New Delhi, March 20, 2024 (GLOBE NEWSWIRE) -- According to Astute Analytica, the global hydrogen liquefaction system market is projected to reach a valuation of US$ 8,158.8 million by 2032, up from US$ 4,122.5 million in 2023, at a CAGR of 7.88% during the forecast period 2024–2032.
The global hydrogen liquefaction system market is growing rapidly, as governments and businesses step up their efforts to switch to cleaner energy sources. With its newfound status as a viable alternative fuel, it’s crucial that hydrogen is produced, stored and transported efficiently. Leading the race in the Asia-Pacific region, China opened more than 50 hydrogen refueling stations in 2022 and has over 250 operational sites. Japan aims to have 800,000 hydrogen-powered vehicles on the roads by 2030, while South Korea has set its sights on producing 5.3 million tons of hydrogen by 2040. Europe also has big plans for the gas: Germany had more than 95 hydrogen refuelling stations (as of 2022) and the European Union aims to produce over 10 million metric tons of renewable hydrogen by 2030 – requiring more than 14% of the bloc’s electricity consumption. In North America, the US has more than 54 hydrogen refuelling stations – predominantly in California – while Canada wants to use it in up to 30% of its energy mix by mid-century.
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This demand for greener fuels in the hydrogen liquefaction system market comes from sectors such as transport – which was responsible for around a quarter of global CO2 emissions in this market last year. According to data from the International Energy Agency, there were over 25,000 hydrogen-powered vehicles on world roads in 2022 as manufacturers look beyond fossil fuels for cleaner mobility solutions. The steel and chemicals sectors are also looking at ways they can exploit greater use of hydrogen. However, there are obstacles standing in their way: high capital costs for liquefaction facilities; green hydrogen’s current production price tag at about $6 per kg; and that fact that approximately 95% of all global production still comes from fossil fuels.
However, new technologies could provide solutions: better electrolysis techniques would slash green H2 costs; while Liquid Organic Hydrogen Carriers (LOHCs) could make its transport safer. Energy majors Shell and BP are among the companies investing in these innovations. Market watchers say that by 2040, hydrogen could help to meet 18% of global energy needs and reduce carbon emissions by 6 Gt/y.
Key Findings in Hydrogen Liquefaction System Market
| Market Forecast (2032) | US$ 8,158.8 Million |
| CAGR | 7.88% |
| Largest Region (2023) | Europe (38.4%) |
| By Product Type | Electrolysis (57.4%) |
| By Application | Transportation (33.0%) |
| Top Trends |
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| Top Drivers |
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| Top Challenges |
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Scope to Improve Hydrogen Liquefaction System Output
Hydrogen liquefaction processes are currently inefficient, with a thermodynamic energy efficiency of just 30-35% in the hydrogen liquefaction system market. This is a major drawback because this inefficiency contributes to high costs when it comes to making hydrogen fuel. And this makes it more difficult for hydrogen to be used on a larger and more cost-effective scale. But with many shortcomings come many opportunities for improvement. For example, using cheap power sources like gas or steam turbines, optimizing thermal management, utilizing ortho-para hydrogen converters, improving inter-cooling and insulation, and automating boil-off control can all help to improve its energy efficiency by large percentages. The US Department of Energy (USDOE) is already working on a new way to make hydrogen fuel that will significantly boost both productivity and reliability called the combined reverse-Brayton Joule-Thompson (CRBJT) cycle.
Electrolysis is the Most Prominent Production Method, Control 57% Revenue Share
Since the pandemic, hydrogen demand has made a significant comeback. In the global hydrogen liquefaction system market, demand reached 95 Mt in 2022, above pre-pandemic levels. This represents about 2.5% of global final energy consumption. If all projects in the pipeline are realized, production of low-emission hydrogen (including that produced through electrolysis) could reach 16-24 Mt/year by 2030. However, low-emission hydrogen still only accounted for 0.7% of total demand in 2022, with most production and use associated with over 900 Mt CO2 emissions. This would require an installed electrolyser capacity of between 134 GW and 240 GW. Electrolyser costs are expected to fall by around 70% by then though, making electrolysis more economical.
Demand for hydrogen liquefaction via electrolyser is expected to increase greatly as clean hydrogen becomes more popular and efficient transportation and storage solutions are required. The market is forecast to expand significantly thanks to support from technological improvements and favorable policies. As the hydrogen economy matures, liquefaction will be key to mass transportation and storage of it which enables a global trade based on clean hydrogen.
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Transportation Sector to Control More Than 33% Revenue Share of Global Hydrogen Liquefaction System Market
This surge has been caused by the hike in demand for hydrogen across a range of industries, including transportation — this sector accounted for 24% of global CO2 emissions last year. The number of hydrogen-powered vehicles worldwide exceeded 56,000 units in 2022, signaling a growing market for hydrogen fuel cell vehicles (FCEVs). Hydrogen fuel cell vehicles have zero emissions and can travel long distances with quick refueling times. This is one of the main drivers behind the increasing demand for liquid hydrogen. Europe and Asia-Pacific are seeing a boom in hydrogen refueling stations, which have more than doubled over the past year. In 2022, South Korea dominated FCEV sales with more than 10K fuel-cell passenger cars sold, securing around 60% of the Asia Pacific market share and over 45% globally. China is the world’s largest FCEV truck and bus market while South Korea and Japan dominate the passenger car sector.
In North America and Asia-Pacific markets, passenger cars account for a large portion of HFCV sales. The Hydrogen Liquefaction System Market in North America & APAC is anticipated to grow at a steady CAGR during forecast period from 2024 to 2032 on account of presence of key global companies such as Linde Group, Air Liquide etc.
However, there are several challenges that could hold back growth in the market for hydrogen liquefaction systems., including high initial investment costs for large-scale projects and competition from conventional technologies such as fossil fuels or nuclear energy. Liquefying hydrogen requires an energy-intense process that consumes more than 30% of its content's overall energy consumption.
North America's Hydrogen Revolution: From Clean Energy to Economic Growth
The hydrogen liquefaction system market in North America is exploding thanks to the region's commitment to energy transition and decarbonization. Green hydrogen has increasingly become recognized as a key solution for industries with hard-to-abate emissions, offering both environmental and economic benefits. Enel North America is driving this sea change by helping businesses adopt technology that will allow them to meet their sustainability goals while gaining access to green financing options. Furthermore, the US government's National Clean Hydrogen Strategy — supported by the Inflation Reduction Act — makes this trend even more attractive by offering substantial funding and favorable policies.
The potential of the hydrogen liquefaction system market is absolutely staggering. The North American hydrogen sector could be worth over $140 billion every year by 2030 if it can significantly scale up its green hydrogen production capacity. That's exactly what the US Department of Energy’s Hydrogen Shot initiative aims to do with a major monetary boost of between $85 billion and $215 billion by 2030, which would help fuel infrastructure development and lead to roughly 100,000 new industry jobs. Currently, hydrogen production in North America mainly stems from fossil fuels, biomass and electrolysis, but the focus on green alternatives has caused an uptick in power-to-hydrogen projects that use excess renewable energy. Companies such as Plug and Air Products are taking advantage of this boom with plans to produce significant quantities of liquid hydrogen. On top of that, two new low-carbon hydrogen projects in Canada have positioned the region as one of the world's leading hubs for this resource.
Transportation and ammonia production are expected to be the biggest end-use markets for hydrogen in North America; however, there are plenty of other industries within reach that could benefit from adopting it. Green alternatives offer sustainable paths for heavy industry manufacturing to decarbonize itself. The Biden-Harris Administration’s regional clean hydrogen hubs were created specifically with innovation stimulation in mind so they can address infrastructure challenges and drive down production costs, which will encourage more companies to jump on the bandwagon.
Global Hydrogen Liquefaction System Market Key Players
- Linde Group
- Air Liquide
- Chart Industries
- Air Products and Chemical, Inc.
- Kawasaki Heavy Industries
- Iwatani
- GenH2
- Hylium Industries
- Other prominent players
Key Segmentation:
By Product Type
- Steam Methane Reforming (SMR)
- Electrolysis
By Application
- Transportation
- Electronics
- Chemicals and Petrochemicals
- Refining
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
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