Pink Hydrogen Market Size 2025-2029
The pink hydrogen market is projected to see substantial growth, with the market anticipated to reach approximately USD 35.32 billion by 2024, expanding at a CAGR of around 25.6% during the forecast period. This study examines the market dynamics and trends influencing this sector. Detailed market values can be accessed upon purchasing the report.
The pink hydrogen market is propelled by increasing awareness and investments in zero-emission and clean energy sources for a sustainable future, contributing significantly to market expansion. The versatility of hydrogen applications across diverse sectors such as transport and automotive is also boosting the market. However, the industry also faces challenges, such as the limited availability of nuclear power plants, which are essential for pink hydrogen production. Despite these challenges, technological advancements and government initiatives are expected to drive growth In the pink hydrogen sector.
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How is this market segmented?
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in USD bn for the period 2025-2029, as well as historical data from 2019-2024 for the following segments:
- Process Analysis
- PEM Electrolysis
- Alkaline Electrolysis
- Solid Oxide Electrolysis
- End-User Analysis
- Refinery
- Ammonia
- Methanol
- Steel Production
- Transport
- Others
- APAC
- China
- India
- Japan
- Australia
- Rest of APAC
- Germany
- Spain
- Italy
- UK
- Rest of Europe
- US
- Canada
- Brazil
- UAE
- South Africa
- Others
- By Process Analysis
- PEM Electrolysis: Due to its superior qualities such as high energy efficiency, high current density, low gas permeability, wider operating temperatures, and ease of handling & maintenance, PEM Electrolysis is expected to dominate the market.
- Alkaline Electrolysis: This segment is driven by its lower cost and established technology.
- Solid Oxide Electrolysis: This segment is expected to grow due to its high efficiency at high temperatures.
- By End-User Analysis
- Others: Other end-users contribute to the market, including applications in power generation and chemical production.
- Ammonia: Hydrogen is a crucial raw material for ammonia production, driving the growth of this segment.
- Methanol: Hydrogen is used in methanol production, contributing to the growth of this segment.
- Refinery: This segment is dominating the global market, driven by increasing demand for hydrogen for desulfurization.
- Transport: Rising adaptation of hydrogen as a fuel In the transport sector is boosting growth.
- Steel Production: Hydrogen provides an option to greatly decrease carbon emissions from steel production, largely replacing coal for direct reactions and combustion.
Regional Analysis
- APAC: The Asia Pacific region is expected to experience rapid growth in the pink hydrogen market, driven by increasing industrialization, rising energy demand, and government initiatives promoting clean energy. China and India are key contributors to this growth, with significant investments in hydrogen production and infrastructure.
- Europe: Europe holds a major share of the global pink hydrogen market due to growing demand across petrochemical, steel, cement, aviation, and heavy transportation sectors. The U.K., along with Russia and Sweden, dominates the share of nuclear-based hydrogen production with goals toward zero carbon emission and government support.
- North America: North America is anticipated to be a fast-growing region due to advancements in hydrogen production operations. The presence of active nuclear plants producing pink hydrogen, coupled with supportive government policies and private sector investments, drives market growth in the US and Canada.
- South America & MEA: The South America and MEA regions offer significant growth opportunities for the pink hydrogen market. Countries like Brazil and the UAE are investing in hydrogen production and infrastructure to diversify their energy sources and meet growing domestic and international demand for clean energy. The Middle East is also focusing on hydrogen production to transition from fossil fuels to clean energy.
Market Dynamics
Our pink hydrogen market researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
What are the key market drivers leading to the rise in adoption of pink hydrogen?
Increasing role of hydrogen in desulfurization in refineries is a key driver of the market. The growing applications of hydrogen across various sectors are driving the pink hydrogen market. Hydrogen is increasingly used In the transport, refinery, and steel production sectors. The demand for hydrogen in refineries for desulfurization and in steel production as a cleaner alternative to coal is significantly contributing to market growth. Additionally, the use of hydrogen in fuel cell vehicles is another key driver.
What are the market trends shaping the pink hydrogen market?
Adaptation of Hydrogen over Fossil Fuel is boosting industrial growth. The increasing adaptation of hydrogen over fossil fuels is a key trend In the market. As global primary energy demand rises and the shift from fossil fuels to cleaner energy sources accelerates, hydrogen is becoming an attractive alternative. Technological developments and the growing focus on climate change are driving this trend, with companies investing in hydrogen-based applications and nuclear energy for power generation.
What challenges does the pink hydrogen market face?
Unavailability of the Nuclear Power Plants is restricting the production of nuclear-based Hydrogen The limited availability of nuclear power plants, which are required for the production of pink hydrogen, is a major challenge. The high initial capital and investment costs associated with setting up nuclear power plants and pink hydrogen production facilities hinder market growth. The lack of awareness and the presence of only a few countries with the necessary infrastructure further restrict the market.
Key Companies & Market Insights
Leading companies are implementing strategies such as product innovations, acquisitions, and geographic expansions to enhance their market position. Key players in the pink hydrogen market include:
- Siemens Energy
- Air Products and Chemicals
- OKG Aktiebolag
- Linde Plc
- Exelon Corporation
- Air Liquid
- Nel ASA
- Hydrogen Systems
- Iberdrola SA
- SGH2Energy
These companies are strategically focused on product development, market expansion, and partnerships to maintain their competitive edge in the growing pink hydrogen market.
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Market Scope |
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Report Coverage |
Details |
| Base year | 2024 |
| Page number | 195 |
| Key countries | US, UK, China, Germany, India, Japan |
| Forecast period | 2025-2029 |
| Historic period | 2019-2023 |
| Report coverage | Market size, forecasts, segmentation |
| Regional Analysis | APAC
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| Growth momentum and CAGR | 25.6% |
| Performing market contribution | Europe, APAC, North America |