Global Hydrogen Market Report and Forecast 2024-2032

Global Hydrogen Market Report and Forecast 2024-2032

Market Outlook

According to the report by Expert Market Research (EMR), the global hydrogen market size reached a value of 98.42 million tons in 2023. Aided by the rising demand for cleaner energy alternatives and the growing applications of hydrogen across various industries, the market is projected to further grow at a CAGR of 3.6% between 2024 and 2032 to reach a value of 135.31 million tons by 2032.

Hydrogen is a versatile and environmentally friendly energy carrier, playing a critical role in decarbonising various sectors. Its primary application is in the production of ammonia, refining processes, and as an energy source for fuel cells in the transportation sector. The demand for hydrogen is further supported by its potential to reduce carbon emissions in industries like steel production, chemical manufacturing, and transportation, aligning with global sustainability goals.

The global hydrogen market growth is being driven by the increasing focus on reducing greenhouse gas emissions. With countries around the world committing to carbon neutrality, hydrogen is emerging as a key solution for achieving these goals, particularly in sectors that are challenging to electrify, such as heavy industry, shipping, and aviation.

Governments and private sectors are ramping up investments in hydrogen production technologies, including green hydrogen, which is produced using renewable energy sources like wind and solar power. This shift towards green hydrogen is crucial in reducing the environmental impact of hydrogen production, as conventional methods rely heavily on fossil fuels, contributing to significant carbon emissions. This is contributing to the hydrogen market demand.

Beyond its role in energy transition, hydrogen has a wide array of industrial applications that are driving its market expansion. In the chemical industry, hydrogen is used as a raw material for producing ammonia and methanol, essential for fertiliser production and chemical synthesis. Additionally, hydrogen's role in refining crude oil into cleaner fuels like gasoline and diesel is gaining prominence.

The transportation sector is another significant area of opportunity for hydrogen. Fuel cell vehicles, which use hydrogen to generate electricity, are being increasingly developed and adopted as a cleaner alternative to traditional gasoline and diesel-powered vehicles. Major automotive manufacturers and governments are investing heavily in hydrogen fuel cell technology to support the decarbonisation of public transport, heavy-duty vehicles, and even aviation. This is one of the key hydrogen market trends.

A crucial driver of the global market is the increasing governmental support for hydrogen technologies. Many countries have launched national hydrogen strategies to promote research, development, and commercialisation of hydrogen applications. For instance, the European Union, Japan, and South Korea have set ambitious targets for hydrogen production and utilisation as part of their broader energy transition plans. This is expected to favourably shape the market dynamics.

Public and private partnerships are playing a pivotal role in advancing hydrogen infrastructure development, such as the construction of hydrogen refuelling stations and pipelines. These investments are essential for enabling large-scale adoption of hydrogen in transportation and industrial sectors. This is fuelling the hydrogen market expansion.

While the global market is set for significant growth, challenges remain, particularly in terms of scaling up green hydrogen production and reducing costs. The high costs associated with electrolysers and renewable energy inputs currently make green hydrogen less competitive than conventional hydrogen derived from fossil fuels. However, ongoing technological advancements and economies of scale are expected to bring down costs, making green hydrogen more accessible in the coming years.

In conclusion, the global market is poised for robust growth, fuelled by increasing demand for sustainable energy solutions and extensive applications across multiple industries. With strong governmental backing and growing investments in hydrogen infrastructure, the market is on track to become a cornerstone of the global energy transition. As technological innovations continue to drive down production costs, the global hydrogen market growth is expected to continue, offering immense opportunities for market players in the years to come.

Market Segmentation

The market can be divided based on sector, application, and region.

Market Breakup by Sector

• Generation Type
• Storage
• Transportation

Market Breakup by Application

• Energy
• Mobility
• Chemical and Refinery
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global hydrogen market. Some of the major players explored in the report by Expert Market Research are as follows:

• Linde Plc
• Shell Plc
• Chevron Corporation
• Air Products and Chemicals Inc.
• Air Liquide S.A.
• Saudi Arabian Oil Co.
• Uniper SE
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.
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