Electrolysis Captive Hydrogen Generation Market Size By Application (Petroleum Refining, Chemical, Metals), Regional Outlook & Forecast, 2024 – 2032

Electrolysis Captive Hydrogen Generation Market Size

The global electrolysis captive hydrogen generation market was valued USD 11.1 billion in 2023 and is estimated to grow at a CAGR of over 7% between 2024 and 2032. It refers to the production of hydrogen on-site at industrial facilities or power plants using electrolysis, a process that splits water into hydrogen and oxygen using electricity. The generated hydrogen is termed "captive" because it is primarily produced for internal or specific local consumption rather than being distributed widely in the market.
 

Increasing pressure on industries to reduce greenhouse gas emissions and align with global climate goals will drive process adoption, allowing facilities to produce hydrogen without carbon emissions, meeting stringent environmental regulations and supporting long-term sustainability targets. Additionally, rising government policies such as tax incentives and subsidies for green hydrogen production will future accelerate its adoption.
 

Growing focus of industries to have greater control over their hydrogen supply to enhance energy security and reduce their dependency on external suppliers and complex hydrogen logistics will uplift process adoption. Furthermore, this localized production model also ensures a reliable and continuous hydrogen supply for critical industrial operations, making on-site a preferred clean fuel production choice. Declining costs of renewable energy sources such as solar and wind are making electrolysis more economically feasible for captive hydrogen generation, driving the business scenario.
 

Electrolysis Captive Hydrogen Generation Market Trends

Increasing demand for flexible processes that can integrate with microgrids or combined heat and power (CHP) systems to enhance energy efficiency, especially crucial for industries looking to balance energy demand and supply in remote or off-grid locations will augment the industry statistics. Rising technological advancements in electrolyzer technology to improve its efficiency, durability, and modular design and make it more scalable and cost-effective will boost product penetration.
 

Electrolysis Captive Hydrogen Generation Market Analysis

Based on application, the electrolysis captive hydrogen generation industry from chemical sector is projected to surpass USD 11 billion by 2032. Increasing pressure on chemical factories to align with stringent regulations and policies aimed at reducing industrial emissions is pushing companies to explore cleaner hydrogen production pathways leading to boost process adoption. Rising integration of large facilities with renewable energy systems will propel on site electrolysis adoption to get excess electricity for hydrogen production. It also ensures a stable and cost-effective clean fuel supply, reducing the dependency on grid power and external sources.
 

Asia Pacific electrolysis captive hydrogen generation market is anticipated to cross over USD 12 billion by 2032. Growing industrialization and hydrogen policies including the “Basic Hydrogen Strategy” aimed at developing a full-scale hydrogen economy by 2030, and South Korea’s “Hydrogen Economy Roadmap” targets 6.2 million fuel cell vehicles by 2040 will complement the industry outlook.
 

Additionally, China’s national clean energy plan, which emphasizes hydrogen's role in achieving peak emissions by 2030 and carbon neutrality by 2060, is encouraging investments in electrolyzer infrastructure to support industrial applications. Rising push for low-carbon technologies in sectors such as steel production will drive the demand for captive electrolysis systems significantly.
 

In the U.S. rising federal incentives including the introduction of the Inflation Reduction Act (IRA), which provides substantial tax credits for green hydrogen production, aiming to lower the cost of electrolysis-based clean energy will stimulate process adoption. Growing transition of chemical and refining sectors to low-carbon industrial processes to meet stringent emission regulations will additionally augment the process penetration.
 

Electrolysis Captive Hydrogen Generation Market Share

Eminent players are heavily investing in research and development to innovate and advance more efficient and cost-effective electrolysis technologies. These advancements are crucial in reducing the cost of green hydrogen production and making electrolysis-based systems more attractive for captive use. Key players are focusing on vertical integration strategies to control the entire value chain from electrolyzer production to hydrogen storage and distribution. This integrated approach allows them to optimize costs, ensure supply reliability, and offer comprehensive hydrogen solutions to captive customers in chemicals and refineries.
 

Electrolysis Captive Hydrogen Generation Market Companies

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

• Air Products and Chemicals
• Cummins
• Enapter
• GreenH Electrolysis
• Hitachi Zosen Corporation
• Linde
• McPhy Energy
• MVS Engineering
• Mangalore Refinery and Petrochemicals
• Messer Group
• NEL Hydrogen
• Siemens Energy
   

Electrolysis Captive Hydrogen Generation Industry News:

• In July 2024, Mangalore Refinery and Petrochemicals is creating a 500 TPA green hydrogen production unit at its refinery, employing water electrolysis. The 2023-24 annual report states that this green hydrogen will be integrated with the refinery's existing hydrogen output for captive use. This project supports India's Green Hydrogen Policy and the National Green Hydrogen Mission, which advocates for the use of green hydrogen in refineries through renewable energy and biomass.
   
• In August 2022, Larsen & Toubro inaugurated a green hydrogen plant at its Hazira manufacturing facility in Gujarat. Utilizing an alkaline electrolysis process, the facility is set to generate 45 kg of green hydrogen each day, designated for captive use at the Hazira complex.
   

This electrolysis captive 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 Application

• Petroleum Refinery 
• Chemical
• Metal
• 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