Hydrogen Generation Market size to exceed $160bn by 2026
Published Date: March 30, 2020 Authors: Ankit Gupta, Srishti Agarwal
Hydrogen Generation Market is projected to surpass USD 160 Billion by 2026, as reported in the latest study by Global Market Insights, Inc.
The global hydrogen generation industry share is anticipated to grow owing to rising awareness toward energy efficiency coupled with escalating demand for hydrogen in oil & gas refineries. Strict norms and policies aimed at desulfurization of petroleum products will complement the industry growth. Increasing crude oil consumption and stringent regulations for emissions control will enhance its business outlook over the forecasted timeframe. Furthermore, extensive utilization in applications including transport, semiconductor among others are the major underlying factors which is anticipated to positively impact the market demand for hydrogen generation.
The outbreak of corona virus has resulted in a pandemic which has adversely affected the global economy. It has affected the overall consumption pattern of hydrogen, thereby impacting the market trends. The delay of various construction projects including H? infrastructural development owing to lockdown enforcement in various economies will further impact the hydrogen demand. The requirement for massive investments to combat the pandemic along with the chronic imbalance between supply and demand may further challenge the generation of industrial hydrogen. However, the firms are adopting resourceful methods to recruit workforce to cope up with the upcoming production needs.
Increasing investments toward transport sector will boost Latin America market demand
Latin America hydrogen generation market outlook is set to witness substantial gains owing to reduced costs for various non-conventional renewable energy resources. Utilization of hydrogen for energy storage coupled with abundant availability of renewable & hydric sources at competitive production prices will augment the business growth. Several international partnerships focused on research and promotion of green hydrogen usage for production processes is set to increase the market share. In addition, various government initiatives and programs including ENGIE aims at developing renewable hydrogen projects in Chile.
Ongoing efforts toward utilization of hydrogen for decarbonizing transport sector along with involvement of key players in design, development & promotion of technology is set to drive the Japan hydrogen generation market statistics. For instance, METI plans to introduce a fleet of 900 refueling stations along with 1,200 buses by the year 2030. Low cost electricity, access to hydro resources, and renewable energy matrixes are the prime factors that facilitate hydrogen exports to other Asian and European markets which in turn will further provide an impetus to its market growth.
Rising demand for hydrogen in refining facilities uplifting the merchant hydrogen installation
The expansion of existing refining facilities in line with the rising demand for onsite generation will stimulate the merchant hydrogen generation market outlook. New technology development, upkeep of the generation facilities and ability to supply hydrogen at competitive costs are some of the key features enhancing its utilization across various industrial applications. Inability of the small or medium size industries to afford the high capital expenditure owing to storage & distribution of hydrogen will further drive the business outlook. In addition, rising utilization for merchant hydrogen in pharmaceuticals sector is anticipated to augment the market share.
Browse key industry insights spread across 215 pages with 242 market data tables & 37 figures & charts from the report, “Hydrogen Generation Market Analysis 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”in detail along with the table of contents:
Shifting focus toward technologies is fostering the demand for SMR hydrogen generation
Various technological advancements aimed at low cost hydrogen generation along with enhanced use in chemical industry will enhance the market statistics for hydrogen generation substantially. The majority of the hydrogen produced currently is from the fossil fuel reforming on account of it being the most economical method. Numerous government norms & policies regulated for reduced carbon emissions will further complement the business landscape.
Hydrogen being a clean energy fuel can be abundantly produced from a variety of natural resources including solar energy, biomass and wind energy among others. Utilization of the product for clean power generation will further foster the market size. Ongoing R&D activities to use the green hydrogen in other applications comprising fuel cell vehicles and energy storage will play a pivot role in fueling the hydrogen generation market growth.
Various funding programs and investments in upcoming clean hydrogen production projects will spur the Asia Pacific hydrogen generation market trends
Growing funding from numerous research institutes and industry players along with rising government focus toward green hydrogen production technologies is set to significantly drive the market growth. For instance, the Government of China invested more than USD 200 million for research & development of fuel technology projects, to achieve the mass production of its vehicle fleet by end of 2020. Signing of agreements & contracts by major industry players to advance car technologies is set to accelerate its market growth in automotive business. For instance, in 2018, Hyundai entered into an agreement with Audi to enhance green hydrogen low cost production.
Eminent industry players operating across hydrogen generation market comprise of Showa Denko K.K, Hydrogenics Corporation, Nuvera Fuel Cells, Iwatani Corporation, Caloric Anlagenbau, Air Liquide SA, Air Products & Chemicals Inc., Ally Hi-Tech Co. Ltd & Messer Group GmbH amongst others. Joint Ventures and mergers & acquisitions are some key strategies adopted by the major market players to be at competitive edge over other participants.
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