Hydrogen Gas Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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).

Market Snapshot

Hydrogen Gas Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: >6 %
Hydrogen Gas Market Key Players

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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 6% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. 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. Several countries were forced to go in lockdown owing to the pandemic scenario, which led people to minimize the usage of personal vehicles, thus, creating a negative impact on the demand for automotive fuel and, in turn, decreasing the demand in the hydrogen gas market. 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.

  • Over the short term, increasing demand for hydrogen fuel cells and increasing expansions of the petroleum refineries are expected to drive the market’s growth.
  • Safety concerns regarding the usage of hydrogen gas are hindering the market's growth.
  • Research and development of innovative technologies to adapt to hydrogen gas are likely to create opportunities for the market in the coming years.
  • 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

  • The refining industry dominates the demand for hydrogen gas. In refineries, hydrogen gas is extensively used to process crude oil into refined fuels, like gasoline and diesel, and for removing contaminants, such as sulfur from refined fuels.
  • There are various hydro-treating processes in a refinery in which hydrogen gas is used, such as hydrodesulfurization, hydroisomerization, dearomatization, and hydrocracking.
  • Approximately 75% of the hydrogen gas currently consumed worldwide by oil refineries comes from large hydrogen plants, which produce hydrogen from natural gas or other hydrocarbon fuels.
  • The global demand for diesel/gas oil was accounted for about 28.4 million barrels per day in 2019 and reached about 26.3 million barrels per day in 2020, with a decline rate of about 7.4%, which, in turn, negatively impacts the market demand for hydrogen gas.
  • Besides, refineries also cater to their demand through hydrogen recovery from hydrogen-containing streams generated during the refining processes.
  • 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.
  • The automotive industry is one of the major consumers of petroleum refined products. As of Q3 2019, about 67.47 million vehicles were produced globally and reached about 52 million vehicles up to Q3 2020, registering a decline rate of about 23%. Thus, this led to a decrease in the demand for petroleum-refined products, which, in turn, negatively impacts the market growth of hydrogen gas.
  • Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.
Hydrogen Gas Market Key Trends

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.
  • For instance, in August 2020, Air Products Inc. announced to build a steam methane reformer (SMR) to produce hydrogen gas which will be connected to its existing and the world’s-largest hydrogen pipeline system in the Gulf Coast, for supplying hydrogen gas to Gulf Coast Ammonia (GCA) based in Texas City of the United States, which is having an ammonia production capacity of 3,600 metric ton per day. The pipeline segment of the project will be onstream after mid of 2021, and the rest facilities are expected to be completed by early 2023.
  • Similarly, numerous big oil companies have been looking to invest to capitalize on crude being produced from the booming Permian Basin in West Texas.
  • As of Q3 2019, about 8.33 million vehicles were produced in the United States and reached about 6.24 million vehicles till Q3 2020, registering a decline rate of about 25%, thus, leading to a decrease in the demand for refined petroleum products, which, in turn, negatively impacts the market growth of hydrogen gas.
  • Besides, industries like aerospace, metal fabrication, and chemicals, and other industries have also been witnessing growth in demand, which further increases production in the region.
  • The US chemical industry was valued at about USD 530 billion in 2019, registering a growth rate of about 1.5% compared to the previous year, which, in turn, stimulates the market demand for hydrogen gas.
  • Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.
Hydrogen Gas Market Growth by Region

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 Impact of COVID-19

      3. 4.2.3 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 2016 - 2026.

The Hydrogen Gas Market is growing at a CAGR of >6% over the next 5 years.

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

North America holds highest share in 2020.

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

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