Chemical Hydrogen Market Size - By Type (Grey, Blue, Green), Regional Outlook, Competitive Market Share & Global Forecast, 2024 - 2032

Chemical Hydrogen Market Size

Chemical Hydrogen Market was valued at USD 42.8 billion in 2023 and is likely to grow at a CAGR of over 5.6% between 2024 and 2032. Hydrogen is a fundamental feedstock utilized for the synthesis of numerous chemicals. It is used in the production of ammonia (NH?), a crucial component in fertilizers, and is a key ingredient in the production of various organic compounds. It is an essential raw material and reactant in several chemical manufacturing processes.
 

Growing emphasis towards green hydrogen production using renewable energy sources along with increasing investments by governments and industries in green hydrogen as part of their efforts to achieve carbon neutrality will complement the business scenario. In addition, hydrogen as a fuel possess the  ability to replace traditional fossil fuels across various industrial processes and reduce the carbon emissions, thereby driving the market trends.
 

COVID- 19 Impact

The COVID-19 outbreak has impacted the hydrogen demand owing to disruption in global supply chain, reduced economic activities, and slight decrease in demand for certain chemicals, thereby postponing certain capital-intensive projects. However, growing investments in infrastructure, research, design and technology development along with advancements in the hydrogen production technologies will continue to support the business dynamics.
 

Chemical Hydrogen Market Trends

Increasing number of hydrogen projects announced across the chemical industry coupled with supportive fundings for advanced electrolyzer technology to improve upon the efficiency and cost-effectiveness will contribute to the product adoption. For instance, in November 2023, BASF received funding of around USD 136 million from German Federal Ministry for Economic Affairs and Climate Action and the State of Rhineland-Palatinate for the Hy4Chem-EI project. The company will produce hydrogen using its PEM electrolyzers to be utilized in the chemical industries. In addition, enhanced energy security and resilience provide significant growth opportunities along with the ability of hydrogen to be a versatile energy carrier will sway the business dynamics.
 

Chemical Hydrogen Market Analysis

The blue hydrogen market will register gains at nearly 9% up to 2032. Intense demand of hydrogen as a feedstock for ammonia and methanol manufacturing in line with significant government measures to reduce carbon footprint from these applications has shifted the interest toward blue hydrogen generation. Moreover, capability to be integrated with the existing natural gas infrastructure allowing for a smoother transition and utilization of existing assets in line with continuous improvement in the CCS methods enhancing the carbon capture efficiency will contribute to the scalability of blue hydrogen developments.
 

The green hydrogen market is anticipated to grow substantially in the coming years. Increasing commitment to reduce the carbon emissions and achieve climate targets along with supportive policies and incentives promoting the use of the fuel will augment the business growth. Furthermore, ongoing development of hydrogen infrastructure to support the hydrogen-powered transportation will stimulate the product penetration.
 

Europe chemical hydrogen market valuation to cross USD 15.1 billion by 2032.  Growing public awareness toward transitioning to clean energy sources and reducing carbon footprint coupled with increasing initiatives by both the private and public sector for green transition in the chemical industry will foster the product demand. For instance, in December 2023, the European Commission introduced its first initiatives in supporting the green & digital transition of the EU chemical industry which focuses on green technologies comprising of hydrogen & electrification and digitalization. Additionally, rising research and development efforts for technological advancements in electrolysis will influence the industry potential.
 

Chemical Hydrogen Market Share

Partnerships and mergers enable companies to pool resources and expertise for the development of advanced hydrogen production and utilization technologies. This includes the improvement of existing processes and the exploration of novel methods. International collaborations, joint ventures, and mergers can provide the financial and operational support needed to scale up hydrogen production facilities in the chemical industry. Furthermore, companies can work together to establish a comprehensive and efficient supply chain for hydrogen in the chemical industry.
 

Chemical Hydrogen Market Companies

Eminent players operating in the chemical hydrogen industry are:

• Air Products and Chemicals, Inc.
• Air Liquide
• thyssenkrupp Uhde GmbH
• RESONAC HOLDINGS CORPORATION
• Linde plc
• Technip Energies N.V.
• Reliance Industries Limited
• Plug Power Inc.
• Cummins Inc.
• Adani Green Energy
• Messer
• Ally Hi-Tech Co., Ltd.
• VERDAGY
• ACCIONA
   

Chemical Hydrogen Industry News

• In December 2022, Air Products and Chemicals, Inc. and The AES Corporation announced the investment of around USD 4 billion to construct the largest green hydrogen production plant in the U.S., scheduled to start operations in 2027. About 1.4 GW of wind and solar energy are generated as a part of this massive renewable energy to hydrogen initiative, which aims to reduce CO2 emissions by 50 million tons over its lifetime. The project development will support the maintain a strong position across the industry.
   
• In July 2022, Air Liquide announced an investment of around USD 219 million for the construction of two units of hydrogen production and associated infrastructure in Shanghai Chemical Industry Park. The plants were to be integrated with carbon capture and recycle technology while producing hydrogen and carbon monoxide to be further supplied to Shanghai Lianheng Isocyanate Company, Covestro China and other industrial customers. The company significantly contributed to decarbonization and enhancing long term partnership with potential customers.
   

This chemical hydrogen market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘MT & USD Billion’ from 2024 to 2032 for the following segments:

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Market, By Type

• Grey
• Blue
• Green

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico 
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Netherlands
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • Iran
  • UAE
  • South Africa
  • Qatar
  • Kuwait
• Latin America
  • Brazil
  • Argentina
  • Chile