Asia Pacific Chemical Hydrogen Generation Market Size - By Delivery Mode (Captive and Merchant), By Process (Steam Reformer, Electrolysis and Others), 2024 – 2032

Asia Pacific Chemical Hydrogen Generation Market Size

Asia Pacific Chemical Hydrogen Generation Market was valued at USD 61.3 billion in 2023 and is anticipated to grow at a CAGR of over 6.3% from 2024 to 2032. It refers to the production of hydrogen for use in chemical processes, such as the synthesis of ammonia for fertilizers and methanol for fuel and chemicals. This hydrogen is typically produced through methods like steam methane reforming, electrolysis, or gasification, and is essential for various industrial processes that require clean fuel as a key reactant.
 

Increasing demand ammonia, a key ingredient in fertilizers, and methanol as a building block for numerous chemicals in the region is set to influence the product adoption. Rapid industrialization and economic growth in countries such as China, India, South Korea, and Japan driving the demand for chemicals and energy intensive industries, rising demand for hydrogen to meet their increasing energy demands and production requirements, thereby propelling the industry growth.
 

Increasing advancements in hydrogen production technologies, such as electrolysis and steam methane reforming with carbon capture and storage (CCS), to make clean fuel generation more efficient and cost-effective is driving the business landscape. Furthermore, rising innovations in catalyst development, process optimization, and the integration of renewable energy sources to enhance the viability of hydrogen as a clean energy carrier and feedstock for chemical processes are additional factors fostering the product adoption.
 

Asia Pacific Chemical Hydrogen Generation Market Trends

Rising implementation of policies and incentives by the government to promote the use of hydrogen in various industries in line with providing subsidies, tax incentives, and funding for research and development to encourage companies to invest in clean energy generation technologies will boost the industry statistics. Gowing integration of hydrogen production with renewable energy sources such as electrolysis to not only support the production of sustainable chemicals but also help to balance the supply and demand of renewable energy is impacting the business scenario.
 

Asia Pacific Chemical Hydrogen Generation Market Analysis

Based on process, the Asia Pacific chemical hydrogen generation industry is segmented into steam reformer, electrolysis and others. Steam reformer segment is anticipated to cross more than USD 90 billion by 2032, on account of its high efficiency and cost effectiveness making it a preferred choice for chemical industries looking to optimize production costs. Improving natural gas infrastructure supply and steam reforming plants in line with rising demand high purity hydrogen production, essential for many chemical processes, including ammonia synthesis and methanol production will complement the process growth.
 

Furthermore, its scalability to meet varying production demands, from small scale facilities to large industrial plants and flexibility allowing companies to adjust their production capacity based on market demand and production needs are additional drivers for process demand.
 

Based on delivery mode, the merchant segment is set to grow at a CAGR of over 7.3% through 2032. Rising adoption of delivery modes offers chemical companies the flexibility to procure hydrogen without the need for on-site production infrastructure which is particularly beneficial for smaller facilities or those with fluctuating demands is uplifting the mode adoption. Furthermore, it's cost effectiveness and capability to produce and deliver clean fuel of high purity, crucial for various chemical processes such as ammonia synthesis and methanol production are enhancing the market growth.
 

India chemical hydrogen generation market size will surpass USD 17.3 Billion by 2032. Rising initiatives and policies to promote hydrogen production, including the National Hydrogen Mission aimed to reduce carbon emissions and promote the use of green hydrogen in various industries are driving the process demand. India's growing chemical industry, particularly in sectors such as fertilizers and petrochemicals is driving hydrogen demand as a key feedstock, boosting industry prospects.
 

In the U.S. rising initiatives such as the Department of Energy's Hydrogen Program, providing substantial funding and support for hydrogen research, development, and deployment in line with technological innovation, with advancements in hydrogen production methods will foster the business growth. Increasing adoption of sustainability goals to reduce carbon emissions is driving demand for clean fuel thereby driving investments and market.
 

Asia Pacific Chemical Hydrogen Generation Market Share

Eminent players are forming joint ventures with local companies to leverage local expertise, reduce entry barriers, and ensure smoother operations. Companies are collaborating with research institutions and universities to innovate and develop new hydrogen production technologies and methods, helping them to keep pace with technological advancements and improving efficiency. Key players are developing robust supply chains for raw materials, hydrogen production, and distribution by including securing long-term contracts with suppliers and investing in logistics and transportation infrastructure.
 

Asia Pacific Chemical Hydrogen Generation Market Companies

Eminent players operating in the Asia Pacific chemical hydrogen generation industry include:

• Air Products and Chemicals, Inc.
• Cummins Inc
• HyGear
• Linde plc
• Nel Hydrogen
• MITSUI & CO., LTD
• Plug Power Inc.
• Petroliam Nasional Berhad (PETRONAS)
• Reliance Industries Ltd
• Sumitomo SHI FW
• Thyssenkrupp AG
   

Asia Pacific Chemical Hydrogen Generation Industry News

• In August 2030, Reliance announced new energy plans and achievements, highlighting significant strides in wind energy, solar PV modules, and battery manufacturing. The company is advancing large-scale green hydrogen production to meet its captive needs while integrating with green ammonia and green methanol production for both domestic and international markets. As a leading oil-to-chemical company, Reliance is also exploring green chemical manufacturing.
   
• In July 2022, Air Liquide subsidiary, Shanghai Chemical Industry Park Industrial Gases Co., Ltd, will invest over US$206 million to build two hydrogen production units in Shanghai Chemical Industry Park. These units, equipped with CO2 capture and recycling technology, will replace coal-based gasification supply and connect to SCIPIG's existing local network. This expansion complements the two hydrogen units and four air separation units already operated by SCIPIG in the park, offering significant environmental benefits.
   

This Asia Pacific chemical 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 Delivery Mode

• Captive
• Merchant

Market, By Process

• Steam Reformer
• Electrolysis
• Others

The above information has been provided for the following countries:

• China
• India
• Japan