Pink Hydrogen Market Trends

Growth Drivers

• Rising Applications of Hydrogen for Various Purposes across the World – The use of hydrogen in electricity generation is estimated to boost the pink hydrogen market growth. The rising applications in fertilizer production, petroleum refining, heat, and power generation in the industries are estimated to propel the market growth. Growing consumption in the food industry, metal works, aviation sector, and medical industry is projected to fuel the market size expansion. The hydrogen demand in 2021 worldwide raised by 5% in 2020 to reach 94 Mt in 2021 owing to recovery activity in the chemical and refining industry as per the International Energy Agency.
• Increasing Adoption of Hydrogen-Based Technology in the Steel Industry – The escalating public interest in sustainable and carbon-friendly steel products is estimated to rise the use of hydrogen in the production of steel from iron pellets.  The replacement of fossil fuels with hydrogen in the direct reduced iron process is also driving the pink hydrogen market demand.
• High Investment in Renewable Energy Projects around the World – The increased consciousness of the climate among industrialists and the government spiked the demand for renewable sources of energy. Pink hydrogen is one among them that helps to reach the decarbonization goal with carbon-free fuel production. These factors boosted the investment share of hydrogen in the market propelling the growth during the forecast period.

Challenges

• Presence of Alternatives such as Grey and Blue Hydrogen Production – Grey and blue hydrogen are other available options for hydrogen production with low carbon emissions and facilities of storage, and transportation that are not available for pink hydrogen is estimated to hamper the market growth.
• High Initial Capital Investment

Lack of Infrastructure Facility for Storage and Transportation