1.1. Global Energy Challenge and Hydrogen

As industrialization spreads and living standards increase, energy demands continue to rise [1]. Currently, the majority of global power is produced by burning fossil fuels [2]. Despite its technological advancement, this method has a maximum efficiency of around 50%, contributes to nearly 35% of global greenhouse gas emissions, and has become more costly and less reliable due to recent fluctuations in oil prices. Therefore, ensuring a reliable energy supply and addressing climate change are two primary concerns for the future of the energy industry [3]. These concerns emphasize the necessity to find effective ways to reduce emissions while still meeting the energy needs essential for economic growth. [4]. Renewable energy sources, including wind, solar, microhydro, wave, geothermal, and biomass, offer potential solutions to the clean energy dilemma, although they present their own set of challenges [5, 6]. Using energy storage systems to store renewable energy can help incorporate these fluctuating, weather-dependent energy sources and maintain grid stability [7].

Hydrogen energy storage technology is proposed as an effective method to harness and utilize the world’s abundant yet intermittent renewable energy resources [8]. Hydrogen offers solutions to various important energy challenges. It provides a pathway to reduce carbon emissions in sectors like long-haul transport, chemicals, and iron and steel production, where significant emission reductions are challenging [8, 9]. Additionally, hydrogen contributes to improving air quality and enhancing energy security. Despite ambitious global climate targets, energy-related CO₂ emissions hit a record high in 2018 [10]. Outdoor air pollution also continues to be a significant issue, causing approximately 3 million premature deaths annually [11, 12]. Hydrogen is a versatile energy carrier. Existing technologies allow hydrogen to be used for producing, storing, transporting, and utilizing energy in diverse ways. A variety of sources, including renewable energy, nuclear power, natural gas, coal, and oil, can produce hydrogen. It can be transported either as a gas through pipelines or in liquid form by ships, akin to liquefied natural gas (LNG) [10, 11]. Furthermore, hydrogen can be converted into electricity and methane to power homes and industries and into fuels for vehicles such as cars, trucks, ships, and planes [9, 13].

Hydrogen can significantly enhance the contribution of renewable energy sources. It is particularly useful in managing the variable output from renewable sources like solar photovoltaics (PV) and wind, which often do not align with energy demand. Hydrogen is a leading solution for storing renewable energy, and it is emerging as the most cost-effective option for long-term storage of electricity spanning days, weeks, or even months. Hydrogen and hydrogen-based fuels can also transport energy over long distances, from areas rich in solar and wind resources like Australia or Latin America to energy-intensive urban centers thousands of kilometers away. Today, hydrogen is primarily used in oil refining and fertilizer production. For hydrogen to significantly impact clean energy transitions, it must also be adopted in sectors where it is currently almost nonexistent, such as transportation, building heating, and power generation [9].

1.2. Role of Hydrogen in Transportation

To achieve full decarbonization of road transportation, it is imperative to prioritize the advancement of alternative, low-carbon fuels and more efficient propulsion systems in long-term strategies. Electric-drive vehicle options include pure battery electric vehicles (BEVs), fuel cell electric vehicles (FCEVs), and plug-in hybrid electric vehicles (PHEVs). BEVs rely on electricity stored in their batteries, while FCEVs utilize hydrogen stored onboard and converted into electricity via a fuel cell. PHEVs combine a battery system with either an internal combustion engine (ICE) or a fuel cell system [14]. Both BEVs and FCEVs, along with battery/fuel cell-based PHEVs, are acknowledged as genuine zero-emission vehicles, emitting no CO₂ or local air pollutants during operation [14, 15]. A comparison of fuel cost between hydrogen and gasoline-based vehicles is outlined in Table 1. This study is based on the same models with a gasoline engine and a hybrid engine running for a 100-kilometer journey. A few models, i.e., Audi A2H2, Volkswagen Touran HyMotion 2004, Volkswagen Touran HyMotion 2007, KIA Borrego FCEV, KIA Sportage, Mazda, and Hyundai, have almost equal or lower costs of fuel, whether on gasoline or hydrogen. Once hydrogen is produced locally, assuming a 30% reduction in the price of production, the estimated cost of using hydrogen as a fuel is far lower than that of gasoline for any mentioned model.

