Clean Hydrogen Market

Clean Hydrogen Market Size:

The global clean hydrogen market size reached US$ 1.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 5.6 Billion by 2032, exhibiting a growth rate (CAGR) of 13.7% during 2024-2032. The clean hydrogen market is rapidly expanding, driven by stringent government policies, advancements in electrolysis technology, and increasing private sector investments, positioning hydrogen as a key component in achieving global net-zero emissions and transforming energy, transportation, and industrial sectors.

Clean Hydrogen Market Analysis:

• Major Market Drivers: Government policies and international agreements focused on climate change are major drivers, pushing for reductions in greenhouse gas emissions and encouraging the adoption of clean hydrogen.
• Key Market Trends: There is a noticeable trend towards integrating hydrogen in sectors such as transportation, power generation, and industrial processes, driven by the advancements in fuel cell technologies.
• Geographical Trends: Europe dominates the clean hydrogen sector as a result of strict environmental legislation and improved investment in hydrogen production and delivery. Aside from Asia-Pacific and North American regions that are also growing their hydrogen markets, substantial investments in technology and new projects are made.
• Competitive Landscape: Some of the major market players in the clean hydrogen industry include Air Liquide S.A., Air Products and Chemicals Inc., Cummins Inc., Enapter S.r.l., Engie SA, Green Hydrogen Systems, Linde plc, Nel ASA, Plug Power Inc., SG H2 Energy Global LLC, Siemens Energy AG, SunGreenH2. Etc among many others.
• Challenges and Opportunities: One major challenge is the high initial cost and economic viability of hydrogen production and infrastructure development. Nevertheless, this also offers the chance for new ways of cost-cutting and international standardization and regulations to help in the growth of the market.
   

Clean Hydrogen Market Trends:

Government Policies and Regulations

According to the clean hydrogen market outlook, governments all over the world are pouring out comprehensive and embracing rules to cut emissions, and this pressure is driven by clean hydrogen as a sustainable energy source. Many countries have hydrogen in their energy plans and policies and incentives such as rewards for the development and incorporation of hydrogen technology are being enacted. For example, the European Union has created the European Hydrogen Strategy which aims to run the hydrogen economy in full operation by 2050. These programs consequently reduce the number of fossil fuels that are used in industry and transportation, and according to the clean hydrogen market forecast, are leading to the higher adoption of cleaner fuels.

Technological Advancements in Electrolysis

The efficiency and cost-effectiveness of the technology known as electrolysis which is used for producing hydrogen from water by utilizing electricity is increasing. The development of PEM (proton exchange membranes) and alkaline electrolyzers has made large-scale hydrogen production more economical. With the increasing popularity and affordability of renewable energy sources like solar and wind, the utilization of these energies in the electrolysis processes has resulted in a significant cost reduction of green hydrogen production. This makes clean hydrogen an improved way of energy storage and as a fuel for transportation, the power sector, and industrial processing, which in turn enhances the clean hydrogen market value. For instance, Hydrogen energy, a cleaner alternative to fossil fuels, has a gravimetric density about seven times that of fossil fuels and faces challenges in transportation and storage. It is predicted that 35% of European vehicles will be hydrogen-powered by 2040. Globally, there are 401 hydrogen fuel stations, with 159 more planned, and 46 in the USA.

Increasing Investment from Private Sector

Private sector companies are currently looking actively and investing in clean hydrogen. Major energy companies, automobile manufacturers, and start-ups pay much to build up hydrogen infrastructure which incorporates production stations, storage systems, and fuel cells. This investment rise is brought about by the capability of hydrogen to assist greatly in the delivery of net-zero emissions goals as well as its applicability in numerous applications and the chances of forming economic prospects. These investments help in not just accelerating technological innovations but also manufacturing at a large scale, which in turn reduces costs and stimulates clean hydrogen market growth.

Clean Hydrogen Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on technology and end user.

Breakup by Technology:

• Alkaline Electrolyzer
• PEM Electrolyzer
• SOE Electrolyzer
   

Alkaline electrolyzer accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the technology. This includes alkaline electrolyzer, PEM electrolyzer, and SOE electrolyzer. According to the report, Alkaline electrolyzer represented the largest segment.

As per the clean hydrogen market research report, alkaline electrolyzers technology is the dominant market segment. The conventional technology for hydrogen production, known as alkaline electrolysis, uses water electrolysis with an alkaline solution as an electrolyte. This is because being in the market for so long and having a large number of operational experiences have led to the widespread use of it. Alkaline type electrolyzers have a reputation for being reliable, durable, and scalable. They are therefore particularly ideal for industrial applications where large quantities of hydrogen are needed. They may demonstrate lower efficiencies compared to PEM electrolyzers but their simple design and lower cost of materials mean they are a desirable option for many projects. Moreover, continuous progression in technology with regards to enhancing its efficiency and reducing operational costs are the other factors that underpin this segment as the largest in the clean hydrogen market.

