Market Challenges And Opportunities

Global Hydrogen Market: Drivers

Increasing desulfurization

Increasing desulfurization is driving demand for hydrogen in refineries due to stringent fuel emission norms. For instance, fuel emission norms have become stricter due to global environmental concerns. In order to adhere to norms such as EURO 5 and 6, crude oil refineries around the globe are reducing sulfur content in end products, which in turn is driving demand for hydrogen.

Growing production of methanol

The growing production of methanol is augmenting the hydrogen market growth. Hydrogen is largely used in the production of methanol, and methanol is widely used as a raw material in the production of various chemicals such as formaldehyde, methanol-to-olefins (MTO), Methyl Tertiary-Butyl Ether (MTBE), and petrol blending. Moreover, methanol is used in the production of polymers, and thus, the increasing demand for polymers is projected to foster the hydrogen market growth.

Global Hydrogen Market: Opportunities

Growing use of hydrogen as a fuel in rockets

The growing use of hydrogen as a fuel in rockets, as hydrogen is a highly flammable fuel, is projected to bring profitable opportunities in the hydrogen market. Hydrogen is highly powerful for machines such as spaceships. Moreover, it is also an environment friendly and ideal choice of fuel when compared to other fuel sources. Furthermore, hydrogen is three times as powerful as gasoline and other fossil fuels. This factor is also projected to serve major growth opportunities.

Increasing development in efficient storage system for hydrogen

Researchers around the globe are focusing on developing an efficient storage system for the storage of hydrogen at low pressure without the need for compression. The volume-to-weight ratio of hydrogen is high which demands high volume capacity for the storage system. This is expected to provide potential market opportunities over the forecast period. Hence growing focus on the development of such advanced technology is projected to offer significant growth opportunities for the hydrogen market in the near future.

Global Hydrogen Market: Restraints

High cost of hydrogen production

The high cost of hydrogen production is expected to hinder the market growth. The cost of hydrogen production is very high due to the need for high investment in technologies such as Steam Methane Reforming (SMR). Thus, the high cost of production is hampering the product demand.

Highly flammability of hydrogen

Hydrogen gas is highly flammable as it is a very powerful source of fuel, which is estimated to inhibit the market growth. Moreover, the production of hydrogen highly depends on the availability of fossil fuels which is anticipated to restrict the hydrogen market growth

Restraints & Challenges: