Future of Hydrogen Technology TIC Industry

The Hydrogen Technology Testing, Inspection, and Certification (TIC) market is an emerging sector within the broader hydrogen industry, playing a critical role in ensuring the safe and reliable deployment of hydrogen technologies. As the world pivots toward cleaner energy solutions, hydrogen has emerged as a promising alternative to traditional fossil fuels, particularly for applications in transportation, industrial processes, and energy storage. The TIC market, which encompasses a range of services aimed at validating the safety, efficiency, and regulatory compliance of hydrogen technologies, is poised for significant growth in the coming years.

The global hydrogen technology testing, inspection, and certification (TIC) market is valued at USD 4.1 billion in 2024 and is projected to reach USD 9.2 billion by 2029; it is expected to register a CAGR of 17.8% during the forecast period.

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What is Hydrogen Technology TIC?

The Hydrogen Technology TIC market involves the services of testing, inspection, and certification of hydrogen-related technologies. These services are essential for maintaining safety, quality, and performance standards across the entire hydrogen value chain, from production and storage to distribution and end-use applications.

Testing: This involves the assessment of hydrogen technologies to ensure they meet specific performance and safety criteria. Testing can include evaluating the durability of fuel cells, the purity of hydrogen gas, and the integrity of storage systems.
Inspection: Inspection services are carried out at various stages of the hydrogen supply chain to ensure that the technologies and processes comply with regulatory standards. This can include checking the safety of hydrogen refueling stations, inspecting pipelines for leaks, and assessing the structural integrity of hydrogen storage facilities.
Certification: Certification is the process by which a third-party entity verifies that a hydrogen technology or system meets the required standards and regulations. Certification is often necessary for commercial deployment and can cover aspects like safety, environmental impact, and efficiency.

Market Drivers and Trends

The Hydrogen Technology TIC market is being driven by several key factors:

Global Push for Decarbonization

One of the primary drivers of the Hydrogen Technology TIC market is the global push for decarbonization. As countries commit to reducing greenhouse gas emissions and achieving net-zero targets, hydrogen is increasingly seen as a critical component of the clean energy mix. This is particularly true for hard-to-abate sectors like heavy industry and long-haul transportation, where hydrogen can serve as a low-carbon fuel alternative.

Growth in Hydrogen Production and Infrastructure

The production of hydrogen, especially green hydrogen (produced using renewable energy), is scaling up rapidly across the globe. With this growth comes the need for extensive infrastructure, including pipelines, storage facilities, and refueling stations. Each of these components requires rigorous testing, inspection, and certification to ensure safety and compliance, driving demand for TIC services.

Technological Advancements

Technological advancements in hydrogen production, storage, and utilization are leading to the development of new hydrogen applications, from fuel cell vehicles to industrial hydrogen burners. As these technologies evolve, the TIC market must keep pace, providing the necessary testing and certification services to support innovation while ensuring safety and reliability.

Increasing Regulatory Standards

As hydrogen technologies become more widespread, regulatory bodies are establishing stricter standards to govern their deployment. These regulations cover a range of aspects, including safety, environmental impact, and energy efficiency. Compliance with these standards is crucial for market acceptance, making TIC services indispensable for companies involved in the hydrogen value chain.

Key Market Segments

The Hydrogen Technology TIC market can be segmented based on the type of service, application, and region.

By Service Type

Testing Services: Includes performance testing, safety testing, and durability testing of hydrogen technologies.
Inspection Services: Involves on-site inspections of hydrogen production facilities, storage systems, pipelines, and refueling stations.
Certification Services: Covers the certification of hydrogen technologies and processes to ensure compliance with international and national standards.

By Application

Hydrogen Production: TIC services in this segment focus on the testing and inspection of hydrogen production facilities, including electrolyzers and steam methane reformers.
Hydrogen Storage: Ensures the safety and integrity of hydrogen storage systems, including high-pressure tanks and underground storage solutions.
Transportation and Distribution: Involves the inspection and certification of pipelines, tankers, and refueling stations used for transporting and distributing hydrogen.
End-Use Applications: Includes TIC services for hydrogen-powered vehicles, industrial applications, and energy storage systems.

By Region

North America: A key market for hydrogen technology TIC services, driven by strong government support and the growing adoption of hydrogen in transportation and industrial applications.
Europe: Europe is a leader in hydrogen technology development, with robust demand for TIC services across various sectors, particularly in green hydrogen production and industrial decarbonization.
Asia Pacific: The fastest-growing region in the hydrogen technology TIC market, driven by significant investments in hydrogen infrastructure and technology by countries like Japan, South Korea, and China.

Rest of the World: Includes emerging markets in Latin America, the Middle East, and Africa, where hydrogen technology adoption is still in the early stages but expected to grow in the coming years.

