H2 2023: During H2 2023, in the Asia Pacific region, Hydrogen prices faced a mixed scenario. During the third quarter of 2023, the Hydrogen market experienced a blend of sentiments characterized by a rise in prices from July to August, succeeded by a decline from August to September. The initial upturn can be attributed to the stability observed in the pricing of feedstock. Furthermore, consistent demand from the fuel sector in India has posed a constraint on the hydrogen market's expansion in India. Conversely, the subsequent decrease in prices can be linked to the later stabilization in the pricing of natural gas, resulting in reduced production costs. Additionally, subdued demand from the downstream ammonia industry during the off-season further contributed to the decline. Looking forward, there are optimistic developments on the horizon. The finalization of guidelines for the R&D scheme under the National Green Hydrogen Mission in India is anticipated by October, with calls for proposals issued by November. Moreover, a proposal for the establishment of a National Centre for Hydrogen Safety is in consideration in India. A notable development influencing market sentiment is the recent G20 declaration by member countries, emphasizing their collective commitment to promoting the production, utilization, and establishment of transparent and resilient global markets for hydrogen generated through zero and low-emission technologies.
H1 2023: During the first quarter of 2023, the Hydrogen market in the Asian region experienced a bearish trend in prices. Initially, prices declined due to reduced demand from downstream ammonia producers, influenced by decreased orders from fertilizer industries. Mid-quarter, the decline in upstream natural gas prices alleviated the production cost. Towards the end of Q1 2023, offtakes also decreased from the energy sector with the onset of the spring season. Concurrently, consumption remained weak in downstream industries. As Q2 2023 unfolded, Hydrogen prices continued to decline, experiencing a sharp decrement in April in Asia. Subsequently, there was a gradual recovery in prices, leading to an overall reduction in Q2. This decline was influenced by the decrease in feedstock natural gas prices in April, slow increments in natural gas prices from May and June, and subdued demand from downstream industries like fertilizer. Adequate inventory levels further contributed to the decrease in input production costs. Additionally, a low-cost influx of imports from the international market played a role in this market scenario.
The Asia Pacific Hydrogen market demand stood at 26.5 million tonnes in 2023 and is expected to grow at a CAGR of 3.93% during the forecast period until 2034.
Hydrogen exhibits versatility in its production, deriving from diverse energy sources like natural gas and coal. This adaptable compound serves as a precursor for various fuel derivatives, including synthetic liquid fuels, methane, ammonia, and methanol. Presently, the predominant method for hydrogen production involves fossil fuels and natural gas. While electrolytic cell technology utilizing caustic soda traces remains less prevalent, it is anticipated to witness increased demand in the future due to advancements in cost-effective and reliable innovations. Recent years have seen the initiation of several projects aimed at enhancing the cost-effectiveness of hydrogen production, particularly from renewable electricity sources. Beyond its role as an energy source, hydrogen also functions as a carrier of chemical energy, underlining its significance in diverse applications.
The Asia Pacific region is poised for a substantial surge in hydrogen demand and production in the upcoming forecast period, driven by a convergence of key factors. Rapid industrialization and economic growth across the region are creating a heightened demand for energy solutions, with hydrogen emerging as a versatile and promising option. Governments in various countries like India are proactively implementing policies and initiatives to propel the growth of a hydrogen economy, offering incentives and regulatory support. Simultaneously, advancements in hydrogen production technologies, particularly in the realm of green hydrogen derived from renewable sources, are enhancing economic viability. The transportation sector is witnessing a paradigm shift towards hydrogen fuel cells and hydrogen-powered vehicles as part of a broader effort to decarbonize.. Moreover, international collaborations and partnerships are playing a pivotal role in fostering the development of a robust global hydrogen market, positioning the Asia Pacific region as a key player in the evolving landscape of the hydrogen industry.
Based on the end-user industry, the Asia Pacific Hydrogen market is segmented into Ammonia, Refining, Methanol, Fuel, and Others. The largest market share of Hydrogen goes in producing Ammonia. In 2023, this industry consumed about 43 percent of the net Hydrogen market.
Major players in the Asia Pacific Hydrogen market are Sinopec, Air Products, Air Liquide, Praxair, Linde plc (BOC), Deokyang, Linde plc, Shanghai HuaLin Industrial Gases, Iwatani, Iwatani/Kansai Electric/Sakai LNG, Kawasaki, Messer, Iwatani/Tokuyama, LG Chem, and Others.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2023
Estimated Year: 2024
Forecast Period: 2025-2034
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Objective of the Study:
• To assess the demand-supply scenario of Hydrogen which covers production, demand and supply of Hydrogen market in the globe.
• To analyse and forecast the market size of Hydrogen
• To classify and forecast Asia Pacific Hydrogen market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Hydrogen market in the globe.
To extract data for Asia Pacific Hydrogen market, primary research surveys were conducted with Hydrogen manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Asia Pacific Hydrogen market over the coming years.
ChemAnalyst calculated Hydrogen demand across the Asia Pacific region by analysing the volume of Hydrogen consumed by the end-user industries and the forecast is calculated based on the growth rate of end-use industries. ChemAnalyst sourced these values from industry experts and company representatives and externally validated them by analyzing the historical sales data of respective manufacturers to determine the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Hydrogen manufacturers and other stakeholders
• Organizations, forums and alliances related to Hydrogen distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Hydrogen manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years, thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Asia Pacific Hydrogen market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2023
26.5 million tonnes
Market size Volume by 2034
40.8 million tonnes
Growth Rate
CAGR of 3.93% from 2024 to 2034
Base year
2023
Estimated Year
2024
Historical Data
2015 – 2022
Forecast period
2025 – 2034
Quantitative units
Demand in million tonnes and CAGR from 2024 to 2034
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Country, Demand by Sales Channel, Demand-Supply Gap, Company Share, Manufacturing Process, Foreign Trade.
Segments covered
By End-Use: (Ammonia, Refining, Methanol, Fuel, and Others)
By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope
China, Japan, India, South Korea, and the Rest of APAC
I am satisfied with overall performance of ChemAnalyst. Weekly updates before the final report were especially helpful and reassuring. Additional requests on the interim and/or final reports were handled in a swift and professional manner
Mr.Shin Dosho
Member - Board of Directors
Osaka Gas Co. Ltd
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What was the size of Asia Pacific Hydrogen market in terms of volume in 2023?
Ans:
The size of Asia Pacific Hydrogen market has grown significantly in the historic period of 2015-2022 and reached approximately 26.5 million tonnes in 2023.
Q2.
Which industry is leading as the leading consumer of Hydrogen?
Ans:
Ammonia industry is the leading consumer of Hydrogen.
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