Global Bio Hydrogen Market Research Report: Forecast (2023-2028)

Market Definition

Bio Hydrogen is a biofuel that uses microorganisms to produce hydrogen in several applications across different verticals like industrial, automotive, pharmaceutical, food & beverages, among various others. It is made majorly through methods like Steam Reforming, Fermentation, Microbial Fuel Cells, etc., and is similar to bioethanol & biogas.

Market Insights & Analysis: Global Bio Hydrogen Market (2023-28)

The Global Bio Hydrogen Market is projected to grow at a CAGR of around 28.70% during the forecast period, i.e., 2023-28. The growth of the market is driven principally by the overconsumption of natural resources propelling the need to seek renewable alternatives for energy, coupled with the swift expansion of refining facilities, especially across developing economies, creating growth opportunities for the leading players in the industry.

Besides, alarming concerns over the rising carbon emission levels are also encouraging the adoption of eco-friendly alternatives for energy, like Bio Hydrogen. The use of renewable resources is likely to reduce the production cost of clean energy and positively influence the demand for Bio Hydrogen. Moreover, its extensive application shall enable multiple companies to profit from a mounting hydrogen fuel economy. Among different end-users, companies associated with oil & gas, automotive, etc., are likely to be its significant adopters and, in turn, contribute to the overall growth of the bio hydrogen market in the years to come.

Global Bio Hydrogen Market Driver:

Increasing Deployment of Fuel Cell Electric Vehicles (FCEVs): The mounting demand for Fuel Cell Electric Vehicles (FCEVs), including buses, trucks, passenger cars, & heavy vehicles, among others, is projected to positively influence the Global Bio Hydrogen Market in the coming years. These vehicles use hydrogen as a primary fuel, which thus, eliminates carbon emissions. As a result, several countries are taking various initiatives & setting a target to increase the production of FCEVs and contribute to curbing carbon emissions & driving the global market.

Growing Focus on Using Clean Energy Sources: The swift industrialization & urbanization across the world are compelling most countries toward adopting different power generation modes. However, with alarming concerns associated with using sustainable energy to curb carbon emissions, several nations are focused on reducing their dependency on fossil fuels and using eco-friendly alternatives like Bio Hydrogen, thereby creating remunerative opportunities for the global bio hydrogen market.

Global Bio Hydrogen Market Possible Restraint:

High Costs Involved with the Proper Production & Storage of Bio Hydrogen: The cost associated with the production, storage, and distribution of Bio Hydrogen is significantly high, which adds to the capital expenditure of its providers. However, producing Bio Hydrogen is one of many challenges. Its storage & transportation are other prominent issues that hamper their demand because hydrogen requires extreme safety & proper transportation infrastructure, which adds to its overall production costs. Presently, the storage costs associated with Bio Hydrogen are relatively much higher than fossil fuels.

Moreover, since the production & storage of hydrogen is a complex procedure, all hydrogen production takes place at the location of its demand because it is easy to establish its manufacturing plants where it is required. Hence, there is a lack of proper transportation infrastructure for hydrogen, which is a significant growth restraint for the overall market in the coming years.

Global Bio Hydrogen Market Trend:

Extending Government Initiatives & Policies to achieve Carbon Neutrality: Governments of different countries worldwide are keen to obtain carbon neutrality by actively investing in several research & development activities toward developing eco-friendly alternatives to combat the mounting carbon emission levels. Several administrations are seeking new strategies that would include using clean energy in different verticals, which, as a result, would fuel the Bio Hydrogen Market growth in the coming years.

• In March 2021, the US & Indian governments updated their strategic energy partnership and included low-carbon technologies like hydrogen & biofuels.

Global Bio Hydrogen Market (2023-28): Segmentation Analysis

The Global Bio Hydrogen Market study from Markntel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the analysis, the market has been further classified as:

Based on the Production:

• Steam Reforming
• Fermentation
• Microbial Fuel Cell

Of them all, Steam Reforming is anticipated to acquire a significant share of the Global Bio Hydrogen Market during 2023-28, owing prominently to its extensive application in Bio Hydrogen production, backed by the better output, enhanced fuel flexibility, and lower operational costs. Besides, the increasing demand for automotive fuel cells to power commercial transportation fleets is another crucial aspect propelling Bio Hydrogen production through Steam Reforming, i.e., a cost-effective production method generating the highest hydrogen yield. Nevertheless, the surging demand for Bio Hydrogen across different verticals for diverse applications remains a prominent aspect behind the burgeoning use of steam reforming production methods.

