Liquefied Hydrogen Market Size, Share & Industry Analysis By Production Method (Coal Gasification and SMR), By Distribution Method (Pipelines and Cryogenic Tanks), By End-Use (Aerospace, Automotive and Transportation, Industrial Sector, Energy and Power, and Others), and Regional Forecast 2025-2032

The global liquefied hydrogen market is expanding with the escalating clean energy demand. Collaborations between the public and private sectors have grown and they are focused on creating a complete hydrogen supply chain. These partnerships improve resource sharing and foster innovation, tackling the technical and economic issues linked to hydrogen production and distribution. The falling expenses related to hydrogen manufacturing and storage are providing liquefied hydrogen as a more appealing choice for numerous uses. As the costs of production diminish, liquid hydrogen grows progressively more competitive with conventional fossil fuels.

In March 2023, Japan pledged ~USD 14.93 million to the Hydrogen Energy Supply Chain (HESC) initiative, which is Australia’s one of the leading clean hydrogen projects. The HESC Project could lower global CO2 emissions by 1.8 million tonnes annually. This amount is comparable to removing around 350,000 gasoline-powered vehicles from the streets.

Liquefied Hydrogen Market Driver

Increasing Demand for Clean Energy to Drive the Market Growth

Governments and industries around the globe are establishing ambitious objectives for lowering carbon emissions. The drive toward reaching net-zero emissions is encouraging a move away from fossil fuels, with hydrogen being recognized as an essential clean energy alternative. Liquid hydrogen, specifically, is acknowledged for its capability to store and move renewable energy, thereby supporting this transition.

Liquid hydrogen is essential in managing the fluctuating characteristics of renewable energy sources such as wind and solar. In times of surplus energy generation, renewable electricity is utilized to electrolyze water, creating hydrogen that can be converted into a liquid state for storage and subsequent utilization. This feature establishes liquid hydrogen as a viable long-term energy storage option, improving the stability and dependability of the power grid.

As per the IEA report, hydrogen demand continues to be focused on refining and industrial applications, which have been utilized for many years. Its implementation in new areas where hydrogen is expected to be crucial in the clean energy transition heavy industry, long-distance transportation, and energy storage represents under 1% of worldwide demand, even with a 40% increase compared to 2022.

Liquefied Hydrogen Market Restraint

High Production and Infrastructure Cost to Restrain the Market

These transportation expenses are especially heavy in areas where production facilities are situated far from places of consumption. Thus, the high production and infrastructure costs associated with liquefied hydrogen present significant challenges that restrain market growth. These costs encompass the energy-intensive liquefaction process and the substantial capital investments required for production facilities and distribution networks. Addressing these financial barriers through technological advancements, economies of scale, and supportive government policies will be crucial for enhancing the economic viability of liquid hydrogen as a clean energy solution.

Liquefied Hydrogen Market Opportunity

Growing Infrastructure Development to Create Opportunity for the Market Growth

The creation of extensive hydrogen delivery systems, which encompass pipelines, liquefaction plants, storage facilities, and refueling stations, is essential for the effective distribution of liquid hydrogen. As infrastructure develops, it becomes simpler and more economical to transfer hydrogen from production locations to end-users, thus enhancing market accessibility and demand.

The establishment of regional hydrogen infrastructure is crucial to satisfy the increasing need for hydrogen in different industries. Funding in local manufacturing plants and distribution systems will support the delivery of liquid hydrogen to industrial clients, energy producers, and transportation industries, improving overall market expansion.

In February 2024, Daimler Truck and Linde Engineering achieved a significant milestone in hydrogen infrastructure aimed at decarbonizing transportation. In the past few years, engineers from both companies have collaborated to create sLH2 technology, an innovative method for managing liquid hydrogen.

In comparison to gaseous hydrogen, this cutting-edge method permits greater storage density, extended range, quicker refueling, reduced costs, and enhanced energy efficiency. Refueling a 40-tonne heavy-duty truck with 80 kilograms of liquid hydrogen takes roughly 10-15 minutes. This facilitates a range of 1,000 kilometers and beyond. Concurrently, the new sLH2 technology decreases the necessary investment for a hydrogen filling station by two to three times, and operational costs are approximately five to six times lower. Currently, liquid hydrogen can be reliably provided across Europe.

Segmentation

Key Insights

The report covers the following key insights:

• Recent Advancements in Liquefied Hydrogen
• Key Industry Trends
• Regulatory Landscape for Liquefied Hydrogen
• Key Industry Developments (Mergers, Acquisitions, and Partnerships)
• Impact of COVID-19 on the Liquefied Hydrogen Market

Analysis By Production Method

Based on production method, the market covers coal gasification and SMR.

