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

Chemical Merchant Hydrogen Generation Market Size

Chemical Merchant Hydrogen Generation Market was valued at USD 13.6 billion in 2023 and is anticipated to grow at a CAGR of 7.5% from 2024 to 2032. It refers to the production and supply of hydrogen on a commercial scale specifically for use in the chemical industry. This process involves generating hydrogen through methods such as steam methane reforming, electrolysis, or partial oxidation, and then selling it to chemical manufacturers and other industrial clients.
 

Growing clean fuel demand beyond traditional uses into new areas such as specialty chemicals, electronic materials, and hydrogenation processes is set to boost the process adoption for consistent and flexible supply solutions. Rising technological improvements in hydrogen production, particularly through SMR and electrolysis, to enhance efficiency and reduce cost will drive the process penetration.
 

Growing investments in innovations in SMR and advancements in electrolyzer technology, such as proton exchange membrane (PEM) and solid oxide electrolyzers to make hydrogen production more cost-effective and scalable will propel the business landscape. Furthermore, rising chemical companies investments in outsourcing clean energy from specialized supplier rather than investing in their own production facilities to reduce capital expenditure, operational risks, and management complexities will augment the industry statistics.
 

Chemical Merchant Hydrogen Generation Market Trends

Increasing chemical companies shift towards adopting flexible and scalable delivery mode, allowing them to adjust their hydrogen supply based on production changes, seasonal demand fluctuations, or expansions without investing in their production facilities are fostering the business growth. Furthermore, rising companies focus on their core competencies and primary business activities encouraging them to outsource hydrogen supply thus reducing the risk associated with building and operating their own hydrogen production plants, thereby complementing the industry statistics.
 

Chemical Merchant Hydrogen Generation Market Analysis

Based on process, the chemical merchant hydrogen generation industry from steam reformer segment is projected to surpass USD 22 billion by 2032, on account of their higher efficiency, operational reliability and easy integration with carbon capture. Increasing demand for cost-effective methods for producing hydrogen, especially when using natural gas as the feedstock will contribute to the economic attractiveness of steam reformers. Furthermore, their long operational lifespan and requiring relatively low maintenance compared to some alternative technologies will additionally drive the process adoption.
 

Asia Pacific chemical merchant hydrogen generation market is anticipated to cross over USD 15.5 billion by 2032. Rapid industrialization and urbanization in countries such as China, India, and Southeast Asian nations are boosting the need for reliable hydrogen supply leading to enhanced market growth. Rising growth policies to support hydrogen adoption, for instance, China’s Hydrogen Energy and Fuel Cell Technology Roadmap and Japan’s Basic Hydrogen Strategy provide frameworks for developing and expanding hydrogen infrastructure are creating growth opportunities for merchant delivery mode. Region's growing commitment to reducing carbon emissions and increasing the use of clean energy is set to influence business growth.
 

In the U.S. rising initiatives such as the Hydrogen Shot, which aims to reduce clean fuel production costs, and the Hydrogen Energy Earthshot are augmenting the growth of merchant hydrogen generation. Growing chemical industry is uplifting hydrogen demand, thereby creating process adoption as a cost-effective and scalable solution to meet the demand, offering economic benefits such as reduced capital expenditure and operational costs.
 

Chemical Merchant Hydrogen Generation Market Share

Eminent players are investing in R&D to advance hydrogen production technologies including improving steam reforming processes, developing more efficient catalysts, and integrating carbon capture and storage (CCS) technologies. Furthermore, major players are expanding their production capacities to meet the growing demand for hydrogen. This involves building new hydrogen production facilities or upgrading existing ones to increase output. Companies are also expanding their operations into new geographic regions to tap into emerging markets. By establishing production facilities and distribution networks in different regions, they can access new customer bases and respond to regional demand variations more effectively.
 

Chemical Merchant Hydrogen Generation Market Companies

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

• Air Liquide
• ADNOC
• Axpo Holding AG
• Ballard Power Systems
• Cummins Inc
• KBR, Inc.
• Linde Plc
• Nel ASA
• Thyssenkrupp
• Uniper SE
   

Chemical Merchant Hydrogen Generation Industry News

• In February 2022, Linde signed a long-term agreement with Chemical company, BASF to supply hydrogen and steam. The company will build and operate a new hydrogen production facility in France, doubling its capacity in the area. This facility will support BASF's new HMD manufacturing plant and meet rising local merchant demand.
   
• In June 2021, ABB partnered with Swiss utility Axpo to create modular green hydrogen production plants in Italy, focusing on an efficient model for affordable green hydrogen. Additionally, ABB is collaborating with Hydrogen Optimized to integrate high-current water electrolysis technology for large-scale green hydrogen production, targeting the chemical, utility, and transportation sectors.
   

This chemical merchant 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