The global U.S., Europe, and Asia Industrial Hydrogen Market is estimated to be valued at US$ 14.7 billion in 2018 and is expected to exhibit a CAGR of 5.0% over the forecast period (2019-2027), as highlighted in a new report published by Coherent Market Insights.

A) Market Overview: Industrial hydrogen is extensively used in various industries such as petrochemicals, electronics, metal processing, and transportation, among others. It is a key feedstock for numerous chemical processes and also holds great potential as a clean energy source. The market offers a wide range of hydrogen production technologies including steam methane reforming, electrolysis, and coal gasification, among others. Rising concerns about climate change and the need for sustainable alternatives have led to a surge in demand for industrial hydrogen.

B) Market Dynamics:

Driver 1- Growing demand for clean energy: The industrial hydrogen market is driven by the increasing demand for clean energy sources. Hydrogen, being the most abundant element in the universe, has the potential to play a vital role in achieving carbon neutrality. It is a versatile fuel that can be used in fuel cells to produce electricity, emitting only water vapor as a byproduct. The shift towards cleaner and greener energy sources is expected to drive the demand for industrial hydrogen in the coming years.

Driver 2- Increasing investments in hydrogen infrastructure: Governments and private organizations are making significant investments in developing hydrogen infrastructure to support the widespread adoption of hydrogen as an alternative fuel. For instance, the European Union launched the European Hydrogen Strategy in July 2020, aiming to install at least 6 gigawatts of renewable hydrogen electrolyzers in the EU by 2024, and at least 40 gigawatts by 2030. Such investments in hydrogen infrastructure are expected to boost the demand for industrial hydrogen.

C) Segment Analysis: Among the various applications of industrial hydrogen, the petrochemicals segment dominates the market. This can be attributed to the extensive use of hydrogen in the production of chemicals such as ammonia, methanol, and hydrochloric acid, among others. The petrochemicals industry requires hydrogen in large quantities for various processes, making it the dominant segment in the U.S., Europe, and Asia Industrial Hydrogen Market.

D) PEST Analysis:

Ø  Political: Government initiatives and policies supporting the development of clean energy and sustainable alternatives are driving the growth of the industrial hydrogen market.

Ø  Economic: The demand for industrial hydrogen is influenced by economic factors such as the growth of end-use industries, investments in hydrogen infrastructure, and global energy prices.

Ø  Social: The increasing awareness about the need for sustainable energy sources and the rising concerns about environmental pollution are driving the demand for industrial hydrogen.

Ø  Technological: Advancements in hydrogen production technologies, such as electrolysis and steam methane reforming, are enabling efficient and cost-effective hydrogen production, further fueling the growth of the industrial hydrogen market.

E) Key Takeaways:

Ø  The global U.S., Europe, and Asia Industrial Hydrogen Market is expected to witness high growth, exhibiting a CAGR of 5.0% over the forecast period, due to increasing demand for clean energy and growing investments in hydrogen infrastructure.

Ø  The Asia-Pacific region is expected to be the fastest-growing and dominating region in the industrial hydrogen market, owing to the rapid industrialization and increasing focus on sustainable development in countries like China and India.

Ø  Key players operating in the global U.S., Europe, and Asia Industrial Hydrogen Market include Air Liquide, Air Products & Chemicals Inc., Praxair Inc., Linde Plc., and Messer Group GmbH. These players are focusing on strategic collaborations, partnerships, and investments in research and development to enhance their market presence and gain a competitive advantage.

In conclusion, the U.S., Europe, and Asia Industrial Hydrogen Market is poised for significant growth, driven by the increasing demand for clean energy and the investments in hydrogen infrastructure. The market offers immense opportunities for key players to capitalize on the growing demand for industrial hydrogen and contribute to the global transition towards a sustainable future.