Hydrogen Market Size By Type (Grey, Blue, Green), By Application (Petroleum Refining, Chemicals), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2023 - 2032

Hydrogen Market Size By Type (Grey, Blue, Green), By Application (Petroleum Refining, Chemicals), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2023 - 2032

Global hydrogen market size will expand noticeably over 2023-2032 due to the growing global energy demand.

As per the U.S. EIA estimated, the global consumption of liquid fuel will increase by 1.4 million b/d in 2023, followed by a 1.8 million b/d growth in 2024. However, the high consumption of fossil fuels has aggravated the concerns associated with carbon emissions and their environmental impact, emphasizing sustainable alternatives such as hydrogen. Several public and private initiatives have been rolled out to boost hydrogen production processes to address the impending energy crisis.

Various nations and governments are banking on the potential of hydrogen to meet the growing demand for energy and achieve ambitious sustainability targets. For instance, India aims to become energy independent by 2047 and achieve net zero emissions by 2070, necessitating the adoption of renewable energy.

Green hydrogen offers a promising solution for the long-term storage of renewable energy, clean transportation, aviation, decentralized power generation, and marine transport. In January 2023, the Union Cabinet of India approved National Green Hydrogen Mission, aiming for a production capacity of 5 MMT per annum.

The hydrogen market is classified by type, application, and region.

Based on type, the industry is segmented into green, blue, and grey. Among these, the blue hydrogen segment volume is set to grow by more than 12 MMT from 2022 to 2032. The implementation of strict carbon emission reduction norms is driving the clean energy transition worldwide. Recent developments in carbon capture & storage (CCS) technologies are enabling large-scale hydrogen production.

For instance, in November 2022, the Government of Alberta, a Canadian province announced an investment of more than USD 475 million into the new blue hydrogen energy facility in the Industrial Heartland. Several federal governments are focusing on blue hydrogen to reduce their carbon footprint by switching to cost-effective and energy-efficient blue hydrogen, which will favor market growth through 2032.

In terms of application, the demand for hydrogen across the chemical sector will increase significantly by 2032, owing to the growing focus on eco-friendly and sustainable manufacturing. Hydrogen can be effectively used as a feedstock in methanol and ammonia manufacturing units, helping reduce emissions. The increasing global efforts to make hydrogen energy more accessible, and affordable by chemical companies to reduce dependence on fossil fuels and switch to renewable energy will boost product demand.

From a regional perspective, the MEA hydrogen market will expand at a 6% CAGR between 2023 and 2032, led by a large number of hydrogen storage facilities in the region. The abundance of resources available in MEA, the presence of leading energy companies, and growing regional as well as global cooperation will drive industry expansion. For instance, in May 2022, the British Petroleum Company (Bp) extended its partnership with Masdar and ADNOC of Abi Dhabi to boost blue & green hydrogen developments in certain parts of England.