A hydrogen gas generation system is an efficient method of producing hydrogen gas within a facility, such as an industrial plant, a power plant, a warehouse, a laboratory, among others. It is capable of producing a high purity hydrogen gas without any impurities other than trace amounts of moisture, nitrogen, and oxygen.
The increasing levels of research & development in hydrogen gas generation techniques have provided a smooth path for the sales of hydrogen gas generation systems globally. It provides efficient & cost-effective means of generating on-demand hydrogen gas for several applications, such as laboratories, manufacturing, and industrial sites, which is expected to proliferate the market in the forthcoming years.
The Global Hydrogen Gas Generation System market would witness a CAGR of around 5.8% during 2022-27, owing to the surging demand for hydrogen gas for chemical processing, fuel cells, refining, petroleum recovery, fertilizers manufacturing, aerospace, etc. The growing focus on reducing greenhouse gas emissions has boosted the demand for hydrogen gas generators across the globe.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: USA, Canada, Mexico|
|South America: Brazil, Rest of South America|
|Europe: Germany, The UK, France, Italy, Rest of Europe|
|Asia-Pacific: China, Japan, India, Rest of Asia Pacific|
|Middle East & Africa: UAE, Saudi Arabia, South Arfica and Rest of Middle East & Africa|
|Key Companies Profiled||Ener Blue, Thales Nano, Nel Hydrogen, Hitachi Zosen Corporation, Helbio, Parker Hannifin, Altergy, SilPac, PERIC Hydrogen Technologies Co. Ltd., Althea Technology, FuelCell Energy, Inc., LNI Swissgas, Giner Inc., Enapter S.r.l., Next Hydrogen, Others|
|Unit Denominations||USD Million/Billion|
In addition, countries like China, the US, India, and others have extensively invested & taken initiatives to expand hydrogen gas productions. For instance, China has involved the hydrogen industry among the six industries to focus upon for the expansion purpose in its 14th Five-Year Plan (2021-2025). Moreover, the growing need for hydrogen gas has led to the increased investment & collaboration of various hydrogen-generating companies, which has augmented the demand for hydrogen generation systems globally.
Moreover, it is predicted that the Global Hydrogen Gas Generation System market would grow significantly in the forecast period due to its eco-friendly advantages, such as zero-carbon emissions, as nations around the world have been advancing to zero-carbon energy strategies. Therefore, this area would provide an opportunity for the expansion of the Hydrogen Gas Generation System market across the globe.
Impact of Covid-19 on the Global Hydrogen Gas Generation System Market
The outbreak of the COVID-19 pandemic led to a considerable decline in the demand for Hydrogen Gas Generation Systems in 2020, owing to the halt in various industrial units. The industrial sector is a leading consumer of hydrogen gas generation systems for producing hydrogen for a variety of applications, including cooling, chemical & metal treatment, food processing by hydrolyzing fat oils, etc. Moreover, with the enforcement of lockdown measures across the globe, numerous industrial plants were temporarily closed.
Further, there was a significant decline in the electricity demand in residential, commercial, and industrial facilities around the world. This resulted in a low hydrogen requirement for the production of electricity. Aside from that, governments around the globe were compelled to reduce the business activities in order to minimize the effects of the Coronavirus, which negatively impacted the sales of hydrogen-based generators in the short run.
However, in 2021, with the resumption of industrial facilities around the world, the demand for hydrogen gas generation systems in these industrial facilities saw a gradual revival. Therefore, the impact of COVID-19 in the forthcoming years would be minimal.
Based on Type:
Among them, Blue hydrogen held a considerable share in the Hydrogen Gas Generation System market, as the production technique used for Blue hydrogen has been highly cost-effective. According to the International Renewable Energy Agency (IRENA) 2020, green hydrogen was around 2-3 times costlier than blue hydrogen & used fossil fuels in combination with carbon capture & storage (CCS). Blue hydrogen is obtained from natural gas & involves Steam Methane Reforming (SMR) or Auto Thermal Reforming technique (ART), for its production.
Moreover, countries across the globe are looking for alternatives to fossil fuels to obtain the net zero emissions target. Besides, there has been extensive investment by the major companies to produce blue hydrogen, which is expected to heighten the demand for hydrogen gas generation systems in the forecast years. For instance:
Based on Technology:
Based on technology, electrolysis depicted the modest growth rate in the Global Hydrogen Gas Generation System market in the historical years, as the technology is still in its deployment phase in several countries for the production of hydrogen gas on a large commercial scale. In 2019, the International Renewable Energy Agency estimated that the world produces 120 million tons of hydrogen each year, of which 5% is generated as a by-product from the electrolysis of chlorine. In addition, the agency also mentioned that there has been low hydrogen gas production through renewable energy resources.
Therefore, with the rigorous research & development in the field of the electrolysis process, such investment plans in near future, would create the thrust for the demand for hydrogen gas generation systems across the globe.
Geographically, North America registered significant growth in the Global Hydrogen Gas Generation System market. The rising demand is primarily driven by its vast applications in several industries, including automotive, chemical, healthcare, power generation, metal fabrication, welding, and many more. Moreover, the growing industrialization & use of fossil fuels have resulted in the increased emission of greenhouse gases that are negatively impacting the environment of various countries viz., the US, Canada, and Mexico in the North America region. Consequently, several initiatives have been taken by governments of countries such as the US, Canada, etc., in order to reduce greenhouse gas emissions from the environment. Therefore, this has accelerated the demand for Hydrogen Gas Generation Systems across the region.
In addition, companies have introduced innovative hydrogen generation systems to enhance hydrogen production, helping the US, Canada, and Mexico, reduce greenhouse gas emissions & smog from the environment. Thus, these initiatives by the hydrogen generation companies have stimulated the demand for Hydrogen Gas Generation Systems in the region & would also incline the demand during the forecast period.
Recent Developments by Various Governments & Leading Companies
Key Driver: Increasing Demand for Fuel Cells in Automobile Industry
Fuel cells have emerged as one of the most prominent technologies adopted by the automotive industry. The factors such as increasing demand for low greenhouse gas emissions, rising environmental concerns, and the government's stringent emission norms are driving the need for fuel cells as an alternative fuel in the automobile industry. They are electrochemical devices that use hydrogen as fuel & convert it into electricity and provide more efficiency & dependability in the transportation sector.
In addition, the automobile industry has been developing at an exponential rate. The countries such as the US, China, India, Germany, and others are investing extensively in research & development in hydrogen-based fuel cells to expand the fuel cells technology in the transportation sector. Thus, the need for hydrogen-based fuel cells in the automobile industry has driven the market of Hydrogen Gas Generation Systems to meet the growing demand for hydrogen at manufacturing plants.
Possible Restraint: Complex Hydrogen Gas Storage Resulting in Hydrogen Loss
Hydrogen Gas Generation System has been hindered by the need to store hydrogen gas after it has been produced. Hydrogen storage with regards to its weight, large volume, life-cycle efficiency, durability, cost, etc., has led the end-users to look for a substitute for hydrogen gas. Consequently, this would reduce the overall hydrogen production, thereby diminishing the demand for the hydrogen gas generation system. In addition to this, the cost of onboard hydrogen storage systems has been extremely high as compared to their conventional counterparts, such as petroleum fuels. In turn, this has become a key restraint for the Hydrogen Gas Generation System.
Growth Opportunity: Aviation & Automobile Sector to Attract Huge Demand
The growing demand for hydrogen in the aviation & automobile industry is expected to provide lucrative opportunities for Hydrogen Gas Generation System providers in the coming years. As the demand for hydrogen-powered vehicles continues to grow in North America, Europe, and Asia-Pacific, the need for on-site hydrogen or portable hydrogen generation systems in the manufacturing plants or sites is expected to accelerate growth for the Global Hydrogen Gas Generation Systems market in the coming years.
Additionally, the increasing pressure on the aviation industry to find sustainable fuels rather than conventional fuels has opened up possibilities for hydrogen-based applications in aviation as well. Hence, the rising R&D and testing facilities for checking hydrogen’s aviation application would emerge as an opportunity area for Hydrogen Gas Generation Systems in the forecast years.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Hydrogen Gas Generation System Market is expecting around 5.8% CAGR during 2022-27.
A. Green Hydrogen is expected to emerge as an opportunity area for the leading players in the market during the forecast period.
A. The increasing global industrial size would be the key growth driver & provide huge opportunities for hydrogen gas generation system providers in the forthcoming years.
A. The impact of the COVID-19 pandemic on the Global Hydrogen Gas Generation System Market would be minimal in the long-term as most of the industrial sector, which is a key contributor to the demand, around the world has shown a positive incline after the downfall in 2020. This would diminish the long-lasting impact of COVID-19 on the demand for Hydrogen Gas Generation System in the coming years.