1.3. Role of Hydrogen in Domestic Power

Fuel cell heaters, utilizing hydrogen as an energy source, represent an innovative approach to home heating. Unlike traditional heaters that combust gas or oil to produce heat, fuel cell heaters react hydrogen with oxygen, generating both electricity and heat [18]. This process does not involve burning hydrogen. An advantage of hydrogen-based heating is the potential to utilize the existing gas network for its transportation and leverage conventional technologies for storage [15, 18]. This approach is more cost-efficient, reducing the need for expensive new infrastructure for hydrogen transmission and distribution, and minimizes disruptions. Figure 1 presents a cost comparison of various hydrogen heating technologies for households.

From Figure 1, it is clear that hydrogen produced by electrolysis in fuel cell is the costliest option for household heating, reaching about 4142 USD. Any technology when partnered with electrolysis bump up the cost while using the same technology with steam methane reforming and carbon capture reduces the expense. Table 2 illustrates the comparison between the current demand for natural gas and the theoretical demand for hydrogen (H₂) for heating in buildings across seven countries. For hydrogen to replace natural gas in heating systems, its usage in current heating equipment must be practical, and its production, transmission, and distribution costs should be competitive with natural gas, the current standard for heating. This table projects natural gas demand for space heating and hot water production following improvements in building insulation as outlined in the Paris-compatible pathway. The “indicative demand” suggests the theoretical hydrogen demand, assuming that its production, transmission, and distribution are competitively priced. It also takes into account the typical lifespans of existing heating equipment, without considering premature equipment replacement. From this data, it is evident that hydrogen-based heating technologies still face significant challenges in competing with natural gas on a global scale, as the indicative demand for hydrogen is considerably lower than the current global demand for natural gas. Comparison between the demand for natural gas vs. theoretical hydrogen for domestic heating is depicted from Figures 2, 3, and 4 [13].

1.4. Role of Hydrogen in Power Generation

Hydrogen and its derivatives are increasingly impacting the power generation sector. Their roles include enhancing flexibility in power generation, providing off-grid power solutions, and offering long-term energy storage. A table details these roles along with current and emerging demand sectors, plus the future potential or challenges in deployment. The primary challenges in implementing hydrogen-based products are the competition with other more adaptable and feasible power generation methods, substantial initial investments, and significant energy loss during storage conversion. However, future deployment opportunities such as integrating variable renewable energy into the power system, serving as an ecofriendly alternative to diesel generators, and offering low capital expenditure (CAPEX) for storage, position hydrogen and its derivatives as promising options in power generation. Table 2 summarizes these prospects, challenges, and opportunities in hydrogen for power generation.

1.5. Role of Hydrogen in Reducing GHG Emissions

The charts depict the full lifecycle greenhouse gas (GHG) emissions of battery and fuel cell electric vehicles (EVs) registered in 2021 (Figure 5(a)), with a projected usage period of 15 to 18 years (Figure 5(b)). For battery EVs, GHG emissions from “fuel/electricity” production mainly arise from coal and natural gas used in power generation. This total also includes GHG emissions from manufacturing solar panels and wind turbines that generate renewable electricity for battery EVs, as well as losses in electricity transmission and EV charging. In the second chart, the increasing integration of renewable energy by 2030 significantly improves the lifetime climate performance of vehicles registered that year. Consequently, the life-cycle GHG emissions for both battery and hydrogen fuel cell EVs of 2030 models are substantially lower than those of 2021 models. In contrast, the GHG emissions from gasoline, diesel, and natural gas vehicles remain almost unchanged. Over time, the environmental advantages of using EVs compared to gasoline, diesel, and natural gas vehicles become more pronounced [19].

This paper discusses the current state and future projections of global hydrogen demand, evaluates global strategies for implementing hydrogen energy across various sectors, identifies key consumers of hydrogen based on different applications, discusses challenges faced in launching hydrogen initiatives, and proposes possible solutions. Additionally, it presents an approach for the commercial launching of hydrogen-based products, including marketing strategies and success metrics. By addressing these objectives, this review is aimed at providing insights into the pivotal role of hydrogen in the global energy transition and offering recommendations for effectively harnessing its potential for a sustainable future.

