South America Hydrogen Generation Market Outlook 2027

Hydrogen can be produced using a number of diverse processes. Thermo-chemical processes use heat and reactions to release hydrogen from organic materials, such as fossil fuels and biomass, or from water. The momentum for low carbon hydrogen is growing in South America, with many countries currently developing long-term hydrogen strategies with more than 25 projects. The South America region has the potential to play a major role in the upcoming low-carbon hydrogen landscape. Hydrogen deployment depends on many technologies that are under development in this region, and considerable cost reductions will be needed to achieve higher market growth. The South America region is one of the world’s leading regions for renewable energy use. 11 developing countries across the region have either published or are currently preparing national hydrogen strategies and roadmaps. Currently, hydrogen production and use in South America is limited to a few countries, where it is used mainly as a source for refineries and the chemical industry. Also, many countries are moving forward with various initiatives to foster hydrogen’s use as an energy carrier. For instance, South America has introduced major private sector initiatives such as Argentina’s H2ar consortium and Chile’s H2Chile with the goal of identifying opportunities and promoting the development of relevant partnerships and value chains.

According to the research report, South America Hydrogen Generation Market Outlook, 2027, the hydrogen generation market is forecasted to grow at a 3.03% CAGR. Due to South America’s long-term potential to produce a large volume of competitive low-carbon hydrogen and export it to other global markets, the low-carbon hydrogen industry has been gaining attention from policy makers across the region. According to the International Energy Association (IEA), South America’s demand for hydrogen is expected to grow by as much as two-thirds by 2030 owing to increasing adoption of hydrogen across the region. Further, the South American hydrogen generation market is segmented into three countries, including Brazil, Argentina, and Columbia. Among these countries, Brazil is expected to have a larger market share by 2027 in terms of value.

The availability of biogenic carbon from existing bio-fuel and bio-electricity production facilities in Brazil may propel higher market growth during the forecast period. In December 2020, the Brazilian Ministry of Mines and Energy introduced the Brazilian National Energy Plan 2050, including directives for the long-term strategy for the Brazilian energy sector. This plan has dedicated a chapter to hydrogen, listing it as a disruptive technology, capable of significantly changing the energy market. Based on the advanced technologies in Brazil, the country is expected to play a prominent role in the global hydrogen generation market during the forecast period. In addition to that, growing infrastructure for hydrogen refueling stations across the region has positively impacted the market's growth. However, at the moment, Brazil only has one hydrogen refueling station across the country, but this scenario is estimated to change by the upcoming time period.

According to the report, the South American hydrogen generation market is segmented into various technology types, including steam methane reforming technology, coal gasification, electrolysis, and oil/refining or auto-thermal reformation. Among these technologies, steam methane reforming technology is projected to lead the market by holding more than 65% of the market share by 2027. In South America, hydrogen used in refineries is predominantly produced from natural gas using steam methane reforming technology. However, this is complemented by the contribution of by-product gases at refineries. Also, growing demand for green hydrogen across the region is propelling the demand for hydrogen generation from eco-friendly technologies such as electrolysis. Further, based on the application, the South American hydrogen generation market is segmented into various types, including methanol production, ammonia production, petroleum refinery, transportation, power generation, steel & iron production, commercial use, in semiconductors, LEDs, displays, photovoltaic segments, and other electronics. Among these applications, the petroleum refinery segment is projected to lead the market with more than 35% of the market share during the forecast period.

COVID-19 Impact:

The COVID-19 pandemic has put the South American region in a challenging situation. The energy, mining, and infrastructure industries across the region are facing new government regulations, amending private and public contracts and reshaping their strategy and continuity plans. The outbreak has impacted various sectors and created numerous uncertainties. Due to the lockdown situations, production and supply chains were disrupted across the region. However, staying at home has changed consumer preference and increased awareness about growing carbon emissions across the globe. That, in turn, has propelled the accelerating market growth for the South American hydrogen generation market.

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: South America
• Historic Year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report

• South America 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

• Brazil
• Argentina
• Columbia

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.