Hydrogen Generation Market size to record USD 47.84 billion growth from 2023-2027, Reduction in fuel cell prices is one of the key market trends, Technavio

NEW YORK, May 7, 2024 /PRNewswire/ -- The global hydrogen generation market size is estimated to grow by USD 47.84 billion from 2023 to 2027, according to Technavio. This growth is expected to occur at a Compound Annual Growth Rate (CAGR) of over 5.58% during the forecast period.

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Key Trends Fueling Growth

• Reduction in fuel cell prices: 
• Over time, due to more research and development efforts, the price of fuel cell technology has decreased. This is mainly because there's less platinum used on the anode. However, there are also higher costs for making and welding bigger bipolar plates, as noted by original equipment manufacturers.
• Additionally, adjustments to gas diffusion layers, based on feedback from these manufacturers, have impacted costs. Overall, these changes balance each other out, resulting in costs staying nearly the same.
• As the cost of fuel cell systems goes down, more sectors will start using them. This means there will be more demand for hydrogen gas. Consequently, the global hydrogen generation market will grow.

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Major Challenges:

• Changes in government policies and regulations 
• The hydrogen and fuel cell sector is in a developmental phase, lacking specific government regulations in Canada, the EU, and the US. This encompasses storage, design, transportation, and installation of fuel cell systems and hydrogen infrastructure. Electricity production, a key area, faces similar regulatory gaps. Emerging technologies propose hydrogen for storing renewable electricity.
• Despite no current industry-specific regulations for fuel cell vehicles, future growth may necessitate such regulations in operating markets. This could involve permits for designing, installing, and operating stationary fuel cell systems under federal, state, and provincial electric utility regulations, and for motive power fuel cell systems under emission regulations affecting automobile and truck manufacturers.
• Permit requirements for potential customers could dampen demand for fuel cells and hydrogen products, posing challenges to the business.

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Segmentation Overview

1. Application 
• 1.1 Chemical industry
• 1.2 Refinery industry
• 1.3 Metal processing industry
• 1.4 Others
2. Geography 
• 2.1 APAC
• 2.2 Europe
• 2.3 North America
• 2.4 Middle East and Africa
• 2.5 South America

1.1 Chemical industry- Hydrogen is vital in the chemical industry, serving as a primary ingredient for many processes. It's crucial in making methanol and ammonia, which are essential for producing fertilizers and polymers. Industries rely on hydrogen for making paints, synthetic fibers like nylon, and polyurethane elastomers. Ammonia, made with hydrogen, is key for urea-based fertilizers.

• With more investments in agriculture, the fertilizer sector is growing, boosting global ammonia gas capacity. Methanol production, which uses hydrogen, is also on the rise, as methanol is increasingly used as fuel, either directly or blended. The growing demand for fertilizers and fuels is fueling market growth, especially in the chemical industry segment in the forecast period.

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Analyst Review

The Hydrogen Generation Market is witnessing significant growth driven by factors such as increased demand for renewable energy sources and initiatives to reduce greenhouse gas emissions. With a focus on cleaner energy alternatives, companies are investing in biorefineries, coal gasification, and petroleum refinery projects to produce hydrogen. Heavy industry and long-distance transport sectors are adopting hydrogen-powered vehicles to meet sustainability goals. 

Vendor selection methodologies are crucial for efficient vendor analysis, ensuring reliable partnerships for hydrogen infrastructure development. As the market evolves, renewable hydrogen from sources like solar and wind will play a vital role in reducing the carbon footprint and achieving net-zero emissions targets. Hydrogen stations are also expanding to support the growing demand for hydrogen-powered vehicles.

Market Overview

The Hydrogen Generation Market is a significant sector in the global energy industry, focusing on the production of hydrogen gas through various methods. These methods include steam methane reforming (SMR), electrolysis, and biomass gasification. Hydrogen is a clean and versatile energy carrier, with numerous applications in industries such as transportation, heating, and power generation. The global hydrogen generation market is driven by the increasing demand for clean energy and the need to reduce greenhouse gas emissions.

The market is expected to grow at a robust pace, with the electrolysis segment experiencing significant growth due to its ability to produce hydrogen using renewable energy sources. Decarbonsation is a key trend in the hydrogen generation market, with governments and industries worldwide investing in hydrogen as a viable alternative to fossil fuels.

The market is also witnessing technological advancements, with innovations in hydrogen storage and transportation solutions. In conclusion, the hydrogen generation market is a dynamic and growing sector, driven by the demand for clean energy and the need to reduce greenhouse gas emissions. The market is witnessing technological advancements and investments in decarbonsation, making it an exciting space for innovation and growth.

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Key Topics Covered:

 1 Executive Summary
 2 Market Landscape
 3 Market Sizing
 4 Historic Market Size
 5 Five Forces Analysis
 6 Market Segmentation

• Application 
• Chemical Industry
• Refinery Industry
• Metal Processing Industry
• Others
• Geography 
• APAC
• Europe
• North America
• Middle East And Africa
• South America

 7 Customer Landscape
 8 Geographic Landscape
 9 Drivers, Challenges, and Trends
10 Venodr Landscape
11 Vendor Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
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Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio