South Africa Hydrogen Market Analysis: Industry Market Size, Plant Capacity, Production, Operating Efficiency, Demand & Supply, End-User Industries, Sales Channel, Regional Demand, Company Share, Foreign Trade, Manufacturing Process, 2015-2034

The South Africa Hydrogen market demand stood at 2100 thousand tonnes in 2023 and is expected to grow at a CAGR of 3.2% during the forecast period until 2034. 

 

Hydrogen plays a pivotal role in the ammonia industry, as evidenced by the Haber-Bosch process that combines hydrogen and nitrogen to generate ammonia, a crucial component in fertilizers. Furthermore, hydrogen is essential in the methanol refining process, serving as a fundamental resource for diverse chemical products. Additionally, hydrogen is integral in the refining of crude oil, facilitating its transformation into more practical fuels. In the refining process, crude oil is introduced to facilities, where hydrogen is commonly integrated into the mixture. The refining of oil involves sulphur removal until it reaches acceptable levels for the desired fuel, with hydrogen forming bonds with sulphur, resulting in hydrogen sulphide that can be extracted at later stages in the refining process. Beyond these applications, hydrogen is currently utilized in various industrial processes and propels vehicles through fuel cells for electricity generation. Operators of natural gas-fired power plants are also exploring the potential use of hydrogen as a supplement or replacement for natural gas.

 

The hydrogen market in the South Africa is poised for substantial growth, primarily driven by its pivotal role in ammonia production. Ammonia, a crucial industrial chemical widely used in agriculture as a nitrogen fertilizer, relies on hydrogen in the indispensable Haber-Bosch process. This critical method for synthesizing ammonia entails the specific combination of nitrogen from the air with hydrogen. Moreover, hydrogen is anticipated to play a substantial role in the decarbonization efforts of high-polluting heavy industries such as cement and steel production. The burgeoning hydrogen market in South Africa is driven by a confluence of factors that underscore the country's commitment to sustainable energy solutions. A pivotal catalyst is the integration of renewable energy sources, particularly solar and wind power, recognizing hydrogen as a vital energy carrier capable of storing and transporting energy generated from intermittent renewables. The nation is actively investing in green hydrogen initiatives, employing electrolysis powered by renewables to align with global carbon reduction goals. Supportive government policies and incentives further propel the market, reflecting South Africa's dedication to a hydrogen economy as articulated in national development plans.  Industrial applications drive demand, with hydrogen serving as a crucial feedstock, fuel, and reducing agent in diverse industrial processes. International collaboration strengthens South Africa's position in the global hydrogen market, fostering partnerships that bring expertise, technology, and investment to accelerate the country's hydrogen initiatives. The transportation sector plays a pivotal role, as hydrogen emerges as a clean fuel for vehicles, including fuel cell vehicles and buses. Initiatives to establish a hydrogen infrastructure for transportation contribute significantly to the overall expansion of the hydrogen market, positioning South Africa at the forefront of sustainable energy transitions. South Africa's aspirations in the hydrogen sector are motivated both by its commitment to decarbonization objectives and a determination to foster economic growth and exports. The strategic focus on hydrogen is viewed as an opportunity to transform the country's industrial landscape, concurrently achieving emissions reduction targets by 2050 and addressing socioeconomic inequalities. Guiding these ambitions is the Hydrogen Society Roadmap (HSRM), which outlines specific targets for the nation to achieve by 2050. South Africa's vision includes the deployment of 10 gigawatts (GW) of electrolysis capacity in the Northern Cape by 2030 and the annual production of approximately 500 kilotons of hydrogen by 2030. Thus, South Africa Hydrogen market is likely to reach roughly 3000 thousand tonnes in 2034.

 

Based on the end-user industry, the South Africa Hydrogen market is segmented into Ammonia, Refining, Methanol, Fuel, and Others. However, Hydrogen volume goes in Ammonia industry which was about 40% in 2023.

 

Major player in the South Africa Hydrogen market is Sasol.  Other global players include Arkema SA, Solvay Peroxide, Aurora Plastics LLC, Formosa Plastics Corporation, Ineos, LG Chem, Occidental Petroleum Corporation, Orbia (Mexichem SAB de CV), SABIC, Shin-Etsu Chemical Co. Ltd., Westlake Corporation, and Others. 

