Hydrogen Generator Market: Current Analysis and Forecast (2021-2027)
The global hydrogen generator was stood around $1.5 billion in 2020 and is expected to showcase the CAGR of above 5% during the forecast period (2021-2027). Contemplating the efficiency, cost, and environmental concerns natural gas is considered as one of the suitable fuels for hydrogen production through steam reforming. Moreover, carbons emitted are lower as compared to other sources such as coal or biomass. However, carbon dioxide released to the environment in the process is still very high thereby leading to an increase in overall carbon emissions. Companies in the hydrogen generator market are largely focusing on reducing the cost to produce hydrogen gas commercially which eventually be used in automotive industry and industrial sector. Further, hydrogen generator market is projected to offer an array of opportunities to companies currently operating in market. One of the leading factors driving the innovations in hydrogen generation market is the rising support provided by government authorities and research and development being conducted by research institutions. For instance, according to International Energy Agency, in 2019, minimum and maximum price of low-carbon electricity are 3.2 and 7.7 USD per Kg respectively and are projected to decreased to USD 1.3 per Kg being minimum price and 3.3$ USD per Kg being maximum by the year 2060.
During the Covid-19 pandemic in the early 2020, countries across the globe had taken measures like lockdown and border closure which has affected the production of industries like oil & gas, petrochemical, and chemical among others. Owing to which, the demand of hydrogen gas decreased thus affecting the hydrogen generator market.
Based on product type, hydrogen generators are bifurcated into onsite and portable hydrogen generator. Of both, onsite generator occupies the prominent market share in 2020. However, due to increasing adoption of fuel cell-based vehicles portable hydrogen generators is anticipated to grow substantially in the forecast period.
Based on application, laboratory and industry are the two hydrogen generator applications that allowed the hydrogen gas generator industry to grow significantly. Between the two categories, industry category is held the significant market share in 2020 and is expected to showcase significant growth during the forecast period. In addition, hydrogen is used in the laboratory for a variety of lab applications such as gas chromatography (GC) as fuel or carrier gas, in the chemical industry to synthesis ammonia, cyclohexane and methanol. Further, industrial use of hydrogen generator is refining petroleum, treating metals, producing fertilizer, and in the food industry for hydrogenation of oils to form fats. In addition, petroleum refineries use hydrogen to reduce the sulfur content of fuels.
For a better understanding of the market adoption, report provide detailed analysis for major region and countries including North America (US, Canada, Rest of North America), Europe (Germany, UK, France, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, Australia, Rest of APAC), and Rest of World. Owing to significant demand of hydrogen for hydrogen powered electric vehicles and rising demand of hydrogen in laboratories and industrial sector the demand of hydrogen generators is projected to grow in North America in the forecasted period. In addition, the development of supportive infrastructure such as hydrogen refueling stations is anticipated to drive the hydrogen generator market in the region. Further, decreasing cost of renewable energy across the globe, particularly solar photovoltaics and wind energy, population is taking more interest in electrolytic hydrogen. US held the significant revenue share in global hydrogen generator market owing to presence of large number of industries with increasing environmental concerns among the population, rise in demand of hydrogen is observed. As per the data published by Office of Energy Efficiency & Renewable Energy, in 2018, total annual production of hydrogen gas amounted to 10 million ton in U.S. In addition, petroleum processing and fertilizer production industry occupies the largest share of hydrogen in the country. Further, well developed technology and supporting government policies to promote hydrogen gas use in the country with growing focuses of hydrogen producing companies like Linde AG and Cummins Inc. is giving a boost in production.
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