Hydrogen has emerged as one of the most promising sources of clean energy and fuel that can potentially replace conventional fossil fuels. Hydrogen has a higher energy density than conventional fuels such as gasoline and produces only water vapor when used in a fuel cell. It is increasingly being used as fuel for transportation applications such as fuel cell vehicles, material handling equipment, locomotives, backup power generation systems, and more. The development of advanced fuel cell technologies and reduction in the cost of fuel cells is making hydrogen more feasible for powering automobiles. Many large automobile manufacturers such as Toyota, Hyundai, and Honda have launched various hydrogen fuel-cell based electric vehicles. The global push towards decarbonization of transportation is further driving research and development of hydrogen infrastructure including hydrogen production, distribution, and refueling.
The global Hydrogen Market is estimated to be valued at US$ 151.5 Bn in 2023 and is expected to exhibit a CAGR of 23% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the hydrogen market is the focus on renewable hydrogen production. Traditional hydrogen production methods rely on fossil fuels such as natural gas and emit greenhouse gases. However, green hydrogen produced using renewable energy sources such as solar and wind is gaining traction. As renewable energy technology improves and costs decline, green hydrogen production is becoming more economical and environmentally viable. Many countries have announced plans to develop large scale renewable hydrogen production capacities. For example, the European Union hydrogen strategy aims to produce 1 million tons of renewable hydrogen annually by 2024. Such initiatives are expected to drive the demand for green hydrogen in the coming years.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the hydrogen market is moderate. High capital requirement for production and distribution infrastructure act as a barrier.
Bargaining power of buyers: The bargaining power of buyers is moderate. Switching costs are low and several options are available in the hydrogen market.
Bargaining power of suppliers: The bargaining power of suppliers is high owing to the consolidated nature and limited number of large suppliers in the market.
Threat of new substitutes: The threat of substitutes is moderate as hydrogen has applications that alternatives cannot replace. However, electrification is a challenge.
Competitive rivalry: The competition in the hydrogen market is high among the top players globally.
Key Takeaways
The Global Hydrogen Market Size is expected to witness high growth over the forecast period. Factors such as zero-emission attributes, increasing demand for cleaner fuels will drive the market. The global Hydrogen Market is estimated to be valued at US$ 151.5 Bn in 2023 and is expected to exhibit a CAGR of 23% over the forecast period 2023 to 2030.
Regional analysis: North America and Europe currently dominate the hydrogen market owing to presence of major players and supporting government policies promoting hydrogen use. However, Asia Pacific is expected to witness the fastest growth in the coming years supported by growing economies of China and India focusing on cleaner energy.
Key players: Key players operating in the hydrogen market are IBM Corporation,Informatica LLC,Riversand Technologies, Inc.,SAP SE,Salsify Inc. IBM holds a leading position in the market offering end-to-end supply chain solutions for hydrogen companies. Informatica provides cloud-based master data management software. Riversand provides SaaS-based product information management solution.
For More details on the topic:
https://www.marketwebjournal.com/hydrogen-market-trends-size-and-share-analysis/
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