On the other hand, fermentation is another environment-friendly & effective way of producing bio hydrogen. The fermentation process bifurcates into photo-fermentation & dark fermentation and is a fermentative conversion of organic substrates into hydrogen with substantial potential as a fuel alternative.

Based on the End User:

• Food & Beverage
• Pharmaceutical
• Industrial
• Automotive

Here, the automotive sector dominated the market with the largest share in recent years. It owes to the growing focus of automakers on achieving carbon neutrality to meet the environmental norms & regulations specified by governments of different countries. They are actively seeking fuel alternatives to comply with carbon emission reduction while working on promoting hydrogen fuel cell vehicles. Besides, most automakers also believe that if the costs of Bio Hydrogen-powered vehicles are parallelly matched, it shall address most of the environmental concerns wherein faster refueling would project as a breakthrough for electric mobility.

Moreover, several prominent automotive companies like Hyundai, Toyota, & Honda, among others, are producing Fuel Cell Electric Vehicles (FCEVs), further accelerating the deployment of Bio Hydrogen. For instance,

• Bosch recently announced its ambitious investment plan of approximately 2.5 billion euros ($2.8 billion) in the development of hydrogen fuel cell technology. The company aims to execute this investment between 2021 & 2026, with the expectation of generating around 5 billion euros in sales from this technology by 2030.

Furthermore, Hydrogen-fueled trains are anticipated to use the same storage tanks & stacks used in trucks & buses and would be consolidated within the automotive sector, which, in turn, would spur revenue growth in the global bio hydrogen industry over the coming years.

Global Bio Hydrogen Market Regional Projection:

Geographically, the Global Bio Hydrogen Market expands across:

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

Of them all, Asia-Pacific is anticipated to dominate the Bio Hydrogen Market during 2023-28. It owes to the mounting focus of Indian & Chinese governments on the refining sector and developing new industrial units like automotive, chemical, power, etc., coupled with massive investments in fuel cell developments. Besides, the high population density and the extensive presence of numerous regional manufacturing facilities are also driving the regional market.

On the other hand, Europe acquired a significant share of the Bio Hydrogen Market in 2022. It was principally due to the massive investments by several European countries in enhancing the production capabilities of Bio Hydrogen, coupled with abiding by the strict carbon-emission reduction targets. Besides, the surging energy requirements, a considerable adoption rate of hydrogen-based vehicles, and various ongoing activities associated with hydrogen infrastructure developments across the region are other crucial aspects driving the Europe Bio Hydrogen industry.

Nonetheless, the North America Bio Hydrogen Market outlook to 2028 seems promising. The industry is witnessing remarkable growth, with a growing focus of several organizations on producing cleaner fuel. Moreover, data shows that numerous research & development activities dedicated to developing Bio Hydrogen and widening its application across different verticals are being carried out, consequently creating new directions for the regional market to witness a notable volume expansion in the years to come.

Global Bio Hydrogen Industry Recent Developments:

• In February 2023, Linde announced that it had invested $1.8 Billion and signed a long-term agreement to supply clean hydrogen and other industrial gases to OCI’s new world-scale blue ammonia plant in Beaumont, Texas.
• In July 2022, Shell Nederland B.V. and Shell Overseas Investments B.V., both Shell PLC subsidiaries, decided to construct Holland Hydrogen I. This facility would become Europe's largest renewable hydrogen plant upon its completion in 2025.

Gain a Competitive Edge with Our Global Bio Hydrogen Market Report

1. Global Bio Hydrogen Market report provides a detailed and thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics and make informed decisions.
2. This report also highlights current market trends and future projections, allowing businesses to identify emerging opportunities and potential challenges. By understanding market forecasts, companies can align their strategies and stay ahead of the competition.
3. Global Bio Hydrogen Market report aids in assessing and mitigating risks associated with entering or operating in the market.
4. The report would help in understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks and optimize their operations.