Hydrogen Technology Testing, Inspection, and Certification Market is segmented By Service Type (Testing, Inspection, Certification), By Testing Type (....
Market Size in USD Bn
CAGR17.9%
Study Period | 2024 - 2031 |
Base Year of Estimation | 2023 |
CAGR | 17.9% |
Market Concentration | High |
Major Players | SGS SA, Bureau Veritas SA, Intertek Group plc, DEKRA SE, TÜV SÜD and Among Others. |
The Global Hydrogen Technology Testing, Inspection, and Certification Market is estimated to be valued at USD 6.1 Bn in 2024 and is expected to reach USD 24.4 Bn by 2031, growing at a compound annual growth rate (CAGR) of 17.9% from 2024 to 2031. The increasing demand for clean energy to reduce carbon emissions along with supportive government policies and investments are driving the need for hydrogen technology. The hydrogen technology testing, inspection and certification market is expected to witness significant growth over the coming years. The industry is shifting towards the adoption of hydrogen as an alternative to fossil fuels. This is increasing the need for quality testing, inspection and certification services to ensure hydrogen facilities and equipment meet safety standards. Further technological advancements in electrolysis and fuel cells will also contribute to the growing demand for related testing services.
Market Driver - Rising Demand for Clean Energy Resources, Including Hydrogen, to Decarbonize Industries.
With growing concerns over climate change and global efforts to reduce carbon emissions, transitioning to clean and renewable sources of energy has become a top priority for governments and industries across the world. One such promising clean technology that is gaining significant attention is hydrogen. As one of the most abundant elements on earth, hydrogen has the potential to help countries and organizations lower their carbon footprint in a sustainable way. It can be used as an alternative to fossil fuels in multiple hard-to-abate sectors like heavy-duty transportation, steel and chemical industries where direct electrification or use of battery-based solutions is not feasible.
Many experts believe that large-scale blending and use of hydrogen, especially green hydrogen produced via renewable electricity, can help substantially cut carbon emissions from these emission-intensive industries. This is turning the focus towards developing reliable infrastructure and supply chains for mass production and distribution of hydrogen on an industrial level. However, as the hydrogen economy is still in a developing and expanding stage, it is important to have robust testing, inspection and certification processes in place to ensure that hydrogen equipment, components and systems utilized in industrial projects perform as per the desired safety, quality and reliability standards.
Strict quality control and compliance with technical specifications would be critical for building customer confidence and trust in emerging hydrogen technologies. It would also help address potential risks and prompt remedial action wherever needed to advance the development of hydrogen applications in a responsible manner. As more companies proactively work on integrating clean hydrogen into their processes and transitioning their plants to run on hydrogen, the demand for third-party certification services by experts is expected to steadily rise in the coming years. This indicates promising prospects for hydrogen TIC providers to play an active role in enabling a smooth shift to hydrogen-based systems.
Market Driver - Increasing Investments by Governments and Industries in Hydrogen Technologies, Especially in Transportation and Power Generation
With decarbonization emerging as an urgent global priority, governments around the world have been rolling out ambitious policies and injecting large funding to drive the commercialization of green technologies like hydrogen. Major economies in both developed and developing world have announced multi-Bn dollar investment plans dedicated for research, infrastructure development and demonstration projects in the hydrogen sector. On the industry front as well, leading energy and transportation companies have substantially increased their capital expenditure towards building fuel cell vehicles, hydrogen electrolyzers, refueling stations and exploring options of hydrogen blending or co-firing in gas pipelines and power plants.
This rising tide of investments is a clear sign that hydrogen is increasingly being viewed as a key pillar of long-term zero-emission strategies, especially in hard-to-abate domains of transportation and power generation. In transportation, countries worldwide are targeting commercial roll-out of fuel cell vehicles and scaling up of hydrogen refueling infrastructure to provide a cleaner alternative to conventional vehicles. Moreover, leveraging hydrogen's ability to store and transport energy is seen as an important way to boost flexible renewable power generation capacity and enhance grid reliability. With billons of dollars committed towards deploying innovative hydrogen projects across diverse applications and geographies, demand for experienced technical experts is expected to accelerate.
Meeting stringent certification requirements would be critical for new hydrogen systems and assets to get necessary approvals and safely deliver low-carbon operations. This presents a solid business case for TIC companies to grow their footprint and specialist skills alongside expanding hydrogen value chains. As more funding flows in and players from different sectors join the hydrogen economy, certification services are poised to play a key facilitating role in building confidence and credibility around hydrogen's viability as a mainstream energy alternative of the future.
