Watt Page

Global Trends in Hydrogen Refuelling Stations: Lessons for Emerging Markets

July 10, 2025
Ayodeji Adekanbi

Introduction

Hydrogen has emerged as a key clean energy carrier amidst the global effort for decarbonisation and sustainable energy, especially for industries like heavy manufacturing, transport, and energy storage where electrification is insufficient on its own (IRENA, 2022). Fuel cell electric vehicles (FCEVs), which provide zero-emission mobility with greater ranges and shorter refuelling times than battery electric vehicles (BEVs), are made possible by hydrogen refuelling stations (HRSs), which are essential infrastructures (Bethoux, 2020). As of 2024, the global hydrogen fueling station market is valued at approximately USD 832.4 million with projections estimating a compound annual growth rate (CAGR) of 26.3% through 2030 (Grand View Research, 2023). Advanced economies, such as Japan, Germany, South Korea, and the United States, have led the development of HRS infrastructure, driven by robust policy frameworks, technological advancements, and significant investments. Emerging markets, including those in Asia, Africa, and Latin America, are beginning to explore hydrogen as part of their energy transition strategies but face unique challenges and opportunities.

Global Trends in Hydrogen Refueling Station Development

1. Market Growth and Regional Leadership

The global HRS network has expanded significantly, with 729 stations operational worldwide by 2021, a marked increase from previous years (Samsun et al., 2022). Japan leads with the highest number of stations (over 100 operational HRSs), followed by Germany, South Korea, and the United States. The Asia-Pacific region accounts for 62.5% of the global market revenue, driven by South Korea’s ambitious target of 1,200 HRSs by 2040 and China’s goal of 1,000 stations by 2030 (The Brainy Insights, 2023; GH2Org, 2020; Oxford Institute for Energy Studies, 2021).

In advanced economies, HRS deployment is concentrated in urban and suburban areas to support light-duty FCEVs, such as passenger cars, and increasingly in corridors for heavy-duty vehicles like trucks and buses. For instance, South Korea has 19,270 registered FCEVs, primarily passenger cars, supported by 36.96% of the Asia-Pacific HRS market share (Soleimani et al., 2024). Europe, with over 294 stations by 2024, is driven by the European Commission’s Alternative Fuels Infrastructure Regulation (AFIR), aiming to decarbonise transport (Hydrogen Central, 2025). In the United States, California hosts 54 retail HRSs, with 50 more in planning, supported by the Inflation Reduction Act’s Clean Hydrogen Production Tax Credit (U.S. DoE, 2024).

Emerging markets, such as India, the United Arab Emirates (UAE), and Mauritania, are in early stages. The UAE aims to be a global hydrogen leader by 2031 through its National Hydrogen Strategy, while India’s National Hydrogen Mission focuses on green hydrogen production and infrastructure (Market Research Future, 2023; PwC, 2022). These regions face challenges like limited FCEV adoption and high infrastructure costs but benefit from abundant renewable resources.

2. Technological Advancements

Technological innovation is a cornerstone of HRS development. Stations typically store hydrogen in gaseous or liquid form, dispensed at high pressures (350 or 700 bar) to meet vehicle requirements (Genovese & Fragiacomo, 2023). High-pressure stations dominate due to faster refueling times, particularly for light-duty vehicles requiring 700 bar (BIS Research, 2023). Dual-pressure stations (350 and 700 bar) are gaining traction to serve diverse vehicle types, including heavy-duty trucks and buses.

On-site hydrogen production via electrolysis is emerging as a sustainable option, especially when paired with renewable energy sources. However, off-site production with pipeline or tanker transport remains prevalent in advanced economies due to economies of scale (Genovese & Fragiacomo, 2023). For example, Japan’s fixed stations often integrate on-site electrolysis, while Germany relies on pipeline transport for cost efficiency (Wu et al., 2023). Mobile HRSs, such as those developed by Hyperion Motors in the U.S., offer flexibility for early-stage markets by serving multiple locations with lower capital investment (Global Market Insights, 2023).

Compressors are critical for pressurising hydrogen, with advancements in energy efficiency and reliability driving market growth (GlobeNewswire, 2025). Medium-sized stations, balancing capacity and cost, lead the market due to their suitability for urban settings (Grand View Research, 2023). Large stations are the fastest-growing segment, catering to heavy-duty transport, with a projected CAGR of 17.5% through 2032 (Global Market Insights, 2023).

3. Policy and Financial Incentives

Government policies are pivotal in scaling HRS infrastructure. Advanced economies offer subsidies, tax credits, and public-private partnerships to de-risk investments. South Korea’s 50% vehicle price reduction for FCEVs has driven adoption, while Germany’s National Innovation Programme funds HRS expansion (BMWK, 2024; Hydrogen Insight, 2022). The U.S. Inflation Reduction Act provides a USD 3/kg hydrogen production tax credit, stabilising the market (U.S. Department of Energy, 2024). Europe’s Fuel Cells and Hydrogen Joint Undertaking (FCH JU) supports R&D and deployment, targeting 400 HRSs in Germany by 2025 (Grand View Research, 2023).

Emerging markets are adopting similar strategies. South Korea’s model of integrating HRSs with renewable energy sources is being emulated in India and the UAE (Future Market Insights, 2023). However, high capital costs and regulatory uncertainties hinder progress in regions like Sub-Saharan Africa, where only Mauritania, South Africa, Kenya, and Namibia have hydrogen strategies (IEA, 2024).

