Electrolysis Produced Hydrogen Market Size ( 2023 - 2030)

The Global Electrolysis Produced Hydrogen market was valued at USD 60.49 Billion and is projected to reach a market size of USD 127.18 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 11.2%.

Market Overview:

Hydrogen is a flammable, colorless, odorless, and tasteless element present in nature in abundance in various forms. The chemical form is generally available in the gaseous form in the atmosphere or can be produced as a by-product of several procedures. Also, hydrogen is significantly used as an alternative source of fuel for electricity generation and energy sources for vehicles. Hydrogen fuel is extensively used in fuel cells because of its ability to avoid harmful discharges and deliver water vapor and heat as the output.  

COVID-19 Impact on the Electrolysis Produced Hydrogen Market:

The COVID-19 outbreak has severely affected economies and industries in various countries due to lockdowns and business shutdowns including the global hydrogen generation industry, due to disruptions in the demand-supply chain and reduced demand and cash flow among people, regional players, and traders. However, several government initiatives and strategies align with the hydrogen production industry’s motives and have issued proposals to take advantage of the reduced carbon emission footprint levels brought about by the slowdown of the manufacturing and transportation industries, driving demand for clean fuel alternatives. This has improved the outlook of the electrolysis-produced hydrogen generation market during the COVID-19 outbreak.

Market Drivers:

Increasing attention towards clean energy sources is driving the market growth:

Hydrogen production is an emerging market and offers boundless opportunities for development and growth. Rising carbon footprint remarkably drives hydrogen production in recent as well as upcoming years. Also, to achieve net zero targets, the world is shifting toward sustainable and renewable sources of energy. As a result, clean hydrogen production technologies are adopted and are likely to fuel the market growth for in the upcoming years.

Government regulations for regulating greenhouse gas emissions and checking air pollution is boosting the market:

Growing concern for increasing levels of GHGS and air pollution has forced governments of several regions to issue stringent gas emission regulations for passenger vehicles, light & heavy commercial vehicles, and other vehicles, as transportation is one of the major causes of air pollution globally. Therefore, industries are looking out for ways to minimize the carbon emission associated with the hydrogen production process augmenting the demand for electrolysis production process. These all factors are estimated to drive the market growth in the forecasted years.

Market Restraints:

High capital cost of its production is hampering the market size growth:

Electrolysis is a renewable and green technology used for hydrogen generation without the emission of harmful carbon gases. Therefore, these technologies cost higher compared to hydrogen production through other means such as natural gas or coal. Apart from this, storage is the key technical barrier to its development and widespread application. Compression and cooling systems are essential for its transportation and storage which escalates the cost involved with the technology. This in turn, is anticipated to further hamper the market growth in the forecasted years.

ELECTROLYSIS PRODUCED HYDROGEN MARKET REPORT COVERAGE:

This research report on the Electrolysis Produced Hydrogen Market has been segmented and sub-segmented based on the Application, System, Source, Region, and Companies.

Electrolysis Produced Hydrogen Market – Application.

• Methanol Production
• Ammonia Production
• Petroleum Refining
• Transportation
• Power Generation
• Others

Based on the application, the Electrolysis Produced Hydrogen Market has been segmented into 6 segments – Methanol Production, Ammonia Production, Petroleum Refining, Transportation, Power Generation, and Others.

Ammonia production holds the dominance and accounts for the largest revenue share of more than 20.28% in 2021 due to its capability as a carbon-free fuel, hydrogen carrier, and presents an opportunity for renewable technologies to be established at a greater scale.

Electrolysis Produced Hydrogen Market – System.

• Captive
• Merchant

Based on the system, the Electrolysis Produced Hydrogen Market has been segmented into 2 segments – Captive and Merchant.

The merchant generation segment holds the largest share of revenue in 2021. In this, hydrogen is processed and produced at a central production facility and from there it is transported and sold to consumers by bulk tank, pipeline, or truck. The segment is predicted to keep its lead during the forecast period as well.

Electrolysis Produced Hydrogen Market – Source.

• Natural Gas
• Coal
• Biomass
• Water

Based on the source, the Electrolysis Produced Hydrogen Market has been segmented into 4 segments – Natural Gas, Coal, Biomass, and Water.

The natural gas segment leads the market by holding the dominance in 2021. Hydrogen is produced from processing natural gas which further produces hydrogen, carbon monoxide, and carbon dioxide. It is the cheapest method of producing hydrogen and is anticipated to hold its dominance during the forecast period.

Electrolysis Produced Hydrogen Market – Region.

• North America
• Europe
• Asia-Pacific
• South America
• Middle-East and Africa

Based on region, the Electrolysis Produced Hydrogen Market has been segmented into 5 major regions – North America, Europe, Asia-Pacific, South America, Middle-East, and Africa.

Asia Pacific acquired USD 12.5 billion in 2021. This growth can be attributed to the increasing refinery operations in the economies such as China, South Korea, and India to meet the growing demand for fuels. Therefore, the popularity of hydrogen generation systems would surge exponentially in this region.

In Europe, the countries are continuously investing large amounts of money in the research and development of hydrogen projects. They are continually working towards achieving the targets set by the European Commission for the adoption of sustainable and clean energy sources in future. This would further augment the demand for hydrogen generation systems.

North America would witness remarkable growth during the forecasted years supported by the implementation of strict norms and regulations by the governments to manage the emissions of greenhouse gases.

Electrolysis Produced Hydrogen Market – Companies.

1. Air Liquide
2. Air Products
3. Iwatani Corporation
4. Hydrogenics
5. Linde
6. Praxair, Inc
7. Messer Group
8. Showa Denko K.K.
9. Epoch Energy Technology Corporation
10. Idroenergy Spa
11. McPhy
12. Proton OnSite
13. LNI Swissgas
14. Airgas
15. Parker Hannifin
16. FuelCell Energy

The electrolysis-produced hydrogen generation market is extremely competitive with key players involved in R&D and constant technological innovation done by the vendors.