Hydrogen Gas Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Hydrogen Gas Market is segmented by Distribution (Pipeline, High-pressure Tube Trailers, and Cylinders), End-user Industry (Chemicals, Aerospace and Automotive, Energy, Refining, Glass, Welding and Metal Fabrication, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers market size and forecasts for Hydrogen gas in Kilotons for all the above segments.

Market Snapshot

Hydrogen Gas Market Overview
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: >5 %

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Market Overview

The hydrogen gas market size was estimated at around 80 million metric tons in 2020, and the market is projected to register a CAGR of around 5% during the forecast period (2022-2027).

The market was negatively impacted by COVID-19 in 2020, However, it had a slight increase in the year 2021. Hydrogen gas finds its major application in the petroleum refinery industry to produce automotive fuels. Methanol and dimethyl ether (DME), mainly produced from hydrogen gas, can be used as an automotive fuel. However, the usage of ammonia, a hydrogen gas product, as an excipient (inactive agent) from the pharmaceutical industry has been increased during this period. Also, the demand for packaging made up of formaldehyde resins, usually prepared from methanol, has significantly increased from the food and e-commerce segments, which, in turn, stimulates the demand in the hydrogen gas market.

  • Using e-waste produced electron materials, valuable resources and energy may be recovered in the form of hydrogen in MEC. Due to the increasing environment safety concerns the market is expected to see a growth in the coming years.
  • Safety concerns regarding the usage of Hydrogen gas are expected to hinder the market.
  • The North American region is expected to dominate the market, and Asia-Pacific is likely to witness the highest CAGR during the forecast period.

Scope of the Report

Hydrogen gas is clean burning and efficient fuel that is mainly used in refining processes and the production of many chemicals like ammonia and methanol. Hydrogen gas is produced through the steam methane reforming process, coal gasification process, and electrolysis of water. The hydrogen gas market is segmented by distribution, end-user industry, and geography. By distribution, the market is segmented into pipeline, high-pressure tube trailers, and cylinders. By end-user industry, the market is segmented into chemicals, aerospace and automotive, energy, refining, glass, welding and metal fabrication, and other end-user industries. The report also covers the market size and forecasts for the hydrogen gas market in 16 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kiloton).

Distribution
Pipeline
High-Pressure Tube Trailers
Cylinders
End-user Industry
Chemicals
Aerospace and Automotive
Energy
Refining
Glass
Welding and Metal Fabrication
Other End-user Industries
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
Netherlands
Poland
Belgium
Italy
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Refining Segment to Dominate the Market Demand

  • According to the World Oil Outlook 2021, officials in many nations are becoming more conscious of the need to speed up steps to address climate change, which has lately resulted in new policy intents to reach net-zero emissions. In the endeavour to reduce emissions and achieve a net-zero energy system, hydrogen has emerged as a crucial answer. Hydrogen is a versatile, carbon-free energy carrier that has the potential to significantly reduce emissions in the power, transportation, and industrial sectors.
  • Due to the high demand for refined products and by-products, the downstream industry has been witnessing huge investments across the world for increasing refining capacities in the existing plants or setting up new refineries.
  • Hydrodesulfurization, hydroisomerization, dearomatization, and hydrocracking are some of the hydro-treating processes that hydrogen gas is employed in at a refinery.
  • Refineries use hydrogen to lower the sulfur content of diesel fuel. Refinery demand for hydrogen has increased as demand for diesel fuel has risen both domestically and internationally, and as sulfur-content regulations have become more stringent.
  • Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.
Hydrogen Gas Market - Segmentation

North America Region to Dominate the Market

  • The North American region dominated the global market share. The region has been witnessing noticeable investment in the exploration, production, and refining sector, which is expected to drive the demand for hydrogen gas extensively in the coming years
  • According to EIA the battery storage applications have increased in the US market. According to our Annual Electric Generator Report, most utility-scale (greater than 1 megawatt [MW] of capacity) battery storage applications perform several roles depending on revenue opportunities or system support requirements. This has lead to increase in the usage of Hydrogen gas in the United States.
  • The majority of hydrogen used in the United States is produced on-site or near-site, usually at large industrial sites. Infrastructure for delivering hydrogen to the statewide network of fuelling stations required for widespread adoption of fuel cell electric cars is still being constructed. The initial vehicle and station rollout will concentrate on expanding these distribution networks, primarily in southern and northern California.
  • Recently, In order to achieve carbon neutrality by 2050, the Abu Dhabi Department of Energy, Canada, and the Clean Energy Business Council have recently formed closer collaborations in the hydrogen space.
  • The above mentioned factors are likely to see a growth in the Hydrogen market in North American region in the forecasted period. 
Hydrogen Gas Market - Regional Trend

Competitive Landscape

The hydrogen gas market is a consolidated market, where major players hold a significant share of the market demand. Some of the major players in the market include Air Liquide, Air Products Inc., Iwatani Corporation, Linde, and Messer Group GmbH, among others.

Recent Developments

  • In January 2021, Uniper SE and PAO NOVATEK signed an MoU to jointly investigate the potential for Novatek to supply Blue and Green Hydrogen to power stations of Uniper and markets in Russia and northwest Europe.
  • In July 2020, Norway-based company Equinor ASA announced to produce hydrogen from the largest of its kind plant, which is integrated with the carbon capture facility.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Demand for Hydrogen Fuel Cell

      2. 4.1.2 Increasing Expansions of the Petroleum Refineries

    2. 4.2 Restraints

      1. 4.2.1 Safety Concerns Regarding the Usage of Hydrogen Gas

      2. 4.2.2 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Trade Analysis

    6. 4.6 Technological Snapshot

  5. 5. MARKET SEGMENTATION

    1. 5.1 Distribution

      1. 5.1.1 Pipeline

      2. 5.1.2 High-Pressure Tube Trailers

      3. 5.1.3 Cylinders

    2. 5.2 End-user Industry

      1. 5.2.1 Chemicals

      2. 5.2.2 Aerospace and Automotive

      3. 5.2.3 Energy

      4. 5.2.4 Refining

      5. 5.2.5 Glass

      6. 5.2.6 Welding and Metal Fabrication

      7. 5.2.7 Other End-user Industries

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 Netherlands

        3. 5.3.3.3 Poland

        4. 5.3.3.4 Belgium

        5. 5.3.3.5 Italy

        6. 5.3.3.6 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%)/Ranking Analysis**

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Aditya Birla Chemicals

      2. 6.4.2 Air Liquide

      3. 6.4.3 Air Products Inc.

      4. 6.4.4 BASF SE

      5. 6.4.5 Equinor ASA

      6. 6.4.6 Gujarat Alkalies and Chemicals Limited

      7. 6.4.7 Gulf Cryo

      8. 6.4.8 Linde 

      9. 6.4.9 Lords Chloro Alkali Limited

      10. 6.4.10 Matheson Tri-Gas Inc.

      11. 6.4.11 Messer Group GmbH

      12. 6.4.12 PAO NOVATEK

      13. 6.4.13 TAIYO NIPPON SANSO CORPORATION

      14. 6.4.14 Universal Industrial Gases Inc.

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Research and Development Leading to Increased Adoption

    2. 7.2 Other Opportunities

**Subject to Availability

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Frequently Asked Questions

The Hydrogen Gas Market market is studied from 2017 - 2027.

The Hydrogen Gas Market is growing at a CAGR of >5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

Air Liquide, Air Products Inc., Iwatani Corporation, Linde, Messer Group GmbH are the major companies operating in Hydrogen Gas Market.

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