Domestic hydrogen equipment market ready to soar
The India Hydrogen Alliance (IH2A) foresees a US$45-50 billion domestic hydrogen equipment market by 2030, encompassing all equipment for hydrogen production plants in India and export. This vision aims to position India as a key supply hub for green hydrogen projects.
Additionally, the report projects a $36 billion regional exports market and a domestic equipment market ranging from US$9-13.5 billion over the next seven years. Electrolyser stacks will contribute 34% to this market, balance-of-plant equipment 62%, and specialist engineering services 4%.
Image Source: Shutterstock
The India Hydrogen Alliance (IH2A) recently announced its anticipation that the domestic market for hydrogen equipment manufacturing and services will likely surge to a value ranging between US$ 45 billion and US$ 50 billion by the year 2030. IH2A’s assessment of this market encompasses a broad spectrum, encompassing equipment for hydrogen production plants, such as electrolyzers and balance-of-plant components, which can be utilized within India as well as exported to various countries across Asia, the Middle East, and Africa. This insightful projection was disclosed in a report by IH2A.
This will contribute to India’s emergence as a pivotal supply chain hub for forthcoming green hydrogen initiatives, as stated in the report. According to the report, IH2A foresees a robust Indian market for hydrogen equipment manufacturing and services, estimated at US$ 45-50 billion by 2030.
The industry body has additionally outlined a significant regional export market for equipment and services valued at US$ 36 billion, along with a domestic equipment market expected to range from US$ 9 billion to US$ 13.5 billion over the next seven years.
Out of the anticipated US$ 45-50 billion market value, the report indicates that electrolysers stacks will constitute 34%, the balance of plant equipment will make up 62%, and specialist engineering services will represent 4%.
Jill Evanko, the Chief Executive and President of Chart Industries and a founding member of IH2A, commented, “India possesses the potential to evolve into a regional supply hub for hydrogen production facilities, leveraging its strong position in engineering design, manufacturing, and services.”
This presents a substantial opportunity necessitating substantial investments and the expansion of large-scale manufacturing. It applies to the manufacturing of electrolyser stacks and various components for the balance of plant equipment, including compressors, storage tanks, transformers, rectifiers, air separation units, and hydrogen pipeline infrastructure, as highlighted by Evanko.
Project developers and major equipment manufacturers are keenly awaiting government initiatives related to demand aggregation and secure project off-take agreements for early-stage ventures before they commit substantial capital investments. According to Evanko, the envisioned US$ 45-50 billion equipment market opportunity is indeed attainable and has the potential to position India as a pivotal global supply chain hub in the burgeoning green hydrogen economy.