Hydrogen Hubs Market To Generate Revenue worth $7,162.0 Million by 2030
- Published: February 2024
The hydrogen hubs market is expected to witness a CAGR of 19.2% during 2024–2030, reaching USD 7,162.0 million by 2030. This market growth is due to the rising environmental concerns and carbon emissions. Additionally, the need for industry decarbonization, renewable energy, and transportation transformation propel the market. Further, the government policies and regulations aimed at a clean economy are adding fuel to the demand for hydrogen.
Climate Goals Are Driving Market
Hydrogen is known as being green when it is formed from processes that do not emit carbon dioxide, such as electrolysis powered by renewable energy sources. An enormous quantity of energy can be stored by hydrogen generated through renewable sources, including wind and solar.
Several organizations are pursuing sustainability goals to reduce their carbon footprint. Strategies of organizations and customer performances are continually changing due to the public awareness about environmental problems and climate goals. As a result, the demand for cleaner and sustainable energy solutions is continuing to boom.
Automotive Category Is Rapidly Growing
Based on industry, the automotive category is experiencing a high CAGR, of 20%, in the market. This is due to the increasing demand for hydrogen vehicles and the advancing fuel cell stack technology. The manufacturing of hydrogen fuel cell vehicles is increasing owing to high investments by automotive OEMs in sustainable transportation alternatives. Further, the addition of hydrogen refueling stations is imperative to expanding the interest in automobiles powered by hydrogen.
Further, nowadays, governments are focusing on decarbonizing the transportation sector, particularly heavy vehicles, such as trucks and buses, which raises the demand for the hydrogen fuel cell technology. Hydrogen hubs make the deployment of hydrogen-powered vehicles easy to fulfill different requirements of transportation. Additionally, mergers and acquisitions among automobile makers, energy companies, and other businesses in the hydrogen value chain enable the development of comprehensive hydrogen hubs.
The ongoing advancements in the hydrogen fuel cell technology are aimed at improvements in its durability, efficiency, and range, which is vital for encouraging the adoption of hydrogen-powered vehicles. Many governments are providing monetary support for related projects, which would play a key role in driving the hydrogen hubs market over the short term.
APAC Will Experience High CAGR
APAC will experience a high CAGR, of 22%, from 2024 to 2030 in the market, driven by increasing efforts of regional governments to reduce emissions. Many governments are recognizing hydrogen’s essential role in resolving environmental issues and fulfilling long-term sustainability goals.
APAC region is also seeing major investments in comprehensive H2 hub projects, with a focus on green and blue generation. Essentially, the alarming pollution levels in regional countries drive efforts to look for cleaner energy sources for homes, industry, and transportation.
Some of the major market players are Saudi Aramco, Shell plc, Linde plc, Airbus Se, and Sinopec Group.