Pink Hydrogen Market: Global Industry Analysis and Forecast (2023-2029)

Pink hydrogen is generated through the electrolysis of water by using electricity from a nuclear power plant. The pink hydrogen market is still in its infancy, with only a few companies producing pink hydrogen commercially. However, there is growing interest in this form of hydrogen production, as it offers the potential for a low-carbon alternative to traditional hydrogen production methods, which rely on fossil fuels. It has the potential to help countries meet their emissions reduction targets and transition to a low-carbon economy. One of the key advantages of pink hydrogen is that it can be produced using existing infrastructure and technology, making it a more affordable and accessible option for many industries. Overall, while the pink hydrogen market is still in its early stages, it shows promise as a viable alternative to traditional hydrogen production methods and is likely to play a role in the transition to a more sustainable future.

 

This report offers a comprehensive analysis of the evolving global market for Pink Hydrogen, featuring both qualitative and quantitative insights. The report is designed to provide valuable insights to help the companies already in the business develop effective growth strategies, analyze the competitive landscape, evaluate their position in the market, and make informed business decisions, as well as also help new entrants take strategic decisions regarding Pink Hydrogen Market. The report will further be valuable to other key stakeholders like suppliers, distributors, and industry participants, offering them insights into the market's revenue, production, and pricing trends and market share analysis across different segments and regions.

 

Pink Hydrogen Market Dynamics

Market Drivers

One of the main drivers for the pink hydrogen market is the increasing demand for cleaner energy sources, driven by concerns over climate change and air pollution. The International Energy Agency predicts that hydrogen could account for 14% of global energy demand by 2050, with renewable hydrogen, including pink hydrogen, playing a significant role in meeting this demand. As a result, the global market for renewable hydrogen is expected to reach $2.5 trillion by 2050, with a 30% share of the market being held by pink hydrogen, according to a report by the Hydrogen Council.

 

Another important driver for the pink hydrogen market is government support for renewable hydrogen production and use. Many governments around the world have implemented policies and incentives to encourage the production and use of renewable hydrogen, including pink hydrogen. For example, the European Union has set a target of producing 40 GW of renewable hydrogen by 2030, which is expected to create significant opportunities for the Pink Hydrogen industry. Public funding for hydrogen R&D observed its largest annual increase in 2021, with a 35% increase compared with 2020. Hydrogen technologies received around 5% of the total R&D budget for clean energy technologies, which will pave the way for Pink Hydrogen production. European countries were the main contributors to this increase, nearly doubling their expenditure.  In November 2021 the Clean Hydrogen Partnership (a public–private partnership) was established as a successor to the Fuel Cell and Hydrogen Joint Undertaking, to support research and innovation activities in hydrogen technologies in Europe.  The US Bipartisan Infrastructure Law has also provided significant support to R&D and demonstration, including USD?1.0?billion for R&D on clean electrolysis and USD?0.5?billion for manufacturing and recycling of clean hydrogen technologies over five years. In addition, the law provides USD?8?billion over five?years to develop hydrogen hubs that will also support demonstration projects.

 

Market Restraints

The major restraint for the Pink Hydrogen Market is the high initial capital investment required for its production. This can be a significant barrier for companies looking to enter Pink Hydrogen Market. The lack of infrastructure for pink hydrogen storage and transportation is another significant challenge, as it limits the potential applications and scalability of pink hydrogen which can in turn impact the demand and pricing for pink hydrogen and could limit the growth of the pink hydrogen industry. There are also other low-carbon hydrogen production methods in the market, such as blue hydrogen and grey hydrogen with carbon capture and storage, posing a significant challenge for the pink hydrogen market.

 

Opportunities

Despite these challenges, there are also opportunities for the pink hydrogen market. One of the key opportunities is the growing demand for hydrogen fuel cells in transportation and stationary power applications. This presents a significant opportunity for the pink hydrogen market, as it can provide a clean and sustainable energy source for these applications. The potential for pink hydrogen to be used in industrial processes such as steel production and chemical manufacturing is also expected to create new markets for pink hydrogen.

 

While there are several market drivers, such as increasing demand for cleaner energy and government support, there are also restraints and challenges, such as high initial capital investment and competition from other low-carbon hydrogen production methods. However, the potential for pink hydrogen to be used in a variety of applications presents significant opportunities for companies operating and wanting to enter this market. In detail analysis of the Pink Hydrogen Market is done by SMR and presented in the report giving insights about both opportunities and challenges for companies looking to enter this space with quantitative data supporting the claims.

 

Pink Hydrogen Market Segmentation

The Pink Hydrogen Market is segmented based on its form, application, and geographic location.

 

Based on form the Pink Hydrogen market is further segmented into liquid and gas hydrogen.

