Hydrogen market growth to surge in 2023 despite slowing global economy

GlobalData, a leading data and analytics company, has announced that the growth of the hydrogen market is set to surge in 2023, despite a slowing global economy. This follows the company's recent publication, "Hydrogen Transition Outlook and Trends: Q1 2023," which highlights deals, trends, and investments as useful benchmarks to identify the leading companies driving the hydrogen market growth.

According to the report, green hydrogen production capacity reached over 109 kilo tons per annum (ktpa) worldwide in 2022, representing a 44% growth compared to 2021. This is due to the indispensability of hydrogen development, given its application across various industries, in attaining energy transition, meeting decarbonization goals, and positioning leading companies as market experts.

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

Despite the high number of partnerships formed between companies as compared to government agencies, investing and raising capital were of the utmost importance to developing the hydrogen economy in 2022. Last year, mergers and acquisitions (M&A) deals reached $24.4 billion in monetary value, representing a 288% increase compared to 2021 levels. On the other hand, venture finance deal values also grew from $595.23 million to over $3,001.1 million.

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

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