Hydrogen, when used as a fuel or energy storage medium, produces no greenhouse gas emissions such as carbon dioxide. It can be produced from fossil fuels such as natural gas or biomass through a process called steam reforming, but it is also increasingly being produced using renewable energy through electrolysis of water. This clean hydrogen has a wide range of applications across industries such as transportation, electricity generation, chemicals and refining. It can fuel hydrogen vehicles or be used in fuel cells to generate electricity with only water vapor as a byproduct. The global clean hydrogen market offers promising solutions to decarbonize these hard-to-abate sectors and help countries achieve their climate targets.
The global clean hydrogen Market is estimated to be valued at US$ 5.02 Bn in 2024 and is expected to exhibit a CAGR of 12. % over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the clean hydrogen market is the increasing focus on renewable hydrogen production through electrolysis. Electrolysis uses renewable electricity from sources like solar and wind to split water into hydrogen and oxygen, thereby providing a cleaner alternative to produce hydrogen without carbon emissions. Both governments and private players are significantly ramping up investments in large-scale renewable hydrogen projects based on electrolysis. For instance, the European Union aims to install at least 6 GW of renewable hydrogen electrolyzers by 2024 and 40 GW of capacity by 2030. This scale up is expected to significantly drive down the costs of electrolyzers and renewable hydrogen production over the coming years.
Threat of new entrants: The clean hydrogen market requires high initial investments for hydrogen production plants, electrolyzers and fueling stations limiting new entrants.
Bargaining power of buyers: The availability of alternative green energy solutions provides options to buyers to choose from limiting their dependence on any single source.
Bargaining power of suppliers: The market relies on a limited number of technology providers and equipment manufacturers for key manufacturing components giving them negotiating power over buyers.
Threat of new substitutes: Green hydrogen faces competition from other clean sources of energy such as renewable electricity, battery powered vehicles and biofuels.
Competitive rivalry: Favorable policies and investments are driving multiple players to enter the market increasing competition.
The Global Clean Hydrogen Market Size is expected to witness high growth.
North America is anticipated to dominate the global clean hydrogen market during the forecast period owing to increasing government support initiatives and investments by major players in the region for the development of hydrogen infrastructure including production facilities and fueling stations.
Key players operating in the clean hydrogen market are Amyris, BioAmber, Borregaard, Codexis, Deinove, Evolva, Fermentalg, Gevo, Global Bioenergies, Metabolic Explorer, Novozymes, Solazyme, Corbion, ADM, DuPont, Eucodis Biosciences GmbH, Koninklijke DSM NV, BASF SE, Evonik Industries AG. BASF SE is one of the prominent players and has established a global hydrogen team to explore opportunities in hydrogen value chain.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it