Hydrogen Hubs Market

Global Hydrogen Hubs Market Research Report Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, Competitor Analysis and Forecast 2024-2032: By Supply Technique (Steam methane reforming and Electrolysis), By Industry (Automotive, Aviation, Defense, Marines, and Space), By End Use (Liquid Hydrogen and Hydrogen Fuel Cells), and Region (North America, Europe, Asia-Pacific, and Rest of the World)

Energy & Power | January 2024 | Report ID: EMR00544 | Pages: 301

The global hydrogen hubs market was valued at USD 2.01 billion in 2023 and is estimated to reach approximately USD 9.72 billion by 2032, at a CAGR of 19.1% from 2024 to 2032.

As they become more important in the energy scene, hydrogen hubs are integrated infrastructures that support the production, delivery, and storage of hydrogen. With their promotion of hydrogen as a clean fuel for industry and transportation among other sectors, these centers quicken the shift to a sustainable energy economy. These centers, which concentrate on green and renewable hydrogen, support decarbonization initiatives by providing a scalable way to mitigate environmental effects while meeting the world's expanding energy needs. A radical change toward a cleaner and more sustainable energy future is symbolized by the hydrogen hub market.

 

 

HYDROGEN HUBS MARKET: REPORT SCOPE & SEGMENTATION

Report Attribute

Details

Estimated Market Value (2023)

2.01 Bn

Projected Market Value (2032)

9.72 Bn

Base Year

2023

Forecast Years

2024 - 2032

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Supply Technique, By Industry, By End Use, & Region

Segments Covered

By Supply Technique, By Industry, By End Use, & Region

Forecast Units

Value (USD Billion or Million), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2024 to 2032

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and the Rest of World

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.

 

Global Hydrogen Hubs Market Dynamics

Technological R&D for hydrogen production is accelerated by government investments and initiatives. Competitiveness is increased by cost reductions and technological developments, while infrastructure development is boosted by alliances between major suppliers. An increased emphasis on renewable energy sources and growing interest in green hydrogen are driving market expansion. A suitable ecosystem for the development of hydrogen hubs is created by policy frameworks and regulatory assistance, which are crucial. In response to environmental concerns and the growing demand for environmentally friendly energy options, the market for hydrogen hubs is growing quickly as sectors shift to sustainable practices.

 

Global Hydrogen Hubs Market Drivers

  • Increasing Government Initiatives and Investments

Globally, policymakers are making significant financial commitments and enacting laws that encourage the development of hydrogen infrastructure. Scientific funding, grants, and financial incentives foster a climate that is conducive to technological innovation and large-scale hydrogen production initiatives. These programs show a strong commitment to sustainable energy transitions while simultaneously encouraging business sector participation. Governments are essential in driving the development of hydrogen hubs and creating a more resilient and greener energy landscape by matching public resources with industrial demands.

  • Rising Demand for Environmentally Friendly Hydrogen

Sustainability is being pushed toward by consumers and companies due to growing environmental consciousness and the need to minimize carbon footprints. With the increasing demand for renewable-source green hydrogen, hydrogen hubs are becoming essential to fulfilling this environmentally conscious requirement. The expanding industry is fueled by investments in green hydrogen production technologies as a result of consumers and industries looking for greener alternatives. Hydrogen hubs are at the forefront of a cleaner, more sustainable energy future because of this demand dynamic, which also coincides with global climate targets.

 

Restraints:

  • High Initial Costs for Infrastructure Setup

The establishment of extensive and effective infrastructure necessitates a significant financial outlay, which restricts the scope and speed of hydrogen hub growth. Widespread adoption is hampered by the cost, especially in areas with tight budgets. Uncertainties regarding return on investment may cause investors to hesitate, which would impede the industry's overall growth. To overcome this constraint and expedite the shift to sustainable energy, new funding models, government incentives, and technology developments that lower setup costs are needed to make hydrogen hubs more economically viable.

  • Limited Availability of Renewable Resources

The creation of green hydrogen is highly dependent on renewable energy sources, such as solar and wind energy. Production of sustainable hydrogen is not consistently and widely possible due to limitations in the availability, intermittent nature, and geographic distribution of these resources. For large-scale, economical, and ecologically friendly hydrogen generation to be achieved, this constraint must be overcome. To overcome the present restrictions on resource availability, this constraint must be addressed through improvements in energy storage technologies, a wider rollout of renewable infrastructure, and wise hydrogen hub location planning.

 

Opportunities:

  • Cross-Border Partnerships for Hydrogen Production and Trade

International cooperation projects encourage joint resource use, enabling areas rich in renewable energy to provide green hydrogen for those with greater need. These collaborations reduce production costs, strengthen the stability of the supply chain, and make it easier to develop a global hydrogen economy. Cross-border cooperation promotes economic growth and technology exchange while also bolstering international energy security by utilizing comparative advantages in resources and infrastructure

  • Green Hydrogen Production

The need for clean energy is growing, and hydrogen generated from renewable energy sources like solar and wind power is becoming more and more important. Investing in green hydrogen technology presents a viable approach to decarbonize transportation and industry. Using renewable energy to produce hydrogen helps to promote resilience and energy independence while also addressing environmental concerns. Green hydrogen is gaining popularity, which opens up a profitable market for investors, governments, and inventors.

 

Segment Overview

  • By Supply Technique

Based on supply technique, the global hydrogen hubs market is divided into steam methane reforming and electrolysis. The electrolysis category dominates the market with the largest revenue share in 2023. Because electrolysis doesn't use fossil fuels, it is seen as a clean or green technique of producing hydrogen. It provides a means to create hydrogen with low carbon emissions, which is in line with the objectives of a sustainable and low-carbon energy future. A sizable amount of the hydrogen produced now worldwide comes from SMR, a proven and mature technology. It can manage large-scale production and is reasonably priced.

