Hydrogen Gas Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Hydrogen Gas Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The hydrogen gas market size was estimated at around 80 million metric tons in 2020, and the market is projected to register a CAGR of around 5% during the forecast period (2022-2027).

The market was negatively impacted by COVID-19 in 2020, However, it had a slight increase in the year 2021. Hydrogen gas finds its major application in the petroleum refinery industry to produce automotive fuels. Methanol and dimethyl ether (DME), mainly produced from hydrogen gas, can be used as an automotive fuel. However, the usage of ammonia, a hydrogen gas product, as an excipient (inactive agent) from the pharmaceutical industry has been increased during this period. Also, the demand for packaging made up of formaldehyde resins, usually prepared from methanol, has significantly increased from the food and e-commerce segments, which, in turn, stimulates the demand in the hydrogen gas market.

• Using e-waste produced electron materials, valuable resources and energy may be recovered in the form of hydrogen in MEC. Due to the increasing environment safety concerns the market is expected to see a growth in the coming years.
• Safety concerns regarding the usage of Hydrogen gas are expected to hinder the market.
• The North American region is expected to dominate the market, and Asia-Pacific is likely to witness the highest CAGR during the forecast period.

• According to the World Oil Outlook 2021, officials in many nations are becoming more conscious of the need to speed up steps to address climate change, which has lately resulted in new policy intents to reach net-zero emissions. In the endeavour to reduce emissions and achieve a net-zero energy system, hydrogen has emerged as a crucial answer. Hydrogen is a versatile, carbon-free energy carrier that has the potential to significantly reduce emissions in the power, transportation, and industrial sectors.
• Due to the high demand for refined products and by-products, the downstream industry has been witnessing huge investments across the world for increasing refining capacities in the existing plants or setting up new refineries.
• Hydrodesulfurization, hydroisomerization, dearomatization, and hydrocracking are some of the hydro-treating processes that hydrogen gas is employed in at a refinery.
• Refineries use hydrogen to lower the sulfur content of diesel fuel. Refinery demand for hydrogen has increased as demand for diesel fuel has risen both domestically and internationally, and as sulfur-content regulations have become more stringent.
• Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.

• The North American region dominated the global market share. The region has been witnessing noticeable investment in the exploration, production, and refining sector, which is expected to drive the demand for hydrogen gas extensively in the coming years
• According to EIA the battery storage applications have increased in the US market. According to our Annual Electric Generator Report, most utility-scale (greater than 1 megawatt [MW] of capacity) battery storage applications perform several roles depending on revenue opportunities or system support requirements. This has lead to increase in the usage of Hydrogen gas in United States.
• The majority of hydrogen used in United States is produced on-site or near-site, usually at large industrial sites. Infrastructure for delivering hydrogen to the statewide network of fuelling stations required for widespread adoption of fuel cell electric cars is still being constructed. The initial vehicle and station rollout will concentrate on expanding these distribution networks, primarily in southern and northern California.
• Recently, In order to achieve carbon neutrality by 2050, the Abu Dhabi Department of Energy, Canada, and the Clean Energy Business Council have recently formed closer collaborations in the hydrogen space.
• The above mentioned factors are likely to see a growth in the Hydrogen market in North American region in the forecasted period.

The hydrogen gas market is a consolidated market, where major players hold a significant share of the market demand. Some of the major players in the market include Air Liquide, Air Products Inc., Iwatani Corporation, Linde, and Messer Group GmbH, among others.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support