The global U.S., Europe And Asia Industrial Hydrogen Market is estimated to be valued at Us$ 15.6 Bn in 2022 and is expected to exhibit a CAGR of 5.0% over the forecast period 2022-2030.
Market Overview:
Hydrogen is an important industrial gas with wide range of applications across various industries such as chemicals, oil refining, metal processing and electronics. It is used as reducing agent, cooling agent and energy carrier. The increasing demand from industrial sector and clean energy adoption is driving the need for industrial hydrogen.
Market key trends:
Steam Methane Reforming (SMR) technology dominates the industrial hydrogen production currently. However, the process emits greenhouse gases which has led to development of greener production methods. Electrolysis using renewable electricity is gaining traction as it enables production of zero-carbon hydrogen. Major hydrogen companies are investing in scaling up alkaline and PEM water electrolysis technologies to cater to growing demand from industries aiming for decarbonization.
Segment Analysis
The global industrial hydrogen market is segmented by production & delivery mode into captive, merchant, and on-site production. The captive segment dominates the market and accounted for over 50% share in 2018 owing to cost-effectiveness compared to other production and delivery modes. Most large industrial and petrochemical companies prefer captive production of hydrogen due to reliability and security of supply factors.
Key Takeaways
The U.S., Europe and Asia industrial hydrogen market is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing demand from petroleum refining industry.
Regional analysis
Asia Pacific dominated the global market in 2018 with a share of over 40%, primarily due to strong demand from key economies such as China and India. Rapid industrialization, growing oil refining industry, and rising steel production are driving the industrial hydrogen market growth in the region. Europe is also a significant market owing to well-established chemical and petrochemical industries in countries like Germany, France, and UK.
Key players
Key players operating in the U.S., Europe And Asia Industrial Hydrogen Market are Air Liquide, Air Products & Chemicals Inc., Praxair Inc., Linde Plc., and Messer Group GmbH. The industrial hydrogen market is highly consolidated with top five players accounting for over 75% of the global market share. Air Liquide accounted for largest market share in 2018 due to its global presence and leadership in hydrogen production and supply solutions.
