Global Liquid Organic Hydrogen Carriers (LOHC) Materials Market to Soar to US$ 2.05 Billion by 2035 Amid Hydrogen Infrastructure Boom

The global liquid organic hydrogen carriers (LOHC) materials market, valued at US$ 562.5 million in 2024, is expected to grow significantly to US$ 2,054.9 million by 2035, registering a strong CAGR of 12.5% from 2025 to 2035. This robust growth is fueled by accelerating investments in hydrogen infrastructure development worldwide, alongside the rising need for safe, efficient, and scalable hydrogen storage solutions. As industries and governments push toward cleaner energy systems, LOHC materials are emerging as a key enabler in the adoption and transportation of hydrogen-based energy.

Liquid Organic Hydrogen Carriers (LOHC) materials are chemical compounds that have the capability of releasing and absorbing hydrogen through reversible chemical reactions termed as dehydrogenation and hydrogenation. They allow hydrogen to be safely stored as well as transported in liquid state under ambient conditions, devoid of high-pressure or cryogenic systems.

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Market Drivers and Challenges

🚀 Key Market Drivers

Global Decarbonization Mandates: Stringent environmental regulations and government commitments to net-zero emissions are fueling the demand for clean energy carriers like hydrogen.

Need for Safe and Efficient Hydrogen Logistics: LOHCs offer a non-flammable, non-explosive, and high-density method for storing and transporting hydrogen, making it safer than compressed or liquefied hydrogen.

Compatibility with Existing Infrastructure: The liquid nature of LOHCs allows them to be seamlessly integrated into existing oil and gas pipelines, storage tanks, and transportation networks, significantly reducing initial capital investment for hydrogen infrastructure.

Rising Investment in Hydrogen Infrastructure: Global investments in hydrogen projects, expected to total over 12$300$ Billion by 2030, directly support the scaling of LOHC technology.

🚧 Market Challenges

High Energy Demand for Dehydrogenation: The energy required to release hydrogen from the LOHC (the dehydrogenation step) can be substantial, impacting the overall energy efficiency of the process.

Cost and Efficiency of Catalysts: The need for highly efficient, stable, and cost-effective catalysts for both hydrogenation and dehydrogenation processes remains a technical hurdle for large-scale commercialization.

Alternative Hydrogen Carrier Competition: LOHCs face competition from other hydrogen carriers, such as ammonia ($text{NH}_3$) and methanol, which may offer different cost-performance trade-offs.

Carrier Degradation Over Cycles: Ensuring the long-term stability and recyclability of LOHC materials without significant degradation over multiple charge/discharge cycles is critical.

Market Segmentation

🔬 By Carrier Type

Hydrocarbon-based: This segment, including materials like Dibenzyltoluene (DBT) (used in the perhydro-DBT system) and Methylcyclohexane (MCH) (from the toluene/MCH system), holds a significant share due to their proven efficiency and compatibility with current infrastructure. Dibenzyltoluene is notably gaining traction for its low vapor pressure and excellent thermal stability.
Aromatic Hydrocarbon-based: Includes systems based on compounds like N-ethylcarbazole (NEC).

🏭 By Industry Vertical / Application

Transportation/Mobility: The largest segment, driven by the increasing deployment of hydrogen fuel cell vehicles (FCEVs) and the need for safe, efficient hydrogen refueling stations.

Energy Storage and Power Generation: LOHCs enable grid-scale storage of excess renewable energy (Power-to-Hydrogen-to-Power), helping to stabilize power grids by storing energy produced from intermittent sources like solar and wind.

Industrial Applications: Use in refineries, chemical plants, and metallurgy where large volumes of hydrogen are consumed.

Cross-border/Long-Distance Hydrogen Trade: Facilitating the shipment of hydrogen from production hubs (e.g., areas with abundant renewable energy) to consumption centers.

🗺️ By Region

(Note: Segmentation by Service Type and Sourcing Type is generally not primary for the materials market but by-products or process steps.)

Regional Analysis

🌍 Asia Pacific (APAC)

APAC currently dominates the market, accounting for the largest revenue share (approximately $41.5%$ in 2024). This leadership is fueled by aggressive government strategies and roadmaps to establish extensive hydrogen infrastructure, particularly in countries like Japan, South Korea, and China, which are actively seeking to become leaders in hydrogen production and consumption. The region is also anticipated to exhibit the fastest growth (CAGR of approximately $16.29%$) as it develops cross-border hydrogen trade routes.

🇪🇺 Europe

Europe is a key region, driven by its ambitious hydrogen vision for 2050 and strict decarbonization policies. Countries like Germany are at the forefront, with leading LOHC technology companies based in the region.24 Strong regulatory support and major industrial projects are accelerating adoption.

🇺🇸 North America

North America holds a significant share, showcasing an advanced hydrogen infrastructure, especially in the US and Canada. Government incentives and increasing awareness of energy security are driving investment in LOHC technology for energy storage and transportation applications.

Market Trends

Focus on Next-Generation LOHC Materials: Intensive R&D is focused on developing new LOHC molecules with higher hydrogen storage capacity ($>6$ wt%), lower melting points ($

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