Industry body India Hydrogen Alliance (IH2A) on Wednesday said it expects the domestic hydrogen equipment manufacturing and services market to reach USD 45-50 billion by 2030.
This market assessment includes all hydrogen production plant equipment, including electrolyser and balance-of-plant equipment, that can be deployed in India and exported from to countries in Asia, the Middle East and Africa, IH2A said in a report.
This will help build India as a supply chain hub for future green hydrogen projects, it said.
"IH2A estimates a USD 45-50 billion Indian hydrogen equipment manufacturing and services market by 2030," the report said.
The industry body has also projected a USD 36 billion regional equipment and services exports market, while USD 9-13.5 billion domestic equipment market size over the next seven years.
Of the USD 45-50 billion, 34 per cent share will be of electrolysers stacks, 62 per cent for balance of plant equipment and 4 per cent for specialist engineering services, as per the report.
"India has the potential to become a regional supply hub for hydrogen production plants, playing to its competitive position in engineering design, manufacturing and services," IH2A founding member and Chart Industries Chief Executive and President Jill Evanko said.
"This is a significant opportunity that will require large-scale manufacturing build out and investments, for electrolyser stack manufacturing and balance of plant equipment such as compressors, storage tanks, transformers, rectifiers, air separation units, and hydrogen pipeline infrastructure," Evanko said.
Project developers and equipment majors are waiting to hear from the government on demand aggregation and secured offtake for early projects before they commit large capex investments.
The estimated USD 45-50 billion equipment market opportunity is achievable and could turn India into a global supply chain hub in the developing green hydrogen economy, Evanko added.