"Actionable Insights to Fuel Your Growth"

Hydrogen to Power Market Size, Share & Industry Analysis, By Technology (Fuel Cells, Gas Turbines, and Others), By End-User (Transportation, Industrial, Power Plants, and Others), and Regional Forecast, 2024-2032

Last Updated: November 27, 2024 | Format: PDF | Report ID: FBI109449

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global hydrogen to power market size was valued at USD 7.17 billion in 2023. The market is projected to grow from USD 8.52 billion in 2024 to USD 66.24 billion by 2032, exhibiting a CAGR of 29.23% during the forecast period.


Hydrogen to power is a process in which hydrogen is converted into electrical energy. Hydrogen technologies, such as hydrogen fuel cells, hydrogen combustion engines, generators, turbines, and others convert hydrogen into electricity.


Hydrogen to power will witness considerable growth over the coming years due to the rising research and development for hydrogen and hydrogen based fuel cells such as Proton Exchange Membrane (PEM), Solid Oxide Fuel Cell (SOFC), and others. The industry expansion is further favored by a global shift in energy consumption from conventional hydrogen and hydrogen-based fuels to renewable energies. Renewable energy has grown significantly in the past few years, representing a growth of approximately 9.57% from 2021 to 2022 (295 GW of new additions in the overall capacity). The growth has been restricted to wind and solar projects for power generation due to the challenge of intermittency. Thus, there is an immediate need to provide backup power solutions.


The global impact of the COVID-19 pandemic on the hydrogen to power industry growth was moderate, as it hampered the consumption of electricity by many end-users due to disruptions in the services and technology supply chain and hindrance in activities due to social distancing norms. Furthermore, China, the U.S., and Japan are among the significant countries processing and deploying hydrogen to power technology. These countries faced various regional and national level shutdowns of industrial operations to contain the spread of this viral infection, which led to a fall in demand from the end-user industries.


Hydrogen to Power Market Trends


Government Funding & Support for Harnessing Hydrogen to Play a Key Role in Expanding Market Size


Building infrastructure for hydrogen production, storage, and distribution requires substantial investment at all stages of development and its applications. Financial support and policies have been instrumental in commercializing hydrogen as a power source. Government funding often targets Research and Development (R&D) efforts in hydrogen technology, which includes improving energy efficiency, reducing costs, and developing safer storage and transportation methods for hydrogen produced, which is expected to play a key role in the adoption of hydrogen-based powering systems. Policies and initiatives have helped kick-start this infrastructure development, making liquid hydrogen more accessible and viable as a clean energy source.


For instance, in 2021, the U.S. Department of Energy established the Hydrogen Earth Shot Challenge, aiming to reduce the cost of hydrogen as an energy source by 80%, reducing the cost per kilogram from USD 5 to USD 1. As part of this goal, the Infrastructure Investment and Jobs Act included USD 7 billion in funding for the Regional Clean Hydrogen Hubs (H2Hubs) program. Similar initiatives are being implemented across countries worldwide to lower the cost and easy availability of hydrogen. Thus, the easy availability of hydrogen is expected to provide an opportunity for the adoption of hydrogen-based fuel cells, CHPs, and power plants over the forecast period.


Request a Free sample to learn more about this report.


Hydrogen to Power Market Growth Factors


Higher Efficiency of Hydrogen-Powered Fuel Cells to Bolster Market Growth


Hydrogen to power technology offers a pathway to energy security by diversifying energy sources away from fossil fuels. Countries worldwide increasingly recognize the strategic importance of securing their energy supplies through indigenous renewable resources, which can be utilized to produce hydrogen. Hydrogen is a versatile energy carrier made from multiple domestic feedstocks, such as coal, natural gas, solar energy, wind, and biomass. It can strengthen national energy security, conserve petroleum, and diversify long distance transport energy options for a more resilient system. This diversification also reduces dependence on imported fossil fuels, enhancing energy resilience.


