Hydrogen Market Size - By Type (Grey, Blue, Green), By Application (Petroleum Refining, Chemicals), 2025 – 2034

Hydrogen Market Size

The global hydrogen market was valued USD 204.5 billion in 2024 and is estimated to grow at a CAGR of 12.2% from 2025 to 2034. Growing trend to decarbonize these industries by switching to low-carbon hydrogen production methods coupled with utilization of hydrogen in the production of ammonia, methanol, and other chemicals is set to stimulate the product penetration.
 

Further, many companies are focusing on blue hydrogen, which uses natural gas but incorporates carbon capture and storage (CCS) to reduce emissions, thereby augmenting the industry landscape. An ongoing energy transition is driving emphasis on energy-efficient fuels which will offer lucrative prospects for the adoption of hydrogen as an alternative to conventional fuels.
 

Favorable government policies & clean energy targets including financial incentives & mandates aimed at shifting the interest toward low emission fuel will continue to drive the demand for hydrogen. For example, the UK government initiated a low carbon subsidy scheme for hydrogen production in July 2022. The goal was to aid production across the country.
 

The hydrogen market is expected to grow in the next few years due to the incorporation of clean hydrogen generation demonstration and pilot projects. Extensive efforts across private & public sectors to stimulate the entire hydrogen value chain will support the business dynamics. In January 2021, ENGIE partnered with TotalEnergies for installing and development of Masshylia project, a renewable hydrogen production plant in France. The facility will yearly remove 15,000 tonnes of CO2 and runs on electricity generated by solar farms.
 

Hydrogen Market Trends

• Growing interest in hydrogen fuel cell vehicles (FCVs) for commercial and industrial applications along with growing adoption of hydrogen buses and trains, especially in Europe and Asia will contribute to the product demand. For instance, H2X, an Australian startup, develops and designs FCVs requiring only minutes for refueling and also provide a longer range per refill than battery-powered vehicles.
   
• Additionally, hydrogen-fueled trains are becoming increasingly popular as substitutes for diesel engines, especially in parts of Europe where the electrification of rail systems is expensive or not feasible, which is likely to expand the business environment. As an example, in December 2024, Air Liquide was awarded a grant of USD 114 million from the European Innovation Fund for the implementation of its ENHANCE project at the Port of Antwerp-Bruges in Belgium.
   
• Government funding and adoption supporting policies are stimulating the development of hydrogen. Several countries have or are currently developing national hydrogen strategies for the purposes of decarbonization and energy security. For example, in May 2022 the European Commission began two investigations concerning two acts that elucidate EU policies on renewable hydrogen set out in the 2018 Renewable Energy Directive.
   
• Incomplete policies from various nations enable grants, tax subsidies, and incentives to assist in the construction of hydrogen power plants, refueling stations, and storage facilities, while simultaneously making businesses more active. Furthermore, industries would be financially incentivized to use emission reduction technologies which will help in increasing the economy.
   

Hydrogen Market Analysis

• Based on applications, the market for petroleum refineries is expected to reach over USD 419 billion by 2034.
   
• The target to improve hydrogen's utilization at refineries in turn, is boosting the industry’s outlook. Refineries utilize hydrogen in the reduction processes of sulfur contents in diesel and gasoline derived from crude oil. A number of refineries around the world are using green hydrogen for net-zero emission goals. For example, in February 2023, the Indian Oil Corporation (IOC), one of the leading oil companies in India declared its intentions to build green hydrogen plants at all its refineries by the year 2047.
   
• Global agricultural production contributing to the growing demand of ammonia coupled with growing use of methanol across the industrial processes will contribute to the business scenario. To cite an instance, the MadoquaPower2X Project, started in 2022 mid, will produce renewable hydrogen and ammonia from 1.1 GW of wind and solar power, feeding 500 MW of electrolyzer capacity.
   
• Various other potential applications for the energy carrier include steel production, transport, power generation and buffering, and buildings, among others. Streamlining the existing manufacturing processes to reduce the carbon footprint coupled with continued deployment of low-cost renewable hydrogen will reassure the adoption of clean energy carrier in other segment in the coming years. As an example, the Indian Ministry of Steel allocated two pilot projects for the manufacture of Direct Reduced Iron using vertically integrated shafts, with 100% hydrogen usage in December 2024.
   

• Based on type, the grey segment held approximately 73.8% share of the hydrogen market in 2024, due to the increased consumption of crude oil and existing efforts to modernize the refining capacity.
   
• The production of green hydrogen has been given a boost due to the widespread use of steam methane reformation for the production of grey hydrogen, which is highly carbon intensive. In addition, the growing focus on reducing greenhouse gas emissions to address climate longer, as well as the increasing stress on various industries to move away from high emission processes, will enhance the industry profile.
   
• The blue hydrogen market is anticipated to grow at over 14% CAGR through 2034, on account of continuous technological advancements to develop hydrogen infrastructure.  Ongoing introduction of several norms across the government authorities have shifted the interest toward the production of hydrogen using CCS technologies which will further accelerate the business outlook. In March 2024, ExxonMobil, announced a revised version of its flagship blue hydrogen initiative in Texas. The company intends to export approximately 500,000 tonnes of blue ammonia to Japan.
   
• Green hydrogen will grow owing to shifting focus toward cleaner forms of energy and growing concerns over carbon emissions. The rise of cross-border green hydrogen trade along with significant investments in hydrogen supply chains, including the development of liquefied hydrogen shipping will augment the market growth. To cite an instance, in 2024, ABB signed an agreement with Green Hydrogen International, to produce 280,000 tons of green hydrogen per year in Texas, U.S.
   

