Global Hydrogen Generation Market (2023-2028) Competitive Analysis, Impact of Covid-19, Ansoff Analysis

According to World Economic Forum 2023, As part of the Net Zero Emissions Scenario 2021-2050, hydrogen and hydrogen-based fuels could avoid up to 60 gigatons of CO2 emissions by mid-century

The Global Hydrogen Generation Market is estimated to be USD 150.11 Bn in 2023 and is expected to reach USD 207.7 Bn by 2028 growing at a CAGR of 6.71%.

The Hydrogen Generation market refers to the industry that produces hydrogen gas using various technologies and processes. Hydrogen gas is a clean, versatile, and abundant fuel source that can be used in a variety of applications, including transportation, energy storage, and industrial processes. Hydrogen is produced through various methods, including steam methane reforming (SMR), electrolysis, and coal gasification. SMR is currently the most commonly used method for commercial hydrogen production, but electrolysis is becoming increasingly popular due to its ability to produce hydrogen using renewable energy sources such as wind and solar power.

Clean hydrogen is produced from renewable sources such as wind, solar, and hydroelectric power, or from low-carbon sources such as natural gas with carbon capture and storage (CCS) technology. As countries aim to reduce their carbon emissions and meet climate targets, there is a growing demand for clean hydrogen as a clean energy source that is used in a wide range of applications. Clean hydrogen has the potential to replace fossil fuels in many areas, including transportation, power generation, heating, and industrial processes. In addition to its environmental benefits, clean hydrogen can also contribute to energy security by reducing dependence on imported fossil fuels. The Demand for hydrogen reached 94 Mn tonnes in 2021, containing energy equal to about 2.5% of global final energy consumption, up from a pre-pandemic total of 91 Mt in 2019, as shown by IEA. Overall, the increasing demand for clean hydrogen is one of the driving factors for the hydrogen energy market and is expected to continue to drive growth in the coming years as the world transitions to a low-carbon economy.

The high production cost of green hydrogen is currently a major barrier to the widespread adoption of hydrogen energy. Green hydrogen is produced by using renewable energy sources, such as wind and solar, to power the electrolysis process that separates hydrogen from water. However, the cost of producing green hydrogen is currently higher than that of producing hydrogen from fossil fuels. The high cost of green hydrogen production is mainly due to the high cost of renewable energy sources and the relatively low efficiency of the electrolysis process.

Extensive research and development required to develop green hydrogen production technologies is a significant opportunity for the hydrogen energy market. The governments, research institutions, and industry players are investing heavily in R&D to develop new and improved technologies for green hydrogen production. These efforts include improving the efficiency of electrolysis, developing new catalysts and membranes, and exploring alternative methods for hydrogen production, such as photoelectrochemical and biological methods. In 2023, European Investment Bank (EIB) has joined the India Hydrogen Alliance and agreed to increase support for large-scale green hydrogen hubs and projects across India. Additionally, In 2020, the U.S. Department of Energy announced up to USD 64 Mn in funding to advance innovations that will build new markets for the H2@Scale initiative. This investment will support transformational research and development (R&D), and innovative hydrogen concepts that will encourage market expansion and increase the scale of hydrogen production, storage, transport, and use.

• Hydrogen is typically produced through processes such as steam methane reforming (SMR), electrolysis, and coal gasification. In SMR, natural gas is heated to produce hydrogen and carbon dioxide. This process results in significant energy losses, as a large amount of heat is required to convert the natural gas into hydrogen. Additionally, the carbon dioxide that is produced during the process must be captured and stored, which further adds to the energy and cost requirements. Electrolysis, on the other hand, uses electricity to split water molecules into hydrogen and oxygen. While this method does not produce carbon emissions, the energy required to produce the electricity needed for electrolysis can be a significant cost and energy challenge. The World Economic Forum states that approximately 30-35% of the energy used to produce hydrogen is lost during the electrolysis process; liquefying or converting hydrogen to other carriers, such as ammonia, results in a 13-25% energy loss; and transporting hydrogen requires additional energy inputs that are typically equal to 10-12% of the hydrogen's energy.