Hydrogen-powered fuel cells offer efficiency compared to traditional combustion and power generation technologies. While conventional combustion-based power plants typically achieve about 35% efficiency in electricity generation, hydrogen fuel cell systems can easily reach efficiencies of up to 60% or higher with advanced technology. Renewable electricity can be converted into hydrogen through electrolysis resulting in effectively coupling the growing renewable energy sector with end uses that are harder to electrify. This process also allows electrolyzers to provide grid flexibility, complementing alternatives such as batteries, demand response, and vehicle-to-grid in smart electrification, thereby expanding the applications of hydrogen fuel.


According to the International Renewable Energy Agency (IRENA), clean hydrogen is expected to play a significant role in new applications, particularly in the mobility sector, which is anticipated to become the largest consumer of clean hydrogen by 2040.  The adoption of clean hydrogen in both existing and emerging applications could increase its share of total demand to 75% by 2040. By 2050, long-distance road transport is projected to account for around 80 Mtpa of hydrogen demand, aviation for about 50 Mtpa, and maritime for the remaining 15 Mtpa.


Rising Technological Advancements in the Hydrogen to Power Sector to Boost Market Growth


Innovations in hydrogen production, such as high-temperature electrolysis and advanced catalysts, have significantly improved the efficiency and cost-effectiveness of generating hydrogen. Enhanced storage technologies, including developments in metal hydrides and carbon-based materials, enable safer and more practical transportation and storage of hydrogen. Moreover, advancements in infrastructure, such as hydrogen pipelines and refueling stations, are expanding to support wider distribution networks. Progress in fuel cell technology and hydrogen combustion engines has also led to more efficient and reliable energy conversion methods, making hydrogen increasingly competitive with conventional fuels. For instance, in September 2023, Nikola Motors launched its first hydrogen-powered model truck, the Tre FCEV. The truck, described as the only hydrogen-electric Class 8 truck on American roads, is now in production at Nikola's Coolidge, Arizona facility alongside its electric version.


RESTRAINING FACTORS


High Costs of Renewable Hydrogen and Infrastructure Challenges to Limit Market Growth


The growing inclination toward renewable-based power has led to the renewable hydrogen adoption in fuel cells, power plants, and other power-generating sectors. However, several challenges hinder the widespread product adoption and market growth. Renewable hydrogen is more expensive than traditional fossil fuels, with costs two to three times higher than the long term average fossil fuel prices of USD 75/bbl for oil and USD 4-6/GJ for natural gas. Hydrogen pipelines and the fuel cells and storage tanks needed for road transport are also costlier, at 10-50% higher for pipelines and multiple times higher for fuel cells compared to internal combustion engines.


Moreover, the global infrastructure for hydrogen is limited, with only about 4,500 km of hydrogen pipelines, requiring substantial investment in transport infrastructure, including pipelines, conversion units, liquefaction units, and storage facilities, which increases the initial investment needed. Additionally, hydrogen is not currently a traded commodity, resulting in no established price index and higher costs for consumers due to low price transparency and competition. The market for hydrogen to power also faces integration and demand issues, with little demand for low-carbon hydrogen, carbon capture, and projects needing to be integrated across the supply chain to be economically feasible.


Hydrogen to Power Market Segmentation Analysis


By Technology Analysis


Fuel Cell Segment Dominates Market Due to Growing Research & Development Initiatives


Based on technology, the market is segmented into fuel cells, gas turbines, and others.


The fuel cells segment holds the dominant hydrogen to power market share due to growing research & development as an alternative to lithium-ion-based electric vehicles. Fuel cells such as PEMFC and SOFC, which include hydrogen for converting into electrical energy, are gaining significant traction in the market. For instance, in June 2024, Silverline Power announced around USD 135 million in agreement with SRAM & MRAM Group for hydrogen fuel-based electric vehicle technology.


The gas turbines segment is projected to grow over the forecast period due to the rising product usage as an alternative to fossil fuel based turbines with an aim to reduce greenhouse gas emissions and promote clean energy. Hydrogen-based gas turbines are still in the nascent stage, and research & development is taking place for their wider adoption in the coming years. For instance, in 2024, Doosan Enerbility reinforced plans to develop a 380 MW gas turbine solely powered by hydrogen by 2027.


