Guidehouse Insights forecasts emerging hydrogen production technologies to show 20% CAGR from 2020-2029
A new report from Guidehouse Insights forecasts that the global capacity for emerging hydrogen production technologies will reach approximately 1 GW annually by 2029, representing a compound annual growth rate (CAGR) of 20.2%.
Four emerging technologies—alkaline electrolyzers (AES), proton exchange membrane (PEM) electrolyzers, solid oxide electrolysis cells (SOECs), and biomass gasifiers—are expected to move the market forward as decarbonization becomes increasingly important and costs for green hydrogen (or hydrogen produced with no emissions) decline.
As countries and economies develop plans for decarbonization, hydrogen is being recognized as a potential tool for a variety of reasons. Currently, only 1%-4% of hydrogen is produced with clean production technologies, but with greater emphasis on decarbonization, increasing renewables integration, and decreasing capital costs, emerging clean hydrogen production technologies are poised to play a key role going forward.—\Shayne Willette, research analyst with Guidehouse Insights
Although most hydrogen is used in the industrial sector, significant demand growth is expected in the mobility sector due to expansion in the fuel cell vehicle (FCV) market as well as in hydrogen storage.