Why Investing in Hydrogen and why NOW ?
The core of the hydrogen industry is a tiny part of the larger interested ecosystem.
The core of the hydrogen industry the 81 companies in the industrial gas and electrolyzer/fuel cell segments — account for more than one-third of membership but barely 2 percent of revenue of the companies reviewed, or about $117 billion in annual revenue versus more than $5 trillion across all companies. These smaller companies are incumbents in an industry that has not yet seen dramatic growth, with a lot of intellectual property and much to gain from the growing hydrogen economy. These companies will do well to partner across the value chain to help scale up.
The $3.4 trillion heft of the oil & gas (O&G) and transportation segments will drive the industry. Averaging $53 billion in annual revenue and accounting for nearly 5 percent of global GDP, the 66 O&G and transportation companies are aware of the potential disruption hydrogen can bring to their industries and are chasing its potential growth. From Total and Shell to Toyota and Hyundai, these companies are increasingly active in hydrogen and have long investment horizons, allowing them to invest across the hydrogen value chain with purpose.