• The U.S. hydrogen market amounted to USD 15.8 billion, USD 17.3 billion and USD 18.7 billion by 2022, 2023 and 2024 respectively. North America accounted for nearly 11.5% of the overall revenue share in 2024 owing to the development of the global market with significant efforts by multiple government agencies.
   
• States like California are leading in hydrogen fuel cell vehicle adoption and infrastructure development. Canada is strategically positioning itself to become a key supplier of clean hydrogen to Asian markets, which facilitates market expansion. In addition, the aggressive placement toward decarbonization, energy transition, and technological advancement will increase market opportunities.
   
• Surge in consumption across industrial, transportation and energy domains is propelling the market growth in Europe. Joint ventures and cooperative activities are anticipated to further enhance hydrogen’s role in the European clean energy value chain. As an illustration, in July 2024, the Messer Group announced a new green hydrogen facility in Düren, Germany aimed at supporting the Germany’s clean energy transitions.
   
• Asia Pacific hydrogen market will grow owing to introduction of favorable policies to enhance investments in hydrogen projects. Active research & demonstration projects focused primarily on hydrogen production; country specific hydrogen roadmaps coupled with advancement of technologies focusing on clean energy development in various countries of the region will positively influence the adoption of carbon negative resource in the coming years. For citation, under the Hydrogen Industry Development Plan (2021-2035), China aims to produce nearly 200,000 tonnes per year by 2025.
   

Hydrogen Market Share

• Top 5 players operating in the industry include Air Liquide, Air Products & Chemicals, Ballard Power Systems, Cummins and Nel ASA. The market competition comprises a variety of regular energy firms, dedicated hydrogen manufacturers, and technology companies.
   
• The hydrogen market's competitiveness varies by region, driven by different regulatory frameworks, decarbonization goals, and the pace of innovation. Growing number of private companies are entering the hydrogen space, attracted by decarbonization opportunities. Venture capital and private equity firms are investing in both upstream hydrogen production and downstream applications like fuel cells and mobility.
   

Hydrogen Market Companies

• Air Liquide has full capabilities concerning the creation, distribution, and refueling of liquid hydrogen. Moreover, in the records from 2024, the company had a revenue record of USD 1.1 Billion. Also, in November 2024, Air Liquid plans to construct a green hydrogen facility for TotalEnergies’ La Mède biorefinery in France.
   
• Ballard Power Systems is an Integrated Solutions Partner for a plethora of applications and is well known as a global provider of PEM (proton exchange membrane) fuel cell solutions. The company reported a revenue of USD 45.2 Million in Q3 of 2024. In addition, Ballard Power Systems, alongside Element 1, intends to transform hydrogen power generation in the month of October 2024.
   
• Cummins is a top-tier company in the design and construction of diesel and natural gas engines, electricity generation systems, and other affiliated products. The firm has reported earnings of USD 25.6 billion for the quarter three of 2024. In March 2024, Tata Cummins also inaugurated its new facility at Jamshedpur for the manufacture of hydrogen powered engines.
   
• Nel ASA is involved in the storage, production, and distribution of hydrogen from renewable sources globally. The company reported a revenue of USD 32.2 million by Q3 2024.Further, the company, later that year, entered in a contract with HH2E for supply of 120 MW of alkaline electrolyzer.
   

Eminent players operating in the hydrogen market are:

• Air Liquide
• Air Products & Chemicals
• Ally Hi Tech
• Ballard Power Systems
• Caloric
• Claind
• Cummins
• ENGIE
• HyGear
• Infinite Green Energy
• Iwatani Corporation
• Linde
• Mahler AGS
• Mcphy Energy
• Messer
• Nel ASA
• Nuvera Fuel Cells
• Plug Power
• Resonac Holdings Corporation
• Taiyo Nippo Sanso Corporation
• Teledyne Technologies Incorporated
• Xebec Adsorption
   

Hydrogen Industry News:

• In February 2024, Linde collaborated with Daimler Truck to create the state-of-the-art sLH2 technology for liquid hydrogen handling. This advanced sLH2 technology established new parameters in the industry. The technology surpassed previous benchmarks in storage capacity, range, speed of refueling, and cost. Overall, the technology’s effectiveness in converting energy was greatly improved. The process allowed refueling of a 40-tonne truck in 10-15 minutes, providing a range of over 1,000 kilometers, while reducing hydrogen station investment and operating costs.
   
• In February 2024, Bp p.l.c. signed a license agreement with BASF SE for the use of gas treating technology, OASE white, for carbon capture and storage during hydrogen production at its H2Teesside plant. Storage. OASE white, a proven technology across various hydrogen, ammonia, and carbon monoxide plants in the world will provide improved energy efficiency to the blue hydrogen generation process. The collaboration will aid the firm in achieving efficient hydrogen and subsequently enhancing its hydrogen portfolio further.
   
• In February 2024, Det Norske Veritas (DNV) has recognized Samsung C&T Engineering and Construction Group with an award for Innovative Design for the construction of the world’s largest liquid hydrogen tank. The design comes from collaboration with a British engineering company and greatly improves a tank's ability to store and maintain stability. Samsung C&T’s position in the energy supply chain, such as the storage and transportation of green hydrogen and ammonia, is significantly strengthened by this award.
   
• In December 2023, SK E&S CO. LTD has added the largest low-carbon hydrogen plant in South Korea to their global partnership with the local government and other international associates. Their vision is to develop a domestic hydrogen economy while simultaneously increasing production of low-carbon hydrogen. With this, the company is positioned to make significant advancements towards carbon neutrality while continuing to expand their international presence.
   

This hydrogen market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “USD Billion and MT ” from 2021 to 2034, for the following segments:

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Market, By Type

• Grey
• Blue
• Green

Market, By Application

• Petroleum Refinery
• Chemical
• Others

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

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