Market Segmentations

• The Global Hydrogen Generation Market is segmented based on Type, Technology, Source, Applications, Delivery Mode, and Geography.
• By Type, the market is classified into On-site and Portable. The on-site hydrogen generation segment holds a significant market share owing to their economical installations coupled with safe & efficient operations. In Addition, the portable type is also anticipated to observe substantial growth over the forecast period due to the growing placement of FCEVs with various power-rating fuel cells.
• By Technology, the market is classified into Steam Methane Reforming, Water Electrolysis, Partial Oil Oxidation, and Coal Gasification. Steam methane reforming is the faster-growing segment. This growth is due to the wing to its better output, input fuel flexibility, and low-cost operations.
• By Source, the market is classified into Natural Gas, Coal, Biomass, and Water. The natural gas segment has the largest market share. Hydrogen is produced from natural gas reforming which produces hydrogen, carbon monoxide, and carbon dioxide. Hydrogen production from natural gas is the cheapest method of producing hydrogen. Hydrogen production from natural gas is expected to keep its lead in the forecast period.
• By Applications, the market is classified into Methanol Production, Ammonia Production, Petroleum Refining, Transportation, Power Generation, and Others. Ammonia’s potential as a carbon-free fuel, hydrogen carrier, and energy store represents market growth for renewable hydrogen technologies to be deployed at an even greater scale. The hydrogen is produced on-site at ammonia plants from a fossil fuel feedstock. The most common feedstock is natural gas, which feeds a steam methane reforming unit. Coal can also be used to produce ammonia via a partial oxidation process.
• By Delivery Mode, the market is classified into Captive and Merchant. The merchant segment led the highest market growth. Merchant of hydrogen means hydrogen is produced at a central production facility and is transported and sold to a consumer by bulk tank, pipeline, or cylinder truck. In some countries such as the U.S., Canada, and Russia there is an extensive existing natural gas pipeline network that could be used to transport and distribute hydrogen. The merchant generation segment is expected to retain its lead during the forecast period.
• By Geography, the market is classified into the Americas, Europe, Middle-East & Africa, and Asia-Pacific. Asia Pacific dominated the global market in 2022 and accounted for the largest revenue share of over 34.94%. China led the Asia Pacific regional market in 2022, in terms of revenue. presence of a high number of refineries Asia Pacific region in major countries such as China and India has resulted to drive the utilization of hydrogen generation in the region. Further, governments in some of the Asia Pacific countries such as Japan and Australia are evaluating greener and cleaner technologies for hydrogen generation.

Recent Development

• Larsen & Toubro (L&T) commissioned a green hydrogen plant at its AM Naik Heavy Engineering Complex in Hazira, Gujarat, India. The plant is likely to produce 45 Kg of green hydrogen daily, which will be used for captive consumption in the company's Hazira manufacturing complex. - August 2022
• Masdar and Hassan Allam signed an agreement to establish green hydrogen production plants in Egypt's Suez Canal Economic Zone and along the Mediterranean coast, with 4 gigawatts (GW) of electrolyzer capacity and 480,000 tons of green hydrogen per year by 2030. - April 2022

Company Profiles

The report provides a detailed analysis of the competitors in the market. It covers the financial performance analysis for the publicly listed companies in the market. The report also offers detailed information on the companies' recent development and competitive scenario. Some of the companies covered in this report are 16.11 Gardner Denver Holdings Inc., Generon IGS, Inc., Green Hydrogen Systems, Hitachi Ltd., Hydrogenics Corp., etc.

Countries Studied

• America (Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, United States, Rest of Americas)
• Europe (Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxemburg, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, United Kingdom, Rest of Europe)
• Middle-East and Africa (Egypt, Israel, Nigeria, Qatar, Saudi Arabia, South Africa, United Arab Emirates, Rest of MEA)
• Asia-Pacific (Australia, Bangladesh, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Taiwan, Rest of Asia-Pacific)

Competitive Quadrant

The report includes Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.

Ansoff Analysis

• The report presents a detailed Ansoff matrix analysis for the Global Hydrogen Generation Market. Ansoff Matrix, also known as Product/Market Expansion Grid, is a strategic tool used to design strategies for the growth of the company. The matrix can be used to evaluate approaches in four strategies viz. Market Development, Market Penetration, Product Development and Diversification. The matrix is also used for risk analysis to understand the risk involved with each approach.
• The publisher analyses the Global Hydrogen Generation Market using the Ansoff Matrix to provide the best approaches a company can take to improve its market position.
• Based on the SWOT analysis conducted on the industry and industry players, the publisher has devised suitable strategies for market growth.

Why buy this report?

• The report offers a comprehensive evaluation of the Global Hydrogen Generation Market. The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.
• The research report also provides a detailed market size analysis and projections in volume and value terms. The projections are calculated using verified research methodologies.
• Excel data sheet for the market size will also be provided with the report.
• The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
• The report includes an in-depth market analysis using Porter’s 5 forces model, PESTLE Analysis, and the Ansoff Matrix. In addition, the impact of COVID-19 on the market is also featured in the report.
• The report includes the regulatory scenario in the industry, which will help you make a well-informed decision. The report discusses major regulatory bodies and major rules and regulations imposed on this sector across various geographies.
• The report includes Self-Assessment Form, which helps customers evaluate their position in the market compared to their competitors
• The report offers customized research - tailored uniquely to our customers with a quick turnaround time. We offer a 15% customization option at no extra charge to all our clients for any of our syndicated reports.

Report Highlights:

• A complete analysis of the market, including the parent industry
• Important market dynamics and trends
• Impact Analysis - a comprehensive assessment to confront risk and make strategic & operational decisions to counter the changes in the market environment.
• Market segmentation
• Competitive Analysis: Comparative analysis of competitor
• Historical, current, and projected size of the market based on value and volume
• Market size of the US states
• Market shares and strategies of key players
• Recommendations to companies for strengthening their foothold in the market