Hydrogen Market Analysis by Trends, Size, Share, Growth Opportunities, and Emerging Technologies
The fertilizer industry uses high-volume of hydrogen to manufacture fertilizers, especially ammonia that is used to create nitrogen-based fertilizers. Ammonia is widely used in agricultural activities to maintain crop nutrition and increase productivity. Due to the declining area of arable land, the requirement for ammonia has grown significantly. Owing to this demand, the hydrogen market is expected to increase its size from $136,185.0 million in 2019 to $196,934.5 million by 2030. According to P&S Intelligence, the market will accelerate at a CAGR of 4.3% during the forecast period (2020–203.
Apart from this, hydrogen is used to separate sulfur compounds from crude oil and break long-chain hydrocarbons into short chains during the production of gasoline. Moreover, the surging demand for sour crude oil is fueling the need for hydrogen, as it requires extensive processing. Besides, stringent environmental regulations to decrease sulfur in oil are escalating the consumption of hydrogen at oil refineries. For example, in January 2020, the International Maritime Organization (IMO) enforced an additional 0.5% global cap on the sulfur content in fuel. This limit is in addition to the earlier limit of 3.5%.
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The companies distribute hydrogen through cylinder, on-site generation, and tanker. They largely supply hydrogen via on-site generation, as it is easier to transport hydrogen through this channel and it is less complicated than using cylinders and tankers. Moreover, this method eradicates risks of the supply chain that includes unfavorable environmental conditions or low supply due to border closure. In the on-site generation method, the manufacturers produce hydrogen in the proximity of end-use factories and transport via pipelines. Besides, this method is cost-effective in comparison to tanker and cylinder distribution methods.
Thus, the expansion of oil refineries and fertilizer industry will fuel the consumption of hydrogen in coming years.