  • By Industry

Based on the industry, the global hydrogen hubs market is categorized into automotive, aviation, defense, marines, and space. The automotive vehicles category leads the global hydrogen hubs market with the largest revenue share in 2023. FCVs, or fuel cell vehicles, run on hydrogen as their fuel. Only water vapor is released as a byproduct when these cars use fuel cells to turn hydrogen into energy. As a means of advancing the creation of a transportation infrastructure based on hydrogen, hydrogen hubs facilitate the production, delivery, and storage of hydrogen for use in the automotive industry. In particular, hydrogen-powered aircraft are being investigated as possible aviation fuel sources. Hydrogen finds its application in the defense industry where it can power distant sites, power military vehicles, and facilitate strategic maneuvers. Ship fuel cells, which lower emissions and encourage environmentally friendly shipping, rely on hydrogen, which is produced and distributed in the maritime industry through hydrogen hubs.

  • By End Use

Based on end use, the global hydrogen hubs market is segmented into liquid hydrogen and hydrogen fuel cells. The hydrogen fuel cells segment dominates the hydrogen hubs market. Fuel cell vehicles (FCVs), an alternative to conventional internal combustion engines, use hydrogen fuel cells. In addition, they provide efficient and sustainable energy for stationary power generation in buildings and enterprises. Several industries employ liquid hydrogen, including aerospace, transportation, and industry. It can be used as a vehicle fuel, an industrial feedstock, and a propellant for space exploration.

 

Global Hydrogen Hubs Market Overview by Region

The global hydrogen hubs market is categorized into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific emerged as the leading region, capturing the largest market share in 2023. With their aggressive hydrogen policies, nations like South Korea and Japan are encouraging large investments in infrastructure, R&D, and other fields. The region is leading the global hydrogen economy due to its strong industrial base and dedication to green hydrogen. Asia-Pacific's leadership emphasizes how important it is to shape the future of hydrogen as a clean and flexible energy source by focusing on lowering carbon emissions and attaining energy security.

Throughout the forecast period, North America is anticipated to post a significant CAGR. Several factors have come together to encourage this rise, such as growing public awareness of climate change, pro-green government legislation, and an increase in the demand for clean energy options. Sustainable hydrogen efforts benefit from the region's emphasis on green hydrogen production, technological breakthroughs, and public-private sector collaborations. North America is anticipated to experience steady and strong growth, making a substantial contribution to the global hydrogen hubs landscape, given the growing desire in decarbonization and the integration of hydrogen into numerous industries.

 

 

Global Hydrogen Hubs Market Competitive Landscape

In the global hydrogen hubs market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.

Some of the prominent players in the global hydrogen hubs market include,

  • Airbus
  • ARAMCO
  • Aranca
  • Linde plc
  • Scotland
  • Shell plc.
  • Sinopec, and various others.

 

Global Hydrogen Hubs Market Recent Developments

  • In October 2023, The US Department of Energy (DOE) announced funding of $7 billion to establish seven Regional Clean Hydrogen Hubs (H2Hubs) throughout the US mainland to expedite the low-cost, clean hydrogen's commercial implementation.
  • In July 2023, Hankook's i-Flex hydrogen hubs is upending conventional wisdom in tire construction.
  • In July 2022, The building of Holland Hydrogen is the result of investment decisions made by Shell Nederland B.V. and Shell Overseas Investments B.V., subsidiaries of Shell plc. By 2025, this initiative hopes to build the biggest renewable hydrogen plant in Europe. The produced hydrogen will be used at Shell Energy and Chemicals Park Rotterdam, taking the place of the refinery's traditional grey hydrogen.

 

Scope of the Global Hydrogen Hubs Market Report

Hydrogen Hubs Market Report Segmentation

ATTRIBUTE

DETAILS

By Supply Technique

  • Steam methane reforming
  • Electrolysis

By Industry

  • Automotive
  • Aviation
  • Defense
  • Marines
  • Space

By End Use

  • Liquid Hydrogen
  • Hydrogen Fuel Cells

By Geography

  • North America (USA, and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request

Pricing

  • Available upon request

 

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

  • Global Hydrogen Hubs Market Size and Forecast: To identify and estimate the market size for the global hydrogen hubs market segmented by supply technique, by industry, by end use, region and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of hydrogen hubs between 2019 and 2032.
  • Market Landscape and Trends: To identify and infer the drivers, restraints, opportunities, and challenges for the global hydrogen hubs market
  • Market Influencing Factors: To find out the factors that are affecting the sales of hydrogen hubs among consumers
  • Impact of COVID-19: To identify and understand the various factors involved in the global hydrogen hubs market affected by the pandemic
  • Company Profiling:  To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

 

Intended Audience

  • Government Agencies
  • Industry Participants
  • Investors and Financiers
  • Research and Development (R&D) Community
  • Automotive and Transportation Industry

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.

Frequently Asked Questions

On the basis of Geography, the hydrogen hubs market is classified into North America, Europe, Asia Pacific, and the Rest of the world.
According to hydrogen hubs market research, the market is expected to grow at a CAGR of ~19.1% over the coming years.
North America is expected to register the highest CAGR during 2024 - 2032
Asia-Pacific held the largest share in 2023.
The major players operating in the global hydrogen hubs market include Airbus, ARAMCO, Aranca, Linde plc, Scotland, Shell plc., Sinopec and various others.