PUBLISHER: Bonafide Research | PRODUCT CODE: 1081961
PUBLISHER: Bonafide Research | PRODUCT CODE: 1081961
At present, the majority of energy production in the world relies on thermal power using an affordable, safe, and stable fossil fuel. To achieve a carbon-neutral society by the upcoming time period, various governments across the globe are supporting current power generation methods with the aim of reducing harmful tailpipe emissions and driving carbon capture. Hydrogen has a wide range of industrial applications, from refining to petrochemicals to steel production. It is a rich source of energy and far more efficient than other fuels. Across the Middle East and Africa region, hydrogen demands have been increasing at a steady pace over the past decade. In addition to that, Middle East oil producers are making a big bet on hydrogen, which is gaining a lot of traction across the region. To overcome the threat of GHG emissions across the region, developers and manufacturers are more concerned about introducing green hydrogen in the Middle East and Africa. Momentum is building to scale up green hydrogen production across the region due to rapidly rising solar and wind capacity to create new export economies and support industrial decarbonatization. The Middle East & Africa hydrogen generation market is estimated to observe mixed economic growth during the forecast period due to diverse growth rates for different countries owing to their level of neutral resources and access to affordable energy sources.
According to the research report, "Middle East & Africa Hydrogen Generation Market Outlook, 2027," published by Bonafide Research, the hydrogen generation market is anticipated to witness significant market growth during the forecast period with a CAGR of 4.15% in terms of value. As the demand for energy and power is growing across the region, the need for efficient clean technology for hydrogen generation is also increasing. Due to higher economic growth and an increasing population across the region, the consumption of energy is projected to accelerate by the end of the forecast period. The Middle East & Africa hydrogen generation market is segmented into three prominent countries, including the UAE, Saudi Arabia, and South Africa. Among these countries, Saudi Arabia is anticipated to lead the market with more than a 30% market share by 2027. Meanwhile, Saudi Arabia accounts for nearly 2% of the global hydrogen generation market.
In September 2020, Saudi Arabia became the first country to export blue hydrogen for zero carbon power generation and signed an agreement to develop and operate a facility to supply green hydrogen across the globe. Also, as a part of "Vision 2030," Saudi Arabia aims to move towards an economy that is less dependent on oil by launching several initiatives and projects to promote clean and affordable energy. Based on the higher potential for hydrogen generation, Saudi Arabia is aiming to become a leading global supplier of hydrogen. Many major market players are implementing the enhanced technology across the country to promote this clean energy source. For instance, Acwa Power and Air Products are involved in a USD 5 billion project to produce green hydrogen in Saudi Arabia's futuristic city of Neom.
According to the report, based on the application, the Middle East & Africa hydrogen generation market is segmented into various types, including methanol production, ammonia production, petroleum refinery, transportation, power generation, steel & iron production, commercial use, in semiconductors, LEDs, displays, photovoltaic segments, and other electronics. Among these applications, the petroleum refinery segment is projected to lead the overall market during the forecast period. Further, the market is segmented into various technology types, including steam methane reforming technology, coal gasification, electrolysis, and oil/refining or auto-thermal reformation. Among these types, SMR technology is anticipated to dominate the Middle East and Africa market during the forecast period. However, increasing demand for green hydrogen directs the market towards the adoption of eco-friendly production technology (mostly electrolysis) across the region.
The increasing importance of hydrogen in the Middle East & Africa region is a part of a broader trend towards decarbonization that the pandemic has accelerated by reducing hydrocarbon demand across the region. The Middle East and Africa were also heavily affected during the COVID-19 outbreak, similarly to other regions. The supply chain and production units were at a halt, and there was an epic fall in demand for the industry. However, by the end of 2020, industries across the region regained their momentum to achieve higher market growth. Changes in consumer preferences and increased awareness of the importance of reducing carbon emissions have also contributed to increased demand for clean fuel hydrogen in the Middle East and Africa region.
Hydrogenics Corp (HYGS), Messer Group GmbH, LNI Swissgas SA, McPhy Energy S.A., Linde Plc, Air Products and Chemicals, Inc., Air Liquide, Ally Hi-Tech Co., Limited, INOX-Air Products Inc., Weldstar, Inc., Uniper, Plug Power, ENGIE, Iwatani Corporation, Ballard Power Systems, Nel Hydrogen.
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we have started verifying the details obtained from secondary sources.
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to chemical industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.