Breakup by End User:

• Transport
• Power Generation
• Industrial
• Others
   

Transport holds the largest share of the industry

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes transport, power generation, industrial, and others. According to the report, transport accounted for the largest market share.

According to the clean hydrogen market segmentation, transport is the largest segment, followed by the growing application of hydrogen gas-powered vehicles (HGV). The Carbon emissions and hydrocarbon consumption reduction actions undertaken by governments, as well as manufacturers, are promoting the development of hydrogen infrastructure with the installation of refueling stations. Hydrogen vehicles, such as buses, trucks, and passenger cars, have the advantage of fast refueling time and longer ranges thus they are very suitable for heavy-duty and long-haul trips as compared to electric vehicles which require charging. Both large automobile producers and start-ups invest in the generation of hydrogen vehicles and some countries have even started including hydrogen trains and maritime vessels to this diversity. This push towards hydrogen as a fuel in transport is fueled by policy incentives, public-private collaborations, and international cooperation toward formulating a sustainable hydrogen economy, thus the transport sector becomes a key driver of the hydrogen market development.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Europe leads the market, accounting for the largest clean hydrogen market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe represents the largest regional market for clean hydrogen.

According to the clean hydrogen market overview, the largest segment of the market in Europe plays a crucial role since the European Union has adopted extensive and ambitious energy and climate policies to combat air pollution and climate change. The EU's hydrogen strategy is a great part of the European Green Deal and very promising. The goal here is to introduce clean hydrogen into the transport, industry, and energy production sectors by 2050. This policy is backed up by many financially significant instruments, such as the Clean Hydrogen Partnership which allocates billions for different hydrogen projects, paying special attention to the development of green hydrogen through electrolysis powered by renewables. In addition, the partnerships among European countries for cross-border hydrogen infrastructure as well as the presence of high-technology providers in the region keep the development of the market. These joint initiatives not only mark Europe as a leader in the green hydrogen sector but also as a sizeable market that provides a platform for global improvements and applications in hydrogen energy solutions.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the clean hydrogen industry include:

• Air Liquide S.A.
• Air Products and Chemicals Inc.
• Cummins Inc.
• Enapter S.r.l.
• Engie SA
• Green Hydrogen Systems
• Linde plc
• Nel ASA
• Plug Power Inc.
• SG H2 Energy Global LLC
• Siemens Energy AG
• SunGreenH2
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

The key players in the clean hydrogen market are strengthening their market position through collaborative strategies, technological innovations, and scaling up their production capacity to match the growing clean hydrogen demand. These companies such as Air Liquide, Siemens Energy, and Linde are leading in the development of cutting-edge electrolysis technology that increases efficiency and reduces the cost of hydrogen generation. They are also investing in the development of an elaborate infrastructure, which includes hydrogen refueling stations and aspects of large-scale transport, to promote the wide use of hydrogen as an energy source. Besides that, collaborations between energy companies and governments is a key factor in developing legal regimes of legislation and financial incentives, leading to the foundation of more clean hydrogen projects and enhancing the clean hydrogen market revenue.

Clean Hydrogen Market News:

• On April 5, 2024, Air Liquide, as an Official Supporter of renewable hydrogen for Paris 2024, is providing financial support to six athletes to help them focus on qualifying for the Olympic and Paralympic Games, reinforcing their commitment to sustainability and athletic excellence.
• On May 6, 2024, Air Products announced that its AP-DMR™ technology, deployed at Mozambique's Coral South FLNG plant, successfully passed performance tests, achieving LNG production above 3.4 million tons per year. This milestone underscores the company's leadership in LNG technology and equipment.
• On March 20, 2024, TCPL GES, a subsidiary of Tata Cummins—a joint venture between Tata Motors and Cummins Inc. USA—inaugurated a new facility in India to produce hydrogen-based Internal Combustion Engines for Medium and Heavy Commercial Vehicles, alongside other low to zero emission technologies.

Clean Hydrogen Market Report Scope:

Key Questions Answered in This Report:

• How has the global clean hydrogen market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global clean hydrogen market?
• What is the impact of each driver, restraint, and opportunity on the global clean hydrogen market?
• What are the key regional markets?
• Which countries represent the most attractive clean hydrogen market?
• What is the breakup of the market based on the technology?
• Which is the most attractive technology in the clean hydrogen market?
• What is the breakup of the market based on the end user?
• Which is the most attractive end user in the clean hydrogen market?
• What is the breakup of the market based on the region?
• Which is the most attractive region in the clean hydrogen market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global clean hydrogen market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the clean hydrogen market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global clean hydrogen market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the clean hydrogen industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.