Hydrogen Market Size - By Type, By Application, Forecast, 2025 – 2034

Hydrogen Market Size

The global hydrogen market size was valued at USD 204.5 billion in 2024 and is estimated to grow at a CAGR of 12.3% from 2025 to 2034. Hydrogen is the lightest and most abundant chemical element in the universe. It is a colorless, odorless, non-toxic, and highly flammable gas under standard temperature and pressure. It is a versatile and clean fuel, holds promise across various applications.
 

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. 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.
 

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. Hydrogen-powered trains are gaining traction as an alternative to diesel-powered trains, particularly in regions like Europe, where electrification of rail networks is costly or impractical is set to augment the business landscape.
 

Hydrogen Market Trends

Governments are playing a central role in accelerating the adoption of hydrogen through favorable policies, financial incentives, and strategic roadmaps. Several countries have developed or are in the process of developing national hydrogen strategies to achieve decarbonization and energy security goals. Many governments are offering grants, subsidies, and tax incentives to lower the costs of building hydrogen production facilities, refueling stations, and storage infrastructure, contributing to the business momentum. In addition, industries will have an economic incentive to switch to low-carbon technologies to reduce emissions, driving the market growth.
 

Hydrogen Market Analysis

Based on application, the market is segmented into petroleum refinery, chemical and others. The petroleum refinery segment is anticipated to surpass USD 409 billion by 2034. Increasing demand for hydrogen in refineries, driven by efforts to reduce carbon footprints, is enhancing the industry's outlook. Refineries use hydrogen to lower sulfur levels in diesel and gasoline produced from crude oil. Many refineries worldwide are adopting green hydrogen to achieve net-zero emission targets.
 

For instance, in February 2023, the Indian Oil Corporation (IOC), one of India's largest oil companies, announced plans to establish green hydrogen plants at all its refineries by 2047. Furthermore, the growing demand for hydrogen across hard-to-abate applications involving steel reduction, and methanol & ammonia manufacturing will complement the industry growth.
 

Based on type, the hydrogen market is bifurcated into grey, blue and green. The grey type segment is poised to expand at a CAGR of 11% through 2034. Rising crude oil consumption, coupled with initiatives to upgrade current refining facilities, is set to boost the product demand. Furthermore, steam methane reformation is a prevalent method for producing grey hydrogen, its carbon-intensive nature is steering the industry towards a preference for green hydrogen.
 

Moreover, increasing emphasis on reducing greenhouse gas emissions to combat climate change along with mounting pressure on industries to transition away from high emission processes will augment the industry landscape.
 

The U.S. hydrogen market is expected to cross USD 36 billion by 2034 owing to 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 also positioning itself as a major exporter of clean hydrogen, especially to markets in Asia, thereby contributing to the market growth. Furthermore, driving push for decarbonization, energy transition, and technological innovation will contribute to the market demand.
 

Hydrogen Market Share

The competitive landscape in the hydrogen industry includes a mix of traditional energy companies, specialized hydrogen producers, and technology developers. The hydrogen industry 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

Eminent players operating in the hydrogen industry 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 June 2024, Total Energies signed an agreement with Air Products to deliver 70,000 tons of green hydrogen each year in Europe, starting in 2030. This endeavor plays a crucial role in the company's ambition to reduce net greenhouse gas emissions from its oil and gas operations by 40% by 2030. 
   
• In January 2023, the Union Cabinet of India launched the National Green Hydrogen Mission, allocating an initial budget of USD 2.38 billion. The mission aims to establish a green hydrogen production capacity of 5 MMT annually, alongside expanding the country's renewable energy capacity by 125 GW.
   

The 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