The coal gasification segment is the largest segment in the market. Coal gasification is a developed and well-known technology for the production of hydrogen. It has been in use for almost two hundred years, offering a dependable process for extracting hydrogen from coal. This extensive history enables increased trust in its application and scalability relative to more recent technologies.

The SMR segment is the second largest segment in the market. The steam methane reforming sector is set for ongoing expansion in the liquefied hydrogen market owing to its affordability, well-established technology, high production yield, improvements in carbon capture techniques, rising demand for hydrogen, existing infrastructure benefits, and optimistic market forecasts.

Analysis By Distribution Method

Based on distribution method, the market is divided into pipelines and cryogenic tanks.

The pipelines segment is the largest segment in the market due to its effectiveness in transportation, expanding infrastructure improvement, increasing need for hydrogen across different industries, affordability, favorable government policies, progress in technology, compatibility with current systems, and robust market growth predictions.

The cryogenic tanks segment is the second most dominant market. Cryogenic tanks are engineered specifically for the storage and transportation of liquefied gases, such as hydrogen, at very low temperatures. Their capacity to sustain these temperatures guarantees minimal boil-off and gas loss while in storage and transit, providing them crucial for efficient hydrogen logistics.

Analysis by End-Use

Based on end-use, the market is divided into aerospace, automotive and transportation, industrial sector, energy and power, and others.

The aerospace segment leads the liquefied hydrogen market due to its specific needs high efficiency, energy density, and clean combustion which are optimally fulfilled by liquid hydrogen. Further, the industry's push for decarbonization and technological progress bolsters this dominance.

Regional Analysis

Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

To gain extensive insights into the market, Download for Customization

North America holds a significant share of the liquefied hydrogen market. There is a significant emphasis on reducing carbon emissions in the energy sector across North America, with both governmental and industrial actors prioritizing the decrease of greenhouse gas emissions. Liquid hydrogen is progressively regarded as a clean fuel option that assists in meeting these decarbonization goals, especially in challenging sectors such as transportation and heavy industry.

Asia Pacific is the second dominating country in the market. There is a rising need for clean fuel alternatives within the automotive sector, especially hydrogen fuel cell vehicles (FCEVs). The benefits of liquid hydrogen in terms of storage and transportation render it a favored option for car manufacturers, aiding its increasing acceptance throughout the area. Nations such as China and Japan are at the forefront of this movement, making considerable investments in hydrogen infrastructure and vehicle manufacturing.

Key Players Covered

The global liquefied hydrogen market is fragmented in terms of the number of providers. Various market initiatives, R&D activities, and others, are anticipated to drive market growth. In October 2021, Air Products declared that its new liquid hydrogen facility at its La Porte, Texas, location is operational to meet the growing demand in various customer sectors. The new liquid hydrogen plant in La Porte generates about 30 tons each day and will source its hydrogen for liquefaction from Air Products' current Gulf Coast hydrogen pipeline network, which is the largest hydrogen production and pipeline system globally.

The report includes the profiles of the following key players:

• Air Products and Chemicals, Inc. (U.S.)
• Air Liquide (France)
• Chart Industries (U.S.)
• Engie (France)
• Linde Plc (Ireland)
• Plug Power (U.S.)
• Shell Global (U.K.)
• Iwatani Corporation (Japan)
• Plug Power (U.S.)
• Praxair (U.S.)
• Kawasaki Heavy Industries, Ltd. (Japan)
• INOX India Limited (India)
• SAG Group (Austria)
• GE Appliances (U.S.)

Key Industry Developments

• In May 2022, Air Products, a global leader in the provision, distribution, and dispensing of hydrogen, revealed that it will establish, own, and manage a facility capable of producing 10 metric tons of green liquid hydrogen daily in Casa Grande, Arizona. The zero-carbon liquid hydrogen facility is anticipated to commence operations in 2023 and its output will be marketed to the hydrogen mobility sector in California and other areas demanding zero-carbon hydrogen.

The facility will employ two thyssenkrupp nucera electrolyzers to generate gaseous hydrogen, which will then be transformed into liquid hydrogen utilizing Air Products' proprietary technology.

• In September 2020, ENGIE and ArianeGroup revealed the signing of a partnership agreement focused on renewable liquid hydrogen to accelerate the decarbonization of heavy-duty and long-distance transportation. Renewable liquid hydrogen serves as a zero-emissions substitute for fossil fuels and addresses the unique storage and endurance needs of industries such as maritime and rail transport, as well as aviation.