Hydrogen is driven by increasing focus on decarbonization. Hydrogen plays a vital role in decarbonizing hard-to-abate sectors like heavy industry, long-haul transportation, and power generation. It can be used as a chemical feedstock, transportation fuel, and for power generation through fuel cells. The zero-carbon fuel is considered a potential clean energy alternative to fossil fuels.
The global hydrogen market is estimated to be valued at US$ 174.53 billion in 2024 and is expected to exhibit a CAGR of 23% over the forecast period from 2024 to 2030.
Hydrogen enables reduction of emissions in industries, transportation and other sectors. Fuel cells that use hydrogen as fuel provide efficient and reliable clean energy. Many countries are supporting hydrogen's growth through funding and policy initiatives to achieve long-term climate goals.
Key Takeaways
Key players operating in the hydrogen market are IBM Corporation, Informatica LLC, Riversand Technologies, Inc., SAP SE, and Salsify Inc. Major companies are investing heavily in hydrogen production technologies and infrastructure to capitalize on the growing demand.
Demand for hydrogen is surging rapidly due to its multiple applications and environmental benefits. Countries have announced hydrogen roadmaps and investment plans to boost the development of related industries. Use of hydrogen as transportation fuel is gaining momentum with launch of Fuel Cell Electric Vehicles (FCEVs).
Production and use of hydrogen is scaling up globally with many nations emerging as hubs. Investments in hydrogen projects are ramping up across major economies like Japan, South Korea, Germany and UK. Partnerships for hydrogen supply chains are fostering international collaboration on the shared vision of a hydrogen economy.
Market Drivers
Stringent emission regulations are a key factor driving the adoption of hydrogen as fuel. Growing focus on decarbonization to mitigate climate change has put pressure on industries and governments to pivot to green technologies. Many view hydrogen as integral to achieving long-term net-zero emissions targets and energy independence. This is stimulating greater investments and a rapidly expanding hydrogen economy worldwide.
Here is 298 words of content on the impact of current geopolitical situations on the growth of the hydrogen market without mentioning any data provided:
The hydrogen market is facing challenges in its growth due to the ongoing geopolitical tensions and conflicts around the world. Russia's invasion of Ukraine has disrupted the supplies and trade routes for hydrogen and other energy sources in Europe. Many European countries are heavily dependent on Russia for their energy needs. This crisis has highlighted the energy security risks and the need for countries to focus on indigenized and decentralized hydrogen production. It has accelerated plans for switching to alternative clean energy options including renewable hydrogen production via electrolysis powered by solar and wind. However, achieving energy independence will require large investments in building hydrogen infrastructure including production plants, transportation pipelines and filling stations over the coming years.
Political instability and conflicts in other regions like Middle East are also hampering the growth opportunities for global Hydrogen Market Demand players. Continuous threats of attacks on oil facilities or disruption in sea routes can jeopardize the supplies and spike prices. This raises concerns over reliability of imports. Countries are opting for regional cooperation and bilateral trade deals to overcome geopolitical challenges and reduce vulnerabilities. However, achieving geopolitical stability across different world regions will be critical for the long term sustainable growth of the hydrogen sector. Future strategies of companies need to factor in the geopolitical risks and closely work with governments to build solutions ensuring energy security.
Currently, Western Europe accounts for the largest share of the global hydrogen market in terms of value. Countries like Germany, France and UK are pioneer markets with increase in the production and consumption of low carbon hydrogen fuels. This is primarily due to the strong government policies and initiatives supporting hydrogen economy as part of their decarbonization agenda. Large industrial manufacturing sectors like chemical and refineries rely on hydrogen as process gas. Presence of major industrial gas companies and technological expertise has accelerated the demand. Projects on blending hydrogen into natural gas pipelines and setting up hydrogen refueling stations are gaining momentum. Rising adoption of fuel cell technologies for mobility and power generation applications are spurring the hydrogen supplies. However, Europe is heavily reliant on imports for meeting its hydrogen needs stressing the need to build regional production hubs and import terminals to ensure supply security.
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