United States Low Carbon Hydrogen Market: Global Industry Analysis and Forecast (2024-2030) By Process, Energy source, End Product
United States Low Carbon Hydrogen Market size was valued at USD 1.02 Bn. in 2023 and is expected to reach USD 3.53 Bn. by 2030, at a CAGR of 19.4%.
Format : PDF | Report ID : SMR_2304
United States Low Carbon Hydrogen Market Overview
The U.S. low-carbon hydrogen market is defined by hydrogen produced with minimal carbon emissions, primarily through methods such as electrolysis powered by renewable energy or blue hydrogen with carbon capture. This market is pivotal for reducing greenhouse gases and advancing towards a low-carbon economy. The sector is undergoing a significant transition, driven by technological advancements and supportive policies such as the Inflation Reduction Act and the Bipartisan Infrastructure Law, which incentivize both the development and adoption of low-carbon hydrogen technologies.
Hydrogen is an increasingly consumed product in industry, fuel cells, and as a feedstock for ammonia and methanol. Its use is expanding into sectors like transportation and heavy industry, contributing to rising market demand. The value chain for low-carbon hydrogen includes production, distribution, storage, and end-use applications, with key stages involving renewable energy input, electrolysis, and industrial integration.
Supply and demand dynamics show that demand surges, impelled by industrial needs and clean energy initiatives, while supply is held back by production capacity and infrastructure limitations. This shall increase investments in production facilities and technology to make the case for market performance, led by California, Texas and the Gulf Coast. On the Gulf Coast, many projects focused on hydrogen production will start to be established and grow. California and Texas provide support because of favorable policies and sufficient infrastructure. Manufacturing companies focus on scaling up and efficiency improvement, while the consumer shows interest in applying hydrogen technologies.
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United States Low Carbon Hydrogen Market Dynamics:
Renewable-Powered Electrolysis and Policy Support Drive Growth
The United States low-carbon hydrogen market is witnessing several emerging trends. A growing trend is further and further adoption of renewable-powered electrolysis in hydrogen production, driven by advancing electrolyzer technologies and increasing renewable energy resources. Heavy investments by key players like Air Products and Cummins Inc. in green hydrogen projects like the Helios Green Fuels project in Saudi Arabia is just one example that demonstrates serious signals of their shift toward sustainable living.
On the other hand, policy movements like the Inflation Reduction Act and Bipartisan Infrastructure Law pave the way for billions of dollars in investment into a hydrogen economy, and hence, in consequence, further encourage the shift to low-carbon hydrogen. These trends have the likeliest potential to fuel market growth since they would enhance production capacities while reducing carbon emissions across various sectors.
The goal of achieving decarbonization is driving the United States low low-carbon hydrogen market
Several factors are driving the rapid growth of the low-carbon hydrogen market in the United States. The push for decarbonization across industries, particularly in hard-to-abate sectors such as heavy industry and transport, is creating a robust demand for low-carbon hydrogen. Government incentives and policies for GHG reduction also offer financing and regulatory support for hydrogen projects. For example, the tax credits and funding opportunities offered by the U.S. government make the production of hydrogen more economical. Finally, the interest from many stakeholders in the area of energy security is growing. According to the key informants, it is the aspirations to reduce a country's dependence on fossil fuels that drive the investments in hydrogen infrastructure. These drivers are likely to fuel further market growth in the near future.
High production costs and lack of storage and transport facilities will hinder the United Market growth
Probably, the most significant challenge in growing the low-carbon hydrogen market within the United States is that, given today's technology, producing it is extremely expensive, with green hydrogen in particular. Besides, not having enough storage and transport facilities for keeping and handling hydrogen presents yet another major barrier to its wide application.
Increasing investment in the production of the Low Carbon Hydrogen Market
Despite these challenges, the United States low-carbon hydrogen market presents substantial growth opportunities. The increasing investments in hydrogen production facilities and advancements in carbon capture, utilization, and storage (CCUS) technologies are expected to enhance the cost-effectiveness and scalability of hydrogen production. Moreover, the growing collaboration between key players, such as Linde Plc and Air Liquide SA, and the development of strategic partnerships are likely to foster innovation and market expansion. These opportunities are set to propel the market towards achieving significant growth in the coming years.
