Europe Hydrogen Generation Market Outlook 2027

Hydrogen is a clean energy carrier. It is abundant on earth, but in combined form in several compounds (mostly in water). To produce hydrogen, it must be separated from the other elements in molecular forms throughout the process. Hydrogen is considered to be the cleanest fuel because, when it is consumed in a fuel cell, it only emits water vapour and warm air. Hydrogen can be produced from a variety of resources, including natural gas, nuclear power, biomass, and renewable power like solar or wind. In Europe, hydrogen is considered the key input for the future energy system. Being the flexible energy carrier for industry and transport, hydrogen helps to reduce GHG and particle emissions across the region. A large number of green hydrogen projects in various developing countries are supporting the business development of the hydrogen generation industry across the region. In late 2019, the European Commission (EC) introduced the European Green Deal, with main policy initiatives for reaching net-zero greenhouse gas emissions during the forecast period. From the research, it has been estimated that the European region can become a global leader in clean hydrogen innovation and simultaneously contribute to the climate and energy security goals. Also, Europe has the potential to become a more robust economy in the hydrogen generation market by 2027.

According to the research report, Europe Hydrogen Generation Market Outlook, 2027, the hydrogen generation market is projected to grow at a 5.37% CAGR in terms of value during the forecast period. The European Union aims to be carbon neutral by 2050, and hydrogen is seen as critical to achieving this goal. With the hydrogen economy set to boom in the next few years across the globe, Europe is emerging as the clean leader in planned installations and government policy supporting the sector. The interest in hydrogen is being driven by the very clear net-zero carbon commitment by 2050 across the European region, as well as the more recent announcement of 55% decarburization by 2030. The European hydrogen generation market is segmented into six prominent countries, including Germany, the United Kingdom, France, Italy, Spain, and Russia. Among these countries, Russia is projected to lead the market with more than 35% of the market share during the forecast period.

As a major hydrocarbon producer, Russia aims to capitalize on its current infrastructure and technical strengths to decarbonize the major portion of its economy. Russia’s primary goal is to become a world-leading producer and exporter of hydrogen energy during the forecast period. Russia has the scientific, resource, and logistics capabilities to take a prominent share in the overall European market. Due to Russia's vast gas reserves, natural gas is playing the biggest role in the Russian hydrogen production industry. However, Russia is also planning to produce hydrogen from nuclear and renewable sources. For instance, Russia is investing in innovative ways to reduce the carbon footprint by producing blue hydrogen, including carbon capture and reuse of that carbon. In addition to that, Russia is currently building a fleet of enhanced hydrogen-based freight locomotives. Growing usage of fuel cell vehicles and increasing infrastructure for hydrogen fuelling stations across the country are expected to propel the market's higher growth by 2027.

According to the report, the European hydrogen generation market is segmented into three technology types, including steam methane reforming technology, coal gasification, electrolysis, and oil/refining or auto-thermal reformation. Among these types, steam methane reforming technology is projected to lead the market with more than 70% during the forecast period. Currently, about 95% of all hydrogen in the European region is being produced by SMR technology. This method uses steam at a higher temperature to produce hydrogen from a methane source. Further, based on the application, the European hydrogen generation market is segmented into various types, including methanol production, ammonia production, petroleum refinery, transportation, power generation, steel and iron production, commercial use, in semiconductors, LEDs, displays, photovoltaic segments, and other electronics. Among these applications, the petroleum refinery segment is projected to dominate the market during the forecast period by holding more than 45% of the market share.

COVID-19 Impact:

With the COVID-19 pandemic significantly disrupting traditional energy production, leaving employees unable to go to work at large-scale power plants and investors unwilling to back projects in these uncertain economic times, market growth in the European region was heavily impacted. Pandemics have forced governments to impose various regulations regarding lockdown and social distancing norms across the region. However, the European energy companies consider these conditions an opportunity to engage in a new energy source. These factors are expected to propel the market's growth during the forecast period.

Major Companies present in the market:

Hydrogenics Corp (HYGS), Messer Group GmbH, LNI Swissgas SA, McPhy Energy S.A., Linde Plc, Air Products and Chemicals, Inc., Air Liquide, Ally Hi-Tech Co., Limited, INOX-Air Products Inc., Weldstar, Inc., Uniper, Plug Power, ENGIE, Iwatani Corporation, Ballard Power Systems, Nel Hydrogen

Considered in this report

• Geography: Europe
• Historic Year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report

• Europe Hydrogen Generation Market with its value and forecast along with its segments
• Country wise Hydrogen Generation market analysis
• Application wise Hydrogen Generation distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report

• Germany
• UK
• France
• Italy
• Spain
• Russia

Technical types of Hydrogen Generation in the report:

• Steam Methane Reforming
• Coal Gasification
• Others (Electrolysis, oil/refining or auto-thermal reformation)

By Application Type in the report:

• Methanol Production
• Ammonia Production
• Petroleum Refinery
• Transportation
• Power Generation

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to chemical industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.