Challenges in the Hydrogen Technology TIC Market

While the Hydrogen Technology TIC market holds significant potential, it also faces several challenges:

High Costs

The costs associated with testing, inspection, and certification services can be high, particularly for new and emerging technologies. This can be a barrier to entry for smaller companies and may slow down the overall pace of hydrogen technology adoption.

Evolving Standards and Regulations

As hydrogen technologies evolve, so too do the standards and regulations governing them. This dynamic environment requires TIC providers to continually update their services and expertise, which can be resource-intensive.

Market Fragmentation

The hydrogen technology TIC market is fragmented, with numerous players offering a wide range of services. This fragmentation can lead to inconsistencies in testing and certification standards, potentially hindering the development of a cohesive global hydrogen market.

Opportunities in the Hydrogen Technology TIC Market

Despite the challenges, the Hydrogen Technology TIC market offers several opportunities for growth:

Expansion into New Markets

As hydrogen technology adoption spreads to new regions, there is significant potential for TIC providers to expand their services into emerging markets. Countries in Latin America, Africa, and Southeast Asia, in particular, represent untapped opportunities.

Integration with Digital Technologies

The integration of digital technologies, such as artificial intelligence, big data analytics, and the Internet of Things (IoT), can enhance the efficiency and accuracy of TIC services. For example, IoT-enabled sensors can provide real-time data on the condition of hydrogen storage systems, enabling more proactive inspection and maintenance.

Collaboration with Industry Stakeholders

Collaboration between TIC providers, hydrogen technology developers, and regulatory bodies can help establish more consistent and globally recognized standards. This can facilitate the broader adoption of hydrogen technologies and reduce the risk of market fragmentation.

Hydrogen Technology TIC Market: A Comprehensive Overview

The Hydrogen Technology Testing, Inspection, and Certification (TIC) market is a critical component of the broader hydrogen industry, ensuring that hydrogen technologies meet the necessary standards for safety, quality, and performance. As hydrogen emerges as a key player in the global energy transition, the TIC market is gaining prominence, driven by the need for rigorous testing, inspection, and certification processes across various applications, including hydrogen production, storage, transportation, and utilization.

How Big is the Hydrogen Technology Market?

The hydrogen technology market, including the TIC segment, is growing rapidly. As of 2023, the global hydrogen market was estimated to be worth over $200 billion, with projections indicating that it could exceed $500 billion by 2030. The TIC market within this broader industry is expected to expand significantly, fueled by the increasing adoption of hydrogen in sectors such as transportation, industrial processes, and energy storage.

This growth is driven by several factors, including government policies aimed at reducing carbon emissions, advancements in hydrogen production technologies, and the increasing commercial viability of hydrogen as an energy carrier. The TIC market plays a crucial role in ensuring the safe and efficient deployment of hydrogen technologies, particularly as the industry scales up.

What is the Future of Hydrogen Technology?

The future of hydrogen technology looks promising as it becomes a cornerstone of the global energy transition. Hydrogen is viewed as a versatile and clean energy source capable of decarbonizing hard-to-abate sectors like heavy industry, transportation, and power generation. Several key trends are shaping the future of hydrogen technology:

Increased Adoption Across Sectors: Hydrogen is expected to see widespread adoption in various sectors, including transportation (fuel cells for vehicles, ships, and trains), industrial processes (steel and cement production), and energy storage (grid-scale energy storage solutions). As these applications become more mainstream, the demand for TIC services will grow in tandem.
Technological Advancements: Innovations in hydrogen production, such as green hydrogen (produced using renewable energy), are making hydrogen more sustainable and economically viable. These advancements will drive further market growth and the need for stringent testing and certification to ensure that new technologies meet safety and efficiency standards.
Global Collaboration and Investment: Governments and private sector players are increasingly investing in hydrogen infrastructure, research, and development. International collaborations and partnerships are also emerging to accelerate the deployment of hydrogen technologies, creating a fertile ground for the TIC market to thrive.
Policy and Regulatory Support: Governments around the world are enacting policies to support hydrogen adoption, including subsidies, tax incentives, and mandates for reducing carbon emissions. These policies are crucial in driving the growth of the hydrogen industry and, by extension, the TIC market.

Is Hydrogen Technology a Good Investment?