United States Low Carbon Hydrogen Market Segment Analysis:
Low Carbon Hydrogen Market Segment Analysis by Processes
Electrolysis currently leads the United States low-carbon hydrogen market and is expected to dominate the market during the forecast period. This is primarily due to increasing investments in renewable energy projects and technological advancements in electrolyzer efficiency. While producing zero direct emissions, electrolysis—splitting water into hydrogen and oxygen using renewable electricity—is becoming more cost-competitive. SMR with CCS has maintained its importance against the backdrop of already existing infrastructure and lower up-front costs, but it witnesses a declining share of the market as other greener alternatives rise to the fore.
Biomass reforming and methane pyrolysis are new, moderate growth potential sustainable alternatives based on biomass and methane cracking technologies. Other processes tested for low-emission potential include autothermal reforming, biomass gasification, and coal gasification but have smaller impacts on the market. The low carbon intensity and the fact that the technological option of hydrogen production is a domestic one are therefore driving supply, demanding dynamics and increasing import-export activities in hydrogen technologies and connected equipment.
Low Carbon Hydrogen Energy Source
Natural Gas, coupled with carbon capture and storage (CCS), currently dominates the United States low-carbon hydrogen market in 2023, but Solar and Wind are poised for rapid growth. The existing infrastructure for natural gas and its relatively lower production costs contribute to its leading position. However, Solar and Wind energy sources are gaining momentum due to significant investments in renewable energy projects and policy support for clean energy transitions. Hybrid systems, combining multiple renewable sources, are also emerging, offering consistent hydrogen production and enhanced efficiency.
Biomass and Geothermal sources contribute to the market with steady growth, driven by innovations in bioenergy and geothermal technology. Hydro Energy and Tidal sources have niche applications but are expected to expand as technology improves and costs decrease. The shift towards renewable energy sources is crucial for meeting climate goals, influencing supply-demand dynamics, and boosting import-export activities related to hydrogen production equipment. The focus on diversifying energy sources enhances market resilience and aligns with the broader energy transition agenda in the United States.
Low Carbon Hydrogen End-Product
Hydrogen leads the market as the primary end-product, with Ammonia and Methanol expected to drive rapid growth in the United States low-carbon hydrogen market. Hydrogen's versatility as a clean energy carrier and industrial feedstock makes it the dominant segment. The other, ammonia, used for fertilizers and probably as a future fuel, gains momentum because it is easier to store and transport than hydrogen. Liquified Hydrogen ensures steady growth and helps sectors like transport and aerospace that need high energy density fuels.
Methane—produced mainly from steam methane reforming with CCS—will also maintain a significant market share due to its ability to leverage some of the existing natural gas infrastructure. Increasing demand in chemicals and as fuel, together with its potential to be an emitting-reducing vector in other industries, supports methanol. This diversification in these end-products changes the dynamics of supply and demand, and the technological improvements to the production, storage, and distribution mechanisms consequently raise the overall market growth and impact in the United States.
Competitive Analysis: United States Low Carbon Hydrogen Market
Key players operating in the low-carbon hydrogen market in the U.S. include a mix of global and local participants who run their operations hooked to advanced technologies, strategic partnerships, and huge investments. Major players like Air Products and Chemicals Inc. and Chevron Corporation are known to gain dominant positions in the market. Air Products is unique in terms of its own USD1.3 billion investment into a hydrogen production facility in Edmonton, breaking ground in 2024, along with participation in mega-projects such as the Helios Green Fuels project. Another influential party in the space is Chevron, whose investments include a proposed hydrogen facility on the U.S.
Gulf Coast and a strategy it places more on the integration of hydrogen into its broader energy portfolio. While Air Products is oriented toward standalone hydrogen projects, Chevron embeds hydrogen into current energy systems. Both firms are very significant actors, driving the market trend and growth in the future, and contribute massively to framing the evolving sector of low-carbon hydrogen in the United States.
United States Low Carbon Hydrogen Market Scope
United States Low Carbon Hydrogen Market |
|
Market Size in 2023 |
USD 1.02 Bn. |
Market Size in 2030 |
USD 3.53 Bn. |
CAGR (2024(2030) |
19.4% |
Historic Data |
2018-2022 |
Base Year |
2023 |
Forecast Period |
2024-2030 |
Segments Analysis
|
By Process Steam Methane Reforming (SMR) Autothermal Reforming Biomass Reforming Electrolysis Photo Electric Chemical (PEC) Water Splitting Thermochemical Water Splitting Biomass Gasification Coal Gasification Methane Pyrolysis |
By Energy Source Natural Gas Solar Wind Hybrid Biomass Geothermal Hydro Energy Tidal |
|
By End Product Hydrogen Ammonia Liquified Hydrogen Methane Methanol |
United States Low Carbon Hydrogen Market Key players
- Linde Plc
- Air Liquide SA
- Messer Group GmbH
- ITM Power Plc
- Engie S.A.
