Is Europe Leading in Hydrogen Use?

The global hydrogen market is poised for remarkable growth, projected to reach US$328 billion by the end of 2030. As a critical component of the clean energy sector, hydrogen's vast applications and potential for future expansion are driving substantial interest and investment. This press release delves into the key findings of the latest market report, outlining the factors contributing to this growth and the emerging opportunities within the hydrogen sector.

For More Industry Insight: https://www.fairfieldmarketresearch.com/report/hydrogen-generation-market

Market Overview

Currently valued at approximately US$185 billion, the hydrogen market is experiencing a surge in interest due to its potential to revolutionize clean energy applications. Hydrogen is produced commercially and is essential for various industrial uses, including oil refining and chemical manufacture. Despite its current limited contribution of less than 5% to the world’s energy needs, hydrogen holds the promise of significantly impacting global energy consumption. With aggressive government support and advancements in technology, hydrogen could account for up to 25% of global energy consumption by 2050.

Key Report Findings

1. Market Growth Projections

o By 2030, the hydrogen market is expected to reach a substantial US$328 billion.

o The drive towards sustainability and clean energy is creating a robust ecosystem for hydrogen.

2. Current Challenges and Opportunities

o Hydrogen generation technologies, such as direct reduced iron (DRI) for steel manufacturing and ammonia use in shipping, are not yet commercially viable on a large scale.

o The market for hydrogen in trucks, airplanes, and ships is growing, with significant potential for applications in fertilizers, home heating, power generation, and heavy industries.

3. Dominant Market Segments

o On-site captive production remains a major segment, contributing over 75% of total market revenue.

o Asia Pacific, led by China, maintains dominance with over 40% of the global market share.

Growth Drivers

1. Government Initiatives and Sustainability Goals

o Governments worldwide are increasingly committing to net zero emissions and adopting regulatory frameworks to support clean energy.

o The Paris Agreement and national hydrogen strategies are driving public funding and investment in hydrogen technologies. Over 200 large-scale hydrogen projects, primarily in Europe, Asia, and Australia, are set to receive more than $300 billion in investments by 2030.

2. Sector Diversification and Emerging Opportunities

o Energy giants are diversifying into clean energy sectors, with companies like NextEra, Iberdrola, and Uniper challenging traditional oil companies.

o The electric vehicle (EV) boom is enhancing hydrogen’s appeal due to its energy efficiency and reduced need for prolonged charging, exemplified by models like the Toyota Mirai.

Hydrogen Production Segmentation

1. Types of Hydrogen

o The market is segmented into grey hydrogen (produced without carbon capture and storage), blue hydrogen (produced with carbon capture), and green hydrogen (produced through electrolysis).

o Grey hydrogen currently dominates the market but is expected to be surpassed by blue and green hydrogen, with blue hydrogen projected to grow at a CAGR of 24.1% and green hydrogen at 17.8% from 2023-2030.

2. Technological Advancements

o Blue hydrogen, generated via steam methane reforming or auto thermal reforming with carbon capture, remains the most cost-effective method.

o Green hydrogen, produced through electrolysis, is gaining traction but has higher costs compared to blue hydrogen.

Market Application and Growth Potential

1. Industrial and Transport Applications

o The refining sector currently leads in hydrogen consumption, accounting for 48% of the market share.

o The transport sector, particularly hydrogen fuel cell vehicles, is anticipated to witness the strongest growth by 2030.

2. Future Prospects

o While hydrogen has established its role in industrial applications, its integration into transportation, construction, and power generation sectors remains limited.

o There is a significant opportunity for hydrogen to contribute to clean energy transitions and emission reductions.

Regional Insights

1. Europe and North America Lead in Growth

o Europe is expected to experience the highest growth in hydrogen generation projects, contributing to over 60% of the total announced clean hydrogen supply volumes by 2030.

o North America and Europe are leading in terms of planned hydrogen projects, with substantial investments in the mobility sector and new industrial uses.

2. China’s Dominance

o China is the largest consumer of hydrogen globally, accounting for over 60% of hydrogen demand in the Asia Pacific region.

o The region saw a significant increase in large-scale hydrogen project proposals, with investments reaching US$240 billion by 2022.

Key Market Players

Prominent players in the global hydrogen market include Royal Dutch Shell, TotalEnergies, Adani Green, Air Liquide, Air Products, Bloom Energy Corp., and Plug Power, Inc. These companies are at the forefront of hydrogen production and innovation, driving the market’s expansion.

Notable Developments

• In July 2022, Shell Plc began constructing Europe’s largest renewable hydrogen plant in the Netherlands, set to become operational by 2025.

• In June 2022, Adani and TotalEnergies announced a partnership to develop the world’s largest green hydrogen ecosystem, with TotalEnergies acquiring a 25% minority stake in Adani New Industries Ltd.