Hydrogen Infrastructure Market Expected to Reach $13.5 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Hydrogen Infrastructure Market," The hydrogen infrastructure market was valued at $4.9 billion in 2022, and is estimated to reach $13.5 billion by 2032, growing at a CAGR of 10% from 2023 to 2032.

Hydrogen infrastructure refers to the interconnected network of facilities, technologies, and systems essential for the entire lifecycle of hydrogen as an energy carrier. This includes the production, storage, transportation, and utilization of hydrogen as a clean and sustainable source of energy. Hydrogen production involves generating hydrogen gas using various methods, such as steam methane reforming, electrolysis, and biomass gasification.

Hydrogen storage is necessary for overcoming hydrogen's low volumetric energy density, with storage methods including compression and liquefaction. Hydrogen transportation encompasses the means by which hydrogen is moved from production facilities to distribution points and end-users, utilizing methods like gaseous hydrogen tube trailers and liquid hydrogen tankers.

Hydrogen distribution involves the network of pipelines and local distribution centers that deliver hydrogen to end-users, including industrial facilities, fueling stations, and residential applications. Hydrogen utilization encompasses various applications, such as fuel cells, hydrogen combustion in internal combustion engines, and its use as a feedstock in industrial processes. Hydrogen fueling stations are crucial for supplying hydrogen to fuel-cell electric vehicles and other hydrogen-powered transport and this will offer hydrogen infrastructure market opportunities.

The hydrogen infrastructure market size is studied on the basis of production, storage, delivery, and region. Based on production, the hydrogen infrastructure market is divided into steam methane reforming, coal gasification, electrolysis, and others. Steam methane reformation is the dominant segment and is projected to grow at a considerable CAGR. However, the electrolysis segment is expected to witness rapid growth during the projection period.

By storage, the market is categorized into compression, liquefaction, and material based. The compression segment dominated the hydrogen infrastructure market growth and is expected to maintain its position in the projected years. Depending on the delivery, the market is classified into transportation, refinery, power generation, and hydrogen refueling stations. The transportation segment garnered the highest market share for 2022. The same is expected to grow at a higher CAGR during the hydrogen infrastructure market forecast period.

By region, the hydrogen infrastructure market analysis is done across North America, Europe, Asia-Pacific, and LAMEA (Latin America, the Middle East, and Africa). North America dominated the market for 2022, however, Asia-Pacific is expected to grow at a higher CAGR during the forecast period of 2023-2032. The major players operating in the hydrogen infrastructure industry are Air Liquide, Linde plc, Nel Hydrogen ASA, Plug Power, Inc., Shell plc, ITM Power plc, Ballard Power Systems, McPhy Energy, Cummins, Inc., and Engie SA.

France has also been making significant strides in hydrogen infrastructure development. The country has committed to investing in green hydrogen projects and has a growing network of hydrogen refueling stations. Australia is rich in renewable energy resources, making it well-positioned to produce green hydrogen. The country has been actively exploring opportunities for hydrogen production and export, with several projects and partnerships focused on developing hydrogen infrastructure.

Key initiatives across globe

• The European Hydrogen Backbone is an initiative that aims to establish a continent-wide network of hydrogen pipelines, enabling the transport of hydrogen across different regions. The project could facilitate the integration of hydrogen infrastructure on a larger scale.
• The European Green Deal, announced in 2019, outlines the EU's commitment to becoming climate-neutral by 2050. Hydrogen plays a central role in this vision, and the EU has set ambitious targets to develop a thriving hydrogen economy, with a specific focus on green hydrogen produced from renewable energy sources.
• The EU's Hydrogen Strategy, released in July 2020, outlines the path to creating a competitive hydrogen market in Europe and sets targets for renewable hydrogen production and deployment.
• The U.S. federal government has also shown interest in hydrogen infrastructure. Initiatives like the U.S. Department of Energy's H2@Scale program aim to accelerate the development of hydrogen technologies and infrastructure across different sectors.
• In 2021, the Indian government announced plans to launch the National Hydrogen Energy Mission (NHEM) to accelerate the development of hydrogen infrastructure and technologies. The mission aims to promote green hydrogen production, set up hydrogen production and distribution facilities, and encourage research and development in hydrogen-related areas.

The drivers, restraints, and opportunities are explained in the report to better understand the hydrogen infrastructure market trends. This report further highlights the key areas of investment. In addition, it includes Porter’s five forces analysis to understand the competitive scenario of the industry and the role of each stakeholder. The report features strategies adopted by key market players to maintain their foothold in the market. Furthermore, it highlights the competitive landscape of key players to increase their market share and sustain the intense competition in the industry.

Key findings of the study

• The hydrogen infrastructure market scope is provided in terms of revenue.
• By production, the steam methane reformation segment is projected to grow at the highest CAGR, in terms of during the hydrogen infrastructure market forecast period.
• By storage, the compression segment dominated the hydrogen infrastructure market share growing at a CAGR of 10.1% in 2021.
• By delivery, the transportation segment is expected to dominate the hydrogen infrastructure market share growing at a CAGR of 10.3% in 2021.
• By region, Asia-Pacific dominated the hydrogen infrastructure market and is expected to remain the same during the forecast period.