Asia Pacific Green Hydrogen Market: Current Analysis and Forecast (2024-2032)
Emphasis on Electrolyzer (Proton Exchange Membrane Electrolyzer, Alkaline Electrolyzer, Others); Source (Solar Energy, Wind Energy, Others); End-User (Refining, Ammonia, Others); and Country
The Asia Pacific green hydrogen market was valued at USD 117.73 Million in 2023 and is expected to grow at a strong CAGR of around 68.2% during the forecast period (2024-2032). This is mainly owing to the development of green hydrogen which has emerged as a priority for multilateral institutions and private funders.
Asia Pacific Green Hydrogen Market Analysis
The Asia Pacific region is currently the fastest-growing economy, seeking to reduce its carbon footprint and transition towards a low-carbon future. Many countries have set targets for deploying green hydrogen and are further working towards implementing favorable policies and incentives to drive investment in the industry. Aside from the massive investments being made by Asian states, the development of green hydrogen has emerged as a priority for multilateral institutions and private funders. In Asia, the future energy outlook relies greatly on hydrogen, and significant policy and financial support from governments across the region, coupled with a wave of private investment, has allowed for the rapid expansion of promising clean hydrogen projects across the continent. However, Green hydrogen projects in Asia and Australia are stalling because the developers have opted to export green ammonia rather than focus on meeting domestic H2 needs. To export green hydrogen credible off-takers and longer contracts coupled with advanced infrastructure are required to scale up the technology which is slowing down its market growth.
Asia Pacific Green Hydrogen Market Trends
Growing Hydrogen Infrastructure Development in Asia Pacific.
Asia and the Pacific are leading the way in hydrogen investment, accounting for over 50% of the global total in 2021, and toward a hydrogen society in which hydrogen plays a vital role in daily life and economic activities. What is more, Australia, Japan, India, New Zealand, the Republic of Korea, and a growing number of countries in the region are proposing national-level hydrogen strategies to accelerate the decarbonization of society and aiming to move forward with their adoption.
Raise awareness among policymakers about:
- The current national hydrogen strategies and other policies for promoting hydrogen; economic models for hydrogen cost reduction; hydrogen energy use cases, an example of feasibility study/future projects.
- The potential of district heating and cooling technologies in supporting the energy transition by reducing energy intensity and promoting decarbonization in the East Asia Region.
Asia Pacific Green Hydrogen Market Challenges
Challenges for Green Hydrogen in Hard to abate sectors:
- To achieve the goals established in the Paris Agreement, which aims to limit global warming to well below 2 °C and preferably to 1.5 °C, economies must transition from legacy systems that rely on fossil fuels to low-carbon energy sources like renewables. Electrification from low-carbon technologies such as renewables is a crucial solution, however, there are still significant challenges in decarbonizing sectors that are difficult to transition, such as heavy industry and transportation. These sectors require activities, like high-temperature heating, feedstock supply for chemicals, or heavy-duty freight, that are hard to fully electrify. Additionally, as wind and solar power continue to expand, network stabilization issues can arise due to their variability, even as prices fall.
China is Expected to Grow with Significant CAGR During Forecast Period
China is leading the global hydrogen production and consumption market due to its large market size and developed industrial infrastructure. These factors facilitate rapid technological advancements and offer potential for economies of scale, which can significantly influence the global hydrogen market landscape. In March 2022, China released its Medium and Long-Term Strategy for the Development of the Hydrogen Energy Industry, leading to significant developments in the country’s hydrogen space. However, the National Plan’s targets for renewable hydrogen production may seem conservative, as they only represent 0.3 to 0.6 percent of the 33 million tons of fossil-based hydrogen consumed in China in 2020. Therefore, the provincial plans may provide a more accurate picture of China’s hydrogen industry over the coming decades than the National Plan, when viewed together.
Asia Pacific Green Hydrogen Industry Overview
The green hydrogen market is competitive and fragmented, with the presence of several Asia Pacific and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are Enapter, Toshiba, Air Liquide, Nel Hydrogen A/S., Toyota, Hyundai, Yara International, CWP Global, Origin Energy, and CSIRO.
Asia Pacific Green Hydrogen Market News
- In 2024, Japanese oil & gas firms Eneos and Idemitsu Kosan signed a memorandum of understanding with utility Hokkaido Electric Power Company (Hokuden) to develop a green hydrogen project with at least 100MW of electrolysis capacity within the country by 2030.
- In February 2024, Bekaert and Toshiba partnered on MEA technology for PEM electrolyzers to accelerate the advance towards green hydrogen production at scale.
Asia Pacific Green Hydrogen Market Report Coverage
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
The Asia Pacific green hydrogen market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the Asia Pacific Green Hydrogen Market Analysis (2022-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the Asia Pacific green hydrogen market were the three major steps undertaken to create and analyze the adoption of green hydrogen in major countries in Asia Pacific. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the Asia Pacific green hydrogen market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
A detailed secondary study was conducted to obtain the historical market size of the green hydrogen market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the green hydrogen market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as electrolyzer, source, and end-user. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the green hydrogen market. Further, we conducted factor analysis using dependent and independent variables such as electrolyzer, source, and end-user of the green hydrogen market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the green hydrogen market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Asia Pacific green hydrogen market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets in Asia Pacific. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the green hydrogen market across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the Asia Pacific green hydrogen market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the Asia Pacific green hydrogen market. data was split into several segments & sub-segments after studying various parameters and trends in the areas of the electrolyzer, source, and end-user in the Asia Pacific green hydrogen market.
The main objective of the Asia Pacific Green Hydrogen Market Study
The current & future market trends of the Asia Pacific green hydrogen market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the green hydrogen market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
- Segments in the study include areas of the electrolyzer, source, and end-user
- Define and analyze the regulatory framework for the green hydrogen industry
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
- Analyze the current and forecast market size of the green hydrogen market for the major countries.
- Major countries of regions studied in the report include China, India, Japan, Australia, and the rest of Asia Pacific.
- Company profiles of the green hydrogen market and the growth strategies adopted by the market players to sustain in the fast-growing market
- Deep dive regional level analysis of the industry
Frequently Asked Questions FAQs
Q1: What is the current market size and growth potential of the Asia Pacific green hydrogen market?
Q2: What are the driving factors for the growth of the green hydrogen market?
Q3: Which segment has the largest share of the green hydrogen market by Electrolyzer?
Q4: What are the emerging technologies and trends in the green hydrogen market?
Q5: Which Country will dominate the Asia Pacific green hydrogen market?
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