2.1. Existing Global Hydrogen Demand

Hydrogen is becoming more and more important for clean and efficient energy solutions as countries worldwide try to tackle climate change and reduce their use of fossil fuels. It is used in many industries, like transportation and manufacturing, to help cut down on pollution and make energy supplies more secure. With the urgent need to address climate change, hydrogen is seen as a crucial part of shifting to cleaner energy sources. Figures 6(a), 6(b), and 6(c) provide a comprehensive overview of the global hydrogen market, showing the geographic distribution of hydrogen consumption in 2020 (a), the top importers of hydrogen in 2021 (b), and the leading exporters of hydrogen in 2021 (c).

In Figure 6(a), we see a breakdown of where hydrogen was consumed around the world in the year 2020. China stands out as the largest consumer, using 33% of the total hydrogen consumed globally. Following closely behind are the Middle East and Europe, each accounting for approximately 20.6% of the consumption. The United States also plays a significant role, accounting for 15.5% of the total consumption. Other regions, including Asia, Africa, and South/Central America, collectively make up 10.3% of the global hydrogen consumption. This distribution of hydrogen consumption provides insights into its versatile usage across regions globally. It highlights regions where hydrogen plays a critical role in various industries, facilitating strategic planning and investment in hydrogen infrastructure for its continued growth and development worldwide. Figure 6(b) describes the top importers of hydrogen in 2021. China remains a significant trader, with 32% of imports. Japan (19%) and Germany (12%) are other major importers, followed by South Korea (10%), the United States (8%), and Taiwan (7%). The Netherlands also appears on the list with 6%. Figure 6(c) outlines the top exporters of hydrogen in 2021. The United States emerges as a key exporter with 20% of the market share, closely followed by Germany at 21%. China’s exports account for 32%, which is substantial but not surprising given its leading role in imports as well. Japan, Norway, and Brazil represent 10% of exports together, with Malaysia at 9% and Qatar at 8%. These charts collectively imply that China is a central figure in the global hydrogen market, with significant stakes in all three trade sectors: consumption, importing, and exporting. European countries and the United States also play vital roles, indicating a diverse and global spread of hydrogen energy commerce. The data establishes the strategic importance of hydrogen as an energy source in these economies and predicts a growing trend in the shift towards alternative energy sources. Overall, these observations highlight the pivotal role of hydrogen in the transition to cleaner energy and highlighting the importance of continued investment in hydrogen infrastructure for its global expansion and development.

2.2. Projection of Hydrogen Demand (2030-2050)

As we explore the future landscape of hydrogen utilization, it is important to examine the projected demand trends. Figure 4 shows the hydrogen demand potential in terawatt-hours (TWh) across various sectors for 2030 and 2050 in the US and Europe. It indicates significant growth in the total hydrogen share of final energy demand by 2050, particularly in Europe. The existing industry feedstock stays stable across the years. The transportation sector sees an increase in hydrogen demand, indicating a shift towards hydrogen-fueled transport. Hydrogen use for residential and commercial buildings is projected to rise, although it remains relatively small compared to other sectors. For power generation and grid balancing, the demand is expected to increase, reflecting hydrogen’s role in energy storage and managing intermittent renewable energy supplies. New industry feedstock shows moderate growth, and the suggested new applications for hydrogen in the future are depicted in Figure 7 [27, 28].

