Asia Pacific Hydrogen Generation Market size surpassed USD 58.4 Billion in 2019 and is projected to expand at 7.8% CAGR from 2020 to 2026.
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The market growth is owing to increasing investments toward the expansion of existing refining facilities and surging crude oil consumption. Favorable government policies toward adoption of cleaner fuels will foster the market landscape. Moreover, introduction of various incentive programs aiming to limit the amount of sulfur content in motor oil, diesel fuel and gasoline will boost the industry outlook.
Merchant hydrogen generation market will gain an appreciable momentum till 2026 due to strict government norms to curb emissions across the refining sector and rising demand for onsite generation. Growing investments in low-risk hydrogen projects, equipped with the capacity to supply H2 at low prices will drive the market potential. Inability of small & medium scale industries to grant the high capital expenditure owing to distribution & storage of hydrogen will positively impact the market scenario.
Abundant accessibility of traditional fuels leading to decreased operational costs together with improvement in operational & economic benefits will steam methane reforming hydrogen generation market. Increasing applicability across central oil plants & gas refineries is set to accelerate the market demand. Stringent regulations to decrease the dependency on fossil fuel across the variety of industrial establishments will enhance the market revenue.
Increasing infrastructural investments along with growing power industry & transport sector will boost the market size. Surging demand for hydrogen-based energy sources in power generation combined with its utilization in commercial buildings will drive the market growth. Ongoing upgradation and enhancement of technology features will fuel the use of hydrogen in boilers.
Increasing population and surging expansion of manufacturing facilities will propel the China hydrogen generation market share. Development of industrial facilities including chemical, automotive and semiconductors will escalate the industry trends. For instance, as per IEA, the country is one the largest LNG importers with the maximum potential for hydrogen development.
The novel corona virus (COVID -19) outbreak represents a unique disturbance in the global trade and economy as production & consumption are scaled back worldwide. According to the World Health Organization, COVID-19 has impacted 140 countries resulting in severe national and international lockdowns. However, extensive support from government to address short term & long-term challenges faced by the companies in production will significantly support the market expansion.
The key players operating in the Asia Pacific market include Air Liquide SA, Air Products, Iwatani Corporation, Messer, Ally Hi-Tech, Plug Power, Nel ASA, Ballard Power Systems, HYGEAR and Xebec Adsorption. The manufacturers are focusing on innovations and developing advanced technologies to meet the competition prevailing in the industry.