Hydrogen market to reach $2,098.44M revenue by 2026

The global clean hydrogen market is expected to reach USD 2098.44 million in revenue by 2026, expanding at a CAGR of around 14.01 percent over the forecast period.

Global warming is accelerating as a result of the highest carbon dioxide emissions to the environment from transportation, industry, and power generation. These are the primary drivers driving the demand for clean hydrogen. The APAC region contributes the most carbon dioxide to the atmosphere, followed by North America. To minimize vehicle emissions and air pollution, demand for fuel cell vehicles is expanding throughout areas. Due to the fact that hydrogen can be used to charge these FCV vehicles, there is an enormous opportunity for clean hydrogen in transportation applications.

Between 2020 and 2026, the European area is predicted to experience the biggest incremental growth of 140.11 percent. The green hydrogen industry in Europe will experience the fastest growth rate due to government measures aimed at achieving carbon neutrality by 2050. Germany is the largest contributor to clean hydrogen production in the European region.

Germany’s demand for clean hydrogen will be driven by transportation, energy generation, and industry. At the moment, Europe and Asia are the two continents that are generating the majority of hydrogen demand. Japan is the greatest producer of clean hydrogen in the APAC area. The South American country, which is currently a significant producer of minerals, has the potential to export green hydrogen, with a capacity of 25 million tons per year by 2050.INVESTMENTS IN THE MARKET:

Market investments:

• In July 2020, the European Union unveiled its hydrogen policy, committing to building a 6 gigawatt renewable hydrogen electrolyzer by 2024.
• Plug Power Inc is creating North America’s largest pure hydrogen generation facility. By 2023, the facility will have produced 45 metric tons of pure liquid hydrogen and will be providing daily services to the Northeast.
• The Japanese government pioneered the ‘Basic Hydrogen Strategy’ and has invested much in research and development over the last few years, continuing to give strong support and money for various zero-emission projects. Japan accounts for more than 26% of the APAC clean hydrogen market.
• Korea intends to develop a society based on hydrogen as a source of energy for mobility and power generation. According to the Korea Energy Economics Institute (KEEI), the hydrogen sector is expected to be valued more than USD 11 billion in 2020 and over USD 21 billion in 2030.
• Eco Energy World, a solar developer based in the United Kingdom, has announced plans to build one of Australia’s largest clean hydrogen projects. The plant is expected to create 33,000 tons of environmentally friendly hydrogen per year.
• California’s government intends to invest USD 230 million in hydrogen projects by 2023, and one of the world’s largest clean hydrogen projects is now under construction near Lancaster, California.

By 2026, the global alkaline electrolyzer clean hydrogen market is anticipated to reach around USD 1,277.41 million.

The alkaline electrolyzer is one of the simplest methods for producing hydrogen because it provides 99.9% pure gas. The techniques employ durable zirconium dioxide-based diaphragms and nickel-coated stainless steel electrodes. Alkaline electrolyzers are projected to expand in popularity due to their inexpensive cost in comparison to other electrolyzers.

PEM electrolysis is more dynamic and sensitive than alkaline electrolysis to changing power input requirements. The bipolar plates with flow channels, current collectors, and membrane electrode assembly are the electrolyzer’s critical components. The market for PEM electrolyzers will also grow during the forecast period due to the fact that it produces pure hydrogen. Numerous industries and government agencies believe that PEM is the finest electrolyzer for hydrogen production in the next years.

The primary application of clean hydrogen is in the generation of power using fuel cells.

In 2020, the transportation sector accounted for the greatest proportion of the global green hydrogen market, accounting for 45.20 percent. While some businesses are selling hydrogen cars in limited areas, a growing number of automobile manufacturers globally are opting for battery-electric vehicles. The European Network of Transmission System Operators for Electricity (ENTSO-E) is consulting on expanding this fleet to 50,000 taxis in Paris by 2030 as part of a billion-euro investment in the city’s 11 GWh hydrogen storage capacity.

Hydrogen is either blended into natural gas grids or developed specifically for use in building sectors. Currently, the UK government is funding an initiative named Hy4Heat. The government intends to invest approximately USD 173 million to develop a technically sound and cost-effective strategy for replacing methane gas in residential and commercial buildings and gas appliances.

By 2026, the European clean hydrogen market is expected to reach more than USD 1,243.52 million.

Germany, France, Spain, and the Netherlands, among others, have previously announced a national hydrogen strategy and a clean hydrogen strategy as energy-efficiency measures. Clean hydrogen projects are accelerating, with many companies announcing significant low- or zero-carbon hydrogen projects around Europe. In Europe, the German government intends to generate between 90 to 110 Tw of hydrogen demand by 2030.

The increased deployment of renewable energy resources in residential and commercial regions, fueled by rising consumer purchasing power and regulatory reforms, are the primary factors driving the North American green hydrogen industry. Clean buildings are the newest trend in the United States, with locations like Austin serving as the fastest-growing markets for such structures.

China and India, for example, offer larger prospects in the clean hydrogen industry than other countries in the APAC area.

Linde Plc, Air Liquide, and others are currently collaborating in a number of global sustainability agreements. With superior technological and financial resources, businesses can develop revolutionary items that pose a threat to competing products. Vendors must innovate and stay current on emerging technologies in order to maintain a competitive edge over other vendors. The sector will demand clean hydrogen as a result of its zero carbon dioxide emissions, which will offer profitable market prospects.