4. Infrastructure Models

HRSs operate under four primary models: on-site production, off-site pipeline transport, off-site tube trailer transport, and off-site liquid hydrogen tanker transport (Wu et al., 2023). On-site production is capital-intensive but reduces transport costs, making it suitable for high-demand urban areas. Off-site pipeline transport is cost-effective for large-scale supply but requires significant upfront investment. Tube trailers and liquid tankers offer flexibility for dispersed or early-stage markets but incur higher operational costs due to compression or liquefaction (IEA, 2019).

Fixed stations dominate in advanced economies due to their reliability and scalability, while mobile stations are gaining traction in emerging markets for their lower cost and adaptability (BIS Research, 2023). For example, Nikola Corporation’s mobile HRS in California serves 40 heavy-duty vehicles daily, demonstrating scalability (Market Research Future, 2023).

Comparative Analysis: Advanced Economies vs. Emerging Markets

1. Infrastructure Scale and Maturity

Advanced economies have mature HRS networks supported by decades of R&D and policy support. Japan’s 100+ stations and Germany’s 400-station target by 2025 reflect long-term planning and investment (ScienceDirect, 2023). In contrast, emerging markets like India and the UAE are in pilot phases, with single-digit station counts and limited FCEV adoption (Market Research Future, 2023). This gap underscores the need for emerging markets to prioritise scalable pilot projects.

2. Economic Viability

In advanced economies, economies of scale and subsidies lower the levelised cost of hydrogen (LCOH). For instance, pipeline transport in Germany costs USD 0.66/kg for 1,000 km, compared to USD 1.98/kg for 3,000 km (Dukku et al., 2025). Emerging markets face higher LCOH due to limited infrastructure and reliance on imported equipment. On-site production, while costly, may be viable for regions with abundant renewables, such as the Middle East (PwC, 2022).

3. Policy Frameworks

Advanced economies have comprehensive policies, including carbon pricing, mandates, and certification schemes, ensuring market stability (IEA, 2024). Emerging markets often lack clear regulations, leading to investment risks. For example, Mauritania’s Hydrogen Strategy is a step forward, but its implementation lags due to funding constraints (IEA, 2024).

4. Technological Adoption

Advanced economies leverage cutting-edge technologies like high-pressure dispensers and electrolysis, while emerging markets rely on imported technologies, increasing costs (BIS Research, 2023). Local manufacturing, as seen in South Korea, could reduce costs for emerging markets (The Brainy Insights, 2023).

Lessons for Emerging Markets

  1. Leverage Public-Private Partnerships: South Korea’s collaboration between government and companies like Hyundai demonstrates the efficacy of public-private partnerships in scaling HRS infrastructure. Emerging markets should foster alliances between energy providers, automakers, and governments to share risks and costs.
  2. Start with Pilot Projects: California’s focus on urban clusters before expanding to corridors offers a model for emerging markets (U.S. DoE, 2024). Small-scale HRSs in high-demand areas can build confidence and attract investment.
  3. Integrate with Renewables: The UAE’s strategy of pairing HRSs with solar-powered electrolysis capitalises on abundant renewable resources (Market Research Future, 2023). Emerging markets with similar resources should prioritise green hydrogen production to reduce costs and emissions.
  4. Adopt Flexible Infrastructure Models: Mobile HRSs, as deployed in the U.S., provide a low-risk entry point for emerging markets with limited FCEV penetration (Global Market Insights, 2023). These can transition to fixed stations as demand grows.
  5. Develop Clear Policies: Germany’s National Innovation Programme and the EU’s AFIR highlight the importance of regulatory clarity (Grand View Research, 2023). Emerging markets must establish certification schemes and incentives to attract private investment.
  6. Focus on Local Manufacturing: South Korea’s local production of HRS equipment reduces costs and fosters economic growth (The Brainy Insights, 2023). Emerging markets should invest in domestic supply chains to enhance affordability.

Implications for Other Regions

The experiences of advanced economies suggest that emerging markets can accelerate HRS deployment by aligning infrastructure with regional strengths. For instance, the Middle East and North Africa (MENA) region, with its vast solar potential, could emulate the UAE’s model to become a green hydrogen exporter (Plug Power, 2024). Sub-Saharan Africa, despite funding challenges, can leverage international partnerships, as seen in Mauritania’s strategy (IEA, 2024). Latin America, with its renewable energy resources, could adopt Chile’s approach of pilot HRSs to support mining and transport sectors (PwC, 2022).

However, emerging markets must address barriers like high capital costs and limited FCEV adoption. International cooperation, as advocated by the IEA, can facilitate knowledge transfer and reduce costs through shared standards and certification (IEA, 2019). Additionally, integrating HRSs with existing infrastructure, such as natural gas pipelines, can lower costs, as demonstrated in Europe (IEA, 2019).

The global hydrogen refueling station market is poised for significant growth, driven by advanced economies’ leadership in infrastructure, technology, and policy. Japan, Germany, South Korea, and the United States offer valuable lessons for emerging markets, emphasising the importance of public-private partnerships, pilot projects, renewable integration, flexible infrastructure, clear policies, and local manufacturing. While challenges like high costs and regulatory uncertainties persist, emerging markets can capitalise on their renewable resources and learn from advanced economies to build sustainable hydrogen ecosystems. By strategically adapting these lessons, regions like the MENA, Sub-Saharan Africa, and Latin America can contribute to the global hydrogen economy, advancing decarbonisation and economic development.

References

Leave a Reply

Your email address will not be published. Required fields are marked *