Hydrogen market to sustain growth despite global economic headwinds

This is supported by energy transition needs and decarbonisation targets.

The hydrogen market is expected to continue growth in 2023 despite economic challenges across the globe, GlobalData reported. 

In January 2023 alone, hydrogen production capacity is estimated to reach 4.5 million tonnes per annum (mtpa) by the end of the year. 

This reflects a 165% growth compared to 2022, underpinned by clean energy transition and decarbonisation goals, globally. 

Read more: ‘High’ green hydrogen production, consumption potential seen in Asia

“During 2022, over 393 deals related to hydrogen were closed, representing a significant increase compared to 277 deals registered in 2021. This shows an upward trend in the hydrogen market development, which could be decisive in achieving over 71 mtpa capacity worldwide by 2030,” Andres Angulo, Energy Analyst at GlobalData, said.

“However, the partnerships represented 66% of the deals last year, and the number of deals decreased after Q2 2022 to numbers even below those seen in the same quarter in 2021. This could have been due to the companies trying to strengthen their core business and diversify the investment risk given the global economic situation.”

In 2022, merger and acquisitions deals amounted to $24.4b, a 288% increase compared to 2021. Venture finance deals meanwhile grew to $3b from $595.2m.