Hydrogen Market

The global hydrogen market is predicted to see steady growth over the next eight years, with a projected increase in volume to 23B cubic meters and value to $82.8B by 2030. While consumption and production fluctuated in recent years, major players like China and the Netherlands continue to lead in both production and consumption. Import and export prices and volumes are also on the rise, indicating a growing demand for hydrogen worldwide.

Market Forecast

Driven by increasing demand for hydrogen worldwide, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +4.7% for the period from 2022 to 2030, which is projected to bring the market volume to 23B cubic meters by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +8.1% for the period from 2022 to 2030, which is projected to bring the market value to $82.8B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Hydrogen

In 2022, global consumption of hydrogen fell to 16B cubic meters, waning by -5.6% compared with the previous year's figure. The total consumption volume increased at an average annual rate of +4.5% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. As a result, consumption reached the peak volume of 17B cubic meters, and then fell in the following year.

The global hydrogen market value expanded rapidly to $44.4B in 2022, rising by 6.5% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, the total consumption indicated a buoyant expansion from 2012 to 2022: its value increased at an average annual rate of +8.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption decreased by -1.9% against 2020 indices. Global consumption peaked at $45.3B in 2020; however, from 2021 to 2022, consumption failed to regain momentum.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were China (3.8B cubic meters), Russia (2.4B cubic meters) and the Netherlands (2.1B cubic meters), together accounting for 51% of global consumption.

From 2012 to 2022, the biggest increases were recorded for the Netherlands (with a CAGR of +49.7%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, China ($39.7B) led the market, alone. The second position in the ranking was held by the Netherlands ($1.1B). It was followed by the United States.

In China, the hydrogen market expanded at an average annual rate of +9.4% over the period from 2012-2022. In the other countries, the average annual rates were as follows: the Netherlands (+56.2% per year) and the United States (+7.7% per year).

The countries with the highest levels of hydrogen per capita consumption in 2022 were the Netherlands (118 cubic meters per person), Finland (61 cubic meters per person) and Hungary (34 cubic meters per person).

From 2012 to 2022, the biggest increases were recorded for the Netherlands (with a CAGR of +49.0%), while consumption for the other global leaders experienced more modest paces of growth.

Production

World Production of Hydrogen

Global hydrogen production reduced to 16B cubic meters in 2022, waning by -5.1% on the previous year. The total output volume increased at an average annual rate of +4.7% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2014 when the production volume increased by 21% against the previous year. Global production peaked at 17B cubic meters in 2021, and then contracted in the following year.

In value terms, hydrogen production reached $47.9B in 2022 estimated in export price. Overall, production, however, recorded a resilient expansion. The growth pace was the most rapid in 2020 with an increase of 39%. As a result, production attained the peak level of $49.3B. From 2021 to 2022, global production growth failed to regain momentum.

Production By Country

The countries with the highest volumes of production in 2022 were China (3.8B cubic meters), Russia (2.4B cubic meters) and the Netherlands (2.1B cubic meters), with a combined 51% share of global production. Germany, the United States, France, Canada, Spain, Japan, Finland, Hungary, Belgium and Italy lagged somewhat behind, together accounting for a further 43%.

From 2012 to 2022, the biggest increases were recorded for Belgium (with a CAGR of +36.2%), while production for the other global leaders experienced more modest paces of growth.

Imports

World Imports of Hydrogen

In 2022, the amount of hydrogen imported worldwide shrank slightly to 585M cubic meters, remaining constant against the previous year's figure. Over the period under review, imports continue to indicate a mild reduction. The pace of growth was the most pronounced in 2021 with an increase of 73% against the previous year. Global imports peaked at 934M cubic meters in 2013; however, from 2014 to 2022, imports remained at a lower figure.

In value terms, hydrogen imports soared to $298M in 2022. In general, imports, however, enjoyed measured growth. As a result, imports reached the peak and are likely to continue growth in the immediate term.

Imports By Country

The purchases of the four major importers of hydrogen, namely the United States, Canada, Indonesia and Mexico, represented more than half of total import. Belgium (51M cubic meters) took an 8.7% share (based on physical terms) of total imports, which put it in second place, followed by Singapore (6.2%) and the Netherlands (5.3%).

From 2012 to 2022, the biggest increases were recorded for Singapore (with a CAGR of +45.5%), while purchases for the other global leaders experienced more modest paces of growth.

In value terms, the Netherlands ($151M) constitutes the largest market for imported hydrogen worldwide, comprising 51% of global imports. The second position in the ranking was held by the United States ($53M), with an 18% share of global imports. It was followed by Singapore, with a 5.9% share.

In the Netherlands, hydrogen imports expanded at an average annual rate of +27.5% over the period from 2012-2022. The remaining importing countries recorded the following average annual rates of imports growth: the United States (+2.2% per year) and Singapore (+42.5% per year).

Import Prices By Country

The average hydrogen import price stood at $0.5 per cubic meter in 2022, with an increase of 75% against the previous year. Overall, the import price saw buoyant growth. The most prominent rate of growth was recorded in 2014 when the average import price increased by 122%. Over the period under review, average import prices reached the maximum in 2022 and is expected to retain growth in the near future.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was the Netherlands ($4.9 per cubic meter), while Indonesia (less than $0.1 per cubic meter) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the Netherlands (+34.4%), while the other global leaders experienced a decline in the import price figures.

Exports

World Exports of Hydrogen

In 2022, the amount of hydrogen exported worldwide rose rapidly to 732M cubic meters, surging by 12% against the previous year. The total export volume increased at an average annual rate of +1.7% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth was the most pronounced in 2019 with an increase of 31% against the previous year. As a result, the exports reached the peak of 934M cubic meters. From 2020 to 2022, the growth of the global exports remained at a somewhat lower figure.

In value terms, hydrogen exports soared to $339M in 2022. In general, exports recorded buoyant growth. As a result, the exports attained the peak and are likely to continue growth in the immediate term.

Exports By Country

Belgium (292M cubic meters) and Canada (285M cubic meters) prevails in exports structure, together mixing up 79% of total exports. It was distantly followed by the United Arab Emirates (38M cubic meters), generating a 5.1% share of total exports. The following exporters - the United States (26M cubic meters), the Netherlands (22M cubic meters), Sweden (13M cubic meters) and Germany (13M cubic meters) - together made up 10% of total exports.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main exporting countries, was attained by the United Arab Emirates (with a CAGR of +33.6%), while the other global leaders experienced more modest paces of growth.

In value terms, Belgium ($170M) remains the largest hydrogen supplier worldwide, comprising 50% of global exports. The second position in the ranking was held by the Netherlands ($62M), with an 18% share of global exports. It was followed by Canada, with a 16% share.

From 2012 to 2022, the average annual rate of growth in terms of value in Belgium stood at +30.7%. The remaining exporting countries recorded the following average annual rates of exports growth: the Netherlands (-3.7% per year) and Canada (+2.4% per year).

Export Prices By Country

In 2022, the average hydrogen export price amounted to $0.5 per cubic meter, increasing by 57% against the previous year. Overall, the export price saw a notable increase. As a result, the export price reached the peak level and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was the Netherlands ($2.8 per cubic meter), while Sweden (less than $0.1 per cubic meter) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the Netherlands (+25.3%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform