Clean Hydrogen Market is Estimated to Witness High Growth Owing to Decarbonization Trend

The Clean Hydrogen Market is estimated to be valued at US$ 3.81 Billion in 2022 and is expected to exhibit a CAGR of 14.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
The clean hydrogen market involves the production, storage and distribution of hydrogen through low or zero-carbon pathways. Clean hydrogen or green hydrogen is produced through the electrolysis of water using renewable electricity making it non-polluting. It can be used as an alternative to fossil fuels across industries like power generation, transportation and agricultural sector. As it is carbon-free, it helps reduce GHG emissions and promote decarbonization goals of various countries.

Market key trends:
The rapid adoption of decarbonization strategies by governments worldwide to achieve net-zero emissions target is a major factor driving the clean hydrogen market. Many countries have developed national hydrogen strategies focusing on increasing investments in clean hydrogen projects and infrastructure to replace fossil fuels. For example, European Union's hydrogen strategy aims to install at least 6 GW of renewable hydrogen electrolyzers by 2024 and 40 GW by 2030 which is supporting the market growth. Growing demand for clean energy solutions from transport, industrial and power sectors to minimize environmental impact is also propelling the clean hydrogen market during the forecast period.

Porter’s Analysis
Threat of new entrants: The clean hydrogen market requires high initial capital investment for setting up production facilities which poses a barrier for new players.
Bargaining power of buyers: The presence of various clean hydrogen producers gives buyers the option to choose from multiple suppliers.
Bargaining power of suppliers: Key raw materials required are water and renewable energy sources availability of which impacts suppliers' bargaining power.
Threat of new substitutes: Hydrogen competes with other clean fuels but has an advantage being carbon free during usage.
Competitive rivalry: Being an emerging sector, companies are focused on product innovation and expansion to gain market share.

SWOT Analysis
Strength: Clean hydrogen has applications across sectors with potential to decarbonize hard-to-abate industries. It is considered an ideal zero-carbon fuel.
Weakness: High production costs and lack of hydrogen infrastructure are challenges currently. Technology is still at a developmental stage.
Opportunity: Supportive government policies and investments to boost the hydrogen economy present new opportunities. Rising focus on emissions reduction and energy independence of nations will drive demand.
Threats: Uncertain price fluctuations of raw materials needed can impact projects. Dependency on intermittent renewable energy poses reliability issues for large-scale production currently.

Key Takeaways
The global Clean Hydrogen Market Size is expected to witness high growth, exhibiting CAGR of 14.1% over the forecast period, due to increasing decarbonization efforts globally to achieve sustainability goals. The Asia Pacific region currently dominates the market owing to significant investments and focus of countries like Japan, South Korea and China to develop hydrogen economies. Europe is also emerging as a major regional market backed by the European Green Deal initiative targeting carbon neutrality by 2050.

Key players operating in the clean hydrogen market are Linde Plc, Air Liquide, Engie, Uniper Se, Air Products Inc, Clean Hydrogen System, Cummins Inc., Toshiba Energy Systems & Solutions Corporation, Nel Asa, and SGH2 Energy. These companies are focused on scaling up production through capacity expansions and strategic collaborations. Additionally, they are investing in research & development to commercialize innovative clean hydrogen generation and storage technologies.

Read More: https://www.rapidwebwire.com/clean-hydrogen-market-demand-growth-and-size-forecast/