The US shows a significant anticipated increase in hydrogen demand for existing industry feedstock by 2050 compared to Europe. Europe seems to place a greater emphasis on hydrogen for transportation and power generation by 2050, likely reflecting more aggressive policies towards decarbonization and renewable energy integration. By 2050, both Europe and the United States expect a significant increase in the amount of hydrogen required across numerous industries. This indicates that developing a cleaner energy system is important to both regions, and hydrogen is one of them. It indicates that awareness of the significance of hydrogen for the transition to a greener future is beginning to spread. Both regions are preparing for the widespread use of hydrogen in various applications, including manufacturing, power plants, and automobiles. This aligns with global efforts being made by nations to combat climate change and promote sustainability. This suggests that hydrogen has the potential to significantly improve both the health of our planet and the strength of our economies. Variations in hydrogen demand over time and between countries are influenced by a number of factors, including economic situations, technological breakthroughs, government regulations, and the degree to which each region is committed to addressing climate change. Variations in demand trends point to the need for a planned response to environmental problems, energy security, and the viability of hydrogen production and use. It implies that areas are meticulously organized to tackle environmental issues, meet their energy requirements, and assess the viability of producing and utilizing hydrogen. These changes in consumer demand demonstrate a deliberate attempt to adopt greener energy sources and progress towards a more sustainable future. Figure 8(a) presents the global hydrogen demand by sector from 2020 to 2050 under the announced pledges scenario. The demand rises gradually, with the industry and transport sectors showing the most significant increase. This scenario likely reflects the current pledges by countries for hydrogen use, indicating a consistent gradual adoption with their stated goals. Figure 8(b) illustrates the global hydrogen demand by sector from 2020 to 2050 under the net-zero emission scenario [29]. Compared to the announced pledges scenario, this one shows a more obvious growth, especially after 2030, as efforts to reduce emissions intensify. The most substantial increases are observed in power and transport sectors, with significant demand in grid injection for energy storage, reflecting an ambitious drive towards a carbon-neutral future.

These figures highlight the growing role of hydrogen as an energy carrier across multiple sectors, with significant increases anticipated in response to climate goals and the transition towards low-carbon energy systems. The different divergent paths demonstrate the significant impact of current policy decisions and commitments on the global integration of hydrogen into our energy mix. The disparities highlight the crucial role that present-day policy choices will play in shaping the future energy landscape.

5.1. Production Costs

Reducing hydrogen production costs is critical for its emergence as a viable energy alternative. In Japan, the cost of generating power solely from hydrogen is around yen 97.3/kWh and yen 20.9/kWh for a 10% hydrogen blend with regasified LNG [30]. However, hydrogen imports in Japan, regardless of their production method (gray, blue, or green), are not expected to be cost-competitive with LNG or coal for power generation in the near future, considering the forecasted prices up to 2035. In the US, producing hydrogen from renewable sources is currently around $5 per kilogram, influenced mainly by the costs of renewable power equipment, electrolyzers, and hydrogen compressors. The US Department of Energy (DOE) aims to reduce hydrogen costs by 80% to $1 per kilogram, to expand its market, including in sectors like steel manufacturing and heavy-duty trucks. Technological advances and economies of scale could make hydrogen from solar photovoltaic (PV) competitive with that from natural gas, as per the IEA’s Roadmap to net zero by 2050. This roadmap suggests a scenario where hydrogen from renewables could drop to $1.30 per kilogram by 2030 in regions with rich renewable resources and to $1 per kilogram in longer term, making it competitive even without carbon capture and sequestration (CCUS). Furthermore, the costs of automotive fuel cells and electrolyzers are expected to decrease significantly, although a short-term rise in costs is possible due to high demand outpacing supply [30].

To mitigate the high production costs of hydrogen and make it more competitive, efforts focus on technological advancements and economies of scale. Strategies include investing in research and development to improve the efficiency of renewable power equipment, electrolyzers, and hydrogen compressors. Additionally, initiatives are aimed at increasing the deployment of renewable energy sources like solar photovoltaic (PV) to reduce the overall cost of producing hydrogen. These measures, along with anticipated reductions in the costs of automotive fuel cells and electrolyzers over time, are expected to contribute to making hydrogen a cost-competitive energy alternative.

5.2. Infrastructure

One of the major barriers to widespread adoption of green (and blue) hydrogen in the US is the slow development of low-carbon hydrogen infrastructure [31]. While large megaprojects are underway in Australia, the Middle East, the UK, Europe, and Africa, the US is lagging, despite having significant potential for production and consumption. Hydrogen prices for consumers depend on the availability and usage of refueling stations, as well as the competition from other fuels and the growing market share of battery electrification, particularly suited for personal vehicles [32]. Coordinated efforts involving federal, state, and local governments; industry; and investors are needed to address this. Achieving the Biden administration’s green hydrogen targets would necessitate substantial investments in renewable energy and power grid infrastructure to connect renewable power sources to green hydrogen production facilities.

