resilient hydrogen ecosystem. It will be supplied with renewable hydrogen from its global hydrogen supply chain network, providing a dependable energy supply to heavy-duty transportation. Further, this includes a second hydrogen liquefaction plant the company is building in Rotterdam, which – once operational – will double Europe’s total liquid hydrogen capacity.
     
  • In May 2024, Air Products announced to build the network of commercial-scale multi-modal hydrogen refueling stations connecting northern and southern California. The HRS will further have a capacity to fuel 200 heavy duty trucks or 2,000 light duty vehicles per day. Additionally, the firm has allocated over USD 15 Billion towards clean energy initiatives which have positively impacted the shift in energy usage while achieving the prescribed climate objectives.
     
  • Shell plc entered into an MoU with Kansai Electric Power, in October 2022, as a part of their Clean hydrogen business initiative, outlining potential collaborations on liquid hydrogen supply chain business opportunities. Shell aimed to produce decarbonized hydrogen and deploy hydrogen liquefication, storage, and shipping technology. The collaboration was a part of Shell’s Powering Progress strategy to explore hydrogen potential and maintain strong position in the industry.
     
  • In April 2022, Iwatani Corporation along with Kawasaki Heavy Industries, Shell Japan, Electric Power Development (J-POWER), Marubeni Corporation, ENEOS Corporation, and Kawasaki Kisen Kaisha, Ltd, formed a joint venture named HySTRA to explore and develop the technologies for production and transportation of huge volumes of liquid hydrogen while conducting demonstration tests between Japan & Australia. Thereafter, the company contributed to the expansion of liquid hydrogen business activities in the market.
     

This liquid hydrogen market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “(USD Billion and MT) from 2021 to 2032, for the following segments:

Market, By Production Method

  • Coal Gasification
  • SMR
  • Electrolysis

Market, By Distribution Method

  • Pipelines
  • Cryogenic Tanks

Market, By End Use

  • Transportation
  • Chemical
  • Others

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

  • North America
    • U.S.
    • Canada 
  • Europe
    • Germany
    • UK
    • France
    • Italy
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
  • Rest of World

 

Authors: Ankit Gupta, Srishti Agarwal
Frequently Asked Question(FAQ) :
What will be the size of SMR segment in the liquid hydrogen industry?
The grid SMR segment is anticipated to cross 24.5 billion by 2032.
How much is the U.S. liquid hydrogen market worth in 2024?
How big is the liquid hydrogen market?
Who are the key players in liquid hydrogen market?
Liquid Hydrogen Market Scope
  • Liquid Hydrogen Market Size
  • Liquid Hydrogen Market Trends
  • Liquid Hydrogen Market Analysis
  • Liquid Hydrogen Market Share
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    Premium Report Details

    Base Year: 2024

    Companies covered: 16

    Tables & Figures: 25

    Countries covered: 11

    Pages: 120

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