Petroleum Refining Hydrogen Generation Market Analysis

Based on deliver mode, the captive segment is projected to reach USD 83 billion by 2032. Rising integration of clean gas within the petroleum refinery to streamline refinery operations, minimize transportation logistics, and achieve greater process integration is set to influence the market growth. Furthermore, the cost advantage of in-house hydrogen production over merchant delivery, particularly in regions with abundant feedstock availability and favorable energy economics are additional factors driving the industry scenario.

Based on process, the electrolysis segment is set to grow at a CAGR of over 7.3% through 2032. Growing emphasis on decarbonization and the transition to clean energy has increased the process adoption owing to its sustainable pathway for producing hydrogen without relying on fossil fuels, thereby reducing greenhouse gas emissions. Furthermore, it plays a critical role in energy storage and grid balancing by converting surplus renewable electricity into clean fuel during periods of low demand or excess generation, thereby driving industry scenario.

Europe petroleum refining hydrogen generation market revenue to hit USD 26 billion by 2032. The European Union (EU) has set ambitious energy transition goals, including the European Green Deal and the EU Hydrogen Strategy and as a part of strategy, petroleum refineries are exploring hydrogen production from renewable sources to align with sustainability objectives and reduce their carbon footprint thereby stimulating the business growth. Rising investments in developing advanced technology including proton exchange membrane electrolysis and alkaline electrolysis to produce green hydrogen from renewable sources will create growth opportunities and enhance product competitiveness.

In the U.S. rising advancement in hydrogen generation technologies in line with integration of CCS production processes to enable refineries to capture and store carbon emissions will augment the business statistics. Growing investments in clean energy infrastructure development to support the transition to a low carbon economy and promote the widespread adoption of clean energy carriers will improve the product adoption.