by The global 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 to 2027, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The industrial hydrogen market refers to the production and use of hydrogen gas in various industries such as oil and gas, chemical, electronics, automotive, and others. It is primarily used in the refinery sector for the desulfurization of gasoline and diesel. Hydrogen gas is also used in the production of ammonia, methanol, and other chemicals. In addition, hydrogen fuel cells are gaining popularity as an alternative to fossil fuel-based power sources.
Market Dynamics:
The Global U.S. Europe and Asia Industrial Hydrogen Market is driven by two major factors: increasing demand from Asia and Europe and the shift towards cleaner energy sources.
Firstly, Asia, particularly China, is witnessing a significant increase in industrial activities, resulting in a higher demand for hydrogen gas. China, being the largest producer and consumer of steel, is using hydrogen gas for annealing and heat-treating processes in the steel industry. Moreover, Asia-Pacific countries are investing heavily in the development of fuel cell vehicles, creating a demand for hydrogen as a fuel.
Secondly, the market is also driven by the global shift towards cleaner energy sources. Hydrogen fuel cells are considered a cleaner alternative to traditional power sources as they emit only water vapor. This is driving the adoption of hydrogen fuel cells in various industries, including automotive, where fuel cell vehicles are being developed and used.
SWOT Analysis:
Strengths:
- Increasing demand from industries such as oil and gas, chemical, and automotive
- Growing adoption of hydrogen fuel cells as a cleaner energy source
Weaknesses:
- High cost of hydrogen production and transportation
- Limited infrastructure for hydrogen distribution
Opportunities:
- Growing investments in hydrogen production infrastructure
- Increasing government initiatives to promote clean energy sources
Threats:
- Competition from alternative clean energy sources, such as electric vehicles
- Environmental concerns associated with hydrogen production and transportation
Key Takeaways:
Market Size:
The global industrial hydrogen market is expected to witness high growth, exhibiting a CAGR of 5.0% over the forecast period. This growth is attributed to the increasing demand from various industries, such as oil and gas, chemical, and automotive, driven by the need for cleaner energy sources.
Regional Analysis:
Asia and Europe are the fastest growing and dominating regions in the industrial hydrogen market. Asia, particularly China, is witnessing significant industrial growth and is investing in the development of fuel cell vehicles. Europe is also focusing on reducing carbon emissions and promoting clean energy sources, leading to a higher demand for industrial hydrogen.
Key Players:
Key players operating in the global industrial hydrogen market include Air Liquide, Air Products & Chemicals Inc., Praxair Inc., Linde Plc., and Messer Group GmbH. These players are investing in research and development to improve the efficiency and affordability of hydrogen production and distribution.
In conclusion, the global industrial hydrogen market is expected to experience high growth due to increasing demand from Asia and Europe and the shift towards cleaner energy sources. However, challenges such as high production and transportation costs and limited infrastructure need to be addressed for the market to reach its full potential.