- Cummins Inc.
- Air Products and Chemicals Inc.
- Fuel Cell Energy Inc.
- Taiyo Nippon Sanso Holding Corporation
- McPhy Energy S.A.
- Enapter S.r.l.
- Chevron Corporation
- ExonMobil
For Global Scenario:
Frequently Asked Questions
The primary processes used to produce low-carbon hydrogen in the United States are Steam Methane Reforming (SMR) with carbon capture and Electrolysis.
Government policies, such as tax incentives and funding programs, significantly boost the growth of the low-carbon hydrogen market in the United States by enhancing economic viability and encouraging investment in hydrogen technologies.
The leading energy sources for low-carbon hydrogen production in the United States are natural gas and renewable sources like wind and solar energy.
Future growth trends for the low-carbon hydrogen market in the United States include increased adoption of green hydrogen technologies, expansion of infrastructure, and enhanced government incentives for clean energy.
Major Challenges facing the U.S. low-carbon hydrogen market include high production costs, limited infrastructure, and technical hurdles in scaling up technology.
1. United States Low Carbon Hydrogen Market: Research Methodology
2. United States Low Carbon Hydrogen Market Introduction
2.1. Study Assumption and Market Definition
2.2. Scope of the Study
2.3. Executive Summary
3. United States Low Carbon Hydrogen Market: Competitive Landscape
3.1. SMR Competition Matrix
3.2. Competitive Landscape
3.3. Key Players Benchmarking
3.3.1. Company Name
3.3.2. Product Segment
3.3.3. End-user Segment
3.3.4. Revenue (2023)
3.3.5. Company Headquarter
3.4. Leading United States Low Carbon Hydrogen Market Companies, by Market Capitalization
3.5. Market Structure
3.5.1. Market Leaders
3.5.2. Market Followers
3.5.3. Emerging Players
3.6. Mergers and Acquisitions Details
4. United States Low Carbon Hydrogen Market: Dynamics
4.1. United States Low Carbon Hydrogen Market Trends
4.2. United States Low Carbon Hydrogen Market Dynamics
4.2.1.1. Drivers
4.2.1.2. Restraints
4.2.1.3. Opportunities
4.2.1.4. Challenges
4.3. PORTER’s Five Forces Analysis
4.4. PESTLE Analysis
4.5. Technology Roadmap
4.6. Regulatory Landscape
5. United States Low Carbon Hydrogen Market: Global Market Size and Forecast by Segmentation (Value in USD Billion) (2023-2030)
5.1. United States Low Carbon Hydrogen Market Size and Forecast, By Process (2023-2030)
5.1.1. Steam Methane Reforming (SMR)
5.1.2. Autothermal Reforming Biomass Reforming
5.1.3. Electrolysis
5.1.4. Photo Electric Chemical (PEC) Water Splitting
5.1.5. Thermochemical Water Splitting
5.1.6. Biomass Gasification
5.1.7. Coal Gasification
5.1.8. Methane Pyrolysis
5.2. United States Low Carbon Hydrogen Market Size and Forecast, By Energy Source (2023-2030)
5.2.1. Natural Gas
5.2.2. Solar
5.2.3. Wind
5.2.4. Hybrid
5.2.5. Biomass
5.2.6. Geothermal
5.2.7. Hydro Energy
5.2.8. Tidal
5.3. United States Low Carbon Hydrogen Market Size and Forecast, By End-Product (2023-2030)
5.3.1. Hydrogen
5.3.2. Ammonia
5.3.3. Liquified Hydrogen
5.3.4. Methane
5.3.5. Methanol
6. Company Profile: Key Players
6.1. Linde Plc
6.1.1. Company Overview
6.1.2. Business Portfolio
6.1.3. Financial Overview
6.1.4. SWOT Analysis
6.1.5. Strategic Analysis
6.1.6. Recent Developments
6.2. Air Liquide SA
6.3. Messer Group GmbH
6.4. ITM Power Plc
6.5. Engie S.A.
6.6. Cummins Inc.
6.7. Air Products and Chemicals Inc.
6.8. Fuel Cell Energy Inc.
6.9. Taiyo Nippon Sanso Holding Corporation
6.10. McPhy Energy S.A.
6.11. Enapter S.r.l.
6.12. Chevron Corporation
6.13. ExonMobil
7. Key Findings
8. Industry Recommendations