LONDON /PRNewswire/ — Hydrogen, once considered a distant dream, is now on the horizon of commercialization, according to a recent cross-functional study by MarketsandMarkets™ on the ‘Future of Hydrogen Economy.’ The study reveals surprising findings about the opportunities and challenges associated with hydrogen commercialization, shedding light on the shades of gray, blue, and green hydrogen that will shape the future.
The study highlights several key insights:
- Transitioning hydrogen generation: Gray hydrogen, currently the most widely produced form due to its cost-effectiveness, is expected to be joined by blue and green hydrogen, which are low to zero-carbon emitting. By 2035, blue and green hydrogen are projected to account for approximately 22% of total hydrogen production, indicating a significant shift towards sustainability.
- Growing global market: The global hydrogen generation market is expected to grow from USD 159.5 billion in 2022 to USD 334 billion by 2030. Asia Pacific currently dominates this market, led by countries like China and India, which have substantial capacity in ammonia production and refinery throughput. Europe, driven by rising environmental awareness and emission reduction targets, is becoming a prominent market for blue and green hydrogen, with the Netherlands and Germany leading the way.
- Diverse production technologies: The hydrogen industry offers a range of technology choices for production, including steam methane reforming, coal gasification, partial oxidation, and electrolysis. While gray hydrogen production relies on conventional methods, green hydrogen production is poised to expand, with alkaline electrolyzers expected to be the largest market by 2030. New technologies, such as solid oxide electrolyzers (SOE), are also gaining attention for their high efficiency.
- Overcoming infrastructure challenges: The cost of converting, storing, and transporting hydrogen remains a significant challenge. Compared to other energy sources, hydrogen is disadvantaged in terms of cost competitiveness. Additionally, the lack of hydrogen refueling stations impedes widespread adoption. However, these challenges also create opportunities for business model innovation, such as localized hydrogen economies and on-site hydrogen supply fueling stations.
- Exciting downstream applications: Green hydrogen has the potential to make a substantial impact on carbon emissions in chemical and industrial applications, steel production, semiconductor manufacturing, and the automotive industry. The adoption of hydrogen-powered fuel cell vehicles is expected to surge in the coming years, with hydrogen playing a crucial role in long-distance and heavy-duty transportation.
- Following its successful industrial policies in other sectors, China’s dominance in hydrogen technologies presents a competitive landscape. Europe is expected to turn to China for its expertise in sustainable energy carriers, emphasizing hydrogen’s role as a critical component of the future energy mix.
“The days of hydrogen perpetually being ’10 years away from commercialization’ are behind us. The study’s findings reveal a compelling case for hydrogen’s readiness to revolutionize the energy sector. The future of the hydrogen economy holds promise, but it also requires concerted efforts from industry stakeholders, policymakers, and innovators to overcome challenges and capitalize on opportunities. By embracing sustainable hydrogen production, developing robust infrastructure, and fostering innovation, we can shape a greener and more resilient energy future,” said Sarwant Singh, President (Europe) and Chief Commercial Officer at MarketsandMarkets™.
Founded in 2010, MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive growth for progressive organizations in the B2B space. The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
In March 2023, Forbes recognized MarketsandMarkets as one of America’s Best Management Consulting Firms.