PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1516100
PUBLISHER: Global Market Insights Inc. | PRODUCT CODE: 1516100
Asia-Pacific hydrogen market size will grow at 5.8% CAGR from 2024 to 2032 due to increasing demand for clean energy solutions across the region. The IEA estimates that the share of low-carbon hydrogen in the final energy demand by 2050 will be 3.5%. But in a net-zero scenario, this percentage increases to 12%, displacing fossil fuels in key sectors such as chemicals, steel, cement, and heavy mobility. As countries strive to reduce greenhouse gas emissions and combat climate change, hydrogen will play a key role in the transition to a sustainable energy future. Governments are implementing ambitious renewable energy targets and supportive policies and incentives to promote hydrogen deployment. In addition, growing consumer and industry awareness of environmental issues is increasing the demand for clean and renewable energy sources.
A significant trend shaping the market is the widespread transition to sustainable energy solutions. According to Development Asia, by 2025, APAC plans to achieve a renewable energy share of 23% of total primary energy procurement and 35% of installed capacity. As concerns about climate change and environmental sustainability increase, we are moving away from traditional fossil fuels to cleaner, renewable energy sources. Hydrogen, especially low-carbon hydrogen, has emerged as a central part of this transition due to its versatility and potential to significantly reduce greenhouse gases.
Asia-Pacific hydrogen industry is classified by type, application, and region.
The blue hydrogen segment will grow rapidly through 2032, as blue hydrogen can bridge the gap between the current dependence on fossil fuels and a future dominated by renewable energy. Blue hydrogen is produced from natural gas by steam methane reforming (SMR) using carbon capture and storage (CCS) technologies, making it a low-carbon alternative to traditional hydrogen production methods. The Asia-Pacific region, with abundant natural gas reserves and developing CCS infrastructure, is well positioned to expand blue hydrogen production.
The chemical segment will grow moderately through 2032, as hydrogen is a critical raw material in the production of many chemicals, including ammonia, methanol, and various petrochemical products. The growing demand for these chemicals due to their widespread use in fertilizers, plastics, and pharmaceuticals is driving the demand for hydrogen in the chemical industry. In addition, the search for sustainable and green chemicals leads to an increase in the use of hydrogen from low-carbon processes.
China Hydrogen industry will grow at a reasonable pace through 2032, as the country has committed to achieving carbon neutrality by 2060, which has catalyzed significant investment and policy initiatives to increase hydrogen production and use. China is focusing on both green and blue hydrogen and is investing heavily in developing renewable energy capacity to support green hydrogen production through electrolysis. In addition, China's vast industrial base offers ample opportunities for the use of hydrogen in sectors such as steel, chemicals, and transportation.