Captive Chemical Hydrogen Generation Market Size - By Process (Steam Reformer, Electrolysis), Regional Outlook & Forecast, 2024 – 2032

Captive Chemical Hydrogen Generation Market Size

Captive Chemical Hydrogen Generation Market was valued at USD 74.9 billion in 2023 and is anticipated to grow at a CAGR of 6.2% from 2024 to 2032. It refers to the production of hydrogen gas within a chemical manufacturing facility for internal use. This process involves generating hydrogen on site to meet the specific needs of the chemical production processes, rather than purchasing it from external suppliers.
 

The rising chemical industry focus on reducing their dependency on external suppliers and mitigating the risks associated with fluctuating hydrogen prices and supply chain disruptions are set to drive the process adoption. Furthermore, companies are also shifting towards adopting processes that can easily get integrate with existing facilities, optimize operational efficiency, reduce transportation and storage costs, and enhance overall cost control leading to uplift business statistics.
 

Expanding research activities and rising innovations in electrolysis, such as high-efficiency alkaline and proton exchange membrane (PEM) electrolyzers to improve clean fuel production efficiency and reduced energy consumption are significantly contributing to process growth. Additionally, advancements in steam methane reforming (SMR) technologies, including carbon capture and storage (CCS), to enhance the sustainability of hydrogen production from natural gas, contributing to the economic feasibility and attractiveness of on-site hydrogen generation.
 

Captive Chemical Hydrogen Generation Market Trends

Rising pressure on chemical companies to reduce their carbon footprint and reliance on fossil fuels, are set to influence the business landscape. Furthermore, global supply chain for hydrogen can be volatile, with potential disruptions due to geopolitical issues, transportation challenges, or market fluctuations. This risk can be managed by generating on site clean fuel that can also maintain continuous operations without interruptions caused by external supply constraints, thereby enhancing supply chain resilience and operational stability.
 

Captive Chemical Hydrogen Generation Market Analysis

Based on process, the electrolysis segment is set to grow at a CAGR of over 6.8% through 2032. Rising demand for processes that can produce hydrogen without emitting carbon dioxide when powered by renewable energy sources are propelling process adoption. This further aligns with the chemical industry's growing commitment to sustainability, especially as pressure mounts from regulatory bodies, investors, and consumers to reduce greenhouse gas emissions and meet net-zero targets thereby boosting process adoption. Furthermore, expanding innovative research on proton exchange membrane (PEM) and solid oxide electrolyzers to improve energy efficiency and hydrogen production rates, reducing operational costs for chemical companies, additionally drive the market growth.
 

Asia Pacific captive chemical hydrogen generation market is predicted to hit USD 88 billion by 2032. Rising demand for clean fuel particularly from countries such as China, India, and Japan, for chemical process such as ammonia production, refining, and petrochemical synthesis are augmenting process penetration. Many countries are adopting aggressive clean fuel strategies to reduce their carbon footprints and promote cleaner energy leading to encourage chemical companies to invest in captive hydrogen production, particularly when tied to green or low-carbon hydrogen solutions.
 

In the U.S. federal support for hydrogen as part of the broader clean energy transition is a major market driver in the chemical industry. Programs such as the Hydrogen Shot Initiative, under the U.S. Department of Energy (DOE), aim to cut hydrogen production costs by 80% by 2030. Furthermore, increasing companies shift towards onsite clean fuel production to meet decarbonization goals via electrolysis or other low-carbon methods, and reduce carbon intensity of high-emission chemical processes are fostering business landscape.
 

Captive Chemical Hydrogen Generation Market Share

Eminent players are investing in advanced electrolyzer technology and integrating renewable energy sources such as wind and solar, these players aim to produce low-carbon hydrogen for use in chemical processes. This shift is critical as industries face mounting pressure to decarbonize operations. Major players are entering into strategic partnerships with chemical companies and technology firms to scale captive hydrogen production. These partnerships are crucial for sharing the financial burden of developing hydrogen infrastructure and R&D, while also accelerating market entry.
 

Captive Chemical Hydrogen Generation Market Companies

Eminent players operating in the captive chemical hydrogen generation industry are:

• Air Liquide
• Air Products and Chemicals
• Fluor Corporation
• Linde plc
• McPhy Energy
• Nel Hydrogen
• Plug Power Inc
• SFC Energy AG
• Technip Energies
• Yara International ASA
   

Captive Chemical Hydrogen Generation Industry News:

• In June 2024, Yara International has inaugurated its renewable hydrogen plant in Norway. The facility is actively producing renewable hydrogen and ammonia and has already dispatched its inaugural shipments of fertilizers derived from this renewable ammonia. This achievement propels Yara's commitment to decarbonizing the food value chain, as well as the shipping fuel and other energy-intensive sectors.
   
• In August 2022, Larsen & Toubro (L&T) commissioned a green hydrogen plant at its manufacturing facility in Gujarat. The company has sourced different types of electrolyzers including alkaline electrolyzer and PEM from Cummins for green hydrogen production, designated for captive consumption at the company's Hazira manufacturing complex. The company aims to use produced hydrogen in various industrial processes, such as powering machinery, reducing emissions in energy-intensive operations, or supporting chemical and petrochemical applications where hydrogen is a key input.
   

This captive 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 Process

• Steam Reformer
• Electrolysis
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • Netherlands
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
• Middle East & Africa
  • Saudi Arabia
  • Iran
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina
  • Chile