Market Challenge - High Cost and Complexity of Infrastructure Development for Hydrogen Storage and Transport Challenges Large-Scale Deployment
The development of infrastructure for large-scale hydrogen storage and transport presents major economic and technical challenges for the growth of the hydrogen technology testing, inspection, and certification market. Setting up the necessary pipelines, storage tanks, and transportation networks for hydrogen involves very high initial capital investments. Hydrogen has low density in gaseous form and requires compression, cooling, or conversion to liquid form for effective storage and handling. This infrastructure development is further complicated by challenges such as material constraints, safety issues, and the need for specialized procedures and equipment. Building hydrogen refueling stations also entails significant costs. All of these factors contribute to make infrastructure development for hydrogen a complex and expensive undertaking. Until cost-effective solutions are found for infrastructure challenges, the scope for market expansion of hydrogen technology testing services will remain limited due to constraints in the large-scale deployment of hydrogen technologies.
Market Opportunity: Growing Emphasis on Producing Green Hydrogen and the Expansion of Green Energy Projects Worldwide, Driving Demand for Testing and Certification Services
The rising focus on generating hydrogen through renewable energy sources like electrolysis is a major opportunity for growth in the hydrogen technology testing, inspection, and certification market. Many countries are investing heavily in green hydrogen projects as part of their climate action plans and energy transition goals. The proliferation of large green hydrogen plants and ammonia facilities worldwide will lead to a surge in demand for testing and certification services during the construction, commissioning and operating phases of these facilities. Additionally, the expansion of wind and solar power capacity also provides opportunities for integrated green hydrogen production using surplus renewable energy. The increasing need to ensure reliability, efficiency and safety standards in green hydrogen value chains can drive significant future revenues for testing, inspection and certification providers. This represents a promising avenue for market expansion.
Acquisitions and Partnerships to Expand Service Portfolio and Geographical Footprint
- In 2021, German certification company TÜV SÜD acquired the hydrogen certification business of Element Materials Technology, strengthening its global hydrogen certification capabilities. This expanded TUV Sud's hydrogen testing network and expertise in certification of equipment across the hydrogen value chain.
- In 2019, British certification company Lloyd's Register acquired Scotland-based gas certification company GasSafe Register. This strengthened Lloyd's position in the UK and allowed it to offer a comprehensive range of certification services for the emerging hydrogen economy from production to end-use.
- Intertek has partnerships with national standards bodies in countries actively pursuing hydrogen strategies like Korea, Japan and Germany. This enables it to leverage local expertise and standards while expanding its international hydrogen inspection services.
Investing in Specialized Test Facilities to Certify New Hydrogen Technologies
- DEKRA Industrial has invested over €10 million since 2018 to develop the world's largest hydrogen test center in Klettwitz, Germany. The center allows testing and certification of components, equipment and systems across the entire hydrogen value chain.
- TUV Rheinland unveiled a new hydrogen testing laboratory in Korea in 2021, with capabilities for materials testing, component certification and safety verification. This positioned it at the frontline of certifying new hydrogen fuel cell and storage technologies emerging from Korean companies.
Strategy 3: Building hydrogen expertise through talent acquisition, research partnerships and training programs
- Bureau Veritas hired dozens of hydrogen specialists through 2020-21 and launched the Hydrogen Certification Academy to upskill inspectors and auditors. Over 300 inspectors have been certified through this program so far.
Insights, By Service Type, Testing Remains the Backbone of Hydrogen Technology Industry Owing to Safety Concerns
By Service Type, Testing services are expected to contribute 66.4% market share in 2024 owing to paramount safety concerns regarding hydrogen technologies. Hydrogen, being an intensely volatile and flammable gas, demands stringent testing protocols to prevent accidents and ensure personnel safety. Unlike other industries, a single oversight in testing hydrogen systems, cylinders or equipment can instantly lead to devastation. Therefore, stakeholders leave nothing to chance and prioritize periodic as well as surprise testing to rule out any defects or vulnerabilities at design/production stages as well as during operation. This risk-averse attitude translates to massive budgets and resources designated for testing new as well as existing hydrogen technologies, infrastructure and applications on a continual basis. Additionally, with hydrogen finding increasing applications across transport, energy and industrial sectors, the testing demand volumes continue to surge thereby keeping this segment dominant in the service type landscape.
Insights, By Testing Type, Overpressure, Burst and Flow Testing Dominates Owing to Focus on Equipment Strength and Integrity
By Testing Type, Overpressure, Burst, and Flow Testing type is expected to contribute 41.3% market share in 2024 owing to prime focus on confirming equipment strength and integrity. As hydrogen systems operate at high pressures, it is critical to verify that vessels, cylinders, tubing and connectors can withstand pressures significantly above their rated capacity without showing signs of weakness or potential failure. Overpressure testing evaluates factors like stress margins, safety factor evaluation and response to surges. Burst testing determines the exact pressure at which equipment will fail to avoid operating them close to burst points. Flow testing looks at pressure drop, flow constraints and dynamic responses under varied flow conditions. Given hydrogen's ubiquitous use across pressure intensive operations and transportation, this testing segment assumes immense importance to rule out risks of rupture. With new applications emerging, there is a robust demand for such testing.
Insights, By Process, Generation Dominates Owing to Scale of Hydrogen Production and Inherent Safety Risks
By Process, Generation process is projected to contribute the highest share of the market owing to the vast scale of hydrogen production worldwide as well as inherent safety risks associated. Being the front-end process that produces hydrogen either through reforming of natural gas or electrolysis of water, generation forms the backbone of global hydrogen supply. Even a small glitch during production can potentially spark off a large-scale fire or explosion risking serious injuries, equipment damage and environmental harm. Moreover, large hydrogen generators often co-locate within refineries or complexes energizing multiple downstream processes, amplifying consequences of any failures. Therefore, regulators impose intricate testing, inspection and certification protocols throughout design, construction and operations of generation facilities and assets. Their due compliance mandates continual and specialized TI&C spend. With hydrogen identification as a critical clean energy carrier stimulating capacity additions across projects, generation segment continues dominating the process landscape.
The global hydrogen technology testing, inspection, and certification market is set for substantial growth as countries and industries pivot toward clean energy solutions like hydrogen. The push for decarbonization across sectors such as transportation, refining, and energy is creating significant demand for testing and certification services to ensure safety, regulatory compliance, and system performance. Hydrogen permeation, leakage testing, and pressure testing are key areas within the industry. The expansion of green hydrogen production facilities, particularly in Asia Pacific, is accelerating the adoption of TIC services, with governments supporting the transition to clean energy. As industries scale hydrogen production and storage solutions, specialized TIC services will be increasingly critical to ensure safety and efficiency.
The major players operating in the Hydrogen Technology Testing, Inspection, and Certification Market include SGS SA, Bureau Veritas SA, Intertek Group plc, DEKRA SE, TÜV SÜD, DNV GL, TÜV Rhineland, Applus+, TÜV NORD GROUP and UL LLC.
Hydrogen Technology Testing, Inspection, and Certification Market
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How Big is the Hydrogen Technology Testing, Inspection, and Certification Market?
The Global Hydrogen Technology Testing, Inspection, and Certification Market is estimated to be valued at USD 6.1 Bn in 2024 and is expected to reach USD 24.4 Bn by 2031.
What will be the CAGR of the Hydrogen Technology Testing, Inspection, and Certification Market?
The CAGR of the Hydrogen Technology Testing, Inspection, and Certification Market is projected to be 17.9% from 2024 to 2031.
What are the major factors driving the Hydrogen Technology Testing, Inspection, and Certification Market growth?
The rising demand for clean energy resources, including hydrogen, to decarbonize industries. Increasing investments by governments and industries in hydrogen technologies, especially in transportation and power generation are the major factors driving the Hydrogen Technology Testing, Inspection, and Certification Market.
What are the key factors hampering the growth of the Hydrogen Technology Testing, Inspection, and Certification Market?
The high cost and complexity of infrastructure development for hydrogen storage and transport, which presents challenges for large-scale deployment. Technical difficulties related to the safe production, storage, and handling of hydrogen due to its volatile and flammable nature are the major factors hampering the growth of the Hydrogen Technology Testing, Inspection, and Certification Market.
Which is the leading Service Type in the Hydrogen Technology Testing, Inspection, and Certification Market?
Testing is the leading Service Type segment.
Which are the major players operating in the Hydrogen Technology Testing, Inspection, and Certification Market?
SGS SA, Bureau Veritas SA, Intertek Group plc, DEKRA SE, TÜV SÜD, DNV GL, TÜV Rhineland, Applus+, TÜV NORD GROUP, UL LLC are the major players.