Hydrogen Generator Market Report by Product (On-Site and Portable), by Process (Steam Reformer and Electrolysis), by Capacity (<100 Nm3/h, 100-2,000 Nm3/h and >2,000 Nm3/h), by Application (Chemical Processing, Petroleum Recovery, Fuel Cells and Refinery) and by Region - Global Forecast to 2030

Hydrogen Generator Market Overview

Hydrogen Generator Market is projected to be worth USD 2.73 Billion by 2030, registering a CAGR of 6.37% during the forecast period (2022 - 2030).

For more than a couple of decades now, researchers have worked for producing renewable energy sources to power the future and introduce decarbonization systems across the industrial world. The element Hydrogen, which is abundantly found in the universe does not exist naturally in its gaseous state and hence it should be manufactured using hydrogen generators. There has been an on-growing demand in the production of hydrogen gas as they can be used as energy carriers, fuel cells for vehicles, and local electricity generation.

Another demand factor is that there is a constant rise in the emission of greenhouse gases by industrial activities globally. The human race has started to realize its responsibility to battle against the rise of global temperature. A recent study has declared that the rate of global carbon emissions has to hit zero by the year 2050 to stop the rising global temperature.

The demand for hydrogen production rises continuously because its higher gravimetric energy density makes it the most sustainable energy carrier. This characteristic of hydrogen gas makes it highly efficient in energy conversion without producing pollution, the by-products produced are water and heat, which doesn’t harm the environment.

COVID 19 Analysis

Energy demand has gone down: Covid 19 has significantly impacted the growth of the various industrial market. The primary requirement for the production of hydrogen gas is to generate energy, but the complete shutdown except for the essential services globally has brought down the demand for energy across several industries significantly. Furthermore, it is expected to reduce 6% in the year 2020 as the situation of uncertainty prevails.

Negative impact on the automotive industry: It is anticipated that the COVID will negatively impact the automotive industry and likely to have a downfall in the demand for passenger vehicles. As there is a dramatic economic fall due to the pandemic situation, consumers have set back their timelines for adopting large-scale hydrogen fuel cell vehicles due to the major cost differences.

Demand for continuous power supply in hospitals: As millions of people are infected by the Coronavirus and hospitalized, a continuous power supply is mandatory for operating emergency rooms, vital machines, and instruments. Any disruption or power failure could lead to the loss of lives. This emergency has driven the demand for the hydrogen fuel cells, as they are efficient in generating electricity and offers excellent power back up facility. Waterbury Hospital, the University of California, Chino valley medical center, California is some of the customers of hydrogen fuel cells. This initiative has increased the hydrogen generator market size.

Competitive Landscape:

The market of hydrogen generators is covered majorly by some of the well-established players across the globe. A few major players operating the market are listed below:

• Iwatani,


• Ally Hi-tech,


• Fuelcell Energy,


• Hydrogenics,


• Air Liquide,


• Linde,


• Air Products and Chemicals.

Recent Developments:

• Hydrogen production has been carried out using fossil fuel which leaves a sizeable amount of Caron for print by the process. Their fore research has been carried out finding an efficient method to produce hydrogen without any harmful by-products. Novel hydrogen generation processes have been carried out recently using biomasses, metals, solar energy, metal hydrides. The research shall continue in the future also to attain green hydrogen.


• Scientists in Singapore have recently discovered a low-cost catalyst that can involve in the process of producing hydrogen gas. They have discovered that Spinel oxides can be utilized as a catalyst in the process of electrolysis.

Market Dynamics:

Drivers:

Storing Energy: To store an enormous amount of electricity from bulk productions using solar energy or wind energy storage batteries is not sufficient and often the energy is lost. Renewable sources like solar and wind power often go least productive when the electricity demand is at a peak, as there is a lack of efficient storage of electricity. Hydrogen produced by the electrolysis process is a promising strategy to convert electricity and store them in the form of hydrogen for future usage. This process of electrolysis plays a vital role in driving the demand for hydrogen generators.

Fueling vehicles with Hydrogen:

 Hydrogen vehicles are powered by the electricity produced by mixing hydrogen gas and oxygen, the electric power generated is used to propel the vehicle. As the process involves only hydrogen and oxygen, the by-products are water and heat. This makes the vehicle rightly called an eco-friendly and ‘Zero-emission vehicle’.

Fuel cell demand for the automotive industry is expected likely to increase the demand for the hydrogen generator market size. On comparing, Hydrogen vehicles are highly fuel-efficient for long travels as a fully charged hydrogen vehicle can travel out 300 miles whereas an electric vehicle could travel only up to 100-200 miles. By realizing the efficiency of hydrogen vehicles, California has set a goal to have above 15% of their cars in their state be zero-emission cars by 2025. They have also pledged about 200 million dollars to build 100 more refueling stations across the state.

Market opportunities

Global and local organizations unite together to build the market of hydrogen generators as there is a constant demand for the decarbonized energy from a renewable source. In addition to that, the government has started to support the commercialization of hydrogen production technologies to aid the industrial growth in the country and emphasis the hydrogen generator market growth and hydrogen production.

• It has been observed that the sales of electric vehicles have been experiencing constant growth and hence we can anticipate the hydrogen generator market growth to rise as well in the forecast period.


• The necessity of hydrogen gas in automotive industries, desulfurization in refineries impose weightage in terms of market growth.

Market Restraints:

• Some industrial plants utilize bulk hydrogen for their industrial processes, however, they require frequent replenishing to keep them intact and ready for usage. This process is difficult and costly for the plants of remote locations.


