|
Forecast
Period
|
2026-2030
|
|
Market
Size, By Volume (2024)
|
7.12 Million Tonnes
|
|
CAGR
(2025-2030)
|
7.35%
|
|
Fastest
Growing Segment
|
Membrane
Cell Technology
|
|
Largest
Market
|
West
India
|
|
Market
Size, By Volume (2030)
|
10.78
Million Tonnes
|
Market Overview
India Hydrogen Market achieved a total
market volume of 7.12 Million Tonnes in 2024 and is expected to reach 10.78
Million Tonnes by 2030 with a CAGR of 7.35% during the forecast period. In its
molecular state (H₂),
hydrogen is a colorless, odorless gas with high flammability. It can generate
electricity through fuel cells, with water as the sole byproduct, and is a
promising clean energy option for vehicles and power generation. Hydrogen is
also essential in producing ammonia for fertilizers, refining petroleum, and
various chemical processes, and is a critical component in rocket fuel.
India is aiming for net-zero carbon
emissions by 2070, with hydrogen playing a key role in achieving this goal,
especially in transportation, industrial processes, and energy storage. To
support this, the Indian government has implemented several policies to advance
hydrogen adoption. The National Green Hydrogen Mission, launched in early 2023,
seeks to position India as a global leader in green hydrogen, with ambitious
targets for production, infrastructure, and R&D.
There is increasing investment from both
domestic and international sources, and technological advancements in
electrolyzers and fuel cells are lowering hydrogen production costs, enhancing
its competitiveness with traditional energy sources.
Despite these advancements, green
hydrogen production remains expensive compared to fossil fuels, and ongoing
efforts focus on reducing costs through innovation and scale. Establishing the
necessary infrastructure for hydrogen production, storage, and distribution is
capital-intensive and requires considerable coordination. Evolving regulations
and policies may introduce uncertainty for investors and stakeholders in the
hydrogen sector.
The Indian hydrogen market is undergoing
significant growth as the country embraces sustainable energy solutions to
tackle climate change and enhance energy security, with hydrogen poised to be a
crucial element in India's energy transition strategy.
Key Market Drivers
Net-Zero Emission Targets
At
the 26th session of the United Nations Framework Convention on Climate Change
(COP 26) in November 2021, India set a target to achieve net-zero carbon
emissions by 2070. This commitment has established a robust regulatory
framework that encourages the adoption of clean energy technologies, including
hydrogen. It has led to the development of supportive policies and incentives
to boost hydrogen production and use. According to the NITI Aayog and RMI
report, Harnessing Green Hydrogen: Opportunities for Deep Decarbonisation in
India, domestic hydrogen demand in India is expected to reach 11 million tons
by 2030. With the National Green Hydrogen Mission (NGHM) in place, green
hydrogen's share in this demand could rise to 46 percent by 2030, compared to
16 percent without such policy measures.
In
April 2024, the Ministry of New and Renewable Energy (MNRE) issued guidelines
for the SIGHT Programme, Component II, which provides incentives for green
ammonia production under Mode 2A, targeting the fertilizer sector. The pursuit
of net-zero goals is attracting significant investment from both public and
private sectors into hydrogen technologies. These policies are creating a
favorable market environment by setting clear targets for hydrogen production,
infrastructure, and usage.
Investors
are increasingly interested in the hydrogen sector due to its role in meeting
emission reduction targets, which is leading to funding for research,
infrastructure, and innovation. For example, in 2024, Oil India Limited (OIL)
signed a Memorandum of Understanding (MoU) with The Fertilisers and Chemicals
Travancore Limited (FACT) to explore green hydrogen opportunities, including
green ammonia, green methanol, and other derivatives, and to collaborate on
decarbonization initiatives like carbon dioxide sequestration.
The
push towards net-zero emissions is accelerating advancements in hydrogen
technologies, motivating companies and research institutions to innovate
electrolyzers, fuel cells, and storage solutions. The need to reduce carbon
emissions across various sectors such as transportation, industry, and power
generation increases demand for hydrogen as a clean energy carrier. India’s
net-zero emission targets are driving significant growth in the hydrogen
market, fostering innovation, investment, and infrastructure development for a
sustainable energy future.
Technological Advancements
Advancements
in electrolysis technology, such as enhanced electrolyzers, have significantly
reduced hydrogen production costs. More efficient and cost-effective
electrolysis methods are enabling cheaper production of green hydrogen, making
it increasingly competitive with traditional energy sources. In 2023, Hild
Electric was selected as the Alkaline electrolyzer technology provider for NTPC
Renewable Energy. This collaboration involved deploying electrolyzer stacks,
along with purifiers and separators, to create a system capable of integrating
with renewable energy sources to produce green hydrogen.
