Asia Pacific Captive Hydrogen Generation Market Size

Asia Pacific Captive Hydrogen Generation Market was valued at USD 77 billion in 2023 and is anticipated to grow at a CAGR of 6.1% from 2024 to 2032. It refers to hydrogen production within a facility or site primarily for internal use rather than commercial sale or distribution. The produce product is typically utilized as a feedstock or fuel within the same facility where it is produced, often in industrial processes such as refining, petrochemical production, or manufacturing.

Rising government support for hydrogen adoption as part of their energy transition strategies coupled with rapid industrialization and economic growth in the region is driving demand for clean fuel in various industrial sectors, including refining, petrochemicals, and manufacturing thereby stimulating the market landscape. Increasing concerns about air pollution and climate change are improving emphasis on transitioning to cleaner energy sources thereby fueling process adoption.

Rising technological advancement in line with improving innovations in electrolysis, steam methane reforming, and other clean fuel production processes to improve efficiency, reduce costs, and expand the application range will influence the industry scenario. Rapid expansion of renewable energy capacity, particularly solar and wind power is set to augment the process demand.

Asia Pacific Captive Hydrogen Generation Market Trends

Rising demand for energy security and resilience is propelling on-site hydrogen production to reduce dependence on external suppliers and mitigate risks associated with supply chain disruptions or geopolitical uncertainties. Increasing companies commitment to reduce greenhouse gas emissions and meet their climate targets drives clean fuel demand in transportation, heating, and industrial processes thereby complementing the process growth.

Asia Pacific Captive Hydrogen Generation Market Analysis

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Based on process, the steam reformer segment is projected to surpass USD 113 billion by 2032, due to its high efficiency, and capability of converting hydrocarbons into hydrogen with high yields. Its relatively low capital and operational costs and high efficiency in converting hydrocarbon feedstocks, such as natural gas or methane, into hydrogen-rich syngas maximizing the production output per unit of feedstock and energy input will foster the process penetration. Furthermore, its flexibility in feedstock selection, allowing industries to utilize a range of hydrocarbon sources and high scale-up capability to meet varying production requirements, ensuring scalability and capacity expansion as needed are additional factors stimulating the business growth.

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Based on application, the Asia Pacific captive hydrogen generation market is segmented into petroleum refinery, chemical, metal and others. Among these, the petroleum refinery is set to grow at a CAGR of over 6.5% through 2032. Growing demand for hydrogen in hydro processing operations, including hydrotreating and hydrocracking is set to augment the process growth due to its continuous clean fuel supply enabling refineries to meet product quality specifications and regulatory requirements. Rising stringent fuel quality regulations in the region mandate the production of low-sulfur and ultra-low-sulfur fuels to reduce air pollution and comply with emissions standards thereby driving process demand which enables refineries to maintain compliance with fuel quality regulations and produce environmentally friendly fuels.

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India captive hydrogen generation market is anticipated to exceed USD 24.2 billion by 2032. Country rapid industrialization and economic growth coupled with rising government hydrogen promotion as part of its energy strategy through initiatives such as the National Hydrogen Energy Mission will boost the industry landscape. India commitment to reduce carbon emissions, as outlined in its Nationally Determined Contributions (NDCs) under the Paris Agreement will complement the business growth.

In the U.S. advances in clean fuel production technologies, including electrolysis and carbon capture as an efficient and cutting-edge solution will complement the market landscape. Rising demand for process offering enhanced resilience and reliability of energy supply for industries, especially in regions vulnerable to natural disasters or grid instability will foster the business scenario.

Asia Pacific Captive Hydrogen Generation Market Share

Eminent players are prioritizing the development and adoption of green hydrogen solutions by integrating renewable energy sources such as solar and wind power into captive hydrogen generation systems and meeting the sustainability goals of customers and regulatory requirements. Key players are expanding their geographical footprint and diversifying their product portfolios to tap into emerging markets and industry sectors. New players are forming strategic partnerships and alliances, to leverage complementary strengths, share resources, and accelerate the development and commercialization of captive hydrogen generation solutions.

Asia Pacific Captive Hydrogen Generation Market Companies

Eminent players operating in the Asia Pacific captive hydrogen generation industry are:

• Air Products and Chemicals, Inc
• BASF SE
• Cummins Inc
• Enapter
• GAIL Limited
• HoSt Group
• Hitachi Zosen Corporation
• Linde plc
• Messer Group GmbH
• McPhy Energy S.A
• NEL Hydrogen
• Nuclear Power Corporation of India Limited
• Siemens Energy
• Teledyne Energy Systems, Inc
  

Asia Pacific Captive Hydrogen Generation Industry News:

• In May 2024, GAIL Limited inaugurated a green hydrogen plant in Madhya Pradesh, marking a significant move towards alternative energy aligned with the National Green Hydrogen Mission. The hydrogen produced will initially be used as fuel alongside natural gas for captive purposes at the existing Vijaipur plant. Furthermore, plans include dispensing hydrogen to retail customers nearby and transporting it via high-pressure cascades.
  
• In September 2023, BASF started constructing a state-of-the-art syngas plant in China at its Verbund site, set for completion by 2025. The plant will produce syngas and hydrogen for on-site use and will incorporate unique processes to reduce carbon emissions, supporting BASF’s sustainability goals.
  

This Asia Pacific captive hydrogen generation market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in “(USD Billion)” from 2021 to 2032, for the following segments:

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Market, By Process

• Steam Reformer
• Electrolysis
• Others

Market, By Application

• Petroleum Refinery 
• Chemical
• Metal
• Others

The above information has been provided for the following countries:

• China
• India
• Japan