According to the research report, the global hydrogen generator market is estimated to rise at a healthy CAGR of 5.25% during the period from 2016 to 2024. The valuation of this market, which stood at US$0.79 bn in 2015, is anticipated to reach US$12.55 bn by the end of the forecast period. On-site generators and portable generators are two main types of hydrogen generators available in this market.
Hitherto, the demand for on-site generators has been higher and the scenario is likely to remain so over the next few years. These generators find considerable application in fuel cells, chemical processing, refining, and petroleum recovery. Among these, chemical processing reports a greater demand for hydrogen generators.
North America to Lead Global Hydrogen Generator Market
Regionally, the worldwide hydrogen generator market is spread across Latin America, Asia Pacific, Europe, the Middle East and Africa, and North America. Followed closely by Europe, North America has been leading the global hydrogen generator market over the last few years. With the U.S. becoming the key contributor to the global market, North America is anticipated to remain on the top in the coming years.
The rising awareness about the need for clean fuel for transportation purposes and the increasing requirement for refueling stations and power generation plants will aid this market. The surge in shale gas exploration will also add to this market in future.
Among other regional hydrogen generator market, Asia Pacific is registering a promising growth. The increasing production of hydrogen generators in Japan and South Korea is supporting the growth of the Asia Pacific hydrogen generator market considerably.
Over the coming years, the surge in the application of hydrogen generators in refineries, thanks to the high demand for petroleum products, is likely to propel this regional market, states the research report.
Demand for Clean Fuel Sources Becomes Catalyst
The rising uptake of clean fuel sources is creating a substantial demand for hydrogen generators across the world. Consumers are increasingly being aware of the eco-friendliness of clean fuel sources, which has boosted their uptake among them.
Apart from this, the rising demand for electricity and the depletion of fossil fuels at an alarming rate are also creating a need for hydrogen generators, globally. Over the coming years, strict regulatory policies related to carbon emission and increasing industrial application of hydrogen are likely to support the growth of the global hydrogen generators market.
On the flip side, the challenges associated with the distribution and transportation of hydrogen may hamper the growth of the worldwide hydrogen generator market in the near future. The relatively higher cost of hydrogen, when compared to other fossil fuels, may also create obstacles in the growth trajectory of this market.
However, the increasing investment in developing the transportation, storage, production, and distribution of hydrogen is expected to add considerably to the global hydrogen generator market in the long term. The swift rise in the uptake of green fuel in the commercial, industrial, and residential sectors is also predicted to propel this market over the next few years, states the research report.