Report Highlights $500 Billion Opportunity in Hydrogen

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by | Aug 2, 2023

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MarketsandMarkets – a market research and growth consulting firm – has unveiled a staggering $500 billion opportunity across the entire value chain of the Hydrogen Economy.

This revelation comes on the heels of a recent study titled Hydrogen Future, pointing to a dramatic shift in the commercialization of hydrogen from a distant dream to an imminent reality. Hydrogen is currently considered a “paradigm shift,” according to MarketsandMarkets, as it has a number of uses: fuel, feedstock for chemical production, and as a source of heat and electricity. 

The Evolution of Hydrogen: From Grey to Green

The study highlights the dominance of grey hydrogen, accounting for approximately 88% of hydrogen produced in 2022 by value. This reliance on carbon-emitting hydrogen underscores the need for the paradigm shift MarketsandMarkets emphasizes. While blue hydrogen could temporarily fill this gap, it is green hydrogen that emerges as a truly sustainable option. The study underscores that green hydrogen, with its low-carbon production methods, is projected to create a $70 million opportunity by 2030.

The Growth Trajectory: Hydrogen’s Multi-Faceted Market Expansion

The trajectory of the hydrogen industry’s growth is nothing short of remarkable. The global hydrogen generation market is predicted to achieve a value of $263.5 billion by 2027, exhibiting a CAGR of 10.5% from 2022 to 2027. This growth is propelled by the surging demand for hydrogen in industrial sectors, transportation, and power generation applications.

Key drivers behind the escalating demand for green hydrogen include economical variable electricity costs, technological advancements, global net-zero emission goals by 2050, and the escalating adoption of fuel cell electric vehicles and power generation. The study predicts growth of approximately $4 billion by 2027 in the production of green hydrogen through alkaline electrolysis, a trend catalyzed by initiatives like the European Green Deal.

Europe’s Ascent in the Hydrogen Market

The study forecasts Europe’s ascendancy in the hydrogen market, poised to surpass China as the leading hydrogen-producing market post-2030. This shift not only reflects Europe’s commitment to sustainability but also indicates the democratization of the energy market as hydrogen production becomes localized in high-consumption areas.

The global electrolyzers market is on a remarkable trajectory, projected to reach a value of $23.6 billion by 2028, growing at a staggering CAGR of 80.3%. The rising deployment of electrolyzers for green hydrogen production is a significant contributor to this remarkable growth.

The hydrogen storage solutions market is equally dynamic, anticipated to reach $7.7 billion by 2027. Material-based storage solutions are set to enhance volumetric and gravimetric capacities, furthering the evolution of hydrogen storage methods.

Hydrogen Fueling Stations

The hydrogen fueling station market is positioned for exponential growth, predicted to achieve $1.13 billion by 2030, with a CAGR of 16.8%. As zero-emission vehicles gain traction, and government support intensifies, the demand for hydrogen fueling stations is soaring. The on-site hydrogen fueling station market is particularly promising, driven by investments in green hydrogen projects and the global shift towards zero-carbon fuels.

 

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