Improvements
in fuel cell technology are also enhancing the efficiency of hydrogen as an
energy carrier. Better-performing fuel cells result in higher energy conversion
rates, making hydrogen a more practical option for various applications,
including transportation and stationary power generation. In 2023, Tata Motors
launched two advanced R&D facilities aimed at supporting its goal of
providing sustainable mobility solutions. These facilities include an engine
test cell for developing hydrogen internal combustion engines and the
infrastructure needed for the storage and dispensing of hydrogen fuel for fuel
cell and H2ICE vehicles.
Technological
advancements in hydrogen infrastructure, such as refueling stations and
pipelines, are facilitating the expansion of the hydrogen market. Enhanced
infrastructure supports the distribution and use of hydrogen, increasing its
accessibility and adoption. In 2024, India inaugurated its first Multi-Purpose
Green Hydrogen Pilot Project in Himachal Pradesh, further advancing the market.
Emerging technologies are broadening the applications of hydrogen, from fuel
cells in vehicles to industrial processes and power generation. Innovations in
these areas are driving demand and creating new market opportunities. In March
2024, India began developing its own pure-hydrogen-based direct reduction of
iron (DRI) technology for green steel production. This technology is still in
development, with ministries such as Steel and MNRE, along with industry
players, working together to advance pilot projects. Technological advancements
in hydrogen production, storage, and applications are crucial for the growth of
the hydrogen market in India. These innovations reduce costs, enhance
efficiency, and expand hydrogen’s range of uses, fostering a more favorable
environment for market development and adoption.
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Key Market Challenges
High Production Costs
Hydrogen
production via electrolysis is more costly compared to traditional methods like
steam methane reforming (SMR) and other energy sources. This higher cost makes
green hydrogen less competitive in the energy market. As production costs rise,
so do hydrogen prices, which can dissuade potential users and hinder market
adoption. The substantial capital required for hydrogen production
technologies, coupled with high costs, increases financial risk for investors.
This risk can limit investment availability and slow the advancement of
hydrogen technologies. Achieving economies of scale is essential for reducing
hydrogen production costs, but scaling up production facilities demands
significant investment and infrastructure development, which can be challenging
in the early stages. Although new technologies offer potential, scaling them to
a point where they can substantially reduce production costs remains difficult.
As a result, hydrogen can struggle to compete with other energy sources and
technologies that have lower production costs, such as natural gas and
renewable energy, which can impede market growth.
Hydrogen,
being the smallest and lightest molecule, necessitates high-pressure storage
systems to be economically viable. Developing and maintaining these systems is
costly and technically complex, which can hinder widespread adoption. Advanced
materials are required for storage containers to prevent leaks and ensure
safety, adding further expense and technical challenges. The infrastructure
needed for hydrogen transportation, including pipelines and distribution
networks, demands significant investment. Existing infrastructure often isn't
compatible with hydrogen, requiring new construction or major upgrades.
Transporting hydrogen, whether in compressed, liquid, or chemical forms, is
also expensive. The costs associated with developing and maintaining these
transportation systems impact the overall economics of hydrogen as a fuel. Hydrogen's
high flammability necessitates strict safety measures during transportation,
increasing both complexity and costs. Integrating hydrogen storage and
transportation with existing energy infrastructure involves technical and
logistical challenges. This often requires modifications or entirely new
systems, further complicating and raising the costs of deployment.
Lack of Skilled Workforce
The
hydrogen sector demands specialized skills and expertise in areas such as
electrolysis, fuel cell technology, and hydrogen infrastructure. The current
shortage of professionals with these specific skills impedes the development
and implementation of hydrogen technologies. There is a pressing need for
comprehensive training and development programs to build a skilled workforce.
Developing these programs requires both time and investment; without them, the
industry may struggle to attract qualified personnel. The complexity of
hydrogen technologies necessitates a thorough understanding of advanced
engineering principles and safety protocols, and a lack of skilled experts to
handle these technical aspects can slow down project progress and innovation.
As
the hydrogen sector evolves rapidly, staying updated with technological
advancements requires continuous learning and adaptation. The shortage of
skilled workers limits the ability to address these evolving knowledge gaps and
advance the industry. As the hydrogen market expands, the demand for skilled
professionals will increase. Without a steady supply of qualified individuals,
the industry may face bottlenecks that could hinder its growth and the
effective scaling of hydrogen technologies.
