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China Hydrogen Generation Market Size & Share - by Technology (Steam Methane Reforming (SMR), Electrolysis (Alkaline, PEM, Solid Oxide), Biomass Gasification, Pyrolysis), Production Method, End Use and Application: Production Capacity and Consumption Trends Forecast till 2033

  • PUBLISHED ON
  • 2023-12-06
  • NO OF PAGES
  • 180
  • CATEGORY
  • Energy & Power
Market Overview

China Hydrogen Generation Market Size was valued at USD 19.27 billion in 2022 and is estimated to reach a value of 65.8 billion by 2033 with a CAGR of 12.5% during the forecast period. In terms of production the country produced around 45.1 million tons in 2023.

Several factors are propelling the growth of the hydrogen generation market in China. First and foremost is the robust backing from the Chinese government, demonstrating a strong commitment to fostering the hydrogen economy. Substantial investments in research and development, coupled with ambitious targets, underscore the government's dedication to advancing hydrogen-related technologies. Various supportive policies, including subsidies for hydrogen fuel cell vehicles and refueling stations, further contribute to this momentum.


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A key driver is the escalating demand for hydrogen in diverse industrial applications. Sectors such as oil refining, ammonia production, and methanol production are witnessing a surge in hydrogen utilization. Moreover, the expanding applications of hydrogen in power generation and transportation are contributing to the increasing demand.

The market is also benefiting from ongoing advancements in hydrogen production technologies. The development of newer and more efficient methods is not only enhancing the competitiveness of hydrogen but is also expected to play a pivotal role in steering market growth.

In essence, the synergy of government support, rising industrial demand, and technological innovations is shaping a favorable landscape for the hydrogen generation market in China, propelling it toward substantial expansion.

Market Scope

Report Attributes

Description

Market Size in 2023 (Value)

USD 20.3 billion

Market Forecast in 2033 (Value)

USD 65.8 billion

CAGR % 2024-2033

12.5%

Base Year

2023

Historic Data

2016-2022

Forecast Period

2024-2033

Report USP

Production, Consumption, company share, company heatmap, company production capacity, growth factors and more

Growth Drivers

The Chinese government has shown strong support for the development of the hydrogen economy. Ambitious targets and substantial investments in research and development underscore the commitment to advancing hydrogen-related technologies.

The expanding use of hydrogen in new applications, such as power generation and transportation, is a key driver. As industries explore alternative and cleaner energy sources, hydrogen is gaining traction as a versatile and eco-friendly option, further boosting its demand.

Growing environmental concerns and a heightened emphasis on sustainable practices drive interest in hydrogen as a clean energy carrier. The eco-friendly attributes of hydrogen align with China's broader goals of reducing carbon emissions and transitioning to a more sustainable energy landscape.

Key Companies

China Energy Investment Corporation, China Petrochemical Corporation (Sinopec), Baosteel Group, Beijing Yihuatong Technology Co., Ltd, Plug Power China, Others.

Market Growth and Challenges

China's pursuit of alternative feedstocks for hydrogen production marks a significant stride towards a more sustainable and diversified energy landscape. The exploration of biogas, biomethane, and renewable electricity as feedstocks is a strategic move aimed at reducing dependence on conventional fossil fuels. Biogas, derived from organic waste, presents an eco-friendly option, minimizing environmental impact while utilizing existing waste streams. Biomethane, a refined form of biogas, offers an upgraded and cleaner feedstock, aligning with China's commitment to greener energy sources.

Moreover, the integration of renewable electricity into hydrogen production processes enhances the overall sustainability quotient. Leveraging sources like solar and wind power, this approach capitalizes on clean energy to initiate the hydrogen generation process. This not only mitigates the carbon footprint associated with hydrogen production but also contributes to the broader goals of transitioning towards a low-carbon economy.

By diversifying feedstocks, China aims to fortify its energy security, reduce environmental degradation, and promote a more sustainable hydrogen economy. The emphasis on these alternative sources reflects a forward-looking approach, aligning with global efforts to address climate change and foster a more resilient and environmentally conscious energy infrastructure.

This is estimated to put the hydrogen generation market in China at a positive growth level.

In China, public perception of hydrogen generation is undergoing a transformative shift, driven by a growing awareness of its potential as a clean and sustainable energy source. As the nation intensifies efforts to address environmental concerns and reduce carbon emissions, hydrogen is increasingly perceived as a key player in the transition towards greener energy.

