Abundantly available, Hydrogen as fuel is a dream come true but requires separation from its compounds, it can also be produced in a lab, is odorless and colorless. Besides, when being used as a fuel, it emits very low levels of fumes. And, it can deliver power using heat and fuell cell technology.
Moreover, its use in a variety of industries will fuel its growth over the forecast period of 2017 to 2025. Thereby, charting a steady CAGR (Compound Annual Growth Rate), global merchant hydrogen market will generate lucrative opportunities of growth for the market players. Some of the most prominent names in the global merchant hydrogen market landscape include Air Liquide SA, Linde AG, Praxair Inc., Air Products and Chemicals Inc., Airgas Inc., and Hydrogenics Corp, among many others.
Some of the factors that will drive growth into the global merchant hydrogen market are spelled out below:
- Rise in population will lead to increase in need for energy. As per a United Nations study, in next 30 years, world population will increase by 2 billion. And, by 2050, it will be to a 9.7 billion. This means demands for energy, agricultural fertilizer, pharmaceutical and power utilities. As demand for clean fuel generation risers, so would grow the market for merchant hydrogen fuel would increase considerably. This will also see a boost owing to hustle to move away from fossil fuels as the have an adverse effect on environment and the awareness regarding the same is increasing substantially.
- Use in Pharmaceuticals will also add to demand in merchant hydrogen market. The players in the indurty of pharmaceuticals are looking at an increase in incidence of chronic diseases, CVD, diabetes and eye related disorders and this would make major demands on the industry, thereby, creating demands on merchant hydrogen market.
Hydrogen is found in abundance around the world and can be utilized as a fuel source after it is separated from different chemical compounds. Hydrogen is generally found in the gaseous form, and it is colorless and odorless in nature. It is insoluble in water and can be produced by a series of chemical processes in the laboratory. Hydrogen gas is generally produced by electrolysis of water. It can also be produced through a chemical reaction between diluted acids and iron or zinc. Commercial production of hydrogen gas includes a two-step process. In first step, hydrogen and carbon monoxide are produced by combustion of natural gas with steam. The second step involves the conversion of carbon monoxide to carbon dioxide through water-gas reaction. The converted carbon dioxide is then removed through the selective washing process. Hydrogen gas has a number of potential applications due to its high energy-weight ratio and ultra-low emissions during the time of usage. Hydrogen gas for industrial and chemical operations is produced through a variety of chemical reactions and energy sources. The produced hydrogen gas can further utilized to deliver power in combined heat power and fuel cell technologies.
Hydrogen is an important chemical feedstock that has been used for several decades in many chemical and refining operations. And owing to its application in clean energy production, it is viewed as a potential fuel source for future energy production. Merchant hydrogen gas is the amount of hydrogen gas that is traded around the globe for different chemical and energy applications. Hydrogen gas can be segmented into captive hydrogen and merchant hydrogen. The selling price of merchant hydrogen gas is high as it requires additional energy for compression, purification, storage, and transportation to end-users. Hydrogen gas is commercially produced through steam methane reforming, partial oxidation of coal, electrolysis of water, and thermochemical reactions in fuel cells. Storage and transportation of the merchant hydrogen requires high capital expenditure. It is transported using high pressure cylinders. Some of the hydrogen gas is also transported through pipeline networks. Most refineries and petrochemical companies receive merchant hydrogen through pipelines directly from the hydrogen producers. Merchant hydrogen gas for the purpose of trading can be stored using different modes such as glass microspheres, cryoadsorption, encapsulation, metal hydrides, and chemically bound hydrogen.
Petroleum refineries require most of the hydrogen gas for ammonia production, followed by petroleum refining, and desulfurization. The merchant hydrogen gas market is expected to be driven by emphasis on clean energy production, rise in energy demand, increase in cost of fossil fuels, higher demand from petroleum refineries, and a rise in use of hydrogen in the food and beverage industry. Major restraints that can hamper the merchant hydrogen market are high cost of storage and transportation and safety concerns. North America is one of the dominant regions for merchant hydrogen production followed by Europe and Asia-Pacific. Demand for merchant hydrogen in Asia Pacific is anticipated to grow in the near future owing to growing demand of hydrogen gas from the food and beverage, petrochemical, petroleum refining, metallurgy, and power utility industries in the region.
Leading players in the merchant hydrogen market include Air Liquide SA, Linde AG, Praxair Inc., Air Products & Chemicals Inc., Airgas Inc., and Hydrogenics Corp.
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
- 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.
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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.
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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.