Electrolysis Merchant Hydrogen Generation Market Size - By Application (Petroleum Refinery, Chemical, Metal), Regional Outlook & Forecast, 2024 – 2032

Electrolysis Merchant Hydrogen Generation Market Size

The global electrolysis merchant hydrogen generation market was valued at USD 2.1 billion in 2023 and is estimated to grow at a CAGR of over 8.2% from 2024 to 2032. It refers to hydrogen production using electrolysis technology specifically for commercial sale and distribution, rather than on-site or captive use.  In the merchant model, the hydrogen is generated at a centralized facility and sold to various industries, such as transportation, chemicals, and energy, enabling businesses to access clean hydrogen without investing in their production systems.
 

Rising decarbonization goals across the globe to mitigate climate change will boost the product adoption for clean fuel production. Increasing government support including the Green Deal and the Hydrogen Strategy to adopt processes generating no direct emissions along with growing targets to meet international climate agreements including the Paris Agreement will augment the business outlook.
 

Growing investments in developing advanced electrolysis technology, particularly proton exchange membrane and solid oxide electrolyzers with improved efficiency and reduced costs will stimulate the market growth. Furthermore, rising innovations such as modular electrolyzer designs and gigawatt-scale projects to enable faster deployment and scaling will foster the process adoption.
 

Electrolysis Merchant Hydrogen Generation Market Trends

Growing clean hydrogen demand from industrial applications looking to reduce their carbon footprint coupled with rising clean fuel adoption from the transport sector, particularly heavy-duty vehicles, buses, and maritime shipping will complement the process landscape. Additionally, rising green fuel popularity is a key solution for energy storage and balancing intermittent renewable energy in power grids will support the overall market growth. Increasing investments in hydrogen infrastructure, including storage, distribution, and refueling stations supported by strategic partnerships will stimulate the business landscape.
 

Electrolysis Merchant Hydrogen Generation Market Analysis

Based on application, the electrolysis merchant hydrogen generation industry from petroleum refinery segment is projected to surpass USD 1.5 billion by 2032, owing to increasing pressure on refiners to comply with environmental regulations aimed at reducing greenhouse gas emissions. Rising demand for processes offering zero-emission when powered by renewable energy, enabling refineries to produce green hydrogen and meet stringent regulatory requirements will bolster the industry landscape. Increasing decarbonization strategies by refineries to not only reduce the carbon footprint of the hydrogen supply but also lower the overall emissions associated with fuel production will complement the process adoption.
 

Asia Pacific electrolysis merchant hydrogen generation market is anticipated to cross over USD 2 billion by 2032. Rising government support and hydrogen strategies including Japan's basic hydrogen strategy targets widespread hydrogen utilization by 2030, aiming for 3 GW of electrolyzer capacity, will set ambitious targets for green hydrogen adoption stimulating the business growth. Rising industrial sector coupled with improving clean energy adoption including South Korea’s steel giant POSCO and Japan’s JFE Steel rising exploration of clean fuel-based steel making processes will foster the process adoption.
 

In the U.S. increasing green hydrogen policies such as the Inflation Reduction Act (IRA), coupled with government support including the U.S. hydrogen shot initiative aimed to reduce the cost of clean hydrogen will accelerate the process adoption. Furthermore, rising investments in regional hydrogen hubs to create an integrated hydrogen economy including the Bipartisan Infrastructure Law will propel the market growth.
 

Electrolysis Merchant Hydrogen Generation Market Share

Eminent players are scaling up production capacities to meet the increasing demand for green hydrogen. This focus on capacity enhancement ensures that companies can cater to large-scale industrial projects and hydrogen hubs, positioning themselves as reliable suppliers. Furthermore, key players are investing in developing advanced electrolyzer technologies to improve the efficiency and reduce costs to make green hydrogen more competitive with conventional hydrogen production methods.
 

Electrolysis Merchant Hydrogen Generation Market Companies

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

• Air Liquide
• Cummins
• H2B2
• ITM Power
• McPhy Energy
• Nel Hydrogen
• Plug Power
• Siemens Energy
• Sunfire
• Thyssenkrupp
• Verdagy
   

Electrolysis Merchant Hydrogen Generation Industry News

• In July 2024, Siemens Energy received a contract from EWE to deliver a 280 MW electrolysis system for a green hydrogen plant in Germany. It is scheduled to start operations in 2027, with the facility producing up to 26,000 tonnes of green hydrogen annually, supporting local industrial sectors. This project marks a significant step in scaling up Germany's hydrogen production and advancing its clean energy goals.
   
• In April 2024, ITM Power partnered with Hygen Energy as the preferred supplier for PEM electrolyzers in key hydrogen projects across the UK and Europe. The collaboration includes deploying 50 MW of Neptune Plug and Play electrolyzers in phase one, followed by 150 MW of modular units in phase two, pending final investment decisions. The projects will leverage UK government funding schemes such as HAR2. This partnership aims to accelerate large-scale hydrogen production and infrastructure development.
   

This electrolysis 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 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