Key Market Trends
Growing Adoption of Hydrogen
Fuel Cell Vehicles
Several
leading automotive manufacturers have launched hydrogen fuel cell vehicles
(FCVs) in the Indian market, with both global and local brands contributing to
growing consumer interest and market expansion. In 2023, Tata Motors received a
CMVR Type Approval certificate for India’s first green hydrogen fuel cell
electric bus, the Tata Starbus 4/12 FCEV, and its variants. Both companies and
government agencies are increasing their use of hydrogen FCVs, including
deploying these vehicles in public transportation and industrial settings. The
Indian government is actively promoting the adoption of hydrogen FCVs through
financial incentives, subsidies, and grants, aimed at lowering the costs
associated with purchasing and operating these vehicles. Additionally, the
government has introduced a Rs. 496 crore scheme (until 2025-26) to support
pilot projects that test the feasibility of green hydrogen as a fuel for cars
and heavy vehicles.
Technological
advancements are improving the efficiency, performance, and reliability of
hydrogen FCVs, making them more competitive with traditional and other
alternative fuel vehicles. For example, in July 2024, Triton Electric Vehicle
LLC announced a new hydrogen internal combustion engine, which uses hydrogen as
a clean, cost-effective fuel, producing only water vapor and no pollutants. India
is also engaging in international partnerships to exchange knowledge,
technology, and best practices in hydrogen FCVs. In January 2024, Hyundai Motor
Company revealed plans to invest USD 746 million to develop a hydrogen
automotive ecosystem in India. The increasing adoption of hydrogen fuel cell
vehicles in India is a clear indication of the shift towards more sustainable
transportation solutions. With supportive government policies, ongoing
technological advancements, and expanding infrastructure, hydrogen FCVs are set
to play a pivotal role in India's move towards a sustainable energy future.
Segmental Insights
Technology Insights
Based
on Technology, the Steam Methane Reforming emerged as
the dominating segment in the Indian market for Hydrogen in 2024. This is driven by its
cost-effectiveness, proven technology, established infrastructure, and the
availability of natural gas. SMR stands out as the most economically viable
option for large-scale hydrogen production. It utilizes natural gas, which is
relatively low-cost and readily available compared to other feedstocks. India's
extensive infrastructure for natural gas extraction, transport, and processing
further supports SMR as a cost-efficient choice. The existing hydrogen
production facilities in India predominantly use SMR, establishing a strong
industry precedent. Additionally, SMR’s capability to produce hydrogen at scale
is crucial for fulfilling the needs of various sectors, such as refineries and
fertilizer plants, where hydrogen is a key feedstock.
Application Insights
Based
on Application, Petroleum Refining emerged as the dominating segment in
the Indian market for Hydrogen in 2024. Hydrogen plays a vital role in the
hydrocracking and desulfurization processes within petroleum refining. It is
essential for removing sulfur from crude oil, thereby producing cleaner fuels,
which is a key aspect of refining operations in India. The application of
hydrogen in refining is a well-established practice, with technologies like
hydrocracking and hydrodesulfurization being mature and widely implemented. In
2023, Indian Oil Corporation (IOC) announced plans to install green hydrogen
plants at all its refineries by 2047, as part of INR 2 lakh crore green
transition initiative aimed at achieving net-zero emissions. A significant
portion of the hydrogen produced in India is utilized by petroleum refineries,
making this sector the largest hydrogen consumer. The infrastructure and
technology for hydrogen use in refining are well-developed. Refineries are a
critical component of India’s energy sector, and their extensive hydrogen usage
solidifies its position as the leading application in the hydrogen market.
There is a strategic emphasis on enhancing and expanding refining capabilities,
which includes increasing hydrogen use to improve processing efficiency and
meet regulatory standards. Additionally, in July 2024, Bharat Petroleum
Corporation Limited (BPCL) announced plans to build a new 12 million metric
tonnes per annum (MMTPA) refinery, reflecting ongoing significant investments in
refining technology to boost efficiency and comply with environmental
standards. This continuous investment ensures a sustained high demand for
hydrogen.
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Regional Insights
Based
on Region, West India emerged as the dominant region in the Indian market for
Hydrogen in 2024. Western India, notably Gujarat and Maharashtra, is home to
some of the country’s largest and most advanced oil refineries, including those
operated by Reliance Industries and Indian Oil Corporation. These refineries
are significant hydrogen consumers due to their reliance on hydrogen for
hydrocracking and desulfurization processes, which are crucial for producing
cleaner fuels. Additionally, the region houses substantial petrochemical
complexes that use hydrogen in various industrial applications. The Western
region benefits from a comprehensive industrial infrastructure, including
facilities for hydrogen production, storage, and transportation. Its economic
policies have supported growth across multiple sectors, such as chemicals,
petrochemicals, and metal processing, all of which heavily depend on hydrogen,
reinforcing the region’s market leadership.