Hydrogen technology is considered a strong investment opportunity, particularly in the context of the global shift towards decarbonization and sustainable energy. Several factors make hydrogen an attractive investment:

Market Growth Potential: The hydrogen market is projected to experience significant growth over the next decade, driven by the increasing demand for clean energy solutions. This growth potential makes it an appealing sector for investors looking to capitalize on emerging trends in the energy industry.
Government Support: Many governments are committed to developing a hydrogen economy, offering financial incentives and creating favorable regulatory environments for hydrogen projects. These initiatives reduce investment risks and provide a stable foundation for long-term growth.
Diverse Applications: Hydrogen’s versatility across various sectors, from transportation to industrial processes, offers multiple revenue streams and opportunities for investment. Companies involved in hydrogen production, infrastructure development, fuel cell technology, and the TIC market stand to benefit from this diversity.
Sustainability and ESG Appeal: As environmental, social, and governance (ESG) considerations become increasingly important to investors, hydrogen technology’s potential to reduce carbon emissions and promote sustainability makes it an attractive option for those seeking to align their portfolios with ESG principles.

However, investors should also consider the challenges associated with hydrogen technology, such as high production costs for green hydrogen and the need for significant infrastructure development. While the market potential is vast, it is still in its early stages, and careful due diligence is required to navigate the risks.

Which Country Leads in Hydrogen Technology?

Several countries are leading the charge in hydrogen technology, each with its strengths and areas of focus:

Japan: Japan has been a pioneer in hydrogen technology, particularly in the development of hydrogen fuel cells. The country has ambitious plans to become a hydrogen society, with significant investments in hydrogen production, infrastructure, and fuel cell technology. Japan’s leadership in hydrogen is underscored by its commitment to the “Basic Hydrogen Strategy,” which aims to create a comprehensive hydrogen supply chain.
Germany: Germany is another leader in hydrogen technology, particularly in the context of the European Union’s green transition. Germany’s National Hydrogen Strategy outlines plans to invest billions of euros in hydrogen production, particularly green hydrogen, to decarbonize its industrial sector and reduce reliance on fossil fuels. Germany is also a key player in developing hydrogen infrastructure, including pipelines and refueling stations.
South Korea: South Korea is making significant strides in hydrogen technology, with a strong focus on fuel cell vehicles and hydrogen-powered public transportation. The country’s “Hydrogen Economy Roadmap” aims to deploy millions of hydrogen vehicles and build thousands of refueling stations by 2040. South Korea is also investing in hydrogen production and storage technologies.
United States: The U.S. is a growing player in the hydrogen market, driven by both federal and state-level initiatives. The Department of Energy’s Hydrogen Program focuses on advancing hydrogen technologies across various applications, including transportation, industrial use, and energy storage. California, in particular, is a leader in hydrogen fuel cell adoption, with a robust network of refueling stations and incentives for hydrogen vehicles.

Key Applications and the Role of Green Hydrogen in Driving Future Growth

The Hydrogen Technology Testing, Inspection, and Certification (TIC) market is integral to the safe and efficient deployment of hydrogen technologies. As the market continues to evolve, certain applications within the hydrogen TIC sector are poised to have a significant impact in the coming years, particularly with the rising prominence of green hydrogen.

Which Application of the Hydrogen Technology TIC Market is Likely to Have the Greatest Impact in the Coming Years?

Among the various applications of hydrogen technology, hydrogen production is expected to have the greatest impact on the TIC market in the coming years. This segment encompasses the testing, inspection, and certification of different methods of hydrogen production, including steam methane reforming (SMR), electrolysis, and other advanced techniques.

Green Hydrogen Production

The production of green hydrogen, which involves using renewable energy sources such as wind, solar, or hydroelectric power to produce hydrogen via electrolysis, is set to be the most transformative. As countries and companies strive to reduce their carbon footprints, green hydrogen is becoming a focal point for decarbonizing sectors that are difficult to electrify, such as heavy industry, aviation, and maritime transportation.

Green hydrogen production is likely to drive significant demand for TIC services, as ensuring the safety, efficiency, and environmental compliance of these production processes is crucial for their commercial viability. The need to meet stringent regulatory standards and achieve certifications that validate the sustainability of green hydrogen will create a robust market for TIC providers.

Hydrogen Storage and Transportation

As hydrogen production scales up, the storage and transportation of hydrogen will also become critical areas of focus. The TIC market for hydrogen storage and transportation will grow, with services required to inspect and certify pipelines, storage tanks, and refueling stations. The safe handling of hydrogen, especially at high pressures and cryogenic temperatures, will necessitate rigorous inspection protocols to prevent accidents and ensure the reliability of hydrogen infrastructure.

How Green Hydrogen is Likely to Drive Market Growth in the Coming Years

Green hydrogen is positioned to be a key driver of growth in the hydrogen TIC market, influencing not only production but also the entire value chain, including storage, transportation, and end-use applications.

Environmental and Regulatory Drivers

The global emphasis on reducing carbon emissions is leading governments to implement policies and incentives that favor the development and deployment of green hydrogen technologies. These policies are likely to create a surge in demand for TIC services, as companies will need to demonstrate compliance with environmental regulations and obtain certifications that confirm their green hydrogen products are truly sustainable.

