Hydrogen Generation Market Size - By Delivery Mode (Captive, Merchant), By Process (Steam Reforming, Electrolysis), By Application (Petroleum Refining, Chemical, Metals), Global Industry & Forecast, 2024 – 2032

Hydrogen Generation Market Size

Hydrogen Generation Market was valued at USD 158.3 billion in 2023 and is anticipated to exhibit 6.4% CAGR between 2024 and 2032. Hydrogen generation refers to the processes and technologies used to produce hydrogen gas (H?). Hydrogen is an energy carrier with significant potential for various applications, including as a fuel, industrial feedstock, and energy storage medium. It encompasses a range of technologies and methods, each with its advantages and environmental impacts.
 

Development of new methods like thermochemical water splitting and biomass gasification for hydrogen production along with establishing hydrogen hubs to achieve economies of scale and reduce costs will stimulate the product demand. Set targets and subsidies specifically for green hydrogen projects and growing emphasis on producing hydrogen via electrolysis using renewable energy will augment the industry landscape.
 

Growing adoption of hydrogen fuel cell vehicles, including buses, trucks, trains, and ships along with expansion of hydrogen refueling stations to support the adoption of FCVs will stimulate process adoption. Increasing use of hydrogen in steel production, chemical manufacturing, and refining processes to reduce carbon emissions coupled with Financial incentives, grants, and subsidies are provided to support the development of hydrogen infrastructure and technologies will drive the business scenario. Furthermore, Countries like Japan, South Korea, and the EU have comprehensive hydrogen strategies that include targets, funding, and regulatory frameworks contributing to the business growth.
 

Hydrogen Generation Market Trends

The hydrogen generation industry is rapidly evolving with significant investments, technological advancements, and supportive policies driving adoption. Significant investments from private companies and venture capital in hydrogen technologies and infrastructure coupled with government funding programs to support research, development, and deployment of hydrogen projects will augment the industry landscape. International projects and partnerships to develop hydrogen supply chains, comprising the Japan-Australia Hydrogen Energy Supply Chain (HESC) will boost the industry landscape.
 

Hydrogen Generation Market Analysis

Based on delivery mode, the merchant segment is projected to surpass USD 49 billion by 2032 on account of growing demand across various sectors comprising transportation, industrial and power generation & storage. Large-scale merchant hydrogen production facilities benefit from economies of scale, reducing the cost per unit of hydrogen, leading to commercial adoption. Further, improvements in electrolyzer technologies enhance efficiency and reduce operational costs, will make merchant hydrogen production more economically viable. Moreover, increasing public awareness of climate change and the benefits of clean hydrogen fosters social acceptance and demand for green hydrogen solutions.
 

Based on process, the electrolysis segment is projected to witness more than CAGR 7% through 2032, on account of ability to support meet global and national decarbonization targets and balance the grid by using excess renewable energy. Advances in electrolysis technologies, such as Proton Exchange Membrane (PEM) and Solid Oxide Electrolyzers (SOE), have improved efficiency and reduced energy consumption. Innovations in materials and manufacturing processes are driving down the cost of electrolyzers, thereby leading to market growth.
 

Asia Pacific hydrogen generation market is likely to exceed USD 154 billion by 2032, driven by a combination of government policies, investments, and collaborations aimed at promoting clean energy and reducing carbon emissions. For instance, South Korea aims to become a global leader in hydrogen by 2040, with targets for FCVs, hydrogen refueling stations, and residential fuel cells. Various subsidies and incentives support the adoption of hydrogen technologies, including fuel cell vehicles (FCVs) and hydrogen refueling stations. Ongoing government investment in hydrogen production, infrastructure, and R&D activities coupled with partnerships to develop hydrogen fuel cell technologies and infrastructure will contribute to the business momentum.
 

Targets to establish a comprehensive hydrogen economy, ongoing hydrogen projects, collaborations amongst international players and significant funding for hydrogen projects will drive the U.S. market scenario. Introduction of hydrogen missions/targets by countries/states will contribute to sustainability.
 

Hydrogen Generation Market Share

Industry collaborations across the hydrogen generation industry are crucial for advancing technology, reducing costs, and accelerating the transition to a hydrogen-based economy. These collaborations are essential for addressing technical challenges, regulatory hurdles, and market barriers, ultimately paving the way for a sustainable and scalable hydrogen economy. In addition, collaboration among industry players, government bodies, and research institutions to develop hydrogen projects and policies will contribute to the business momentum.
 

Hydrogen Generation Market Companies

Eminent players operating in the hydrogen generation industry are:

• Air Liquide
• Air Products and Chemicals, Inc.
• Ballard Power Systems
• Ally Hi-Tech Co., Ltd.
• Claind srl
• CALORIC
• HyGear
• Iwatani Corporation
• Mahler AGS GmbH
• Messer
• McPhy Energy S.A.
• Nel ASA
• NUVERA FUEL CELLS, LLC
• Plug Power Inc.
• RESONAC HOLDINGS CORPORATION
• TAIYO NIPPON SANSO CORPORATION
• Teledyne Technologies Incorporated
• Xebec Adsorption Inc.
   

Hydrogen Generation Industry News

• In October 2022, Air Products and Chemicals, Inc invested around USD 500 million to build, own and operate green liquid hydrogen production plant along with distribution & dispensing operations in New York. The plant is estimated to start commercially in 2026-27. In July 0222, this project was provided support by the New York Authority (NYPA) board permitting 94 MW of affordable St. Lawrence hydroelectric power for the plant. The investment allowed the company to showcase its portfolio across the industry.
   
• In February 2021, Air Liquide and Itochu Corporation signed a Memorandum of Understanding (MoU) to jointly develop the hydrogen mobility market in Japan. Both the companies are focusing on establishing the retail hydrogen infrastructure for passenger and commercial vehicles. This collaboration will support the Japanese government to ban vehicles using fossil fuels after 2035 and expand the company’s market presence.
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This hydrogen generation market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “(USD Billion)” from 2021 to 2032, for the following segments:

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Market, By Delivery Mode

• Captive
• Merchant

Market, By Application,

• Petroleum Refinery 
• Chemical
• Metal
• Others

Market, By Process

• Steam Reforming
• Electrolysis
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Netherlands
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
• Middle East & Africa
  • Saudi Arabia
  • Iran
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina
  • Chile