Prediction of Green Hydrogen’s Growth in Market

Green hydrogen dispensing equipment market expected to grow significantly due to increasing demand; market expected to continue growth

Here’s an article posted in Digital Journey that talks about prediction of GH2 market growth and the future prospects.

According to the article,

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• Market Growth: The global Green Hydrogen Dispensing Equipment Market is projected to grow at a CAGR of 7.9% from 2023 to 2031, reaching a market value of US$ 64.8 million by 2031.
• Key Players: Major companies in this market include Air Liquide, Linde, Nel Hydrogen, Plug Power, McPhy Energy, Hydrogenics, ITM Power, GreenHydrogen, H2 Logic, and Ballard Power Systems.

As of now, the main challenges facing the Green Hydrogen Dispensing Equipment Market include:

1. Infrastructure Development:
   • Establishing large-scale hydrogen production facilities, such as electrolyzers powered by renewable energy, to increase production capacity and provide a consistent and affordable supply of green hydrogen.
   • Building a strong distribution network and storage facilities to transport and store hydrogen, including hydrogen refueling stations, expanding pipeline networks, and implementing effective storage systems.
   • Retrofitting current infrastructure to support the generation and distribution of green hydrogen, which requires careful planning and significant investment.
2. Market Off-takers:
   • Creating sufficient demand for green hydrogen by involving key players in industries like transportation, manufacturing, and power generation, as well as offering incentives for green hydrogen adoption.
   • Overcoming customer acceptance challenges by demonstrating the reliability, efficiency, and environmental benefits of green hydrogen technologies to build trust.
3. Technology Readiness and Cost:
   • Improving the efficiency of electrolysis, the process of producing hydrogen from water, to enhance performance and reduce capital costs.
   • Enhancing the efficiency of fuel cells, which convert hydrogen into electricity, to improve the overall performance and cost-effectiveness of green hydrogen systems.
   • Reducing the cost of green hydrogen production, primarily through electrolysis, to compete with conventional fuels, which requires advancements in technology, economies of scale, and the utilization of low-cost renewable energy sources.
   • Advancing green hydrogen technologies from lower Technology Readiness Levels (TRLs) to higher ones, ensuring smooth transition from the laboratory to practical, scalable applications.
   • Addressing the market competitiveness of green hydrogen compared to conventional hydrogen generation techniques, which may have pre-existing infrastructure and lower upfront costs, requiring strong policy support.
4. Financing and Investment:
   • Securing the necessary financing and investment to support the development of green hydrogen infrastructure, production facilities, and technology advancements.

Now, lets look briefly at what the market looks like in India:

1. Market Size and Growth:
   • The green hydrogen dispensing equipment market in India is expected to reach $10 billion by 2030 and $35 billion by 2040.
   • The market size is expected to grow exponentially, driven by increasing demand from transportation, industrial processes, and power generation.
2. Government Initiatives:
   • The National Green Hydrogen Mission aims to make India a significant player in the global green hydrogen market.
   • The government has initiated measures to promote domestic manufacturing of electrolysers and reduce their costs.
3. Export Potential:
   • India has a significant export potential for green hydrogen equipment, with an estimated $34 billion worth of exports to the Asia Pacific, Middle East, and Africa regions by 2030.
   • The country aims to become a regional supply chain hub for hydrogen production plants, leveraging its competitive advantage in engineering design, manufacturing, and services.
4. Challenges:
   • The market faces challenges related to the high cost of production and the need for infrastructure development to support the widespread adoption of green hydrogen.
   • Scalability of production and distribution networks is another significant challenge to meet the increasing demand.

Interestingly, we have some other posts related to this content:

Global Hydrogen Production Market Growth: The global hydrogen production market was valued at $130 billion in 2021 and is estimated to grow at a rate of 9.2% per year, reaching a value of $2.81 trillion by 2030.