The Industrial Hydrogen Market is estimated to be valued at US$ 14.7 billion in 2018 and is expected to exhibit a CAGR of 5.0% over the forecast period of 2019-2027, as highlighted in a new report published by Coherent Market Insights.
- A) Market Overview:
Industrial hydrogen is widely used in various industries such as petroleum refining, chemical production, and electronics. It is primarily used as a feedstock in the production of ammonia, methanol, and steel. Additionally, it is used in fuel cells for power generation and transportation applications. With the increasing focus on clean energy sources, the demand for industrial hydrogen is expected to surge in the coming years.
- B) Market Dynamics:
The market for industrial hydrogen is driven by two main factors. First, the increasing demand for hydrogen in the petroleum refining industry to meet stringent environmental regulations is propelling market growth. The high reactivity of hydrogen makes it an effective tool for reducing sulfur content in petroleum products. This helps in complying with environmental standards, driving the demand for industrial hydrogen.
Second, the growing adoption of hydrogen fuel cells as a cleaner alternative for power generation and transportation is boosting the demand for industrial hydrogen. Hydrogen fuel cells offer higher energy efficiency and emit only water vapor as a byproduct, making them an attractive option in many industries. This increased usage of hydrogen fuel cells is fueling the demand for industrial hydrogen.
- C) Segment Analysis:
In the U .S. Europe and Asia Industrial Hydrogen Market , the petroleum refining segment dominates, accounting for the largest market share. This is due to the increasing demand for hydrogen in the refining process to remove impurities and sulfur content from petroleum products. The chemical production segment is also expected to witness significant growth, driven by the rising demand for hydrogen in ammonia and methanol production.
- D) PEST Analysis:
Political: Governments worldwide are implementing stringent environmental regulations, pushing industries to reduce their carbon footprint. This is driving the demand for industrial hydrogen as a cleaner alternative in various sectors.
Economic: The rapid industrialization and infrastructure development in regions like Asia-Pacific are creating a favorable environment for the growth of the industrial hydrogen market.
Social: The increasing awareness about environmental sustainability among consumers is leading to a shift towards cleaner energy sources. This is driving the demand for industrial hydrogen in various industries.
Technological: Ongoing advancements in hydrogen production technologies, such as water electrolysis and steam methane reforming, are making hydrogen production more efficient and cost-effective, further boosting market growth.
- E) Key Takeaways:
- The industrial hydrogen market is expected to witness high growth, exhibiting a CAGR of 5.0% over the forecast period.
- The U.S. Europe and Asia are the fastest-growing and dominating regions in the industrial hydrogen market, driven by the increasing use of hydrogen in various industries.
- Key players operating in the industrial hydrogen market include Air Liquide, Air Products & Chemicals Inc., Praxair Inc., Linde Plc., and Messer Group GmbH. These players are focusing on strategic collaborations and investments to expand their presence in the market.
In conclusion, the industrial hydrogen market is poised for significant growth, driven by the increasing demand for cleaner alternatives in industries and the adoption of hydrogen fuel cells. With governments imposing stricter environmental regulations and consumers demanding sustainable solutions, the market for industrial hydrogen is expected to witness sustained growth in the coming years.
