Electrolysis Liquid Hydrogen Market Size - By Distribution (Pipelines, Cryogenic Tanks), By End use (Transportation, Chemicals and Others), Regional Outlook & Forecast, 2024 – 2032

Electrolysis Liquid Hydrogen Market Size - By Distribution (Pipelines, Cryogenic Tanks), By End use (Transportation, Chemicals and Others), Regional Outlook & Forecast, 2024 – 2032

The Electrolysis Liquid Hydrogen Market will exhibit 7.2% CAGR during 2024 to 2032, propelled by the escalating demand for clean energy, driven by a desire to counter the environmental repercussions of fossil fuel usage. Electrolysis is a sustainable, zero-emission method, especially when powered by renewable sources like wind, solar, or hydropower. This aligns with the worldwide agenda for decarbonization, given hydrogen's versatility as a clean fuel across sectors such as transportation, power generation, and industrial processes, thereby curbing GHG emissions. According to the International Energy Agency (IEA), global hydrogen demand reached 90 million metric tons in 2022, a surge of 3% as compared to 2021.

Furthermore, there are notable advancements in electrolysis technology, leading to enhanced efficiency and reduced operational costs. For instance, the cost of producing hydrogen via electrolysis has decreased by nearly 40% over the past decade, according to a report by the Hydrogen Council. Complementing these technological strides are government policies and incentives worldwide, aimed at positioning hydrogen as a pivotal alternative energy source. Nations are channeling investments into hydrogen infrastructure and R&D, laying the groundwork for a robust hydrogen economy. All these factors will add to the market valuation.

The overall electrolysis liquid hydrogen industry is classified based on distribution, end use, and region.

The pipelines segment is poised to record decent growth through 2032, owing to efficient and cost-effective transportation of hydrogen from production sites to end-users. Pipelines offer a reliable infrastructure for large-scale and continuous supply, minimizing the losses and costs associated with other transportation methods. This infrastructure is particularly crucial for industries that require a steady and substantial hydrogen supply, such as refineries, chemical plants, and fuel cell vehicle refueling stations. Furthermore, the development of dedicated hydrogen pipelines or the adaptation of existing natural gas pipelines to handle hydrogen facilitate the integration of green hydrogen into the energy grid, thereby accelerating the adoption of hydrogen as a mainstream energy source.

The chemicals segment is set to drive the market demand by 2032. Hydrogen is a fundamental feedstock in producing ammonia for fertilizers, methanol, and other essential chemicals. As industries seek to transition towards more sustainable practices, the adoption of green hydrogen produced through electrolysis becomes increasingly attractive. This shift is driven by the desire to reduce carbon footprints and comply with stringent environmental regulations. The chemicals sector's move towards greener alternatives will significantly boost the demand for electrolysis liquid hydrogen.

Europe electrolysis liquid hydrogen market size will expand at a notable pace through 2032, propelled by a combination of stringent environmental regulations, substantial government funding, and robust renewable energy infrastructure. The European Union’s Green Deal and Hydrogen Strategy further underscore this commitment, providing significant financial incentives and regulatory support for hydrogen projects. Additionally, Europe's advanced renewable energy sector, particularly in wind and solar power, provides the necessary clean electricity for efficient electrolysis processes. Collaboration between public and private sectors, along with investments in hydrogen infrastructure are pushing the regional market growth.