World Hydrogen Demand to Reach 475 Billion Cubic Meters in 2013

Global demand for hydrogen is forecast to expand 3.4 percent per annum through 2013 to 475 billion cubic meters.  Demand will benefit as global petroleum refiners consume more hydrogen in their production of low sulfur fuels.  Favorable demand fundamentals for hydrogen also exist in chemical manufacturing, as well as in the production of semiconductors, float glass, metal components and food. These and other trends, including market share and product segmentation, are presented in World Hydrogen, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Petroleum refineries are by far the largest consumers of hydrogen, accounting for nearly 90 percent of global consumption in 2008.  Historically, most refinery consumption was captively produced during refining. However, the production of newer low sulfur, clean-burning fuels requires massive amounts of hydrogen for the hydrotreating of petroleum distillates, which is driving demand for merchant supplies.  Of the anticipated 73 billion cubic meters of increased global hydrogen demand projected through 2013, just under 84 percent will be consumed by refineries.  Merchant suppliers will supply 55 percent of the increased hydrogen demand by refineries.

Manufacturing and other (non-refining) hydrogen applications accounted for eleven percent of consumption in 2008, or 45 billion cubic meters. Chemical manufacturing (exclusive of ammonia and methanol production) accounted for six percent of global consumption; the remaining five percent was accounted for by other manufacturing and non-manufacturing applications.  Hydrogen is used in the production of semiconductors and glass, in the thermal treatment of metal components, and in the hydrogenation of processed foods. 

In 2008, North America led the world in hydrogen consumption -- the result of its huge economy and its stringent fuel emission standards. The Asia/Pacific region was a close second. More rapid growth in the economies of China, India, and other Asia/Pacific countries (excluding Japan, whose economy is already quite mature) as they nurture their emerging industrial bases will make this region the global leader in hydrogen consumption well before 2013.  Western Europe is third among the world’s hydrogen consumers.  The other developing regions, Latin America, Eastern Europe and the Africa/Mideast region, will also experience faster growth in hydrogen demand than the more mature economies of North America and Western Europe.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.