• Storing the hydrogen gas elevates the risk of plant accidents. The accident is probable every time the connection is made or broken, or a leak can potentially ignite leading to catastrophic damages to the plant.


• The cost of transportation and storing is higher than the anticipated costs because it presents unique challenges while transporting or storing as the gas s highly diffusible, and possesses extremely low densities as a gas and as a liquid. Transporting liquid hydrogen requires specialized insulating requirements.

Cumulative Growth Analysis:

In the year 2020, the Hydrogen Generator market size was estimated at USD 1093.61 million and it was anticipated that it would raise to 1167.44 million by end of the year as there is always an ongoing growth in the demand for the production go hydrogen gas. The global market size in the year 2015 was 800 million USD, the rapid rise in the market shows the positive growth of the market in the forecast period.

Owing to the endeavor in bringing down the global temperature, the government has imposed stringent emission regulations on the industrial sectors, the perspective has a positive impact in raising the hydrogen generator market value.

A recent study shows that globally Hydrogen gas is consumed about 12 billion standard cubic feet a day by the refineries and this perspective confirms that there will be a continuous growth of market size in the forecast period.

Value Chain Analysis:

Deep routed analysis has been conducted to determine the most efficient means of producing hydrogen gas in the long run. It has been concluded that large-scale, centralized plants that use the pipeline distribution network is the efficient way of utilizing hydrogen gas for industrial activities. Recently France has pledged to invest about 7 billion euros for the production of hydrogen gassing carbon-free sources.

As there is a growing demand for the production of Ammonia, we can always expect a standard demand for hydrogen gas. We require a huge volume of hydrogen gas for producing ammonia which is a vital component in fertilizers. We can never expect a depletion in the food industry as the world population continues to increase.

Segment Overview

By Process: The hydrogen gas can be generated by various processes and can be utilized for industrial and chemical activities.

The types of processes that produce hydrogen gas from fossil fuels are listed below:

• Steam reforming: This process is widely used by the developed countries to produce hydrogen gas, as it is the cheapest way of generating hydrogen gas. The process is carried out in the presence of steam and nickel catalyst. The downside of this process is that greenhouse gases, CO2, CO is produced along with hydrogen gas as by-products.


• Methane pyrolysis: In this process, hydrogen gas is produced using natural gas.


• Partial oxidation: This process uses natural gas and other hydrocarbons to produce hydrogen gas. A hydrogen-rich syngas is produced when fuel-air or fuel-oxygen is combusted partially, then the syngas is treated further to obtain hydrogen gas.


• Plasma reforming: Liquid hydrocarbons are used to produce hydrogen gas.


• Coal Gasification: The steam and oxygen are combined to break the molecular bonds of coal in this process to obtain hydrogen and carbon monoxide. Carbon monoxide and other pollutants are later removed. This process s widely obtained by India, as the coal is abundantly available throughout the country. The other way is obtaining hydrogen from petroleum coke using the same process.

The type of processes used to produce hydrogen without involving fossil fuels are listed below:

• Water splitting: This process is splitting the water molecules into two components, hydrogen and oxygen. This process does not produce any harmful gases as by-products. When the energy source is renewable, then the hydrogen produced is referred to as ‘Green Hydrogen’.


• Electrolysis: This process involves electricity to split the water molecules.

By product: The hydrogen generators have two different forms to adapt to the applications, they are:

• Onsite hydrogen generator


• Portable Hydrogen generator

By application: Though there is a wide range of applications, some of the major applications of hydrogen gas are listed below:

• Chemical industry


• Refinery


• Metal processing


• Automotive


• Agriculture

 Regional Analysis:

At the beginning of this year 2021, Air products have declared that it is going to pledge a $10 billion investment in producing hydrogen gas using the coal gasification process. The prime minister of India has also declared that steps will be taken to allocate space to establish the coal gasification process. It has been declared that about 20,000 crores of Indian rupees will be invested for the project utilizing coal as the source. Considering the abundant availability of coal and the necessity of hydrogen gas production has led to the decision.

North America, U.S, and Canada declared their market value in the year 2015, it was USD300 million during that period. They have initiated various processes this year to ensure the increase the hydrogen production. Japan and South Korea expect a 6% CAGR in the forecast period.

Report Review:

This report has covered:

• Market review


• COVID 19 Analysis


• Market dynamics


• Cumulative growth analysis


• Value chain analysis


• Segment overview


• Regional analysis


• Competitive landscape


• Recent developments

Segmentation Table:

Based on Source:

• Fossil fuels


• Renewable energy sources

Based on application:

• Onsite hydrogen generator


• Portable hydrogen generator

Report Scope:

Report Attribute/Metric	Details
Market Size	2030: USD 2.73 Billion
CAGR	6.37% CAGR (2022-2030)
Base Year	2021
Forecast Period	2022-2030
Historical Data	2019 & 2020
Forecast Units	Value (USD Million)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	Product, Process, Capacity, Application
Geographies Covered	North America, Europe, Asia-Pacific, and Rest of the World (RoW)
Key Vendors	Air Liquide S.A. (France), Air Products and Chemicals, Inc. (U.S), Epoch Energy Technology Corporation (Taiwan), LNI Swissgas SA (Switzerland), Hydrogenics-Corporation (Canada), Idroenergy S.R.L. (Italy), Linde AG (Germany), McPhy Energy S.A. (France), Proton OnSite (U.S) and Praxair, Inc. (U.S)
Key Market Opportunities	Increased application of hydrogen in oil & gas, refinery and chemical industry
Key Market Drivers	Historical and projected market size in terms of value Technological advancement Macro economical and governing

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