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

Chemical Hydrogen Generation Market Size

Chemical Hydrogen Generation Market was valued at USD 88.4 billion in 2023 and is anticipated to grow at a CAGR of over 6.2% from 2024 to 2032. It is the process of producing hydrogen gas through specific chemical reactions involving hydrogen sources or carriers, which release hydrogen. These reactions can be triggered by various means, including heat, catalysts, or other reactants. This method often offers advantages such as high-purity hydrogen production, on-demand generation, and compatibility with renewable energy sources.
 

Increasing concerns about climate change and air pollution lead to an increased shift towards cleaner energy sources thereby stimulating the demand for chemical pathways. Ongoing advancements in catalysts, reactor designs, and process optimization techniques to enhance product efficiency and cost-effectiveness will create lucrative opportunities for the market growth. Rising implementation of supportive policies and incentives to promote the adoption of clean energy coupled with subsidies, tax credits, and research funding for hydrogen-related projects to incentivize investments will uplift the business trajectory.
 

Rising shift towards green hydrogen production, driven by increasing emphasis on decarbonization and renewable energy integration is likely to fuel the product demand. Companies are increasingly forming strategic partnerships and collaborations to leverage complementary strengths, and accelerate technology development, thereby expanding the market presence.
 

Chemical Hydrogen Generation Market Trends

Rising prominence of clean energy as a versatile energy carrier for various applications, including fuel cells for transportation, energy storage, and power generation will boost the dominance in the forecast period. Additionally, growing integration of chemical processes with renewable energy sources offering synergies between intermittent renewable energy generation and hydrogen production is expected to drive the industry outlook.
 

Chemical Hydrogen Generation Market Analysis

Based on deliver mode, the captive segment is projected to surpass USD 125 billion by 2032 on account of its cost advantages compared to purchasing hydrogen from external suppliers. Rising demand for reliable and continuous supply of hydrogen, minimizing disruptions and optimizing production efficiency will augment the industry landscape. Rising companies shift towards modes with enhanced supply security offering greater control over their clean energy supply chain, and reducing reliance on external suppliers, will strengthen the market growth.
 

Based on process, the electrolysis segment is set to grow at a CAGR of over 6.8% through 2032. Ongoing technological advancements, including improvements in durability, efficiency and cost-effectiveness coupled with rising innovations such as high-efficiency PEM electrolyzers and solid-state electrolyte materials will strengthen the technology adoption. Supportive government policies, incentives, and regulatory frameworks in addition to its diverse applications beyond hydrogen production, including energy storage, grid balancing, and sector coupling will lead to positive growth opportunities.
 

Asia Pacific chemical hydrogen generation market valuation cross USD 104 billion by 2032. Rising implementation of ambitious energy transition plans, policies and initiatives including national hydrogen strategies, renewable energy targets, and carbon pricing mechanisms to reduce carbon emissions and promote clean energy adoption will escalate the pathway adoption. Growing energy demand from industrial sectors due to rapid industrialization and urbanization will further add to the growing market expansion. The abundance of renewable energy resources, including solar, wind, and hydropower will present opportunities for green hydrogen production through electrolysis thereby building lucrative business growth opportunities.
 

In the U.S. growing interest in hydrogen fuel cell vehicles (FCVs) as an alternative to conventional internal combustion engine vehicles to decarbonize transportation and reduce dependence on fossil fuels will accelerate the chemical pathway demand for clean hydrogen production. Rising international collaborations and partnerships to drive innovation, research, manufacturing, and technology deployment will boost the key players market access thereby increasing the process penetration in the region.
 

Chemical Hydrogen Generation Market Share

Eminent players are investing significant resources in R&D activities to develop processes with improved efficiency, scalability, and environmental sustainability for hydrogen production aiming to gain a competitive edge in the market and meet evolving customer demands. Furthermore, key players are expanding their geographic footprint and tapping into new markets to capitalize on the growing global demand for hydrogen. This includes establishing partnerships, joint ventures, and subsidiaries in key regions, as well as participating in international hydrogen projects and initiatives to access new opportunities and diversify revenue streams.
 

Chemical Hydrogen Generation Market Companies

Eminent players operating in the chemical hydrogen generation industry are:

• Air Products and Chemicals, Inc.
• CALORIC
• Cummins Inc
• FuelCell Energy
• Green Hydrogen Systems
• HyGear
• Linde plc
• Messer Group GmbH
• Nel Hydrogen
• Parker Hannifin Corporation
• Plug Power Inc.
• Reliance Industries Ltd
• Resonac Corporation
   

Chemical Hydrogen Generation Industry News

• In August 2023, Reliance Industries Ltd unveiled ambitious plans in its new energy sector, aiming to establish a battery giga factory, green hydrogen production facility, and scale up solar and wind power generation. This initiative will facilitate giga-scale production for continuous power supply, large-scale green hydrogen production for eco-friendly chemical manufacturing, and sustainable mobility solutions.
   
• In July 2022, Air Liquide subsidiary, Shanghai Chemical Industry Park Industrial Gases Co., Ltd, plans to invest over USD 214 million to construct two hydrogen production units and associated infrastructure within the Shanghai Chemical Industry Park (SCIP). These units aim to replace the current supply from a coal-based gasification unit, offering significant environmental benefits.
   

This chemical hydrogen generation market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and 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 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