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The hydrogen generation market size is valued to increase USD 49.7 billion, at a CAGR of 5.52% from 2023 to 2028. Growing demand for fertilizers will drive the hydrogen generation market.
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The hydrogen generation industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The merchant segment is estimated to witness significant growth during the forecast period.
The market continues to evolve, with ongoing advancements in hydrogen production technologies and infrastructure development. One significant trend is the increasing adoption of renewable energy sources for green hydrogen production through processes like alkaline water electrolysis and photoelectrochemical water splitting. Power-to-gas systems, which convert excess renewable energy into hydrogen, are also gaining traction. Hydrogen purity levels are a crucial concern, with fuel cell technology requiring high purity levels. Membrane degradation and catalyst poisoning are common challenges in maintaining hydrogen quality. Safety protocols, including pipeline transportation and hydrogen refueling station design, are essential for mitigating risks. The electrolysis process, including steam methane reforming and solid oxide electrolysis, is undergoing significant cost reduction efforts.
Production cost reductions, driven by advancements in catalysts and compression systems, are essential for widespread hydrogen adoption. Hydrogen infrastructure, including hydrogen storage tanks and distribution networks, is expanding to accommodate growing demand. According to recent studies, the global hydrogen market is projected to reach a value of USD250 billion by 2027, growing at a CAGR of 8.7% from 2020 to 2027. This growth is driven by the increasing demand for hydrogen as a clean energy source and the ongoing advancements in production, storage, and distribution technologies.
The Merchant segment was valued at USD 98.40 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 55% 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.
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The market in the Asia Pacific (APAC) region is experiencing significant growth, fueled by increasing investments in various industries. Key sectors driving this expansion include chemical, fertilizer, refinery, glass, semiconductor, metal processing, and food. The refinery industry in APAC is particularly robust due to the substantial local demand for refined petroleum products like gasoline and diesel. Countries such as India and China, with healthy economic growth rates, contribute significantly to this demand. In response to government regulations, oil and gas refineries in the region are reducing sulfur content in diesel, necessitating an increase in hydrogen production.
For instance, Indian Oil Corporation Limited (IOCL) and its subsidiary, Chennai Petroleum Corporation Limited (CPCL), along with equity partners, established a joint venture in November 2022 to construct the planned Nagapattinam refinery and petrochemicals project in Tamil Nadu, India. This venture underscores the growing importance of hydrogen generation in the refining process.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The market is experiencing significant growth due to the increasing demand for clean energy sources. High-temperature electrolysis systems are gaining popularity in the market due to their efficiency in producing hydrogen through water electrolysis. However, the design and maintenance of these systems require careful consideration, especially when it comes to the durability of PEM electrolyzer stack components. Alkaline electrolyzer membranes, a common alternative, face their own challenges, including membrane lifetime and cost-effectiveness. As hydrogen refueling station infrastructure expands, ensuring safety and efficiency becomes crucial. Green hydrogen production cost analysis is a critical factor in the market's growth, with photoelectrochemical water splitting and solid oxide electrolyzer cells being potential cost-effective solutions. Photoelectrochemical water splitting efficiency and solid oxide electrolyzer cell degradation are areas of ongoing research to optimize hydrogen production. Hydrogen pipeline transportation safety is another significant concern, with hydrogen's unique properties requiring specialized infrastructure. Fuel cell stack durability testing methods and hydrogen storage tank material selection criteria are essential components of ensuring safety and reliability. Energy conversion efficiency optimization strategies and electrolyzer system energy consumption reduction are also key areas of focus for cost-effective hydrogen production. Hydrogen purification methods using membranes are essential for removing impurities and ensuring high-quality hydrogen. Membrane technology advancements continue to improve the efficiency and cost-effectiveness of hydrogen production. Hydrogen distribution network optimization is necessary to ensure the efficient and cost-effective delivery of hydrogen to consumers. Overall, the market's future lies in the continuous development and optimization of these technologies and infrastructure.
The hydrogen generation market forecasting 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 hydrogen generation market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape of Hydrogen Generation Industry
Companies are implementing various strategies, such as strategic alliances, hydrogen generation market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Air Liquide - This company specializes in the development and distribution of innovative sports products, catering to various markets and consumer needs. Through rigorous research and analysis, I identify market trends, competitive landscapes, and emerging technologies to provide insightful recommendations for investors.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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 industry 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.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Hydrogen Generation Market insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
179 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.52% |
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Market growth 2024-2028 |
USD 49.7 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.21 |
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Key countries |
US, Canada, Germany, UK, Italy, France, China, India, Japan, Brazil, Egypt, UAE, Oman, Argentina, KSA, UAE, Brazil, and Rest of World (ROW) |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
What is the expected growth of the Hydrogen Generation Market between 2024 and 2028?
USD 49.7 billion, at a CAGR of 5.52%
What segmentation does the market report cover?
The report is segmented by Delivery Mode (Merchant and Captive), Application (Chemical industry, Refinery industry, Metal processing industry, and Others), Geography (APAC, Europe, North America, Middle East and Africa, and South America), End-User (Industrial, Transportation, Energy, and Chemicals), and Type (Green Hydrogen, Blue Hydrogen, and Grey Hydrogen)
Which regions are analyzed in the report?
APAC, Europe, North America, Middle East and Africa, and South America
What are the key growth drivers and market challenges?
Growing demand for fertilizers, Changes in government policies and regulations
Who are the major players in the Hydrogen Generation Market?
Air Liquide, Air Products and Chemicals, Ballard Power Systems, BASF SE, Chevron Corporation, Cummins Inc., Engie, Hyundai Motor Company, ITM Power, Iwatani Corporation, Linde plc, McPhy Energy, Messer Group, Nel ASA, Nikola Corporation, Plug Power, Shell plc, Siemens Energy, thyssenkrupp, and Uniper SE
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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 Market Segmentation by End-User
9 Market Segmentation by Type
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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