Liquid Hydrogen Market Expected to Reach $66.3 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Liquid Hydrogen Market," The liquid hydrogen market was valued at $39.0 billion in 2022, and is estimated to reach $66.3 billion by 2032, growing at a CAGR of 5.5% from 2023 to 2032.

Liquid hydrogen (LH2) is the liquid state of the chemical element hydrogen. It is obtained by cooling gaseous hydrogen to extremely low temperatures, typically below its boiling point of 20.28 K (-252.87°C or -423.17°F) at standard atmospheric pressure. At such low temperatures, hydrogen undergoes a phase transition from a gas to a clear, colorless liquid.  

Liquid hydrogen has several important applications, primarily in the aerospace industry where it is used as a rocket fuel, where it combines with liquid oxygen to create a powerful propellant in rockets and spacecraft. Its high energy content & efficiency make it an ideal fuel for space exploration. In addition, liquid hydrogen has potential applications in the energy sector as a clean & renewable fuel source. It can be used in fuel cells to generate electricity, with the only byproduct being water. However, the infrastructure required for the widespread use of liquid hydrogen as a fuel is still under development.  

Furthermore, governments across the globe are implementing policies & incentives to promote the use of hydrogen as part of their energy transition strategies. Subsidies, tax credits, research funding, and regulations supporting the development & deployment of hydrogen technologies contribute to the rapid growth of the liquid hydrogen market.  

However, the production of liquid hydrogen typically involves energy-intensive processes such as steam methane reforming or electrolysis. These processes require a significant amount of energy, which can come from fossil fuel sources, leading to carbon emissions. To realize the full potential of liquid hydrogen as a clean energy carrier, the production must be based on renewable energy sources, which requires further development & investment in renewable hydrogen production technologies. This factor is projected to hamper the market growth during the forecast period.   

Liquid hydrogen offers versatility in various industrial applications. It can be used as a fuel for heat & power generation as well as for replacing fossil fuel-based systems. In addition, it serves as a valuable feedstock for the production of chemicals, including ammonia and methanol. The ability to utilize liquid hydrogen across different industrial processes provides flexibility and enables companies to explore cleaner & more sustainable alternatives. These factors together are projected to create lucrative opportunities for the expansion of the liquid hydrogen market during the forecast period.   

The liquid hydrogen market is segmented on the basis of distribution, end-use industry, and region.   

By distribution, the market is segregated into pipelines, cryogenic tanks, and others. The cryogenic tanks segment dominated the global market in terms of revenue in 2022, with 60% of the total share. The aerospace industry heavily relies on cryogenic tanks for the storage & transportation of cryogenic propellants such as liquid oxygen and liquid hydrogen. With advancements in space exploration programs from both government and private entities such as, NASA (National Aeronautics and Space Administration), ISRO (Indian Space Research Organisation), ESA (European Space Agency), and others there is increase in demand for cryogenic tanks to support rocket launches and space missions. The booming aerospace industry will boost the liquid hydrogen market for cryogenic tanks segment.     

As per end-use industry, the market is segmented into aerospace, automotive & transportation, energy & power, industrial sector, and others. The aerospace segment dominated the global market in terms of revenue in 2022, with 26% of the total share. The environmental benefits of liquid hydrogen align with the industry's goals of minimizing pollution and contributing to a more sustainable future. Continuous R&D efforts contribute to the advancement in liquid hydrogen technologies in the aerospace industry.

As knowledge and technological capabilities progress, the aerospace industry can harness the full potential of liquid hydrogen for a diverse range of applications. These factors are enhancing the overall demand for liquid hydrogen in the aerospace industry.   Region wise, the liquid hydrogen market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific liquid hydrogen market is projected to grow at the highest CAGR during the forecast period. This is attributed to the fact that, Japan has a strong focus on technological innovation and has been a leader in fuel cell technology development. Japan's emphasis on technological leadership and industrial applications drives the growth of the liquid hydrogen market in the country.

Moreover, South Korea has made significant investments in research & development, particularly in fuel cell technologies. Further, the country has been actively developing hydrogen infrastructure, including hydrogen refueling stations and hydrogen production facilities. Technological leadership and infrastructure development support the growth of the liquid hydrogen market by enabling the deployment and utilization of hydrogen technologies in various sectors. These factors are anticipated to boost the Asia-Pacific liquid hydrogen industry during the forecast period.  

Key players operating in the global liquid hydrogen market include Iwatani Corporation, Messer Group GmbH., inoxcva, Air Products and Chemicals, Inc., Demaco powered by Leapforce, Linde Plc, Air Liquide, Cryostar, Hylium Industries, Inc., and Plug Power Inc.  

Key Findings:

• On the basis of source distribution, the cryogenic tanks segment is expected to grow at a CAGR of 5.7%, in terms of revenue, during the forecast period.  

• As per the end-use industry, the aerospace segment is expected to grow at a high CAGR, in terms of revenue, during the forecast period.  

• Region wise, Asia-Pacific garnered dominant share of in 2022 in terms of revenue.  

• North America garnered a share of 24% in 2022 in terms of revenue.