 

Based on application the Pink Hydrogen market is further segmented into the following sectors depending on its use: Transportation, Chemical, Petro-Chemical, Steel, Domestic, and Other. According to market research conducted by SMR, the transportation sector is expected to witness significant growth in the coming years. The increasing adoption of hydrogen fuel cell vehicles by various governments and automakers worldwide is expected to boost the demand for pink hydrogen in the transportation sector. Furthermore, the rising concerns about air pollution and the need for clean energy sources are also expected to drive the demand for pink hydrogen as a fuel for transportation. In addition to the transportation sector, the chemical and petrochemical sector is also expected to witness significant growth in the coming years. The increasing demand for petrochemicals and the shift towards a circular economy are expected to drive the demand for pink hydrogen as a feedstock for the production of chemicals and petrochemicals. However, the steel industry is also expected to grow rapidly as more companies explore the use of hydrogen-based direct reduction technologies. The domestic sector may also see growth in the use of hydrogen fuel cells for residential heating and power.

 

Regional analysis: By region, The Asia Pacific region is expected to be the largest and fastest-growing market for pink hydrogen. The growth is driven by various factors, including the increasing demand for clean energy, the high investments in renewable energy, and the government initiatives to reduce carbon emissions. Additionally, the growing demand for hydrogen fuel cell vehicles and the increasing focus on sustainable development by various countries in the region, such as China, Japan, and South Korea, are contributing to the growth of the pink hydrogen market in the Asia Pacific region.

 

The North American and European market for pink hydrogen is primarily driven by the increasing demand for clean energy and government initiatives to reduce carbon emissions. These regions are also witnessing significant investments in the development of hydrogen infrastructure, which is further contributing to the growth of the pink hydrogen market. Additionally, the growing demand for fuel cell electric vehicles (FCEVs) and the increasing adoption of hydrogen fuel cells in the transportation sector is expected to boost the growth of the market in North America and Europe.

 

Global Pink Hydrogen Market
Report Coverage	Details
Base Year:	2022	Forecast Period:	2023-2029
Historical Data:	2017 to 2021	Market Size in 2022:	USD 195 Mn.
Forecast Period 2022 to 2029 CAGR:	48.9 %	Market Size in 2029:	USD 3164 Mn.
Segments Covered	By Form	Liquid Gas
	By Application	Transportation Chemical Petro-Chemical Steel Domestic Others
	By Region	North America Europe Asia Pacific Middle East and Africa South America

 

Competitive Landscape

The competitive landscape in the global pink hydrogen market is highly dynamic, with both established players and new entrants vying for market share. Some of the key players in the market include Air Liquide, Linde, Air Products and Chemicals Inc., Plug Power, and Siemens Energy. These companies are actively engaged in developing new pink hydrogen technologies, expanding production capacity, and forming partnerships and collaborations to remain competitive in the market. In addition to established players, there are also a number of startups and emerging companies in the market, which are focused on developing innovative pink hydrogen technologies and expanding their market presence. This includes companies like Joi Scientific, Hazer Group, and Enapter, among others.

 

Overall, the competitive landscape in the global pink hydrogen market is characterized by a mix of organic and inorganic growth strategies, with companies employing a range of tactics to gain market share and remain competitive. As the market continues to grow and evolve, it is likely that we will see continued innovation and consolidation in the Pink Hydrogen industry.

 

Research Methodology:

The research conducted for the Pink Hydrogen Market utilized both primary and secondary data sources to ensure that all possible factors affecting the market were thoroughly examined and validated. The market size for top-level markets and sub-segments is normalized and the impact of inflation, economic downturns, regulatory & policy changes, and other variables is factored into the market forecast.

 

The bottom-up approach and multiple data triangulation methodologies are used to estimate the market size and forecasts. The percentage splits, market shares, and breakdowns of the segments are derived based on weights assigned to each of the segments on their utilization rate and average sale price. The country-wise analysis of the overall market and its sub-segments are based on the percentage adoption or utilization of the given market Size in the respective region or country. Major players in the market are identified through secondary research based on indicators that include market revenue, price, services offered, advancements, mergers and acquisitions, and joint.

 

Extensive primary research was conducted to acquire information and verify and confirm the crucial numbers arrived at after comprehensive market engineering and calculations for market statistics, market size estimations, market forecasts, market breakdown, and data triangulation.

 

Key players

• Air Liquide
• Linde plc
• Siemens Energy AG
• Hydrogenics Corporation
• Ballard Power Systems Inc.
• ITM Power plc
• McPhy Energy S.A.
• Nel ASA
• Plug Power Inc.
• Toshiba Energy Systems & Solutions Corporation
• Doosan Fuel Cell America
• Fuel Cell Energy Inc.
• Green Hydrogen Systems
• Enapter AG
• Cummins Inc.
• Proton OnSite
• Sunfire GmbH
• ERGOSUP
• H2V Industry
• H2GO Power
• Loop Energy Inc.
• Starfire Energy
• Trillium Renewable Energy Solutions
• UGE International Ltd.