By End-User Analysis


To know how our report can help streamline your business, Speak to Analyst


Transportation Leads with its Potential to Reduce Greenhouse Gas Emissions and Reliance on Fossil Fuels Significantly


Based on end-user, the market is segmented into transportation, industrial, power plants, and others.


The transportation segment is dominating the market owing to the potential of the technology to reduce greenhouse gas emissions and reliance on fossil fuels significantly. In addition, hydrogen fuel cell electric vehicles have a longer range than battery electric vehicles, making them suitable for long-distance travel along with adhering to zero carbon emission requirements.


The power plant is projected to grow at a significant rate in the market owing to the rising deployment of fuel cells for power backup and increasing uses of hydrogen gas based turbines for electricity generation. Moreover, hydrogen-based fuel cells are also gaining traction in stationary power plants for clean and efficient electricity generation. Hydrogen turbines are being used in peaking power plants that operate during times of high electricity demand, providing a flexible and clean backup power source.


REGIONAL INSIGHTS


The market has been studied geographically across North America, Europe, Asia Pacific, and the rest of the world.


Asia Pacific Hydrogen to Power Market Size, 2023 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample


Asia Pacific holds the dominant hydrogen to power share and is anticipated to grow at the fastest rate in the forthcoming years as Japan, South Korea, and China, are investing heavily in the development of hydrogen fuel cell technology and infrastructure. The strong effort by the regional hydrogen-based organization and the European Union is also taking initiatives and organizing summits to increase the commercialization of hydrogen as a power source, which is supporting the market growth. For instance, in September 2024, the Asia Pacific Hydrogen 2024 summit and exhibition is going to be held, which would include government representatives, C-Suite Level hydrogen enthusiasts, and hydrogen players from Germany, Japan, Australia, the Netherlands, Indonesia, China, India, the U.S. and others. This summit intends to increase the consumption of hydrogen as a renewable source.


Europe’s market for hydrogen to power will also grow at a notable rate due to the rising government initiatives for decarbonization. Initiatives such as the European Green Deal and the Hydrogen Strategy have been launched and significant investments are being made in hydrogen production, infrastructure, and research. The region witnesses hydrogen as a key component in transitioning to a sustainable energy system, particularly in sectors such as transportation, industry, power plants, and heating.


North America and the Middle East holds a notable share of the market owing to significant policy shifts, technological advancements, and key project milestones related to the development of hydrogen as a cleaner source of energy.


KEY INDUSTRY PLAYERS


Market Players are Focused on Catering Customer Specific Demands to Gain Competitive Edge


The global hydrogen to power market growth is highly fragmented, with key players and some medium-scale regional players delivering a wide range of technology in the power industry at local and country levels across the value chain. Numerous players are actively operating across different countries to cater to the specific demands of customers.


In January 2023, Plug Power and Johnson Matthey announced their partnership to increase the hydrogen economy, strengthening the Plug’s supply chain and catering to the growing demand for fuel cells and electrolyzers. The partnership will also assist Plug Power in attaining the targeted revenue of USD 5 billion by 2026 and USD 20 billion by 2030.


List of Top Hydrogen to Power Companies:



  • Toshiba Corporation (Japan)

  • ITM Power (U.K.)

  • McPhy Energy S.A. (France)

  • Nel Hydrogen (Norway)

  • Ballard Power Systems (Canada)

  • Plug Power Inc. (U.S.)

  • Fuel Cell Energy Inc (U.S.)

  • Bloom Energy (U.S.)

  • Siemens Energy (Germany)

  • General Electric. (U.S.)

  • Doosan Fuel Cell Co., Ltd. (South Korea) 


KEY INDUSTRY DEVELOPMENTS:



  • May 2024: McPhy received an order for supplying a 1-MW electrolyzer and a hydrogen filling station to Valorem for the Rouen green hydrogen valley project in France. Valorem and its construction unit, Valrea, contracted McPhy to provide the McLyzer electrolyzer and a 350-bar McFilling station for the Rouen Vallee Hydrogene (RVH2) project in the Greater Rouen area of Normandy.

