The Clean Hydrogen Market is estimated to be valued at US$ 4.35 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Clean hydrogen refers to hydrogen produced from renewable energy sources such as solar, wind and hydropower through electrolysis of water. It is an important tool for reducing dependence on fossil fuels and transitioning towards clean energy. Clean hydrogen has wide applications in areas such as transportation, power generation, industrial processes among others. With stricter emission norms and focus on sustainability, the demand for clean hydrogen is expected to rise substantially in the coming years.

Market key trends:
Clean hydrogen is witnessing high growth owing to the increased focus on transitioning towards clean and renewable sources of energy globally. Many countries have announced ambitious hydrogen strategies and roadmaps with targets to scale up production and use of clean hydrogen. For instance, the European Union has set a target of installing at least 6 GW of renewable hydrogen electrolyzers by 2024 and 40 GW by 2030. Similarly, Japan has set a target of importing 300,000 tons of hydrogen by 2030. Increased investment in clean hydrogen production as well as supporting infrastructure is further expected to drive the market growth over the forecast period.

Porter’s Analysis
Threat of new entrants: The clean hydrogen market requires high initial investments in green hydrogen production facilities and distribution infrastructure which acts as a barrier for new companies.
Bargaining power of buyers: The global demand for clean hydrogen is increasing rapidly driven by decarbonization mandates. This gives buyers more bargaining power to negotiate on price and supply terms.
Bargaining power of suppliers: Major established green hydrogen producers like Air Liquide and Linde control a significant share of the production capacity. This gives them stronger negotiating powers against buyers.
Threat of new substitutes: Technologies for producing clean hydrogen through electricity-based pathways like electrolysis are becoming more efficient over time. This poses a threat of substitution to conventional hydrogen production methods.
Competitive rivalry: With rising investments flowing into the clean hydrogen sector, competition among existing players is intensifying. Companies are focusing on expanding and diversifying their clean hydrogen offerings.

SWOT Analysis
Strength: Clean hydrogen helps reduce CO2 emissions and has a variety of applications across transportation, power generation, and industrial sectors. The technology is still in the development phase offering opportunities.
Weakness: Current clean hydrogen production is expensive compared to fossil fuel-based hydrogen. Infrastructure for transportation and delivery of hydrogen at scale needs to be built extensively.
Opportunity: Increasing policy push for decarbonization of energy systems through hydrogen-friendly regulations presents a sizable market opportunity. Hydrogen can help countries achieve their net-zero goals.
Threats: Uncertain clean hydrogen policies and lack of funding in some regions can delay mass adoption. Dependency on intermittent renewable electricity also poses challenges in guaranteeing uninterrupted hydrogen supply.

Key Takeaways
The global clean hydrogen market is expected to witness high growth, exhibiting a CAGR of 14% over the forecast period, due to increasing mandates to reduce greenhouse gas emissions. Major economies have announced hydrogen roadmaps and targets to develop related infrastructure to support the emerging market.

Regionally, Europe dominates currently with Germany, France and the UK emerging as key hydrogen hubs. Large investments are being made in electrolyzer capacity additions to scale up green hydrogen supply in the region. Asia Pacific is also witnessing significant focus with China and Japan investing billions in the development of hydrogen ecosystems.

Key players operating in the clean hydrogen market are Linde Plc, Air Liquide, Engie, Uniper Se, Air Products Inc, Clean Hydrogen System, Cummins Inc., Toshiba Energy Systems & Solutions Corporation, Nel Asa, and SGH2 Energy. They are investing heavily in expanding hydrogen production facilities and engaging in strategic collaborations to strengthen their positions and benefit from the market growth.

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