 

Years considered for this report:

 

Historical Period: 2015- 2022

Base Year: 2023

Estimated Year: 2024

Forecast Period: 2025-2034

 

This report will be delivered on an online digital platform with one-year subscription and quarterly update.

 

Objective of the Study: 

 

• To assess the demand-supply scenario of South Africa Hydrogen which covers production, demand and supply of Hydrogen market in South Africa.

• To analyse and forecast the market size of South Africa Hydrogen   

• To classify and forecast South Africa Hydrogen market based on end-use and regional distribution.

• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Hydrogen market in South Africa.

 

To extract data for South Africa Hydrogen market, primary research surveys were conducted with Hydrogen manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for South Africa Hydrogen market over the coming years. 

 

ChemAnalyst calculated Hydrogen demand across the South Africa region by analysing the volume of Hydrogen consumed by the end-user industries and the forecast is calculated based on the growth rate of end-use industries. ChemAnalyst sourced these values from industry experts and company representatives and externally validated them by analyzing the historical sales data of respective manufacturers to determine the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst. 

 

 

Key Target Audience:

 

• Hydrogen manufacturers and other stakeholders

• Organizations, forums and alliances related to Hydrogen distribution

• Government bodies such as regulating authorities and policy makers

• Market research organizations and consulting companies

 

The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Hydrogen manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years, thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.

 

Report Scope:

 

In this report, South Africa Hydrogen market has been segmented into following categories, in addition to the industry trends which have also been detailed below: 

 

Attribute	Details
Market size Volume in 2023	2100 thousand tonnes
Market size Volume by 2034	3000 thousand tonnes
Growth Rate	CAGR of 3.2% from 2024 to 2034
Base year	2023
Estimated Year	2024
Historical Data	2015 – 2022
Forecast period	2025 – 2034
Quantitative units	Demand in thousand tonnes and CAGR from 2024 to 2034
Report coverage	Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Foreign Trade, Company Share, Manufacturing Process.
Segments covered	By End-Use: (Ammonia, Refining, Methanol, Fuel, and Others) By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope	Northern Cape, Western Cape, Eastern Cape, and Rest of South Africa
Pricing and purchase options	Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Available Customizations:

 

With the given market data, ChemAnalyst offers customizations according to a company’s specific needs.

 

In case you do not find what, you are looking for, please get in touch with our custom research team at sales@chemanalyst.com

Table of Content

 

1. Industry Market Size

It is an essential metric for market analysis, as it provides insights into the overall size and growth potential of Hydrogen market in terms of value and volume. 

 

2. Capacity By Company 

On our online platform, you can stay up to date with essential manufacturers and their current and future operation capacity on a practically real-time basis for Hydrogen.

 

3. Capacity By Location 

To better understand the regional supply of Hydrogen by analyzing its manufacturers' location-based capacity.

 

4. Plant Operating Efficiency

To determine what percentage manufacturers are operating their plants or how much capacity is being currently used. 

  

5. Production By Company [Quarterly Update]

Study the historical annual production of Hydrogen by the leading players and forecast how it will grow in the coming years.

 

6. Demand by End- Use [Quarterly Update]

Discover which end-user industry (Ammonia, Refining, Methanol, Fuel, and Others) are creating a market and the forecast for the growth of the Hydrogen market. 

 

7. Demand by Region

Analyzing the change in demand of Hydrogen in different regions, i.e., Northern Cape, Western Cape, Eastern Cape, and Rest of South Africa, that can direct you in mapping the regional demand. 

 

8. Demand by Sales Channel (Direct and Indirect)

Multiple channels are used to sell Hydrogen. Our sales channel will help in analyzing whether distributors and dealers or direct sales make up most of the industry's sales.

 

9. Demand-Supply Gap

Determine the supply-demand gap to gain information about the trade surplus or deficiency of Hydrogen.

 

10. Company Share

Figure out what proportion of the market share of Hydrogen is currently held by leading players across South Africa. 

 

11. Country-wise Export

Get details about quantity of Hydrogen exported by major countries. 

 

12. Country-wise Import

Get details about quantity of Hydrogen imported by major countries.

 

13. Manufacturing Process

Discover insights into the intricate manufacturing process of Hydrogen.