Hydrogen Industry Analysis And Growth Forecast Report 2030

By Author: Aryan
Total Articles: 1
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The hydrogen market is expected to capture $196,934.5 million revenue by 2030, attributed to the surging demand for the fertilizers in agriculture and rising establishments of the crude oil refining companies, leading to the worldwide growing demand for hydrogen. The ammonia is produced by hydrogen; it is further used to create nitrogen-based fertilizers. The rising environmental concerns and strict regulations to decrease the sulfur content in crude oil lead to extensive hydrogen demand.

Considering the production process, the hydrogen market is divided into electrolysis, partial oxidation, steam-methane reforming, coal gasification, and others. Steam-methane reforming dominates the market, attributed to its high adoption rate in the hydrogen-producing companies, facilitated by the natural gas supply chain, economic cost and increased operational efficiency. Based on the distribution method, the market is categorized into cylinder, tanker and on-site generation.

The on-site generation category dominates the hydrogen market, and ...
... it is expected to witness the fastest growth in the coming years, attributed to the less complicated method of its transportation to end-users. Furthermore, it is less expensive than tankers and cylinders and can be used for a longer duration, preferably 10 to 15 years. It facilitates companies to ease their operations by declining the risks present in the supply chain.

The chemical industry captures a significant share of the market under the end user segment; it is expected to retain the same position in the next eight years. The production of numerous chemicals such as ammonia and methanol require hydrogen as a raw material. The growing demand for these chemicals and the massive requirement for fertilizers will likely boost the hydrogen consumption in the chemical industry.

The hydrogen market in APAC is predicted to experience significant growth in the near future, considering the rising chemical production and crude oil refining activities. Moreover, the increased investments and initiatives in the fuel-cell vehicle market result in increased hydrogen demand, boosting the market. Furthermore, the increased requirement for fertilizers in the region due to the agriculture-based economy of India and China leads to market expansion with the rising demand for ammonia, thus propelling the market.

The surging usage of ammonia-based fertilizer drives the hydrogen market. The decline in the fertile land in recent years due to environmental factors, climate change and human activities has led to the increased usage of ammonia-based fertilizer in the available farms to enhance crop production. The combination of nitrogen and hydrogen produced ammonia, a significant ingredient of the nitrogen-fertilizer, resulting in increased demand for hydrogen in the near future.

The major players in the hydrogen market are focusing on merging or acquiring their competitors to scale themselves geographically and cater to the more extensive consumer base. For instance, the General Motor Company acquired 11% shares of Nikola Corporation in September 2020. Similarly, in October 2019, the Linde plc acquired a minor stake in the U.K.-based company ITM Power Plc.

Therefore, the growing requirement for nitrogen-based fertilizer to improve crop production and rapid industrialization results in the market boom.