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The hydrogen generator market size is forecast to increase by USD 534.61 million, at a CAGR of 6.48% between 2023 and 2028. The growth rate of the market depends on several factors, such as the PEM hydrogen generators gaining traction, the paradigm shift toward cleaner energy sources, and the increasing demand for ammonia.
The market in North America is experiencing substantial growth driven by rising consumer awareness of eco-friendly and zero-emission vehicles. This awareness has spurred innovation in hydrogen vehicles and a growing demand for fuel cells in the automotive industry. Air Liquide SA provides the Floxal Hyos R hydrogen generator, suitable for various applications such as heat treating, refining processes, and food hydrogenation. Additionally, Air Products and Chemicals Inc offers the Prism on-site hydrogen generator, capable of producing high-purity hydrogen for diverse industries, including chemical processing, metals treatment, steel, glass, photovoltaic, food, power generation, and hydrogen fueling.
Market Forecast 2024-2028
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Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
PEM electrolysis technology is popular for its high efficiency in converting electrical energy into hydrogen. In addition, this efficiency is crucial for ensuring the economic viability of hydrogen production, especially when renewable energy sources such as solar and wind power are used. Furthermore, PEM electrolyzers are modular and scalable, allowing for flexible deployment in various settings, from small-scale residential or commercial applications to large-scale industrial or utility-scale systems.
Moreover, this scalability makes PEM hydrogen generators suitable for a wide range of applications and enables the integration of hydrogen production with renewable energy sources and existing infrastructure. Furthermore, PEM electrolyzers produce high-purity hydrogen gas suitable for various applications, including fuel cells for transportation, stationary power generation, and industrial processes. Hence, such factors are driving the market growth during the forecast period.
Blue hydrogen is generated from natural gas through steam methane reforming (SMR) or auto thermal reforming (ATR) processes, along with carbon capture and storage (CCS) technology. In addition, CCS captures and stores carbon dioxide emissions generated during the hydrogen production process, significantly reducing the carbon footprint of blue hydrogen compared with conventional grey hydrogen.
Moreover, as countries and industries seek to decarbonize their operations and meet climate targets, blue hydrogen offers a cleaner alternative to traditional fossil fuels. In addition, blue hydrogen is viewed as a transitional fuel that can help accelerate the transition to a low-carbon economy. Furthermore, while renewable hydrogen (green hydrogen) produced from the electrolysis of water using renewable energy sources is the ultimate goal for achieving zero emissions, blue hydrogen provides a viable and scalable solution in the interim. Hence, such factors are driving the market growth during the forecast period.
The cost of hydrogen generators differs significantly depending on factors including the type of technology, system capacity, efficiency, customization requirements, and project-specific factors. In addition, electrolysis-based hydrogen generators produce hydrogen by splitting water molecules using electricity. Furthermore, these systems typically have higher upfront costs compared with other hydrogen generation methods due to the complexity of the electrolysis process and the need for specialized equipment.
Moreover, hydrogen generators are often more cost-effective at larger scales due to economies of scale in equipment procurement, manufacturing, and operations. In addition, developing and commercializing new hydrogen generation technologies require significant investment in research, development, testing, and validation. R&D costs can be substantial and may contribute to the high upfront costs of hydrogen generators. Hence, such factors are hindering the market growth during the forecast period.
The onsite segment is estimated to witness significant growth during the forecast period. The growth of the onsite segment is fuelled by the increasing demand for hydrogen gas from oil, gas, refineries, and other industries, owing to its low emission characteristics. In addition, onsite hydrogen generators are primarily used for generating hydrogen fuels compared with portable hydrogen generators, owing to their efficiency, compact design, and reliability than portable hydrogen generators.
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The onsite segment was the largest segment and was valued at USD 788.43 million in 2018. Moreover, onsite hydrogen generators are medium- and large-scale equipment that produce hydrogen from various raw materials such as fossil fuels, biomass, and water electrolysis using electricity. In addition, the onsite hydrogen generator is primarily designed to create a huge volume of hydrogen fuels for different end-users, including pharmaceutical, food and beverage packaging, and automotive. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
Based on the method, the market has been segmented into steam reforming and electrolysis. The steam reforming ?segment will account for the largest share of this segment. The steam reforming segment is one of the most widely used methods for commercial-scale hydrogen production, especially in industries such as chemicals, refineries, and ammonia production. In addition, steam reforming is a mature and well-established technology used for decades for industrial purposes. Moreover, it is known for its reliability, scalability, and efficiency in producing large quantities of hydrogen. Furthermore, steam reforming is currently the most cost-effective method for large-scale hydrogen production, especially when natural gas prices are low, and infrastructure for natural gas supply is readily available. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 34% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The US, Canada, and Mexico were the prominent contributors of revenue to the regional market. Several government initiatives are focused on reducing the cost of EVs in the automobile sector. For example, in June 2022, the US government announced an investment of over USD7.5 billion for developing EV charging infrastructure and more than USD7 billion for the supply chains of critical minerals necessary for batteries, components, and materials and recycling of waste materials to reduce current electric car charging prices by 50% over the next three years. In addition, the government is focusing on reducing the dependency of consumers on oil by implementing advanced vehicle technology such as fuel cell electric vehicles (FCEVs). Hence, such factors are driving the market growth in North America during the forecast period.
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.
Athena Technology: The company offers hydrogen generator such as ATH Series hydrogen generator for general industrial, military, wastewater treatment and laboratory gas chromatography.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Chromatec instruments, Cummins Inc., Element 1, EPOCH Energy Technology Corp., F DGSi, General Electric Co., Hitachi Energy Ltd., Linde Plc, LNI Swissgas SRL, McPhy Energy SA, MVS Engineering Pvt. Ltd., Nel ASA, Nuberg, Parker Hannifin Corp., PCI Analytics Pvt. Ltd., PerkinElmer Inc, Plug Power Inc., SAGIM, Teledyne Technologies Inc., and Valco Instruments Co. Inc.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides a market report analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is witnessing increased demand driven by a global shift towards cleaner fuel and government regulations promoting sustainable energy sources. Desulphurization of petroleum products has become crucial, emphasizing the need for effective energy carriers like hydrogen. With a rising global electricity demand, establishing a robust hydrogen infrastructure and network, including hydrogen refueling stations, has become imperative. Amidst the global energy crisis, there's a growing focus on alternative sources of energy generation, aligning with sustainable conservation initiatives.
Various technologies, such as coal gasification, pyrolysis processes, PEM technology, and others, play pivotal roles in the hydrogen generation landscape, impacting segments like merchant generation and applications in methanol, acetic acid, methyl tertiary butyl ether, dimethyl ether, and methylamine. Hydrogen-based power generation technology is gaining prominence across industries, including crude oil, transport fuels, petrochemical feedstock, hydro treatment, and hydrocracking.
Hydrogen Generator Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.48% |
Market Growth 2024-2028 |
USD 534.61 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.88 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 34% |
Key countries |
US, China, Japan, France, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Air Liquide SA, Air Products and Chemicals Inc., Athena Technology, Chromatec instruments, Cummins Inc., Element 1, EPOCH Energy Technology Corp., F DGSi, General Electric Co., Hitachi Energy Ltd., Linde Plc, LNI Swissgas SRL, McPhy Energy SA, MVS Engineering Pvt. Ltd., Nel ASA, Nuberg, Parker Hannifin Corp., PCI Analytics Pvt. Ltd., PerkinElmer Inc, Plug Power Inc., SAGIM, Teledyne Technologies Inc., and Valco Instruments Co. Inc. |
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, and Market condition analysis for the forecast period. |
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. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by Method
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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