Liquid Hydrogen Market Synopsis

Liquid Hydrogen Market Size Was Valued at USD 41.1 Billion in 2023, and is Projected to Reach USD 66.5 Billion by 2032, Growing at a CAGR of 5.5% From 2024-2032.

Liquid hydrogen is the liquid phase of the hydrogen in particular or hydrogen gas at conditions of effective temperature. Hydrogen is in the state of gas at the normal conditions of temperature or heat and pressure, but when put in a cryogenic temperature of the order of 253 degree Kelvin or 423 degrees Fahrenheit it becomes in the liquid state. Liquid hydrogen appears to be pale blue and also is quite transparent.

Water is also the most colorless and odorless liquid of all the liquids known to man, and it has the density of the 70g per liter. It is also very flammable and leaves form a gas when it comes in contact with air. It is easily evaporative due to the presence of low boiling point, and for this, it needs proper prudent storage and handling to retain its liquid state. Liquid hydrogen is also useful in other ways or uses with the largest and probably the most important use being in the manufacture of space rockets and other spacecrafts where it is used in combination with liquid oxygen to form a powerful fuel. Owing to its high energy yield and density it is a good propulsion fuel for space use.

• Featuring zero emission of greenhouse gases, liquid hydrogen is another type of energy resource that produces only water when burnt in fuel cells. The rising global concern for greenhouse emissions and moving towards cleaner sources of energy have fueled the demand for liquid hydrogen as a nonconventional cleaner fuel.
• The increasing awareness of Decarbonized energy market is the fundamental source of the liquid hydrogen market growth rate. Other reasons, which are also positively influencing the growth in the value of the global liquid hydrogen market, include the increases in size and development of automotive industries as well as other end user verticals. An increase in the awareness of the improved efficiency of the process of liquefaction will also make a significant contribution to the expansion of the lucrative growth for liquid hydrogen market. Growing applications of liquid hydrogen in everyday life, especially in the chemicals and petrochemicals sector, are expected to add to the growth rate of the liquid hydrogen market. Moreover, the continued industrialization will increase GH emissions from vehicles, which will in turn have a direct and positive effect on the growth rate of the liquid hydrogen market.

Liquid Hydrogen Market Trend Analysis

Global rise in aerospace industry

• The aerospace industry in particular is the primary driver behind the demand for this cryogenic compound since it is used as a rocket fuel in space programmes and satellite launches. The aim of the study is therefore to highlight liquid hydrogen as an important fluid in the aerospace industry due to its high energy density and efficient propulsion. This factor is expected to create a positive drive on the market during the period under analysis.

Increased demand from renewable energy sector

• The shift to clean power sources goes hand in hand with the reduction of carbon emissions with liquid hydrogen being in high demand with good market prospects. The results showed that liquid hydrogen can also be derived from renewable sources of energy like through the electrolysis process to produce what is known as green hydrogen hence the increase in demand for clean and renewable energy is a boost to liquid hydrogen. In addition, the transportation sector is one of the biggest and most promising segments for the growth of the liquid hydrogen market. Liquid hydrogen FCVs provide an immense opportunity to fulfill the global demand for automobiles, as they provide long driving ranges and refuel times with zero emissions. Thus, utilization of liquid hydrogen would also accelerate with the evolution of mega hydrogen refueling stations and green technological breakthroughs in the fuel cell transportation systems. These factors are expected to present a good business prospects in the forthcoming years for the liquid hydrogen market.

Liquid Hydrogen Market Segment Analysis:

Liquid Hydrogen Market is segmented based on Distribution, and End Use Industry.

By Distribution, cryogenic tanks segment is expected to dominate the market during the forecast period

• Based on distribution, the cryogenic tanks segment held the largest market share in 2022 and is projected to reach a significant growth rate of 5.6% during the forecast timeframe. The cold tanks are used for the storage and transport of liquefied gases including liquid hydrogen, liquid oxygen, and Liquefied natural gas (LNG). As several industries improve over time, there is need for cryogenic tanks for storage and transportations reasons. For instance, tanks are used in the storage and transport of hydrogen as a liquid energy source, which has received a lot of attention due to the reduced amounts of pollution. In light of the growth of the natural gas market as an energy source and especially in the electricity generation as well as in transport sector, there is a proportional increase in the demand for cryogenic tanks in providing storage and transportation of liquid hydrogen. This factor is estimated to have a significant contribution towards the market growth during the forecast period.  

By End Use Industry, aerospace segment held the largest share in 2023

• Thus, in 2022, aerospace segment has the highest revenues and expected to grow at a CAGR of 5%. Focusing on the automotive information services market, it is expected to grow at a CAGR of 7% during the forecast period. Liquid hydrogen is characterized by its high specific impulse, which is a characteristic of how efficient a rocket engine is. It offers higher impulse per unit of mass of the propellant than the other fuels which results in higher velocities and payload. That is the reason why liquid hydrogen is preferable for use in-space vehicles, fueled by its high specific impulse. Furthermore, there is a shift in the aerospace industry regarding the ways to minimize aerospace’s environmental footprint and promote sustainability. Liquid hydrogen is environmentally friendly fuel it burns oxygen and reacts in a way that it releases water vapor. It cuts down on greenhouse gas emissions greatly when used as a propulsion tool as opposed to the commonly used fossil fuel based propulsion systems.

Liquid Hydrogen Market Regional Insights:

Asia-Pacific is Expected to Dominate the Market Over the Forecast period

• The Asia-Pacific liquid hydrogen market is expected to have highest Compound Annual Growth Rate and grow at a fair pace during the forecasted period. 9% within the Forecast period and hold 40% share of Liquid Hydrogen in 2022. This is evidenced by factors such as, It is noteworthy that the Chinese Government has offered great support in hydrogen and fuel cell systems. Recent years, China has issued a series of policies and plans of Action for the development of hydrogen and new energy, including liquid hydrogen. The government has offered the financial incentives to invest in this market along with funding opportunities and responsive regulation to promote the growth of liquid hydrogen market.

Active Key Players in the Liquid Hydrogen Market

• Demaco powered by Leapforce
• Air Liquide
• Cryolor
• Hylium Industries, Inc.
• Plug Power Inc.
• Messer Group GmbH.
• Linde Plc
• Air Products and Chemicals, Inc.
• inoxcva
• Iwatani Corporation
• Other Key Players

Key Industry Developments in the Liquid Hydrogen Market:

• In October 2023, Hylium Industries, Inc. and The Gas and Heat Institute Essen signed a Memorandum of Understanding to create a dynamic framework for future cooperation. The memorandum outlines the common goals and commitments of both parties. The main objective of this MoU is to lay the foundation for a mutually beneficial partnership that exploits the strengths and expertise of both organizations. Under this memorandum of understanding, Hylium Industries will explore opportunities to commercialize its products in the German market, while GWI will receive technical support and expertise in the field of liquid hydrogen.
• In May 2023, Hylium Industries launched a hydrogen fueling station in Cheju, South Korea to promote green energy. The newly opened station aims to strengthen South Korea's hydrogen infrastructure and promote sustainable transportation. Hylium Industries, a pioneer in renewable energy solutions, announced the opening of its state-of-the-art hydrogen fueling station in Cheju, South Korea. The plant is an important milestone in the country's efforts to expand its hydrogen infrastructure and promote sustainable transportation.