Hydrogen technology encompasses the production, storage, and use of hydrogen gas as an alternative energy source. Hydrogen can be utilized as fuel in fuel cells to generate electricity with water as the only byproduct. It is considered one of the most viable clean energy options as it is highly efficient, sustainable and offers energy security. The global hydrogen technology market is gaining increased prominence against the backdrop of growing energy demand and climate change concerns.
The Global Hydrogen Technology Testing, Inspection, and Certification Market is estimated to be valued at USD 6.1 Bn in 2024 and is expected to reach USD 24.4 Bn by 2031, growing at a compound annual growth rate (CAGR) of 17.9% from 2024 to 2031.
Key Takeaways
Key players operating in the hydrogen technology are Air Liquide, Air Products and Chemicals, Ballard Power Systems, FuelCell Energy, Plug Power, and Linde. They collectively account for over 70% of the global market share.
The rising focus on decarbonization of industries along with transportation sector to reduce emissions provides significant opportunities for hydrogen technology providers. Governments across many countries are launching initiatives to develop hydrogen infrastructure to make the transition towards a greener economy.
Numerous countries in Europe, Asia, and North America have unveiled national hydrogen strategies with targets to scale up hydrogen production and use, especially for heavy industries and transportation. Hydrogen Technology Testing, Inspection, and Certification Market major companies are also expanding manufacturing capabilities and setting up international collaborations to tap into the growing demand for green hydrogen globally.
Market drivers
The growing policy support for transition to low-carbon energy sources is a key driver bolstering the adoption of hydrogen technology. Many countries have set net-zero targets and outlined emission reduction roadmaps which have increased investments in clean technologies like hydrogen. The energy security concerns due to oil price volatility are further accelerating the shift towards indigenous and sustainable sources of energy such as hydrogen. With scaled-up production and utilization, the levelized cost of hydrogen is expected to decrease significantly, enhancing its commercial viability across different end-use applications.
PEST Analysis
Political: The government is focused on tackling climate change and reducing carbon emissions which is positively impacting the hydrogen technology market. Several policies and legislations have been introduced to support the production and usage of clean hydrogen.
Economic: The falling prices of renewable energy is enabling the affordable production of hydrogen via electrolysis. Investments in hydrogen infrastructure is expected to boost local economies and generate new jobs.
Social: Consumers are increasingly aware about the need for greener alternatives to fossil fuels. There is a rise in acceptance of zero-emission technologies like hydrogen fuel cells in transport.
Technological: Improvements are being made in electrolysis and fuel cell technologies to produce and utilize hydrogen more efficiently. Production costs have reduced significantly with scale and innovations in materials.
Geographical regions of concentration
Currently, the hydrogen technology market in terms of value is primarily concentrated in regions with ambitious decarbonization agendas like North America, Western Europe and East Asia. Key countries leading the demand include United States, Germany, France, Japan and South Korea owing to their commitment towards developing a hydrogen economy. Sizeable investments are being made in establishing the necessary refueling infrastructure like hydrogen stations in these early adopting markets.
Fastest growing region
The Asia Pacific region excluding Japan and South Korea is emerging as one of the fastest growing markets for hydrogen technologies. Countries such as China and Australia possess natural advantages for renewable hydrogen production due to their abundant solar and wind resources. Governments in the region have understood the economic potential of this sector and are implementing support schemes to scale up production and usage of low carbon hydrogen. Electrolyzer capacity additions are rising sharply to meet the increasing demand from industries and transportation.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.
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