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Liquid Hydrogen Market Size
Liquid Hydrogen Market size was valued at USD 38.4 Billion in 2023 and is anticipated to grow at a CAGR of 6.1% between 2024 and 2032. Liquid hydrogen (LH2) is hydrogen in its liquid state, achieved by cooling hydrogen gas to extremely low temperatures. It is used primarily as a fuel in various applications, including aerospace, transportation, and industrial processes.
Establishing hydrogen hubs, which are centralized locations for hydrogen production, storage, and distribution, will stimulate the product demand. Collaborations between energy companies, technology providers, and industrial users are accelerating the development and adoption of liquid hydrogen technologies will augment the industry landscape. Furthermore, Countries and companies are forming international alliances to advance hydrogen technologies and develop global hydrogen supply chains.
| Report Attributes | Details |
|---|---|
| Base Year: | 2023 |
| Market Size in 2023: | USD 38.4 Billion |
| Forecast Period: | 2024 to 2032 |
| Forecast Period 2024 to 2032 CAGR: | 6.1% |
| 2032 Value Projection: | USD 65.1 Billion |
| Historical Data for: | 2021 to 2023 |
| No. of Pages: | 290 |
| Tables, Charts & Figures: | 53 |
| Segments covered: | Production Method, Distribution Method, End Use and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Innovations in cryogenic storage tanks and transportation vessels are making it easier and more cost-effective to handle liquid hydrogen will stimulate the product adoption. Development of advanced cryogenic tankers and trailers by companies like Chart Industries are facilitating the safe and efficient transport of liquid hydrogen. Furthermore, increasing the number of hydrogen refueling stations, particularly in regions with strong hydrogen policies and automotive markets contribute to the business growth.
Liquid Hydrogen Market Trends
The liquid hydrogen industry is experiencing significant growth, driven by advancements in technology, increasing demand for clean energy, and supportive government policies. Liquid hydrogen is increasingly being used to store and transport renewable energy along with Governments and industries are setting ambitious decarbonization targets, driving the demand for clean hydrogen solutions, thereby augmenting the industry landscape. Advances in hydrogen liquefaction technologies are reducing the energy required and the costs associated with producing liquid hydrogen which will drive the business scenario.
Liquid Hydrogen Market Analysis
Based on Production Method, the market is segmented into Coal Gasification, Electrolysis and SMR. The SMR segment is projected to cross USD 24.5 billion by 2032, on account of its cost competitiveness to other production methods, driving its economic viability, enhancing the process adoption. It is the most cost-effective method for large-scale hydrogen production, especially in regions with abundant natural gas resources, leading to commercial adoption. Further, innovations in catalyst design, process optimization, and heat recovery systems are improving the efficiency and reducing the emissions of SMR processes, driving the industry scenario.
Based on distribution method, the liquid hydrogen market is segmented into pipelines, and Cryogenic Tanks. The cryogenic tanks segment is expected to record around CAGR 5.5% through 2032. Advances in insulation materials and technologies have significantly improved the efficiency of cryogenic tanks, reduced boil-off rates and making the storage and transport of liquid hydrogen more feasible.
The tanks can withstand the extreme temperatures required for liquid hydrogen storage, ensuring safety and reliability during transportation. Additionally, integration of IoT and smart sensors in cryogenic tanks allow for real-time monitoring of temperature, pressure, and hydrogen levels, enhancing operational efficiency and safety, leading to market growth.
Asia Pacific liquid hydrogen market is anticipated to surpass USD 27.5 billion by 2032, driven by government support, industrial initiatives, and growing environmental awareness. Strong and ambitious government policies and initiatives along with growing industry collaborations and ventures will contribute to the business scenario. Ongoing technological advancements and innovations coupled with increasing investments toward infrastructure development will augment the industry landscape. Moreover, the expansion of hydrogen refueling infrastructure is critical for the adoption of hydrogen vehicles. Additionally, Japan, South Korea, and China are rapidly increasing the number of hydrogen refueling stations stimulating the product demand.
The adoption of liquid hydrogen in the U.S. is poised for significant growth, driven by supportive policies, technological advancements, and increasing investments from both public and private sectors. Further, as infrastructure develops and costs decrease, hydrogen is expected to play a crucial role in the nation’s energy transition, contributing to the environmental sustainability and economic resilience.
Liquid Hydrogen Market Share
significant rise in collaborations and ventures due to the increasing demand for clean energy solutions along with advancements in technology, and supportive policies are expected to drive the expansion of the hydrogen economy globally. These collaborations enable companies to combine strengths, share risks, and innovate more effectively, ultimately driving the industry forward towards a sustainable future. In addition, it allows allow companies to pool financial resources, reducing the burden on individual firms and enabling larger-scale projects.
Liquid Hydrogen Market Companies
Eminent players operating in the liquid hydrogen industry are:
- Air Products and Chemicals, Inc.
- Air Liquide
- Chart Industries
- ENGIE
- GE Appliances
- GENH2
- INOX India Limited
- Iwatani Corporation
- Kawasaki Heavy Industries, Ltd.
- Linde plc
- Messer
- Plug Power Inc.
- Praxair Technology, Inc.
- Salzburger Aluminium Group
- Shell plc
- Wuxi Yuantong Gas Co., Ltd
Liquid Hydrogen Industry News
- In October 2022, Shell plc signed an MoU with Kansai Electric Power Co., Inc. to explore and collaborate on business opportunities in liquid hydrogen supply chain. Shell aimed to produce decarbonized hydrogen and deploy hydrogen liquefication, storage, and shipping technology. The collaboration was a part of Shell’s Powering Progress strategy to explore hydrogen potential and maintain strong position in the industry.
- In October 2021, the company’s new liquid hydrogen plant became operational at La Porte, Texas facility. With this plant, the company aimed to show its commitment toward the customers while meeting the demand for various markets including mobility. The company also planned to build a green hydrogen facility in Southwest U.S. for the production of liquid hydrogen for the mobility market in California. With this move, it positively influenced industry growth and expanded its business across the region.
The liquid hydrogen market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “(USD Billion and MT)” from 2021 to 2032, for the following segments:
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Market, By Production Method
- Coal Gasification
- SMR
- Electrolysis
Market, By Distribution Method
- Pipelines
- Cryogenic Tanks
Market, By End Use
- Transportation
- Chemical
- Others
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Rest of World
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