Hydrogen Value Chain : What is the Market Value?

DoRen
3 min readMar 24, 2023

A carbon-free future for our global economy depends on hydrogen as a fundamental component. Safety and efficiency along the whole value chain are a requirement for the integration of hydrogen into numerous industrial sectors, such as mobility and transportation.

Typically, there are three domains of production — storage, distribution, and consumption or application to make up the hydrogen value chain. To assure safety, reduce expenses, and ensure compliance with laws, codes, and standards, each of these disciplines needs specialist knowledge (RCS). You are able to explore more about each stage of the hydrogen value chain here.

In light of its zero carbon content, hydrogen is developing as a vital and non-polluting energy source. Hence, the market size for the energy is getting bigger, including globally. In 2021, the size of the global hydrogen generation market was estimated at USD 129.85 billion in 2021, and it is anticipated to increase at a Compound Annual Growth Rate (CAGR) of 6.4% from 2022 to 2030.

However, according to the Global Market Insights, the market for hydrogen was valued at over USD 170 billion in 2021, and from 2022 to 2032, it is expected to expand at a rate of over 5.5% CAGR. The industry will grow faster if consumers switch their preferences from fossil fuels to energy-efficient substitutes.

As stated by the Grand View Research, the size of the worldwide green hydrogen market was estimated at USD 3.2 billion in 2021, and it is anticipated to increase at a CAGR of 39.5% from 2022 to 2030. Water is electrolyzed to create green hydrogen, which is then processed using electricity produced from renewable energy sources like solar or wind energy. The demand for the hydrogen economy is anticipated to be driven by the presence of supportive government policies promoting it as well as growing environmental concerns around rising carbon emissions from the use of fossil fuels. It is projected that this tendency will offer the industry a potential growth environment.

The demand for cleaner fuel and escalating regulatory restrictions for the desulfurization of petroleum products are projected to be the main drivers of the global market for hydrogen generation. By the fact that hydrogen is a reliable and clean source of energy and there are many countries moving towards keeping their environment and industry cleaner and more sustainable, it is expected that the demand and market value for hydrogen will be increasing by years.

Hence, many countries have been introduced and exposed to the hydrogen industry. This can be proven by looking at the Roadmap to the U.S. Hydrogen Economy reports. The reports forecast that hydrogen from low-carbon sources may meet 14% of the nation’s energy demands by 2050. Such actions by the countries will encourage the use of clean energy sources and also help the development of the economy. Other than that, the market value for the hydrogen is able to create new consumer markets and increase investment in hydrogen delivery and manufacturing infrastructure.

Therefore, Regen.co encouraged those countries which wanted to jump into the hydrogen industry to adopt a more strategic approach that prioritises fostering consumer demand-led markets that will continue to drive innovation, carbon reduction, and cost efficiency, and enable the low carbon hydrogen to deliver its full economic and decarbonization value.

Due to the demand and expansion of this market, the CAGR increased throughout the predicted period. Through the statistics that had been shown, reflected from the previous CAGR, it explained that the hydrogen industry is predicted to have a positive impact and outcome.

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DoRen

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