Hydrogen technology involves the production, storage, transportation and usage of hydrogen gas to meet various energy needs. Hydrogen can be produced from water through electrolysis using electricity. It is considered a clean energy carrier since its combustion or use in a fuel cell emits only water. Hydrogen can be used as fuel for vehicles, generators and other applications. It offers several advantages compared to fossil fuels like petroleum - it is more abundant, versatile and a renewable resource, and its use does not cause carbon emissions. With the global push for cleaner sources of energy to tackle climate change, the demand for hydrogen technologies is on the rise.
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 Products, Hydrogenics, ITM Power, Nel Hydrogen, and Linde plc.
Some of the key opportunities in the Hydrogen Technology Testing, Inspection, and Certification Market include increasing hydrogen fuel cell vehicle adoption, growing investment in hydrogen electrolyzers for renewable energy storage, and expanding hydrogen refueling infrastructure for transportation.
Many countries are implementing national hydrogen strategies and roadmaps to accelerate the transition to a hydrogen economy. Japan, South Korea, Germany and Australia have ambitious targets for hydrogen usage in transportation, power generation and industrial processes by 2030, which will drive global expansion of the hydrogen technology market.
Market drivers
One of the major drivers for growth of the hydrogen technology market is the increasing focus on decarbonization of economies and industries to curb greenhouse gas emissions. Hydrogen produced from renewable power using water electrolysis is considered a zero-emission energy carrier. Many governments are supporting the development and commercialization of green hydrogen technologies through funding, incentives and regulations to replace fossil fuels. This is promoting adoption of hydrogen across various end-use applications.
PEST Analysis
Political: Hydrogen technology market is positively impacted by supportive government policies and regulations promoting use of clean energy solutions. Various countries have announced hydrogen roadmaps and investment plans to achieve net zero emissions target.
Economic: Growth of hydrogen technology industry is driven by lower production costs of hydrogen from renewable resources compared to fossil fuels. Adoption of hydrogen technologies help reduce dependency on imported fossil fuels and curbs fluctuating energy prices.
Social: Rising environmental awareness among public and push for sustainable solutions is increasing social acceptance of hydrogen technologies. Continuous technological advancements is making hydrogen systemsmore user friendly and efficient in performance.
Technological: Rapid progress in renewable energy, fuel cells and water electrolysis is enhancing viability of hydrogen as an energy carrier. Falling price of renewable electricity, rise of hybrid energy systems, developing hydrogen infrastructure like pipelines, stations are opening new growth avenues.
Geographical Regions with High Concentration
Currently, Asia Pacific region accounts for over 40% of global hydrogen technology market in terms of value, led by countries like China, Japan and South Korea. This is attributed to large manufacturing sector, supportive policies by governments and presence of major fuel cell and electrolyzer developers in the region. Japan is major hydrogen economy frontrunner with focus on utilization across mobility, power generation and other industries.
Fastest Growing Region
Europe region is identified as the fastest growing regional market for hydrogen technologies. Countries such as Germany, France, UK and Netherlands are actively scaling up hydrogen projects across transport, power and heating sectors to achieve carbon neutrality by 2050. Rising investments in renewable energy integration and establishing hydrogen hubs are catalysing growth in the European hydrogen technology market.
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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.
