LONDON, Feb. 10, 2023 (GLOBE NEWSWIRE) — According to The Business Research Company’s research report on the green hydrogen market, companies in the green hydrogen market are focusing on the implementation of digital twin technology to reduce the uncertainty associated with green hydrogen production sites. A “digital twin” is a software-based virtual replica of the complete physical assets of a production facility, including its process equipment, instrumentation, and controls, as well as the production process. The key variables required during green hydrogen production, such as weather, off-takers’ demand volatility, and local infrastructure (current and future), can be modeled with the help of a digital twin. Digital twin technology enables manufacturers to optimize the design of each of these variables to maximize return on investment and minimize risk. Some of the benefits of implementing digital technology across the green hydrogen market include validating staff operating procedures and optimizing control strategies, optimizing preventive maintenance practices, enabling cost-effective regulatory compliance, and analyzing “what if” design scenarios.
For instance, in September 2023, IOTICS, an IoT-based solution provider, announced the creation of a digital twin of Portsmouth International Port as part of an ambitious $1.69 million project to demonstrate a green hydrogen system.
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The global green hydrogen market size grew from $0.58 billion in 2020 to $0.78 billion in 2023 at a compound annual growth rate (CAGR) of 33.8%. Green hydrogen market growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $2.94 billion in 2025 at a CAGR of 39.4%.
The increased demand for green hydrogen from end-use industries is expected to drive the market in the forecast period. Hydrogen-oxygen fuel cells are being increasingly used as an energy source to mitigate the pollution crisis. Fuel cells are being increasingly used to generate electricity as an alternative to fossil fuels. Hydrogen-oxygen fuel cells are also used in space stations. Hydrogen fuel cells are also expected to be widely used to power cars, replacing petroleum as fuel. Hydrogen is used in oil refineries to lower the Sulphur content of diesel fuel. According to the Bank of America, hydrogen is expected to account for 25% of all oil demand by 2050. Increased demand for hydrogen in the market is supported by investments in advanced technologies, which are expected to continue to drive the market over the forecast period.
The global green hydrogen market is fairly concentrated, and the market has a limited number of large players. The top ten competitors in the market made up 81.13% of the total green hydrogen market share in 2020. This can be due to high entry barriers along with high capital and fixed costs for plants and electrolyzers. Linde was the largest competitor, with a 17.39% share of the market, followed by Siemens Energy AG, Air Liquide, Air Products and Chemicals, Inc., Royal Dutch Shell plc., Toshiba Energy Systems & Solutions Corporation, Engie, Ballard Power Systems, Cummins Inc., and Green Hydrogen Systems.
The global green hydrogen market is segmented by technology into alkaline electrolyzer, proton exchange membrane electrolyzer, solid oxide electrolyzer; by application into power generation, transport, others; by end-use industry into petrochemicals, food and beverages, medical, chemical, glass, others.
As per TBRC’s green hydrogen market analysis, Western Europe was the largest region, accounting for 52.0% of the total market in 2023. It was followed by North America, and then the other regions. Going forward, the fastest-growing regions in the green hydrogen market will be South America and the Middle East, where growth will be at CAGRs of 72.8% and 68.3%, respectively. These will be followed by Asia Pacific and Western Europe.
Green Hydrogen Market Global Report 2020-30: COVID-19 Growth And Change is one of a series of new reports from The Business Research Company that provide green hydrogen market overviews, green hydrogen market analyze and forecast market size and growth for the whole market, green hydrogen market segments and geographies, green hydrogen market trends, green hydrogen market drivers, green hydrogen market restraints, green hydrogen market leading competitors’ revenues, profiles and market shares in over 1,000 industry reports, covering over 2,500 market segments and 60 geographies.
The report also gives in-depth analysis of the impact of COVID-19 on the market. The reports draw on 150,000 datasets, extensive secondary research, and exclusive insights from interviews with industry leaders. A highly experienced and expert team of analysts and modelers provides market analysis and forecasts. The reports identify top countries and segments for opportunities and strategies based on market trends and leading competitors’ approaches.
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