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Home Home - Analysis
hydrogen

Industrial Hydrogen Surge Transforms Energy Markets in U.S., Europe, and Asia

Anela DoksoBy Anela Dokso13/02/20252 Mins Read
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The global industrial hydrogen market is witnessing a surge, with projections indicating a Compound Annual Growth Rate (CAGR) of over 6% from 2021 to 2030.

This growth is largely driven by increasing demand across various industries including chemical manufacturing, refining, and steel production. Notably, the Asia-Pacific region, spearheaded by China, dominates the market with more than 50% share, thanks to the region’s aggressive industrial expansion and supportive governmental policies.

While the booming market presents lucrative opportunities, it is not without its challenges. The production of hydrogen remains energy-intensive, often relying on natural gas reforming which contributes to substantial carbon emissions. Despite advancements in green hydrogen production, primarily through water electrolysis using renewable energy, this method only accounts for a minuscule percentage of total production due to its high costs and infrastructure requirements.

Focusing on trends, the U.S. market is experiencing significant interest in blue hydrogen, which incorporates carbon capture and storage (CCS) technologies. This approach has been supported by federal incentives aimed at reducing the carbon footprint of hydrogen production. Meanwhile, Europe is setting ambitious green hydrogen targets as part of its broader climate goals, with the European Commission investing billions in hydrogen-related projects.

The transition to cleaner hydrogen solutions is complicated by technological limitations and economic factors. Green hydrogen’s cost is projected to decrease as technology improves and scales. However, the current reliance on fossil fuels for hydrogen production remains a critical hurdle for the industry in achieving its sustainability objectives. The market’s response has been mixed, with some companies investing heavily in research and development to overcome these barriers, while others are betting on the continued efficiency and lower costs of existing technologies.


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