Europe Hydrogen Generation Market Share is anticipated to grow on account of rising investments toward the expansion of the existing refining facilities coupled with increasing crude oil consumption. Rising utility in the commercial buildings coupled with growing demand for hydrogen-based fuels in power generation will influence the industry growth. In addition, introduction of government mandates aimed at clean fuel adoption along with the norms to limit the sulphur content in diesel fuel, gasoline and motor oil will further drive the business outlook.
Merchant hydrogen generation is projected to rise owing to the surging demand from the small-scale industries comprising steel making and pharmaceuticals along with the incapacity of the medium scale industries to afford the high capital costs. Furthermore, increasing investment in green hydrogen projects coupled with its ability to supply hydrogen at competitive prices will fuel the market growth.
The global trade and industrial sectors have been severely hit by the mass virus outbreak of the COVID-19. The virus was identified for the first time in Wuhan, China in 2019 December and since then has spread to over 150 countries as per WHO. The pandemic has resulted in the global lockdown and curfew situations, thereby limiting the industry growth. However, shifting focus toward utilization of renewables will positively impact the business landscape.
Adoption of energy efficiency standards and carbon negative fuel in compliance with the Sustainable Development Goals (SDGs) and Paris Climate Treaty will encourage the UK hydrogen generation market. Further, complete phasing out of fossil fuel subsidies by 2020, as per EU policies in conjunction with UK anti-fossil fuel initiatives focussed at achieving net zero carbon emissions will positively influence the market penetration.
Surging demand for hydrogen pertaining to the advanced fuel cell technology in the transportation sector coupled with its ability to generate hydrogen from the renewable resources will amplify the electrolysis market size. Enhanced safety measures along with infrastructural upgrades is anticipated to boost the use of hydrogen in boilers thereby driving its commercial demand across various applications. Moreover, favourable tax credit policies and duty drawback schemes aimed at reducing the fossil fuel dependency across several industries is anticipated to stimulate the industry landscape.
The higher installation and production cost, slow infrastructure development, safety concerns, pressing environment and health & safety mandates are some of the factors limiting the mass hydrogen adoption. However, growing consumer preference toward clean energy coupled with introduction of several incentive schemes aimed at adoption of clean fuel is set to stimulate the overall business scenario.
Key industry vendors across the market comprises of Nuvera Fuel Cells, Cummins, Iwatani Corporation, Showa Denko K.K, Caloric Anlagenbau, Plug Power Inc, Air Liquide SA, Messer Group GmbH, Air Products & Chemicals Inc., and Nel ASA amongst others.