Chemical Merchant Hydrogen Generation Market Size

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.