There is a notable recognition of hydrogen's versatility, serving as a potential solution for various sectors, including transportation, industry, and power generation. Hydrogen's capacity to produce energy without emitting greenhouse gases aligns with China's commitment to sustainable development and combating climate change.

Public perception is also influenced by government initiatives and investments in hydrogen-related projects, signaling a strong endorsement of hydrogen as a strategic component of China's energy future. The emphasis on research and development, coupled with the establishment of hydrogen infrastructure, further reinforces positive sentiments.

However, challenges such as production costs and infrastructure development are acknowledged. Overall, the evolving public perception reflects optimism about hydrogen's role in fostering a more sustainable and environmentally conscious energy landscape in China.

Market Analysis by Technology

Based on technology, China hydrogen generation market is segmented into Steam Methane Reforming (SMR), Electrolysis (Alkaline, PEM, Solid Oxide), Biomass Gasification and Pyrolysis.

 

In China, key trends in Steam Methane Reforming (SMR) for hydrogen generation include a growing emphasis on green hydrogen production through carbon capture and utilization. The integration of SMR with advanced technologies, such as artificial intelligence and IoT, enhances efficiency and reduces environmental impact. Collaborations between government bodies, research institutions, and industry players drive innovation, while an increasing focus on sustainable practices aligns with China's broader goals for a greener future. The adoption of SMR as a pivotal method reflects the nation's commitment to advancing clean energy solutions in the hydrogen sector.

In the Chinese hydrogen generation market, Steam Methane Reforming (SMR) is undergoing significant trends

Emission Reduction and Carbon Capture - SMR plants are increasingly adopting carbon capture and storage (CCS) technologies to address environmental concerns, meeting government regulations and curbing carbon emissions during the SMR process.

Feedstock Diversification: Researchers are exploring alternative feedstocks for SMR, such as biogas and biomethane, aiming to reduce reliance on natural gas and align with China's sustainability objectives.

High-Temperature SMR (HTSMR) Development - In the developmental stage, HTSMR technology operates at higher temperatures, improving efficiency and reducing methane consumption compared to traditional SMR.

SMR Integration with Renewable Energy - Efforts are underway to integrate SMR plants with renewable energy sources like solar and wind power, enhancing the environmental sustainability of hydrogen production.

SMR for Hydrogen Fuel Cell Applications - SMR plays a vital role in supplying hydrogen for fuel cell vehicles, with strategic placement near fueling stations to facilitate efficient hydrogen distribution.

SMR Technology Advancements - Ongoing research focuses on catalyst improvements, reactor design optimization, and process control enhancements to advance SMR technology's efficiency, cost-effectiveness, and environmental performance.

SMR for Industrial Applications - Beyond fuel cell vehicles, SMR remains crucial for various industrial applications, including oil refining, ammonia production, and methanol production, driving continued growth in China.

These trends are estimated to create a lucrative scope for the overall hydrogen generation market in China

Key Segments

List

By Production Method

·         On-site Generation

·         Centralized Production

By End Use

·         Chemical Processing

·         Refining

·         Metal Production

·         Electronics

·         Power Generation

·         Transportation

By Application

·         Petroleum Refining

·         Ammonia Production

·         Methanol Production

·         Power Generation

·         Transportation (Fuel Cell Vehicles)

 

Competitive Analysis

Some of the major companies operating within the China hydrogen generation market are: China Energy Investment Corporation, China Petrochemical Corporation (Sinopec), Baosteel Group, Beijing Yihuatong Technology Co., Ltd, Plug Power China, and Others.

 

Recent Development

·         On October 4, 2023, Sinopec, a Chinese company, reveals the world's largest green hydrogen plant in Inner Mongolia, boasting an annual production capacity of 30,000 tons. This groundbreaking project signifies a major stride in China's ambitious endeavors to decarbonize its energy sector.

·         On September 28, 2023, Baosteel, a prominent Chinese firm, invests in hydrogen fuel cell technology for steelmaking, showcasing its dedication to incorporating clean and sustainable energy solutions into its steel production processes.

·         Notably, on August 17, 2023, China launches a demonstration project for hydrogen fuel cell buses in Shanghai, aiming to assess the feasibility and efficiency of these buses in public transportation.

