As the demand for more clean energy generation increases across the world, the Asia-Pacific region is leading the advancement of the hydrogen sector, as noted by a new report from the International Energy Agency. According to the latest analysis from the IEA, despite a wave of project cancellations across the world, the sector is still expected to grow over the coming years as more nations experience increased levels of demand for clean energy while also prioritizing decarbonization of the global energy market.
The IEA recently published its annual Global Hydrogen Review
The review notes that the expected growth of the hydrogen sector has reached a new and promising outlook, painting a picture of consistent growth led by the Asia-Pacific region. The report focused on several factors influencing growth across the hydrogen sector, with particular attention paid to accelerated developments in the emerging technologies around low-emissions hydrogen.
The demand for low-carbon hydrogen globally increased to almost 100 million tonnes in 2024, which is slightly higher than the previous year. Worryingly, the vast majority of this growth came from traditional energy projects using hydrogen as part of their generating processes, while not having sufficient measures in place to capture carbon emissions.
Analysis from the IEA notes that new projects are set to reach up to 37 million tonnes per year of hydrogen production by 2030, with investors keeping a close eye on the market’s fluctuating prices.
“Investor interest in hydrogen jumped at the start of this decade thanks to its potential to help countries deliver on their energy goals,” – IEA Executive Director Fatih Birol
According to the IEA’s Global Hydrogen Review, China is the nation that has become a dominant force in the hydrogen sector, and if the current market trends continue, China will continue to play a vital role in the adoption of the hydrogen sector in global energy markets.
China’s astonishing adoption of the hydrogen sector has boosted global clean energy supply
Decarbonizing the global energy market is a top priority as the sector is a main contributor to global greenhouse gas emissions. Hydrogen can assist in achieving the global ambitions of reducing emissions. China has become an all-encompassing force in the hydrogen market. At the moment, China accounts for 65% of global electrolyzer capacity that has been installed or reached a final investment decision.
In 2024, the Asia-Pacific hydrogen market reached an astonishing $6.05 billion, and the report from the IEA states that growth is expected to continue over the coming years, with expectations that the market will reach $109.19 billion by 2034. The report notes several factors that will influence market growth over the coming years, such as sustainability trends and investors’ confidence in the hydrogen market overall.
The growth of the hydrogen market has not been limited to the Asia-Pacific region
The hydrogen sector in other parts of the world has been growing as well, with Europe adopting the sector to reach clean energy and emission targets by the end of the decade. Spain’s 25 MW green hydrogen facility beside the Castellón refinery has been a prime example of the growth in Europe. The stage has been set for hydrogen to become the dominant force in renewable energy generation.
Sentiments over the renewable energy sector have shifted in recent years
It has taken an exceedingly long time for the renewable energy market to reach this new level of growth, but the time has finally come to do away with the harmful fossil fuel-based energy generation that has devastated the environment, leading to one climate disaster after the next. Europe will invest heavily in the hydrogen sector, attempting to match the growth displayed in the Asia-Pacific region. So, no matter which direction one might look, the hydrogen market is set to reach new heights in the coming years.
