North America Merchant Hydrogen Generation Market Size

North America Merchant Hydrogen Generation Market Size

North America Merchant Hydrogen Generation Market was valued at USD 6.4 billion in 2023 and is anticipated to grow at a CAGR of 6.6% through 2032. It refers to the production of hydrogen by a company or entity specifically for sale to third parties. Unlike captive hydrogen production, where hydrogen is produced for the company's own use, merchant hydrogen generation is geared towards meeting external market demand. This hydrogen is typically produced at centralized facilities and distributed to various industries such as chemicals, refineries, and fuel cell applications.

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Rising regulatory support and government initiatives, policies and grants including the Department of Energy’s (DOE) hydrogen energy Earthshot initiative aims to reduce the cost of clean hydrogen by 80% to US$1 per kilogram within a decade are set to influence the industry growth. Growing emphasis on reducing carbon emissions and combating climate change is driving hydrogen adoption as a versatile energy carrier that can be used in various sectors, including transportation, power generation, and industrial processes thereby propelling the delivery mode adoption.
 

Rising petrochemical industry reliance on hydrogen for hydrocracking and desulfurization processes and operation decarbonization creates opportunities for third party hydrogen manufacturers thereby escalating the industry growth. Growing strategic partnerships and collaborations among companies to leverage each other’s strengths in technology, infrastructure, and market access are additional factors driving market.