·         Additionally, on July 12, 2023, Yima Hydrogen in China expands its electrolysis capacity to meet the escalating demand for environmentally friendly hydrogen production methods.

·         Furthermore, on June 21, 2023, China's National Development and Reform Commission approves 14 hydrogen infrastructure projects, propelling the development of hydrogen refueling stations and storage facilities across the nation.

·         On May 18, 2023, the Ministry of Industry and Information Technology in China releases guidelines for the development of hydrogen fuel cell vehicles, outlining a strategic roadmap for technological advancements.

·         On April 6, 2023, China Energy Investment Corporation (CEIC) collaborates to develop a network of hydrogen refueling stations along key transportation routes, fostering comprehensive infrastructure.

·         Moreover, on March 2, 2023, Beijing Yihuatong Technology secures funding to expand hydrogen purifier production, enhancing its capacity to meet the rising demand for high-purity hydrogen.

Quality Assurance Process

  1. We Market Research’s Quality Assurance program strives to deliver superior value to our clients.

We Market Research senior executive is assigned to each consulting engagement and works closely with the project team to deliver as per the clients expectations.

Market Research Process




We Market Research monitors 3 important attributes during the QA process- Cost, Schedule & Quality. We believe them as a critical benchmark in achieving a project’s success.

To mitigate risks that can impact project success, we deploy the follow project delivery best practices:
  • Project kickoff meeting with client
  • Conduct frequent client communications
  • Form project steering committee
  • Assign a senior SR executive as QA Executive
  • Conduct internal editorial & quality reviews of project deliverables
  • Certify project staff in SR methodologies & standards
  • Monitor client satisfaction
  • Monitor realized value post-project

Case Study- Automotive Sector

One of the key manufacturers of automotive had plans to invest in electric utility vehicles. The electric cars and associated markets being a of evolving nature, the automotive client approached We Market Research for a detailed insight on the market forecasts. The client specifically asked for competitive analysis, regulatory framework, regional prospects studied under the influence of drivers, challenges, opportunities, and pricing in terms of revenue and sales (million units).

Solution

The overall study was executed in three stages, intending to help the client meet its objective of precisely understanding the entire market before deciding on an investment. At first, secondary research was conducted considering political, economic, social, and technological parameters to get a gist of the various aspects of the market. This stage of the study concluded with the derivation of drivers, opportunities, and challenges. It also laid substantial emphasis on understanding and collecting data not only on a global scale but also on the regional and country levels. Data Extraction through Primary Research

The second stage involved primary research in which several market players and automotive parts suppliers were contacted to study their viewpoint concerning the development of their market and production capacity, clientele, and product line. This stage concluded in a brief understanding of the competitive ecosystem and also glanced through the strategies and pricing of the companies profiled.

Market Estimates and Forecast

In the final stage of the study, market forecasts for the electric utility were derived using multiple market engineering approaches. This data helped the client to get an overview of the market and accelerate the process of investment.

Case Study- ICT Sector

Business process outsourcing, being one of the lucrative markets from both supply- and demand- side, has appealed to various companies. One of the prominent corporations based out of Japan approached us with their requirements regarding the scope of the procurement outsourcing market for around 50 countries. Additionally, the client also sought key players operating in the market and their revenue breakdown in terms of region and application.


Business Solution

An exhaustive market study was conducted based on primary and secondary research that involved factors such as labor costs in various countries, skilled and technical labors, manufacturing scenario, and their respective contributions in the global GDP. A comparative study of the market was conducted from both supply- and demand side, with the supply-side comprising of notable companies, such as GEP, Accenture, and others, that provide these services. On the other hand, large manufacturing companies from them demand-side were considered that opt for these services.


Conclusion

The report aided the client in understanding the market trends, including country-level business scenarios, consumer behavior, and trends in 50 countries. The report also provided financial insights of crucial players and detailed market estimations and forecasts till 2033.

Frequently Asked Questions

What is the size of China hydrogen generation market?

China hydrogen generation market was valued at USD 19.27 billion in 2022 and is estimated to reach a value of 65.8 billion by 2033 with a CAGR of 12.5%.

Which technology is mainly preferred within the Chinese hydrogen generation industry?

Steam Methane Reforming (SMR) is mainly adopted within China and occupies a share of 65%

Which are the major companies operating within the China hydrogen generation industry?

China Energy Investment Corporation dominate the market with an active share of 25%

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