by The Clean Hydrogen Market is estimated to be valued at US$ 81 Billion in 2021 and is expected to exhibit a CAGR of 14.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Clean hydrogen is a zero-emission fuel produced through the electrolysis of water using renewable energy sources. It is gaining popularity as a clean and sustainable alternative to fossil fuels, leading to reduced carbon emissions. The advantages of clean hydrogen include its versatile applications across various sectors such as transportation, power generation, and industrial processes. The need for clean hydrogen products is driven by the growing awareness of climate change and the transition towards a low-carbon future.
Market Key Trends:
One key trend observed in the clean hydrogen market is the increasing investments in hydrogen production infrastructure. Governments, organizations, and industry players are investing in the development of hydrogen production facilities and the expansion of hydrogen refueling networks. This trend is driven by the need to support the growing demand for clean hydrogen and facilitate its adoption across different sectors. The investments aim to enhance the accessibility and availability of hydrogen, making it a viable and sustainable energy source for the future.
Porter’s Analysis
Threat of New Entrants: The clean hydrogen market is expected to face a high threat of new entrants due to the increasing demand for clean energy sources and the potential profitability of the market. However, the high capital requirements and technological expertise needed to establish production facilities for clean hydrogen act as barriers to entry.
Bargaining Power of Buyers: The bargaining power of buyers in the clean hydrogen market is moderate. While there are a significant number of buyers in the market, the limited availability of clean hydrogen suppliers gives the suppliers some leverage. However, with the increasing number of suppliers entering the market, the bargaining power of buyers is expected to increase in the future.
Bargaining Power of Suppliers: The bargaining power of suppliers in the clean hydrogen market is high. There are a limited number of suppliers in the market, and they possess the technological expertise and infrastructure required for the production of clean hydrogen. As a result, suppliers have the power to negotiate favorable terms with buyers.
Threat of New Substitutes: The threat of new substitutes in the clean hydrogen market is low. Clean hydrogen is a unique and efficient source of clean energy, and there are limited alternatives that can match its capabilities. Therefore, the market is expected to be relatively insulated from the threat of new substitutes.
Competitive Rivalry: The competitive rivalry in the clean hydrogen market is intense. Several key players, such as Linde Plc, Air Liquide, and Engie, dominate the market. These players compete on the basis of technological advancements, production capacity, and geographical presence. The market is characterized by frequent product launches and partnerships among key players to gain a competitive edge.
Key Takeaways:
The global Clean Hydrogen Market Demand is expected to witness high growth, exhibiting a CAGR of 14.1% over the forecast period. This growth can be attributed to the increasing demand for clean energy sources and the growing focus on reducing carbon emissions. The market is estimated to reach a value of US$ 81 billion by 2021.
In terms of regional analysis, Asia Pacific is expected to be the fastest-growing and dominating region in the clean hydrogen market. The region is witnessing significant investments in clean energy infrastructure, particularly in countries like China, Japan, and South Korea. The favorable government initiatives and increasing demand for hydrogen-powered vehicles are driving the growth of the market in this region.
Key players operating in the clean hydrogen market include Linde Plc, Air Liquide, Engie, Uniper Se, Air Products Inc, Clean Hydrogen System, Cummins Inc., Toshiba Energy Systems & Solutions Corporation, Nel Asa, and Sgh2 Energy. These players are focusing on expanding their production capacity, developing advanced technologies, and forming strategic partnerships to enhance their market presence.
In conclusion, the clean hydrogen market shows promising growth prospects due to the increasing demand for clean energy sources and the growing efforts to reduce carbon emissions. However, the market is highly competitive, and key players need to invest in technological advancements and strategic collaborations to stay ahead in the market. The Asia Pacific region is expected to dominate the market, driven by government initiatives and the rising adoption of hydrogen-powered vehicles.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
