Hydrogen Generation Market Size Worth 184.23 Billion USD By 2028 | CAGR: 5.5 PCT
The global hydrogen generation market size is expected to reach USD 184.23 billion by 2028 according to a new study by Polaris Market Research. The report “Hydrogen Generation Market Share, Size, Trends, Industry Analysis Report, By Systems Type (Merchant, Captive); By Technology; By Application; By Region; Segment Forecast, 2021 – 2028” gives a detailed insight into current market dynamics and provides analysis on future market growth.
The increasing use of the product in the areas of chemical processing along with fuel cells and oil and refinery will be the major forces behind the rapid growth of the global industry during the forecast period. The emergence of green products will provide an opportunity for the further growth of this industry over the coming years.
The product is used in the development of fuel cells. Fuel cells are being promoted worldwide as they have applications in electric cars and power production on a small scale for commercial buildings. Desulfurization will be another significant factor that will drive the growth of this industry over the coming years.
Steam methane reforming is a widely used technology for production. In contrast, technologies such as water electrolysis are emerging technologies due to their ability to produce green products without the emission of greenhouse gases in traditional technologies such as steam methane reforming and coal gasification. The product has applications in ammonia production, methanol production, power production, transportation, oil refineries, and others.
The emergence of the COVID-19 pandemic is expected to slightly slow down the growth of the global market during the forecast period. There is a significant slowdown in the oil and refinery industries, which are substantial manufacturers of the product. The economic slowdown has negatively impacted power production as most commercial buildings have been shut, limiting the growth of hydrogen-based fuel cells.
According to the report the global hydrogen generation market is mainly driven by the increasing applications across several industries. It has applications in petroleum recovery, chemical processing (methane and ammonia production), refining, and fuel cells. The strict environmental regulations imposed by many countries to control greenhouse gas emissions are a primary factor behind the generation market demand in all these areas.
Industrialization and the use of fossil fuels have led to the increased emission of greenhouse gases globally, which significantly impacts the environment, the report shows.
- Countries such as the U.S., China, and European Union are the major contributors to the emission of greenhouse gases. Hence, these countries are trying to cut down on the emission of greenhouses gases.
The increased sulfur levels in the environment will directly or indirectly lead to higher methane emissions and carbon dioxide emissions. Hence the product is used in oil & gas refineries to reduce the sulfur content in diesel. The product is mainly used in the chemical processing industry to produce ammonia, methanol, and other petrochemical complexes.
- Governments across the globe are favoring the use of the product in various sectors. For instance, a few years back, France's government set a target to increase the use of the product in the industrial sector to 10 percent by 2023 and 40 percent by the year 2040. Hydrogen is also used in emerging technologies such as fuel cells. Fuel cells are being developed as a fuel source for electric vehicles and power source for many commercial buildings in developed nations.
Green gas is an emerging technology that is expected to further fuel the growth of the global generation market during the forecast period. Steam methane reforming coal gasification, partial oxidation of oil, and water electrolysis are methods to produce the product. Since fossil fuel reforming is the most cost-effective method, this method is involved in more than 90 percent of production. Still, during this process, carbon dioxide is emitted into the environment.
But in recent years' methods are being developed to produce green hydrogen from electrolysis of water and renewable energy sources such as solar and wind energy. The plan to build the most significant European green plant was recently proposed by AkzoNobel and gas network operator Gasunie. These techniques are still not widely used, but in the coming decades, green hydrogen generated by these new methods is expected to contribute to the growth of the global generation market.
- Many developments are taking place in the global market in recent years. In July 2020, the world's most significant green hydrogen was unveiled in Saudi Arabia by Air Products & Chemicals. The new plant will be powered by 4 gigawatts of solar and wind energy. COVID-19 is expected to impact the growth of the global generation market slightly.
- During the pandemic, the activities in oils and refineries are significantly reduced, which will impact the generation. Most commercial buildings are not functioning, limiting the use of hydrogen-based fuel cells for power generation.
The global rebound in construction activity is set to continue over the coming years, supported by a wave of publicly funded infrastructure projects. This investment is coming at a time when global supply chain disruptions are hampering the delivery of construction materials, and tight labour markets are limiting the supply of labour.
Epiroc, a leading productivity and sustainability partner for the mining and infrastructure industries, will relocate the production and development of drill rigs for surface construction from Japan to its facility in Nanjing, China. The production facility in Yokohama, Japan, has been sold and will be closed.