  • March 2024: TANAKA Precious Metals announced the installation of a large 500-kilowatt pure hydrogen fuel cell system at its Shonan Plant in Kanagawa Prefecture. This system, made by Toshiba Energy Systems & Solutions Corporation, would help manage generating efficiency and is set to begin operation in 2026.

  • February 2024: Bekaert and Toshiba Energy Systems and Solutions Corporation formed a global partnership to boost green hydrogen production. This includes a strategic cooperation agreement and a manufacturing technology license for Membrane Electrode Assemblies (MEA), a key part of Proton Exchange Membrane (PEM) electrolyzers. The agreement is built on their collaboration from September 2023.

  • May 2023: Ballard Power Systems ordered 3.6 MW of fuel cell systems from European clean energy solutions, providing a company for critical stationary power applications such as construction sites, electric vehicle charging stations, and data centers.

  • April 2022: Nel Hydrogen Fueling received an order from Hydrogen Technology & Energy Corporation (HTEC) for one H2Station hydrogen fueling module, which will be used to fuel zero-emission light vehicles in the Province of British Columbia, Canada. The value of the purchase order is approximately USD 1.5 million.


REPORT COVERAGE


The report provides a detailed analysis of the market and focuses on key aspects such as leading companies' product processes. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.


To gain extensive insights into the market, Request for Customization


REPORT SCOPE & SEGMENTATION
















































ATTRIBUTE



DETAILS



Study Period



2019-2032



Base Year



2023



Estimated Year



2024



Forecast Period



2024-2032



Historical Period



2019-2022



Growth Rate



CAGR of 29.23% from 2024 to 2032



Unit



Value (USD Billion)



Segmentation



By Technology



  • Fuel Cells

  • Gas Turbines

  • Others



By End-User



  • Transportation

  • Industrial

  • Power Plants

  • Others



By Region



  • North America (By Technology, End-User, and Country)


    • U.S.

    • Canada


  • Europe (By Technology, End-User, and Country)


    • Germany

    • U.K.

    • France

    • Italy

    • Sweden

    • Rest of Europe


  • Asia Pacific (By Technology, End-User, and Country)


    • China

    • Japan

    • India

    • South Korea

    • Australia

    • Rest of Asia Pacific


  • Rest of the World (By Technology and End-User)






Frequently Asked Questions

As per the Fortune Business Insights study, the market size was USD 7.17 billion in 2023.

The market is likely to grow at a CAGR of 29.23% over the forecast period (2024-2032).

Transportation segment is expected to lead the market due to the large deals in EV vehicles globally.

Asia Pacifics market size stood at USD 4.65 billion in 2023.

Higher efficiency of hydrogen in power generation and rising technological advancements in the hydrogen to power sector are the key factors driving market growth.

Some of the top players in the market are ITM Power, McPhy Energy S.A., and Plug Power Inc.

The global market size is expected to reach USD 66.24 billion by 2032.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts
Speak to an Expert
  • 2019-2032
  • 2023
  • 2019-2022
  • 150
Multi-report Purchase Plan
    A Customized Plan Will be Created Based on the number of reports you wish to purchase
Client Testimonials

“We are quite happy with the methodology you outlined. We really appreciate the time your team has spent on this project, and the efforts of your team to answer our questions.”

- One of the largest & renowned medical research centers based in the U.S. on a report on the U.S. NIPT Market.

“Thanks a million. The report looks great!”

- Feedback from a consultant on a report on the U.S. Beef Market.

“Thanks for the excellent report and the insights regarding the lactose market.”

- Brazil based company specializing in production of protein ingredients.

“I liked the report; would it be possible to send me the PPT version as I want to use a few slides in an internal presentation that I am preparing.”

- Global Digital Services Agency on a report on the Global Luxury Goods Market.

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.
X