U.S., Europe And Asia Industrial Hydrogen Market Is Estimated To Witness Growth Due To Rising Demand From Refineries
U.S., Europe And Asia Industrial Hydrogen Market
The U.S., Europe And Asia Industrial Hydrogen Market is estimated to be valued at US$ 15.5 Bn or Billion in 2022 and is expected to exhibit a CAGR Of 5.0% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Industrial hydrogen is primarily used in oil refining and chemical production. It is used as a reducing agent in various chemical processes such as hydrogenation which is a key process used in petroleum refineries to produce gasoline and diesel from crude oil. It has wide applications in chemical industry for ammonia production. The increasing demand from oil refineries and chemical plants especially in Asia is driving the market.
Market key trends:
Refineries across U.S., Europe and Asia have been witnessing rising demand for refined petroleum products such as gasoline, diesel and jet fuel led by growing economies and populations. To meet this demand, refineries have been expanding their capacities and undertaing upgrades which has increased their demand for industrial hydrogen. Nearly half of global hydrogen production is used by petroleum refineries to reduce the sulfur content of fuels to meet stringent environmental regulations. The demand from refineries for cleaner fuels is expected to continue driving growth in industrial hydrogen market over the forecast period.
Porter’s Analysis
Threat of new entrants: Low capital requirements and established customers base create barriers for new players to enter. However, growing demand offers opportunities.
Bargaining power of buyers: Large industrial buyers can negotiate on price and contracts due to bulk buying influence. Suppliers need to focus on relationships and provide value-added services to retain customers.
Bargaining power of suppliers: Few global players control majority supply. Suppliers can influence price changes and customers have limited options to switch.
Threat of new substitutes: No major substitutes exist currently. However renewable hydrogen production using solar and wind can emerge as alternatives in future.
Competitive rivalry: Intense competition among major players to cater growing end-use industries. Market consolidation through mergers and acquisitions increase rivalry pressures.
SWOT Analysis
Strengths: Established infrastructure and technology expertise. Long term supply contracts provide revenue stability.
Weaknesses: High fixed costs due to plant and pipeline assets. Dependency on fossil fuel prices impacts costs.
Opportunities: Expanding end-use industries like refining and chemicals drives volume growth. Government policies support low carbon hydrogen economy.
Threats: Stricter emission norms increase compliance costs. Fluctuating energy prices pose margin pressures.
Key Takeaways
The global U.S., Europe And Asia Industrial Hydrogen Market is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing demand from refining and chemical sectors. Refineries consume over 50% hydrogen for desulphurization of heavy crudes. Expanding petrochemical industry also drives its use.
The Asia Pacific region dominated over 40% market share in 2018 led by China, Japan and India. Rapid industrialization and presence of key refining hubs in the region favor growth. Europe is the second largest market driven by Germany, UK and France. Stringent environment regulations further hydrogen adoption.
Key players operating in the U.S., Europe and Asia industrial hydrogen market are Air Liquide, Air Products & Chemicals Inc., Praxair Inc., Linde Plc., and Messer Group GmbH. Market leaders are focusing on capacity additions to strengthen supply position. Partnerships with end-users ensure stable off-take. Smaller players are engaging in domestic transportation and distribution networks.
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