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Hydrogen Pipeline Market was valued at more than USD 2.96 billion in 2023 and is anticipated to grow at a CAGR of over 60.3% from 2024 to 2035. A hydrogen pipeline is a combination of pipes and associated infrastructure designed to transport gas from the production facility to various end users or storage facilities. The pipelines are a critical component of the hydrogen supply chain, enabling the distribution of hydrogen for various industrial, commercial, and transportation applications. Reuse of the existing carbon steel natural gas transmission and other pipelines for hydrogen service will influence the business statistics.
Growing focus on hydrogen as a clean energy carrier along with the development of hydrogen infrastructure to support its production, transportation, and utilization is set to influence the industry trends. Increasing focus on decarbonization coupled with transition to clean energy has positioned hydrogen as a crucial element in achieving the sustainability goals. Further, rising use of hydrogen as a clean energy carrier by the governments, industries, and investors along with the potential to reduce carbon emissions across various sectors will drive the business scenario.
Report Attribute | Details |
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Base Year: | 2023 |
Hydrogen Pipeline Market Size in 2023: | USD 2.96 Billion |
Forecast Period: | 2024 to 2035 |
Forecast Period 2024 to 2035 CAGR: | 60.3% |
2035 Value Projection: | USD 27.7 Billion |
Historical Data for: | 2021 to 2023 |
No. of Pages: | 130 |
Tables, Charts & Figures: | 20 |
Segments covered: | Type, Classification and Region |
Growth Drivers: |
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Pitfalls & Challenges: |
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Introduction of government policies along with providing financial support to promote the development and use of hydrogen is set to drive the business scenario. Incentives, subsidies, and funding for hydrogen infrastructure projects, including pipelines, will support the market statistics. Ongoing national hydrogen strategies and commitments will influence the growth of hydrogen-related infrastructure, thereby impacting the product demand.
Repurposing and integration of the existing natural gas pipelines for hydrogen transportation, will support leverage the existing infrastructure, contributing to the market statistics. Additionally, industries including refining, chemicals, and manufacturing, are continuously exploring hydrogen as a cleaner alternative for their processes, driving the need for efficient and reliable hydrogen transportation infrastructure, including pipelines.
Based on classification, the repurposed hydrogen pipeline segment will exceed more than USD 650 million by 2035. The pipelines involve converting existing natural gas pipelines for the transportation of hydrogen. They enable this blending process, allowing for a smooth transition toward higher hydrogen content in the gas grid, thereby supporting the development of hydrogen infrastructure. These are more cost effective than building new infrastructure. Blending allows for the gradual introduction of hydrogen into existing natural gas infrastructure, supporting the transition to a hydrogen economy, thereby stimulating the business statistics.
Based on type, the onshore hydrogen pipeline will showcase gains at nearly 59.5% up to 2035. The onshore pipelines are designed to transport hydrogen gas from production sites, comprising of electrolysis plants or steam methane reforming facilities, to various points of consumption. These play a crucial role in the transportation of hydrogen from production facilities to end users, including industrial consumers, power plants, and refueling stations for fuel cell vehicles. Further, these are designed to facilitate the blending of hydrogen with other gases, including natural gas.
Ongoing integrated with other elements, including production facilities, storage systems, and distribution networks, to create a seamless and efficient hydrogen delivery system will drive the product demand. The length and connectivity of the onshore hydrogen pipelines depend on the geographical distribution of hydrogen demand centers and production sites. The long distance pipelines further connect regions with surplus hydrogen production to areas with high demand. They need to comply with local, regional, and national regulations governing the transportation of hazardous materials, thereby augmenting the business landscape.
Europe hydrogen pipeline market is projected to witness about 105.5% CAGR through 2035. The European Union (EU) and individual European countries have been actively pursuing strategies to integrate hydrogen into their energy systems as part of broader decarbonization efforts. Ongoing development of national hydrogen strategies across the economies that primarily outline targets, policies, and investments to promote the use of hydrogen, including the plans for building and expanding the hydrogen pipeline networks, will sway the market trends. Furthermore, collaborative efforts between the countries will drive the development of cross border hydrogen pipelines, which will augment the industry dynamics.
DESFA, Energinet, Fluxys, Gasunie, GAZ-SYSTEM and Enagas are some prominent players operating in the industry. Several companies with expertise in pipeline construction, materials, and infrastructure are involved in the development and deployment of hydrogen pipelines. It includes transmission service operators responsible for building and managing pipeline networks, as well as manufacturers specializing in the fabrication and technology associated with hydrogen pipelines. Further, the companies leverage their expertise in pipeline design, construction, and operation to support hydrogen infrastructure development.
Eminent players operating in the hydrogen pipeline industry are:
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