Emerging economies such as India, Brazil, and Southeast Asian nations are increasingly recognizing hydrogen as a critical component of their energy transition strategies. The demand for hydrogen in these regions is driven by a combination of industrial needs, energy security imperatives, and the potential for export-oriented growth. However, scaling hydrogen adoption faces challenges, including funding constraints, technological barriers, and the need for infrastructure development. Comparing these dynamics with developed markets highlights distinct pathways and priorities for hydrogen integration.

Industrial demand is a primary driver of hydrogen growth in emerging economies. In India, sectors like refining, fertilizer production, and steel manufacturing rely heavily on hydrogen. The country’s refining sector consumes significant volumes of grey hydrogen, with potential shifts toward green hydrogen as costs decline. Similarly, Brazil’s agro-industrial base creates demand for ammonia-based fertilizers, which depend on hydrogen feedstock. Southeast Asia’s growing petrochemical and electronics industries also present opportunities for hydrogen use, particularly in reducing carbon emissions from high-temperature processes. Unlike developed markets, where hydrogen adoption is often policy-led, emerging economies prioritize industrial competitiveness and cost efficiency.

Energy security is another critical factor shaping hydrogen demand. Many emerging economies depend on imported fossil fuels, exposing them to price volatility and supply chain risks. Green hydrogen offers a pathway to reduce this dependency by leveraging domestic renewable resources. India, for instance, has abundant solar potential, which could support large-scale electrolysis. Brazil’s hydropower and biomass resources provide a similar advantage for low-carbon hydrogen production. In Southeast Asia, countries like Indonesia and Vietnam are exploring hydrogen as a means to diversify their energy mix while addressing air pollution from coal. These motivations differ from those in developed markets, where hydrogen is often viewed through the lens of deep decarbonization rather than energy independence.

Export opportunities further amplify hydrogen demand projections. Emerging economies with low-cost renewable energy potential are positioning themselves as future hydrogen exporters. India has announced plans to become a global green hydrogen hub, targeting markets in Europe and East Asia. Brazil’s proximity to Europe and existing energy trade relationships make it a strong candidate for ammonia or liquid hydrogen exports. Southeast Asian nations, particularly those with maritime infrastructure, are exploring hydrogen carriers like ammonia and LOHCs for international trade. This export-oriented approach contrasts with developed markets, where hydrogen strategies often focus on domestic consumption and sector coupling.

Despite these opportunities, challenges remain. Funding gaps are a significant barrier, as emerging economies lack the capital reserves or access to low-cost financing required for large-scale hydrogen projects. While developed markets benefit from mature financial ecosystems and government-backed incentives, emerging economies must rely on international partnerships or multilateral funding mechanisms. Technology transfer is another hurdle. Many cutting-edge hydrogen technologies, such as high-efficiency electrolyzers or advanced storage materials, are concentrated in developed markets. Bridging this gap requires collaborative research initiatives and localized manufacturing capabilities.

Infrastructure limitations also slow hydrogen adoption. Emerging economies often lack the pipelines, port facilities, or refueling networks needed to support hydrogen economies. Building this infrastructure demands coordinated planning and substantial upfront investment. Regulatory uncertainty further complicates progress. Unlike the European Union or Japan, where clear hydrogen roadmaps exist, many emerging economies are still formulating policies, creating a less predictable environment for investors.

Comparing these dynamics with developed markets reveals key differences. Developed economies typically have stronger policy frameworks, mature supply chains, and higher public awareness of hydrogen’s role in decarbonization. Their demand is often driven by climate targets, with applications like fuel-cell vehicles or residential heating gaining traction. In contrast, emerging economies prioritize industrial offtake and export potential, with less emphasis on niche applications. Cost sensitivity is also more pronounced in emerging markets, where affordability determines the pace of adoption.

The trajectory of hydrogen demand in emerging economies will depend on several factors. Cost reductions in electrolyzers and renewable energy are essential to make green hydrogen competitive with fossil-based alternatives. International collaboration can accelerate technology transfer and provide financial support. Domestic policy frameworks must evolve to provide clarity for private sector investment. If these conditions are met, emerging economies could not only meet local demand but also emerge as key players in the global hydrogen trade.

In summary, hydrogen demand in emerging economies is shaped by industrial needs, energy security goals, and export ambitions. While challenges like funding and infrastructure persist, the potential for growth is substantial. Contrasting these drivers with those in developed markets underscores the unique opportunities and hurdles faced by emerging economies in the hydrogen transition. The coming decade will be pivotal in determining whether these nations can capitalize on their advantages and establish themselves as leaders in the hydrogen economy.