According to the latest publication from Meticulous Research®, the hydrogen market is projected to reach $288.3 billion by 2031, growing at a CAGR of 6.2% from 2024 to 2031. This market growth is primarily driven by the increasing demand for hydrogen in the chemicals industry, progressive government initiatives supporting the transition to clean energy, and the expanding use of hydrogen for power generation. However, high capital costs associated with hydrogen storage and transportation pose a significant challenge.
Additionally, the rise in Fuel Cell Electric Vehicles (FCEVs) is expected to create new growth opportunities, although safety concerns regarding hydrogen volatility remain a key challenge. The integration of Carbon Capture, Utilization, and Storage (CCUS) in hydrogen production and the growing use of renewable energy sources are notable trends in this market.
The hydrogen market is segmented by offering (hydrogen generation [gray, blue, green, and other types], hydrogen storage [tanks, cylinders, portable storage, and other types], and hydrogen transportation [road, rail, pipelines, and marine]), application (chemical production, automotive & transportation, industrial manufacturing, oil & gas, aerospace & defense, power generation, and other uses), and geography. The study also analyzes key industry competitors and evaluates the market at regional and country levels.
By Offering: In 2024, the hydrogen generation segment is expected to hold the largest share of approximately 69.0% of the hydrogen market. This segment's dominance is due to increased production of green hydrogen for FCEVs, growing use of renewable sources like wind, solar, and water for hydrogen production, and government initiatives to decarbonize sectors such as chemical production and transportation. The hydrogen generation segment is also anticipated to achieve the highest CAGR of around 9.0% during the forecast period.
By Application: The chemical production segment is expected to capture the largest share of approximately 71.0% of the hydrogen market in 2024. This is driven by the demand for efficient energy sources like hydrogen in petroleum refineries, the need for clean energy alternatives to fossil fuels, and the requirement for reactive hydrogen in processes such as hydrogenation and hydrocracking. However, the automotive & transportation sector is projected to grow at the highest CAGR, fueled by the rising adoption of FCEVs and the increasing use of hydrogen to reduce CO2 emissions and dependence on fossil fuels.
By Geography: In 2024, Asia-Pacific is expected to hold the largest share of approximately 37.0% of the hydrogen market. The region's significant market share is driven by the potential for carbon-free hydrogen production, the focus on using CCUS technology, and the emphasis on renewable energy sources. Asia-Pacific is also expected to register the highest CAGR of around 7.5% during the forecast period.
Key Players: Major players in the hydrogen market include L’air Liquide S.A. (France), Air Products and Chemicals, Inc. (U.S.), Plug Power Inc. (U.S.), Linde plc (Ireland), Cummins Inc. (U.S.), Matheson Tri-Gas, Inc. (a subsidiary of Nippon Sanso Holdings Corporation) (U.S.), Shell Plc (U.K.), Hexagon Purus ASA (Norway), Fuelcell Energy, Inc. (U.S.), Chart Industries, Inc. (U.S.), Siemens Energy Ag (Germany), Iwatani Corporation (Japan), Luxfer Gas Cylinders (a subsidiary of Luxfer Holdings PLC) (U.S.), Messer Se & Co. Kgaa (Germany), Merck KGaA (Germany), Ballard Power Systems Inc. (Canada), Hanwha Corporation (South Korea), and NPROXX B.V. (Netherlands).
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