Western
India also has access to major ports like Kandla, which facilitate the import
of raw materials and the export of hydrogen and hydrogen-based products. In
2024, Maharashtra's state government signed seven memoranda of understanding
(MoUs) for green hydrogen projects valued at INR 2,76,300 crore and an MoU with
ArcelorMittal Nippon Steel for a INR 40,000 crore steel plant. These
initiatives aim to produce 910 KTPA of green energy and create 63,900 jobs. The
Gujarat state government has actively promoted industrial development and
infrastructure enhancements, including policies that incentivize investments in
hydrogen technology and renewable energy, further driving the adoption and
integration of hydrogen in industrial processes.
Recent Development
- In
July 2024, Ohmium International, a leader in green hydrogen technology,
unveiled its new gigafactory in Doddaballapura, near Bengaluru, India. Covering
approximately 14,000 square meters, this cutting-edge facility is gearing up to
deliver 2 GW of fully assembled and tested electrolyzer systems. The plant will
manufacture highly modular proton exchange membrane (PEM) electrolyzers to
address the increasing global demand for green hydrogen.
- In
March 2024, L&T inaugurated its first indigenously manufactured hydrogen
electrolyzer at the A M Naik Heavy Engineering Complex in Hazira, Gujarat. This
electrolyzer, with a rated power capacity of 1 MW (expandable to 2 MW), is
capable of producing 200 Nm³/hr of hydrogen. It features two stacks and an
Electrolyzer Processing Unit (EPU) ML-400, which has been locally manufactured
and assembled to meet the latest international standards, offering notable
flexibility and thermal stability. The electrolyzer will now undergo thorough
testing over the coming weeks to optimize its performance, setting the stage
for large-scale production of electrolysers.
- In
February 2024, Confidence Petroleum India Limited announced the production of
Green Hydrogen Type-4 Cylinders through Silversky Exim Pvt. Ltd., a subsidiary
of its subsidiary Confidence Futuristic Energetech Ltd. Type-4 cylinders, which
are primarily constructed from carbon composite with a polymer liner, are 70%
lighter than traditional metal cylinders (Type-1). They have the capacity to
transport three times more gas compared to metal cylinders and are fully
corrosion-resistant due to their inert liner. These cylinders are designed to
be shatter-proof and fire-resistant.
- In
January 2024, the Controller of Patents, Intellectual Property of India,
awarded a patent to Alva’s Education Foundation, Moodbidri, for its Hydrogen
Fuel Cell (HFC) technology. This technology, developed under the leadership of
Richard Pinto and implemented by Alva’s Institute of Engineering and
Technology, is now available for technology transfer.
Key Market Players
- Reliance
Industries Limited
- Gujarat
Alkalies and Chemicals Limited
- Indian
Oil Corporation Limited
- INOX-Air
Products Inc.
- DCW
Limited
- Larsen
& Toubro Limited
- Grasim
Industries Limited.
- Bhuruka
Gases Limited
- Air
Liquide India
- Tata
Chemicals Limited
|
By
Technology
|
By
Mode
|
By
Application
|
By Region
|
- Steam Methane
Reforming
- Membrane Cell
Technology
- Methanol Reforming
- Coal Gasification
- Others
|
|
- Petroleum Refinery
- Fertilizers
- Chemical & Petrochemical
- Metal Processing
- Automotive
- Energy
- Others
|
- West India
- North India
- South India
- East India
|
Report Scope:
In this report, the India Hydrogen Market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
- India Hydrogen Market, By Technology:
o Steam Methane Reforming
o Membrane Cell Technology
o Methanol Reforming
o Coal Gasification
o Others
- India Hydrogen Market, By Mode:
o Captive
o Merchant
·
India Hydrogen
Market, By Application:
o Petroleum Refinery
o Fertilizers
o Chemical & Petrochemical
o Metal Processing
o Automotive
o Energy
o Others
- India Hydrogen Market, By Region:
o West India
o North India
o South India
o East India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents in the India
Hydrogen Market.
Available Customizations:
India Hydrogen Market report with the given market
data, Tech Sci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
India Hydrogen Market is an upcoming report to be
released soon. If you wish an early delivery of this report or want to confirm
the date of release, please contact us at [email protected]