Global Brown Hydrogen Market Insights Forecasts to 2033

• The Global Brown Hydrogen Market Size was Valued at USD 29.6 Billion in 2023
• The Market Size is Growing at a CAGR of 4.48% from 2023 to 2033
• The Worldwide Brown Hydrogen Market Size is Expected to Reach USD 45.9 Billion by 2033
• Europe is Expected to Grow the fastest during the forecast period.

The Brown Hydrogen Market Size is Anticipated to Exceed USD 45.9 Billion by 2033, Growing at a CAGR of 4.48% from 2023 to 2033. The impact of the industrial boom, the era of coal gasification, initial attempts at energy growth, and increased awareness of environmental concerns can all contribute to market expansion.

BROWN HYDROGEN MARKET REPORT OVERVIEW

Brown hydrogen is produced through gasification, which involves heating carbonous materials into a gas. This extraction technique converts coal into gas, resulting in enormous amounts of carbon emissions emitted into the environment. Brown hydrogen is mostly created through the gasification of hydrocarbon-rich fuels, which emit CO2 into the atmosphere as a byproduct. The gasification process transforms coal into its chemical ingredients, including methane gas. Coal is subjected to oxygen and hot steam at high pressures and temperatures. Gasification systems use steam and oxygen to partially oxidize coal at high temperatures and pressures. This produces synthesis gas, which is a mixture of carbon monoxide (CO), hydrogen, carbon dioxide, and some steam. The synthesis gas, also known as syngas, undergoes additional interaction with water to improve hydrogen output. Following isolation, the gas can be cleaned conventionally to extract hydrogen and the high-concentration carbon dioxide stream, which is then disposed of.

Cheap raw materials, lower production costs, and raw material availability are all factors driving the brown hydrogen industry. Furthermore, the alternate methods of producing hydrogen are more expensive. For example, green hydrogen has a higher production cost than brown hydrogen. In addition, the brown hydrogen manufacturing method, namely coal gasification, is extensively established, particularly in Asia-Pacific. China is the world's leading producer of hydrogen. Still, the vast majority of brown hydrogen is produced from fossil fuels, with coal accounting for 62% of feedstock against 18% globally. Only 4% of China's hydrogen is produced through electrolysis, which converts water to oxygen and hydrogen.

Report Coverage

This research report categorizes the market for the global brown hydrogen market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global brown hydrogen market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global brown hydrogen market.

DRIVING FACTORS:

The increased demand for ammonia production can contribute to market growth.

Brown hydrogen, produced by coal gasification, can contribute to ammonia manufacturing by creating hydrogen, which is subsequently purified and mixed with nitrogen to form ammonium. We anticipate a nearly 40% rise in ammonia production. The International Fertilizer Association cited economic and population growth as the primary drivers of this spike. As a result, the increasing demand for ammonia production is driving the brown hydrogen industry.

RESTRAINING FACTORS

The high emission of the carbon footprint of coal gasification could hinder market growth.

The huge environmental impact of coal gasification stifles the market. The growing adoption of green hydrogen is likely to limit the market growth.

Market Segmentation

The brown hydrogen market share is classified into technology and application.

The coal gasification without carbon capture storage segment has a significant market share.

Based on technology, the brown hydrogen market is classified into coal gasification with carbon capture storage, and coal gasification without carbon capture storage. The coal gasification without carbon capture storage segment has a significant market share. In terms of volume, coal gasification without carbon capture and storage took the lead during the predicted time due to its lower cost compared to other technologies. Currently, there are an immense number of coal gasification plants without carbon storage for hydrogen production, mainly in China and the Asia Pacific region. Coal gasification without carbon capture storage technology is cost-effective, driving up demand for hydrogen generation.

The chemical and petrochemical segment held the largest market share by application throughout the anticipated period.

Based on application, the brown hydrogen market is classified into chemicals & petrochemicals, iron and steel, and others. The chemical and petrochemical segment held the largest market share by application throughout the anticipated period. This is due to the widespread use of brown hydrogen in the chemical industries. Petrochemicals could use climate-friendly hydrogen and CO2 to produce climate-neutral products.  China, India, Russia, the United States, Indonesia, Saudi Arabia, and other countries are major producers of brown hydrogen worldwide. The demand for brown hydrogen as an additional reducing agent in blast furnaces is driving up demand in the iron and steel industries as well.

Regional Segment Analysis of the Global Brown Hydrogen Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is having the biggest share of the global brown hydrogen market throughout the forecast period.

North America will account for a sizable portion of the global market during the projected period, owing to the region's increasing demand for sustainable energy sources. A tax credit was chosen due to its proven track record, multiple decarbonized hydrogen applications, unexpected cost trajectory, and concerns about carbon leakage and job losses driving growth in this region. North America leads the brown hydrogen market growth due to its strong technological foundation and early adoption of new developments. The region has a developed customer base and a strong R&D ecosystem can increase the demand of the brown hydrogen market over the forecast period.

The Europe is fastest growing region during the forecast period.

Europe is going to experience substantial growth during the anticipated timeframe. The increasing proportion of cumulative emission reductions in the net zero emissions scenario demonstrates hydrogen's importance. Europe is a promising area for brown hydrogen market expansion. Investments in renewable energy and conservation efforts are driving the need for brown hydrogen technologies.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global brown hydrogen market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companie

• Saudi Aramco
• Kawasaki Heavy Industries
• Limited
• Iwatani Corporation
• Shell Japan Limited
• Electric Power Development Co. Limited
• Bloom Energy Corporation
• Air Products and Chemicals
• Incorporated
• Air Liquide S.A.
• Sasol Limited
• Sinopec Limited
• J-Power Systems
• Others

Key Market Developments

• In July 2021, Shell launched Europe's largest PEM green hydrogen electrolyze, which will generate green hydrogen at Shell's Energy and Chemicals Park Rheinland. The European Commission funds the fully operational plant as part of the Refine European collaboration.

• In March 2021, In Australia, Kawasaki and his colleagues began manufacturing hydrogen from coal. In a $388 billion (A$500 billion) pilot project in Australia, Japanese-Australian collaboration has started manufacturing hydrogen from brown coal.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global brown hydrogen market based on the below-mentioned segments: 

Global Brown Hydrogen Market, By Technology

• Coal Gasification With Carbon Capture Storage
• Coal Gasification Without Carbon Capture Storage

Global Brown Hydrogen Market, By Application

• Chemicals & Petrochemicals
• Iron and Steel
• Others

Global Brown Hydrogen Market, By Regional

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa