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The hydrogen generation market size is forecast to increase by USD 47.84 billion and is estimated to grow at a CAGR of 5.58% between 2023 and 2027. The report includes historic market data from 2017 to 2021. The market is witnessing a growing demand for the decline in fuel cell costs, advancements in carbon capture technologies, and government incentives for fuel cell vehicles (FCVs).
Hydrogen Generation Market Overview :
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The primary trend in the market is the decrease in fuel cell prices, attributed to increased R&D investments. Various factors have contributed to cost reduction, such as decreased Pt loading on the anode, optimized bipolar plate formation, welding costs, and improved gas diffusion layers based on OEM feedback.
The declining production costs of fuel cell systems are enabling their widespread adoption in different sectors. As fuel cell applications increase, there will be a surge in demand for hydrogen gas, fostering market growth.
Hydrogen plays a crucial role in the chemical industry as a primary supply for various processes. It is used in the synthesis of methanol and ammonia, vital in manufacturing fertilizers and polymers. Additionally, hydrogen is utilized in producing paints, synthetic fibers, nylon, and polyurethane elastomers. Ammonia, produced using hydrogen, is essential for urea-based fertilizers. With increasing investments in the agriculture sector, the fertilizer industry is expanding ammonia capacity, leading to significant growth in the global ammonia gas capacity. Moreover, hydrogen is used in methanol production, which is increasingly used as a direct or blended fuel. The rising demand for fertilizers and fuels is driving the hydrogen generation market's growth, particularly in the chemical industry segment during the forecast period.
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APAC is estimated to contribute 56% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The refinery industry in APAC is driven by the huge local demand for refined petroleum products such as gasoline and diesel. This demand is driven by countries that register a healthy GDP growth rate, majorly India and China. In line with several government regulations, oil and gas refineries need to reduce the sulfur content in diesel. For this, these refineries need to increase the level of hydrogen. In November 2022, Indian Oil Corporation Limited (IOCL), its subsidiary Chennai Petroleum Corporation Limited (CPCL), and other equity partners formed a joint venture to build the planned Nagapattinam refinery and petrochemicals project in the state of Tamil Nadu, India. Such investments would have a long-term positive impact on the market and would also drive the growth of the market in focus during the forecast period.
Many end-user industries, such as chemicals, refining, electronics, and industrial manufacturing, which use hydrogen gas extensively, faced certain challenges following the outbreak of COVID-19. The region is anticipated to witness high adoption of fuel cells during the forecast period. Such fuel cells, which use hydrogen as the key compound to generate power, are seen as a better alternative to lithium-ion batteries. This would, thus, increase the demand for hydrogen generation, and hence, it is expected that the regional market for hydrogen generation is likely to show significant growth during the second half of the forecast period.
The growing demand for fertilizers is notably driving market growth. The demand for food is expected to double with the rise in population. To meet this growing demand, intensive farming, protective cropping methods, and the best fertilizer management practices will be required for increasing agricultural production.
For fertilizer management, nitrogen fertilizers will be used. Ammonia is one of the major components used in nitrogen fertilizers, with ammonium nitrate being the preferred form. With the rising global population, there will be a huge demand for agricultural products, leading to the requirement for better fertilization management systems. This will increase the demand for ammonia to manufacture these systems, thereby driving the growth of the market.
Competition from alternative technologies is the major challenge impeding market growth. Fuel cell technology is a highly competitive market. Many local and international companies in the market face stiff competition from alternative technologies, such as solar energy, batteries, and internal combustion engines (ICEs). These technologies have already been established, making it a challenge for fuel cells to gain wider acceptance.
For instance, batteries are used as a backup power solution in a wide range of industrial, commercial, and residential applications. They are also extensively used in the transportation and telecom sectors. It has, therefore, limited the deployment of fuel cells to power light-duty vehicles for APUs and unmanned aerial vehicles (UAVs) in the defense sector as well as in commercial applications. With fuel cell technology still lagging behind other renewable technologies and the huge market that batteries have gained owing to their availability in different sizes and power ranges, it has become a challenge to establish a similar, competitive fuel cell-based business.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Hydrogen Generation Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
McPhy Energy SA - The company offers hydrogen generation solutions such as Augmented McLyzer. Under this segment, the company offers its research and development, engineering, and production solution for the merchant hydrogen market and renewable energy markets.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The hydrogen generation market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Hydrogen Generation Market Scope |
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Report Coverage |
Details |
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Page number |
172 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.58% |
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Market growth 2023-2027 |
USD 47.84 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
5.1 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 56% |
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Key countries |
US, China, Japan, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Air Liquide SA, Air Products and Chemicals Inc., Claind Srl, Cummins Inc., FuelCell Energy Inc, Green Hydrogen Systems, Hiringa Energy Ltd., Hyster Yale Materials Handling Inc., ITM Power plc, Iwatani Corp., Linde Plc, Mahler AGS GmbH, McPhy Energy SA, Messer SE and Co. KGaA, Nel ASA, Parker Hannifin Corp., SHOWA DENKO K.K., Teledyne Technologies Inc., Xebec Adsorption Inc., and Mitsubishi Chemical Holdings Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Delivery Mode
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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