Technological Advancements and Cost Reduction

Advancements in electrolysis technology, which are making green hydrogen production more cost-competitive, will further accelerate market growth. As production costs decrease, more companies will invest in green hydrogen projects, thereby increasing the need for TIC services to validate these new technologies and processes. Additionally, as green hydrogen becomes more economically viable, it is expected to be adopted in a wider range of applications, from power generation to fuel cells for transportation, each requiring comprehensive TIC services.

International Collaboration and Market Expansion

International collaborations, such as cross-border hydrogen projects and trade agreements, are expected to drive the global expansion of green hydrogen markets. TIC providers will play a crucial role in facilitating these collaborations by ensuring that hydrogen technologies meet international standards, thereby enabling the seamless integration of hydrogen into global energy systems.

Infrastructure Development

The development of infrastructure to support the green hydrogen economy, including refueling stations, pipelines, and storage facilities, will also contribute to market growth. TIC services will be essential in ensuring that this infrastructure is built to the highest safety and performance standards, further solidifying the role of TIC in the hydrogen value chain.

Market Dynamics:

Opportunity: Emergence of hydrogen fuel cells for the automotive sector

Hydrogen is projected to be adopted in the near future in such sectors as heavy-duty vehicles including trucks and buses through a hydrogen fuel cell system for transportation sectors. This market is one where hydrogen and hydrogen fuel cells are to make its significant contribution. Thus, while battery electric vehicles have many advantages over BEVs, hydrogen fuel cell electric vehicles offer their drivers more immediate refueling times and longer distances. Public transportation FCEV buses are already existing in places such as Japan and even the costs of manufacturing these vehicles are steadily declining and are expected to decline steeper as more and more vehicles are produced. Currently hydrogen fuel cell trucks are not very common, but forecasts have predicted that they will be around in the coming years. Same also applies to such markets like that of taxis whereby frequent refueling can be very costly and therefore FCEVS have an added advantage over BEVS. This will lead to the creation of reputable hydrogen fuelling stations to accommodate these vehicles. Conversely, low-carbon hydrogen does significantly cut emissions in other industries like the rail, marine transport, and aviation industries.

Challenge: High hydrogen generation, storage, and transportation costs

Creating a hydrogen low-carbon system is extremely challenging because there is no clean hydrogen value chain, while fossil fuels are currently dominating the market, and the number of pilot projects of low-carbon hydrogen is limited. A global market for clean hydrogen must first be developed, and this requires establishing completely new value chains; key issues here include the absence of a hydrogen infrastructure that enables the self-propelled use of fuel cell vehicles. Challenges like hydrogen transport and storage, and the fact that on-site production is very costly are contentious. However, because hydrogen is abundant in the universe, cost can fluctuate significantly depending on how it is developed. The cost structures of types like black, grey, blue, and green hydrogen vary greatly, with green hydrogen, which is critical for attaining Net Zero targets around the globe, being the most expensive due to costs accrued on electrolysers and renewable power resources.

Key Market Players

SGS SA (Switzerland), Bureau Veritas (France), Intertek Group plc (UK), DEKRA (Germany), TÜV SÜD (Germany), DNV GL (Norway), TÜV RHEINLAND (Germany), Applus+ (Spain), TÜV NORD Group (Germany), and UL LLC (US) are some of the key players in the hydrogen technology TIC companies.

Recent Developments

In December 2023, Bureau Veritas and Avance Labs, the accredited I-REC (International Renewable Energy Certificate) code manager for tracking and certifying attributes related to hydrogen and its derivative fuels and products, have entered into a memorandum of understanding (MoU). This MoU acknowledges their shared interest and the potential benefits of collaborating in the verification and certification of attributes. Bureau Veritas will serve as the exclusive Assurance Service Provider during the pilot phase of the I-REC (HX) Hydrogen Code.
In November 2023, DEKRA has been appointed by the Clean Energy Partnership (CEP) to independently test and certify hydrogen refueling stations following ISO 19880-1c standards. This designation makes DEKRA one of the initial testing organizations authorized by CEP for this role. Additionally, DEKRA has established a formal supply agreement with the Center for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW) in Ulm for comprehensive testing services, including acceptance testing, of these refueling stations.
In September 2023, Intertek, a leading total quality assurance provider, has launched its Hydrogen Assurance platform to deliver comprehensive advisory and assurance solutions for hydrogen-based projects.
In January 2023, Bureau Veritas has launched a certification scheme dedicated to renewable hydrogen to support the growing renewables sector and accelerate the energy transition. The scheme aims to ensure that hydrogen is produced under safe and sustainable practices, and from renewable energy sources.