As was previously said, there are logistical issues with the growing production of clean hydrogen for the transportation system, particularly in Europe. Several European countries are thinking of using their current gas pipelines for the transportation of hydrogen as a solution to this problem. Even though hydrogen may shorten the lifespan of pipelines, it is still possible to repurpose current infrastructure as long as pressure swings are controlled, and operating pressures are maintained within safe bounds. There are financial benefits to using existing pipelines for hydrogen transport; nevertheless, careful evaluations are required to ascertain whether a certain pipeline is suitable for hydrogen use. Careful consideration must be given to a number of aspects, such as the likelihood of leaks, detection techniques, the impact of hydrogen on pipeline integrity and end users, corrosion hazards, maintenance requirements, and precise gas flow metering. Utilizing existing infrastructure is predicted to result in significant cost savings compared to building new pipes. Although dedicated pipelines for the transportation of hydrogen are viable for moderate amounts and short distances, their implementation can be expensive. In an effort to cut costs and solve the difficulties related to the production and transportation of hydrogen, a number of research projects and continuing research activities are investigating ways to make the most of the infrastructure that already exists. These projects include integrating hydrogen into the natural gas infrastructure and repurposing pipes that are not being used for the transportation of hydrogen, with a special emphasis on parallel or disused pipelines that present excellent repurposing options [33–35].

5.3. Scaling Up to Industrial Applications

Scaling up is a major challenge for any new technology, including green hydrogen. Transitioning from small-scale demonstrations to large-scale industrial applications involves overcoming scientific, technological, logistical, economic, and sometimes political challenges. A 2020 Material Economics report highlighted that grid expansion significantly impacts the adoption speed of green hydrogen. Investment reluctance due to the unproven nature of the technology is a concern, particularly regarding capital expenditure (capex) and operational expenditure (opex). Europe, with a political climate more conducive to green hydrogen projects, is making strides in this area, supported by initiatives like the European Battery Alliance and the Clean Hydrogen Alliance. The EGHAC, backed by Breakthrough Energy and Bill Gates, offers financial and reputational support, potentially accelerating the adoption of green hydrogen in often a conservative energy industry.

To overcome the challenge of scaling up green hydrogen technology, strategies include fostering supportive political environments, increasing investment confidence, and investing in research and development to improve efficiency and affordability. Collaboration through initiatives like public-private partnerships and industry alliances is key to accelerating the widespread adoption of green hydrogen.

5.4. Regulatory

The absence of specific regulations and incentives is currently hindering the development of a clean hydrogen industry in the US. To foster growth, collaboration between the government and industry is necessary to ensure regulations do not hamper investment. The US lacks defined standards for labeling hydrogen as green or setting acceptable carbon limits for blue or “low-carbon” hydrogen. Developers, therefore, must be cautious to not exclude themselves from markets inadvertently. This situation increases engineering time and costs and could reduce operational efficiency, making hydrogen more expensive for consumers. Ideally, the US should collaborate with the European Union and Asian countries to establish global standards for hydrogen, facilitating a traded market similar to crude oil and LNG. Intending to mitigate the regulatory barriers that obstruct the clean hydrogen industry in the US, collaboration between government and industry is essential to establish clear standards and incentives. International cooperation can further facilitate the development of global hydrogen standards, promoting investment and market efficiency.

5.5. Attracting Investors

Despite the shared goal of promoting renewable energy, there are concerns that widespread adoption of green hydrogen might inefficiently divert resources from direct electricity generation. The International Renewable Energy Agency estimates that achieving a green hydrogen-driven energy mix would require increasing green hydrogen production by up to 158.3 million tons per year. This effort would necessitate building 2,243 GW of onshore wind capacity annually, over four times the existing global capacity. This raises efficiency concerns at a continental scale: the logic of investing in renewables for green hydrogen versus direct investment in renewable energy sources. Currently, there is no established market for green hydrogen in the US or elsewhere, and developers face challenges in managing market risk exposure. For green hydrogen projects to be bankable, they typically need long-term, fixed-price offtake contracts with reliable off-takers, structured on a take-or-pay basis, akin to early LNG projects [30].

To alleviate concerns about resource diversion from direct electricity generation, it is crucial to balance investments in green hydrogen and renewable energy sources while attracting investors. Collaborative efforts are needed to establish a reliable market for green hydrogen, offering long-term, fixed-price contracts to mitigate market risks and attract investors. Prioritizing the development of renewable energy infrastructure can further bolster investor confidence and support the growth of both sectors simultaneously.

