The global brown hydrogen market revenue was US$ 31.92 billion in 2021. The global brown hydrogen market revenue is forecast to reach US$ 48.9 billion by 2030, growing at a compound annual growth rate (CAGR) of 5% during the forecast period from 2022 to 2030.
The gasification of coal produces brown hydrogen. The process uses the solid state of coal to transform it into a gas. The gasification process converts coal into its chemical components, including methane gas. It involves exposing coal to oxygen and steam at high temperatures and pressures. Gasification involves partial oxidation of coal with steam and oxygen under high pressure and temperature. Syngas undergoes further reactions with water to yield hydrogen. After isolation, it is possible to clean it in conventional methods for recovering hydrogen and removing the high concentration carbon dioxide stream for disposal.
Factors Influencing Market Growth
Several factors contribute to the global brown hydrogen market, including low raw material costs, low production costs, and the availability of raw materials. Further, the alternative method of producing hydrogen is comparatively more expensive.
Coal gasification leaves a high carbon footprint, which restricts the market growth. In addition, the development of the renewable energy-based hydrogen market, known as green hydrogen, may negatively impact the global market's growth.
Coal gasification with carbon capture and storage is forecast to offer a lucrative opportunity in the global brown hydrogen market during the forecast period.
Impact Analysis of COVID-19
The COVID-19 pandemic had a significant impact on hydrogen technologies and subsequently on the brown hydrogen market in the global market, especially during the initial period. Governments around the globe imposed partial or total lockdowns to control the spread of the COVID-19 virus. As a result, raw materials procurement was disrupted, further aggravating the situation. Nevertheless, as the global economy improves, the global brown hydrogen market will soon rebound during the forecast period.
Regional Insights
The Asia-Pacific region holds a dominant position in 2021 in the brown hydrogen market and is forecast to maintain its position over the forecast period. It is due to the fact that brown hydrogen is a primary ingredient in industrial processes, and there is a growing consumer base in China for brown hydrogen. Additionally, the coal gasification method, used to produce brown hydrogen, is well established in the Asia-Pacific region. Thus, these factors are boosting the regional brown market growth.
Leading Competitors
The leading prominent companies profiled in the global brown hydrogen market are:
Air Products and Chemicals, Incorporated
Air Liquide S.A.
Sasol Limited
Sinopec Limited
Iwatani Corporation
J-Power Systems
Saudi Aramco
Kawasaki Heavy Industries, Limited
Iwatani Corporation
Shell Japan Limited
Electric Power Development Co. Limited
Other Prominent Players
Scope of the Report
The global brown hydrogen market segmentation focuses on Technology, End-Use Industry, and Region.
Segmentation based on Technology
Coal Gasification with Carbon Capture Storage
Coal Gasification without Carbon Capture Storage
Segmentation based on End-Use Industry
Refining
Chemicals
Iron and steel
Others
Segmentation based on Region
North America
The U.S.
Canada
Mexico
Europe
Western Europe
The UK
Germany
France
Italy
Spain
Rest of Western Europe
Eastern Europe
Poland
Russia
Rest of Eastern Europe
Asia Pacific
China
India
Japan
Australia & New Zealand
ASEAN
Rest of Asia Pacific
Middle East & Africa (MEA)
UAE
Saudi Arabia
South Africa
Rest of MEA
South America
Brazil
Argentina
Rest of South America
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