Asian Hydrogen Market Report: Growth, Trends, and Forecast

The Asian hydrogen market, valued at USD 109.7 billion in 2023, is poised for significant growth with a projected compound annual growth rate (CAGR) of 5.8% between 2024 and 2032.

Hydrogen, a highly reactive, colourless, odourless, and tasteless gas, is widely used as a fuel and energy carrier across varied industries, including transportation, energy production, and various industrial processes. Hydrogen is crucial in applications such as ammonia production, petroleum refining, and metallurgy.

Key Drivers of Market Growth:

• Energy Security and Fossil Fuel Dependency: The rising energy demand, coupled with growing concerns over energy security and reliance on fossil fuels, is one of the primary factors driving market growth. Nations across the Asian region focus on diversifying their energy sources to reduce their dependence on fossil fuels and enhance their energy security.
• Technological Advancements: Significant advancements in hydrogen production, storage, transportation, and utilisation technologies are expanding hydrogen’s industrial applications. Innovations in electrolysis, steam methane reforming, and carbon capture and storage technologies are expected to drive further adoption across diverse sectors.
• Collaborations and Innovation: Strategic collaborations between governments, industry leaders, and research institutions are fostering an innovation ecosystem. These partnerships are accelerating the commercialisation and deployment of hydrogen technology, laying the groundwork for future industry growth.
• Sustainable Energy Transition: The transition towards sustainable energy is gaining momentum, with governments and industries alike implementing proactive initiatives to support the adoption of energy-efficient fuels. Hydrogen is emerging as a viable alternative, underlining its importance in reducing carbon emissions and bolstering the economy through green energy adoption.

Market Segmentation by Type

• Grey Hydrogen: Grey hydrogen is expected to dominate the market and reach a value of USD 137.4 billion by 2032. While it has a higher carbon footprint than blue and green hydrogen, grey hydrogen remains an affordable and accessible option for industries. The established production processes and infrastructure of grey hydrogen allow for easy integration into existing industrial ecosystems, offering industries a pragmatic solution to reduce emissions without compromising operational efficiency.
• Blue and Green Hydrogen: Blue hydrogen, produced by combining natural gas and carbon capture technology, and green hydrogen, generated via renewable energy sources, are gaining attention as cleaner alternatives. However, grey hydrogen’s affordability makes it the most accessible choice for many industries in the near term.

Market Segmentation by Application

• Chemicals: The chemical sector is expected to expand with a CAGR of over 6% through 2032. Hydrogen is used as a feedstock in various chemical processes, including the production of ammonia, methanol, and other essential chemical compounds. Rising demand for these products, alongside increasing regulatory pressure to reduce carbon emissions, will continue to fuel demand for hydrogen in the chemical sector.
• Petroleum Refineries: Petroleum refining is another key application for hydrogen and is used to remove impurities such as sulphur from crude oil to produce cleaner fuels. The growing focus on cleaner and more efficient fuel production processes will boost hydrogen demand in this sector.

Hydrogen Market in India

The hydrogen market in India is expected to surpass USD 36.8 billion by 2032. The government’s National Hydrogen Mission and other proactive targets foster a strong demand for hydrogen. Strategic partnerships, such as the collaboration between India’s government, Shakti Sustainable Energy Foundation (SSEF), and IIT Bombay are driving innovation in green hydrogen. These initiatives aim to reduce the carbon intensity of the economy while simultaneously creating green job opportunities.

India’s Finance Minister announced a strategic partnership to develop a roadmap for reducing carbon emissions through green hydrogen. This collaboration is crucial for India’s transition to a low-carbon economy.

Eminent players in the Asian hydrogen market are heavily investing in infrastructure development, focusing on establishing robust hydrogen production, storage, and distribution networks. By expanding their infrastructure capabilities, these companies aim to support the scalability and widespread adoption of hydrogen technologies across the region.

Key players are also investing heavily in research and development to enhance the efficiency, reliability, and cost-effectiveness of hydrogen production and utilisation technologies. These efforts will support the continued growth of the market by making hydrogen more accessible to a broader range of industries.

Prominent companies driving the Asia Pacific hydrogen market

• Air Liquide, a global leader in gases and industrial technologies
• Air Products & Chemicals Inc., is known for its hydrogen production and distribution capabilities.
• Ballard Power Systems focuses on fuel cell technology.
• Cummins Inc. and H2U Technologies contribute to advancements in hydrogen power and production systems.
• Iwatani Corporation and Kawasaki Heavy Industries are key players in hydrogen infrastructure.
• Linde plc and Messer Group GmbH leading in industrial gas solutions.
• Companies like Nel ASA, Plug Power Inc., and Toshiba Energy Systems are prominent in renewable hydrogen production.
• Resonac Holdings Corporation, TAIYO NIPPON SANSO CORPORATION.
• Teledyne Technologies focus on energy systems, industrial gases, and advanced hydrogen applications.

The Asian hydrogen market is on a strong growth trajectory, driven by increasing demand for clean energy, advancements in hydrogen technology, and strategic partnerships between governments and industry leaders. With significant growth expected across grey hydrogen, chemical applications, and key markets such as Japan and India, the region is well-positioned to lead the global hydrogen revolution.

Infrastructure development and ongoing investment in technological innovation will further support the market’s expansion and the broader transition towards sustainable energy solutions.