The clean hydrogen market is engaged in producing and supplying hydrogen without carbon emissions through methods like electrolysis of water. Clean hydrogen finds wide applications in industries like chemicals, electronics and energy storage due to advantages like higher efficiency, zero emissions and energy density. The growing hydrogen economy and demand for more sustainable fuel options are driving focus on technologies like renewable hydrogen production through water electrolysis using electricity from solar and wind energy. The Global Clean Hydrogen Market is estimated to be valued at US$ 432.7 million in 2024 and is expected to exhibit a CAGR of 5.5% over the forecast period 2024 To 2031 Key Takeaways Key players: Key players operating in the clean hydrogen market are BASF SE, Belmont Metals, California Custom ProductsInc, Cee-Bee Chemicals, Chemeon Surface Technology, LLC, Henkel Corporation, Sanchem Inc., Socomore, Quaker Houghton.
BASF SE is one of the leading producers of green ammonia using hydrogen. Belmont Metals and California Custom ProductsInc are engaged in electrolyzer manufacturing for water splitting. Growing demand: The Clean Hydrogen Market Demand from sectors like transportation, power generation and industries requiring hydrogen as fuel or feedstock to meet sustainability goals. Global expansion: Leading clean hydrogen companies are expanding globally by setting up production plants in regions with high renewable energy potential like Europe, North America, Asia Pacific to cater to the growing local demand. Market Key Trends One of the major trends driving the Clean Hydrogen Market Size and Trends is the reducing costs of renewable hydrogen production technologies like water electrolysis. Continuous technology advancements are helping to improve the efficiency and lower the capital costs of electrolyzers. This is increasing their competetiveness against other hydrogen production methods to support the commercialization of renewable hydrogen economy.
Porter's Analysis Threat of new entrants: Clean hydrogen production requires significant capital investments in infrastructure for electrolysis, pipelines and storage facilities. These economic barriers make entry difficult for new players. Bargaining power of buyers: Buyers have moderate bargaining power as they can negotiate on price and contract terms with existing clean hydrogen producers. However, alternative options are still limited considering hydrogen's unique properties. Bargaining power of suppliers: Electrolyzer manufacturers and renewable energy suppliers hold strong influence over equipment and electricity costs. Fluctuations in raw material prices directly impact production costs for clean hydrogen producers. Threat of new substitutes: No direct substitutes exist currently for hydrogen in applications that require its properties like high energy density, absence of emissions. However, electrification and battery technologies pose a long term threat in certain mobile and stationary power markets. Competitive rivalry: Competition is steadily increasing among major industrial gas producers to expand clean hydrogen capacity and infrastructure. Geographic integration across the supply chain helps lower costs and gain footholds in growing end-use markets. Geographical Regions Currently, the clean hydrogen market in Europe accounts for over 40% of the global market value, led by countries like Germany, France and the UK that have set ambitious hydrogen deployment targets and investment plans. The Asia Pacific region is poised to become the fastest growing regional market between 2024-2031, projected to expand at a CAGR of around 7%. This growth will be driven by large clean hydrogen initiatives underway in China, Japan and South Korea focused on hard-to-abate industrial and mobility sectors.
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