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Gray Hydrogen Market: Introduction

  • Gray hydrogen is produced by natural gas steam reforming or during coal processing. It is odorless, colorless, and tasteless. It is the only fuel gas that does not contain any carbon atoms.
  • Hydrogen has the highest thermal conductivity of all gases. When hydrogen is combined with oxygen, the flame reaches a temperature of 2834°C. Therefore, it is used extensively in refinery, metalworking, and steel industries.

Key Drivers and Restraints of Gray Hydrogen Market

  • Rapid globalization and industrialization is one of the key drivers of the gray hydrogen market. Demand for hydrogen has been increasing significantly in various industries across the world. For instance, rise in demand for gray hydrogen in the chemical industry is a prominent factor boosting the gray hydrogen market. More than two-thirds of the global hydrogen production is used in the chemical industry, primarily for the synthesis of ammonia and methanol.
  • Increase in utilization of hydrogen in fuel cell-operated vehicles is likely to drive the gray hydrogen market in the near future. Fuel cell offers pollution-free transportation and can be used as a substitute for fossil fuel. Furthermore, governments of various countries across the world are promoting the use of fuel cell vehicles to reduce greenhouse and carbon emission. They are providing subsidies and tax benefits; and investing more in development of infrastructure for fuel cell vehicles. Thus, rise in usage of hydrogen in the automobile industry is anticipated to propel the demand for gray hydrogen during the forecast period.
  • Gray hydrogen gas is produced by using coal or natural gas. Thus, production of gray hydrogen leads to generation of high amount of carbon dioxide, which results in air pollution. Therefore, companies are developing green and blue hydrogen, which are produced by using renewable sources of energy. Increase in concern about carbon emission across the and rise in focus on green and blue hydrogen are estimated to restrain the gray hydrogen market during the forecast period,

Global Gray Hydrogen Market Segmentation

  • The global gray hydrogen market can be segmented based on process, application, and end-user
  • In terms of process, the gray hydrogen market can be bifurcated into natural gas reforming and coal processing. Natural gas reforming is more advanced and mature production process than coal processing. Thus, demand for natural gas reforming is expected be higher during the forecast period.
  • In terms of application, the gray hydrogen market can be divided into ammonia production, metallic ore reduction, methanol production, power generation, and others. The ammonia production segment dominated the gray hydrogen market at a faster CAGR in 2020. This trend is anticipated to continue during the forecast period.
  • Based on end-user, the gray hydrogen market can be divided into refinery, chemicals, steel, utility, automobile, and others. The chemicals segment dominated the gray hydrogen market at a rapid CAGR in 2020. Hydrogen is used as an ingredient in many chemicals such as hydrochloric acid and ammonia. Demand for these chemicals is expected to rise in the near future. This, in turn, is projected to boost the demand for gray hydrogen in the chemicals industry during the forecast period.

Global Gray Hydrogen Market: Regional Segmentation

  • Based on region, the global gray hydrogen market can be classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
  • Asia Pacific dominated the global gray hydrogen market in 2020. The market in the region is expected to expand at a significant pace during the forecast period, as demand for hydrogen is high in chemicals, fertilizers, and refinery industries in countries such as China, India, and South Korea.
  • North America is projected to account for vital share of the global gray hydrogen market in the near future. The U.S. is estimated to lead the market in the region during the forecast period. This can ascribed to the rise in demand for gray hydrogen in oil refineries.
  • Europe is also a key region of the global gray hydrogen market. The market in the region is projected to expand at a steady CAGR during the forecast period. The U.K., Germany, and France are likely to lead the gray hydrogen market in Europe during the forecast period.
  • Demand for gray hydrogen is anticipated to be high in Middle East & Africa and Latin America, as countries such as Saudi Arabia, the UAE, Brazil, Mexico, and Venezuela have large numbers of oil refineries that require gray hydrogen

COVID-19 Impact on Gray Hydrogen Market

  • The COVID-19 pandemic has adversely impacted the world due to the stringent lockdowns in all major countries. It has put the global economy in major distress. At the initial stage, the demand for gray hydrogen significantly declined due to lockdowns. Furthermore, the supply of gray hydrogen was hampered, as major portion of the gray hydrogen is produced from natural gas reforming. However, governments of various countries across the world have eased the lockdown restrictions. Due to which manufacturing process steadily rising. This is driving the demand for gray hydrogen in industrial applications. The trend is expected to continue during the forecast period.

Key Players Operating in Market:

  • Toyo Engineering Corporation
  • Osaki CoolGen Corporation
  • Oil and Natural Gas Corporation Ltd.
  • Chiyoda Corporation
  • Linde
  • Johnson Matthey
  • Clariant
  • Air Liquide
  • Air Products and Chemicals, Inc.

Global Gray Hydrogen Market: Research Scope

Global Gray Hydrogen Market, by Process

  • Natural Gas Reforming
  • Coal Processing

Global Gray Hydrogen Market, by Application

  • Ammonia Production
  • Metallic Ore Reduction
  • Methanol Production
  • Power Generation
  • Others

Global Gray Hydrogen Market, by End-user

  • Chemicals
  • Refinery
  • Steel
  • Automobile
  • Utility
  • Others

Global Gray Hydrogen Market, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • China
    • South Korea
    • Japan
    • India
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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Gray Hydrogen Market