6.1. Core Aspects of Hydrogen Marketing

While hydrogen holds considerable promise, there are substantial challenges in commercialization and marketing that must be tackled for it to fully realize its potential in powering humanity. After overcoming the technological obstacles, it is crucial to prepare and develop the market for hydrogen. Our suggestion is to implement a dual approach of market push and demand-pull strategies concurrently. In order to effectively meet market demand, a push-pull strategy involving both proactive and reactive measures is being implemented in the hydrogen supply chain and marketing. While the pull strategy focuses on meeting customer demand, the push strategy pushes products into the market. Here is how to build up a hydrogen push-pull strategy:

6.2. The AIDA Model for Hydrogen

The AIDA model, an established marketing tool, is effectively use to understand effect of an action which may range from awareness to behavioral change (buying behavior). The first step, attention, involves highlighting hydrogen’s potential, introducing stakeholders and end user about the concept of sustainable energy solutions. Next, the interest phase focuses on presenting detailed strategies and initiatives from various countries and industries, thereby creating an informative and engaging narrative. In the desire phase, the model emphasizes the economic, environmental, and technological benefits of hydrogen, clarifying its advantages and promoting its adoption. Finally, the action phase involves a clear call for participation from global entities in the hydrogen initiative, underscoring the role of hydrogen in shaping a sustainable energy future. Overall, the AIDA model, seamlessly applied to hydrogen, catalyzes awareness, engagement, and enthusiastic participation in the quest for a sustainable energy in the future. Figure 10 shows the general schematic of an AIDA model.

The AIDA model for hydrogen is analyzed and elaborated in Table 6.

In the lagged effect, sometimes, consumers do not act immediately after receiving a message. It delayed the response to a marketing communication campaign. It usually takes several exposures before a consumer completely processes the message. This delay sometimes complicates the measurement of a campaign’s current impact. For a novel product like hydrogen, this phenomenon can be common. However, the campaign should focus on involving more stakeholders and addressing the public perception that hydrogen is a safe and cost-effective energy source. Significant perceived concerns about hydrogen need to be uncovered. Focus groups could be used as a starting point. For example, reactions to hydrogen might be unfavorable since individuals might be concerned about the flammability or explosiveness of hydrogen. An educational campaign might need to be developed to reduce these fears if they are unwarranted or overstated. As a third step, marketing research will need to be conducted periodically to keep consumers moving through the AIDA steps. It is suggested that governments might work to fund and otherwise support this research, as it will be ongoing and take several years and resources.

6.3. Developing Marketing Strategies for Hydrogen Business

Developing effective marketing strategies for hydrogen business ventures is very important. By following a structured approach, businesses can navigate the complexities of the market and position themselves strategically for success. The journey begins with defining the business’s overarching mission and objectives, aligning them with the broader vision of promoting hydrogen-based solutions. Subsequently, a thorough situation analysis, employing SWOT (strengths, weaknesses, opportunities, and threats) methodology, enables businesses to gain a comprehensive understanding of their internal capabilities and external market dynamics. Armed with this insight, the next step involves identifying opportunities within the market landscape, pinpointing areas where the business can capitalize and differentiate itself effectively. Through these strategic steps, businesses can lay a solid foundation for crafting shaped marketing strategies that resonate with target audiences and drive growth in the growing hydrogen sector.

6.4. Market Segmentation Analysis

Market segmentation analysis provides valuable insights into the diverse factors shaping the global hydrogen market. By categorizing market dynamics based on various criteria, businesses can identify growth opportunities and tailor their strategies to meet evolving consumer demands.

6.5. Global Hydrogen Market Dynamics

Understanding the dynamics driving the global hydrogen market is essential for stakeholders seeking to capitalize on emerging opportunities and navigate challenges. This section explores the key growth drivers, challenges, and trends shaping the landscape of the hydrogen market on a global scale.

6.6. 5 P’s Strategy in Business Area

6.7. Planning and Measuring Success of Hydrogen Business

Before diving into the specifics of planning and measuring success in the hydrogen business, it is crucial to establish the goals and objectives that guide these efforts. This section outlines the strategic understanding of desired outcomes and sets the stage for discussing short-term and long-term goals.