Potential Opportunity Worth USD 5 Bn in Hydrogen Economy

Disruption – US$5 billion potential opportunity for green hydrogen is projected, as hydrogen production using renewable energy cost reaches US$1.3/kg. Green Hydrogen Market is expected to be valued at USD 4,373 Million by 2026, at a CAGR of 58.0%, owing to the low cost of renewable energy production from all sources, development of electrolysis technologies, and rising demand from FCEVs and the power industry.

More than 200 projects have been announced with public funding of over US$70 billion, and more than 85% of global projects originate in Europe, Asia and Australia. Hydrogen Council membership has grown from 60 to 100 in one year, with a more than 16-fold expected increase through 2030. It is expected that there will be a 60% reduction in the cost of producing Green H2 by 2030.

According to MarketsandMarkets™ analysis,

  • There is approximately US$6 billion in the hydrogen ecosystem, more than half of which contributes to green hydrogen production driven by the need to find clean energy solutions.
  • The hydrogen generation market is expected to grow at a healthy compound annual growth rate of 9-10% in the next five years, driven by government regulations for desulfurization and long-term demand for renewable energy.
  • Global hydrogen projects involving green hydrogen production will facilitate decarbonization in the coming years, providing tremendous growth opportunities for energy companies.
  • Neighboring markets have a potential of over US$32 billion in the hydrogen economy, the majority of which is contributed to methanol production.
  • In the hydrogen economy market, we are seeing increasing adoption of electrolysis technology which can disrupt the demand for hydrogen, which in turn affects market growth.

Currently, companies have low access to raw intelligence to clarify some of the unknowns and convergences in these areas of opportunity –

  • Increased focus on the hydrogen-based economy for applications such as power generation or fueling cars and buses, which during combustion can reduce carbon emissions, has led to increased investments in promoting a strong hydrogen-based economy.
  • Furthermore, the hydrogen generation market is driven by increasing government regulations for desulfurization and greenhouse gas emissions.
  • Hydrogen consumption by petroleum refineries has increased recently due to clean fuel programs, which require refineries to produce low-sulfur gasoline and ultra-low-sulfur diesel fuel.
  • The blue hydrogen sector is expected to grow at the highest rate of growth due to the increasing demand for capturing and reusing carbon emissions.
  • Adjacent markets such as Solid Oxide Fuel Cells, Solid Oxide Electrolyzer, Flow Batteries, and Services are required to provide massive growth opportunities.

Some of the growth problems that companies face in the electric vehicle ecosystem are:

Prioritizing Customers and Assessing Unmet Needs:

  • What are the disruptions in our clients’ business? How can we support them for our growth?
  • Who are the most potential customers in the future? Should we prioritize personal or shared mobility?
  • What are the main unmet needs of customers? Who are the main stakeholders in different environments? Do the vendor selection criteria differ by settings? What new product features should be added to existing products?

Playing place:

  • What technology should we focus on? Should it be green hydrogen, gray hydrogen, or something else?
  • What areas should we bet on? Should we continue with the developed countries, or do developing countries offer more growth opportunities?

Building a Persuasive Right to Win (RTW):

  • Should we enter new markets directly or through partners?
  • How do we differentiate the best players? What is their right to win versus ours?

Key uncertainties/perspectives that industry leaders seek answers to:

Hydrogen companies:

  • How do other peers realize their diversification goals in switching from gray hydrogen production to other cleaner forms of production?
  • What are the different green hydrogen (GH) technologies that are in different stages of maturity?
  • What GH technologies should we include in our portfolio that provide the best return on investment and a long-term technical advantage?
  • Who are the different providers of innovative technology solutions we can get, and where?
  • Who can we partner with to provide the best customer services, for example, GH along with energy storage?
  • What are the needs and requirements of the client? What are some unmet needs? Rate and rank the different purchase criteria:
    • Product/Service Features
    • Quality
    • innovation
    • the price
    • trade mark

For companies in neighboring markets:

  • Unable to keep pace with the rapidly evolving hydrogen industry – new technologies are emerging that lead to an increase in government initiatives. What are the basic regulations surrounding fuel cells?
  • Key Market Trends and Dynamics – How does the client’s current business position and strategy align with industry dynamics, disruptions, and opportunities?
  • What are the main components that customers are keen on?
  • When can the fuel cell tipping point be achieved?
  • Competitive Landscape and Market Share Rankings – Assessment of the customer’s competitive position and product offerings against major competitors.
  • What are the main differences between our value proposition/value proposition? Many startups and start-ups are taking market share from existing companies. What are the main areas of fuel cells?

Therefore, MarketsandMarkets™ research and analysis focuses on high-growth and niche markets, such as green ammonia, environmental technology, gas energy, solid oxide fuel cells, and related markets, which will become approximately 80% of hydrogen ecosystem revenue in the next 5-10 years.

Download PDF brochure: https://www.marketsandmarkets.com/practices/pdfdownload.asp?p=hydrogen-economy


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