Merchant Hydrogen Generation Market Size - By Process (Steam Reformer, Electrolysis and Others), By Application (Petroleum Refining, Chemical, Metal), Regional Outlook & Forecast, 2024 – 2032

Merchant Hydrogen Generation Market Size

Merchant Hydrogen Generation Market was valued at USD 26 billion in 2023 and is anticipated to grow at a CAGR of 7.6% from 2024 to 2032. It refers to the production of hydrogen by a third-party company that sells it to various customers rather than using it for its own internal needs. These companies produce hydrogen at large-scale facilities and distribute it to a range of industries, including manufacturing, transportation, and energy sectors.
 

Rising shift towards decarbonization supported by governments and industries policies and practices aimed at reducing carbon emissions to combat climate change will escalate the process adoption. Expanding renewable energy capacity coupled with the rising need for effective energy storage and management solutions is set to augment the market landscape.

Rising technological advancements in clean fuel production to make the process more efficient and cost-effective in addition to improving innovations in electrolysis, such as proton exchange membrane and solid oxide electrolysis, as well as improvements in natural gas reforming with carbon capture to reduce the production cost will propel the process penetration. Growing shift towards greener processes by industries including steel manufacturing, chemicals, and refining is set to influence the industry statistics.
 

Merchant Hydrogen Generation Market Trends

Rising shift toward green hydrogen production generated through renewable energy sources driven by stringent environmental regulations and the global commitment to reduce carbon footprints will foster the business scenario. Growing clean fuel infrastructure supported by governments and private entities investments in building comprehensive supply chains, including production facilities, storage solutions, and distribution networks will stimulate the production demand.
 

Merchant Hydrogen Generation Market Analysis

Based on process, the steam reformer segment is projected to grow by more than USD 43 billion by 2032 due to its efficiency and reliability. Rising demand for cost-effective processes coupled with high hydrogen yield per unit of feedstock is set to influence the market growth. Furthermore, rising integration of carbon capture and storage (CCS) technologies with clean fuel production processes to enhance their environmental performance will propel the process penetration.
 

Based on application, the metal segment is set to grow at a CAGR of over 8.4% through 2032. Rising shift of metal industry towards decarbonization has increased the demand for clean fuel as a reducing agent to reduce carbon emissions is stimulating the process demand. Expanding steel industry driven by growth in construction, automotive, and infrastructure sectors is boosting hydrogen demand in direct reduced iron (DRI) production, a crucial component in steelmaking thereby creating positive opportunities for market growth.
 

Asia Pacific merchant hydrogen generation market is anticipated to grow over USD 23 billion by 2032. Rapid industrialization and urbanization in countries like China, Japan, South Korea, and India coupled rising investment by these regions in infrastructure projects, is propelling hydrogen demand in sectors such as steel manufacturing, refining, and chemicals thereby stimulating the process penetration. Supportive comprehensive strategies to reduce carbon emissions and promote clean energy including Japan's Basic Hydrogen Strategy aims to establish a clean fuel society by expanding its usage across various sectors will propel the process demand.
 

In the U.S. companies are investing heavily in developing cutting-edge solutions to enhance the efficiency and scalability of clean energy production is driving the market statistics. Rising hydrogen demand from sectors such as refining, ammonia production, and methanol production in the region will complement the process growth to reduce their carbon footprint.
 

Merchant Hydrogen Generation Market Share

Eminent players are establishing a presence in regions with high growth potential, such as Asia-Pacific and the Middle East to mitigate risks associated with market saturation and regulatory changes in any single region. Companies are also exploring and expanding hydrogen applications beyond traditional uses including mobility, power generation, and industrial processes to tap into new markets and increase overall demand.
 

Merchant Hydrogen Generation Market Companies

Eminent players operating in the merchant hydrogen generation industry are:

• Air Liquide
• Axpo Holding AG
• Air Products and Chemicals, Inc
• Cummins Inc
• Coregas
• Linde Plc
• Messer Group GmbH
• Nel Hydrogen
• Plug Power Inc
• Sumitomo Corporation
• TotalEnergies SE
• Uniper SE
   

Merchant Hydrogen Generation Industry News:

• In December 2023, Linde has increased liquid hydrogen production at its Alabama facility to 30 tons per day, serving the local merchant market. This expansion aims to meet rising demand from manufacturing, electronics, space launch, and mobility sectors in the U.S.
   
• In April 2024, Linde Plc subsidiary, White Martins, is set to construct and operate a second electrolyzer for green hydrogen production in southeastern Brazil. This initiative aims to supply green hydrogen to Cebrace, a glass manufacturer in Jacareí, to reduce emissions from its glass melting furnaces. The project is scheduled to commence operations in 2025, aligning with the decarbonization objectives and facilitating the transition of merchant customers towards lower carbon solutions.
   

This 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 Process

• Steam Reformer
• Electrolysis
• Others

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