Significant surge in the growth of the hydrogen market in 2023 predicted

GlobalData, a prominent data and analytics firm, has predicted a significant surge in the hydrogen market growth for 2023, despite the slowdown in the global economy. The company's recent report, "Hydrogen Transition Outlook and Trends: Q1 2023," points to deals, investments, and trends as critical indicators of the companies driving the growth of the hydrogen market.

The report highlights that green hydrogen production capacity worldwide surpassed 109 kilo tons per annum (ktpa) in 2022, which represents a 44% growth rate compared to 2021. The growing demand for hydrogen and its applications in various industries is driving energy transition, meeting decarbonisation goals, and positioning companies as industry experts.

Andres Angulo, Energy Analyst at GlobalData, noted that over 393 deals related to hydrogen were closed in 2022, representing a significant increase compared to 277 deals registered in 2021. This trend shows an upward trajectory for the low-carbon hydrogen market, which could lead to over 111 million tons per annum (mtpa) capacity worldwide by 2030.

The report also emphasises the importance of investing and raising capital for developing the hydrogen economy. In 2022, mergers and acquisitions (M&A) deals reached $24.4 billion in monetary value, representing a 288% increase compared to 2021 levels. Additionally, venture finance deal values grew from $595.23 million to over $3,001.1 million.

Global leaders in low-carbon hydrogen, such as Green Hydrogen International (GHI), Suez Canal Economic Zone, New and Renewable Energy Authority, Sovereign Fund of Egypt, and Egyptian Electricity Transmission Co, have a combined active and upcoming capacity of 56.3 mtpa. Manufacturing companies such as Hydrogenics, Nel ASA, ThyssenKrupp, ITM Power, HydrogenPro, Enapter, and Plug Power are producing over 1,065 GW of electrolysis capacity.

Despite the challenging global economic conditions, the report shows that the number of investments in low-carbon hydrogen has increased from 600 to over 1,700 between Q4 2021 and Q4 2022. This, combined with renewable energy development, will create momentum that could accelerate the cost reduction across the entire hydrogen value chain, according to Angulo.