Europe Hydrogen Generation Market Size (2024 - 2029)

The Europe Hydrogen Generation Market is anticipated to experience steady growth, driven by the increasing demand for green hydrogen as a renewable energy source. This demand is bolstered by its potential to serve as an alternative to Russian gas imports. Despite the challenge posed by high production costs relative to other renewable technologies, opportunities such as the commercialization of photolytic processes for hydrogen generation are expected to contribute positively to the market's expansion. Germany is projected to dominate the market due to its proactive hydrogen strategy and early investment in the green hydrogen sector.

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Market Size of Europe Hydrogen Generation Industry

Europe Hydrogen Generation Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 7.50 %
Market Concentration High

Major Players

Europe Hydrogen Generation Market Major Players

*Disclaimer: Major Players sorted in no particular order

Europe Hydrogen Generation Market Analysis

The Europe Hydrogen Generation Market is expected to grow at a CAGR greater than 7.5% during the forecast period.

The market was relatively unchanged by the Covid-19 pandemic due to demand from end-user industries such as iron and steel and refining, witnessing quick recoveries. The market recovered to pre-pandemic levels in 2021 and is expected to grow steadily during the forecast period.

  • The growing demand for green hydrogen as a source of renewable energy, which can be easily manufactured, transported and stored and provide a viable alternative to Russian gas imports, is expected to be one of the most significant factors driving the market during the forecast period.
  • However, high production costs compared to other renewable energy technologies are expected to restrain the demand in the market during the forecast period.
  • Nevertheless, the commercialisation of photolytic (Direct solar water splitting) processes for hydrogen generation remain a significant opportunity for the market during the forecast.
  • Due to its clear hydrogen strategy and early start in the green hydrogen segment, Germany is expected to be the largest geographical segment in the market during the forecast period.

Europe Hydrogen Generation Industry Segmentation

Hydrogen generation is defined as the process by which hydrogen is manufactured in commercial volumes for usage in various industrial and consumer end-user applications. The Europe hydrogen generation market is segmented by Type, Production Technology, Application and Country. By Type, the market is segmented into blue, green and grey. By production technology, the market is segmented into steam methane reforming (SMR), electrolysis and others. By application, the market is segmented into oil refining, chemical processing, iron and steel production and others. The market is segmented by Germany, Netherlands, Poland, Spain, Italy and the rest of Europe. For each segment, the market sizing and forecasts have been done based on generation capacity (Million tons per year (MTPA)).

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Europe Hydrogen Generation Market Size Summary

The Europe hydrogen generation market is poised for significant growth, driven by the increasing demand for green hydrogen as a renewable energy source. This demand is further fueled by the need to reduce reliance on Russian gas imports, particularly in the wake of geopolitical tensions. The market has shown resilience, recovering swiftly from the impacts of the Covid-19 pandemic, with key industries such as iron and steel and refining leading the recovery. Despite the high production costs associated with hydrogen generation compared to other renewable technologies, the commercialization of innovative processes like photolytic solar water splitting presents substantial opportunities. Germany, with its robust hydrogen strategy and early investments in green hydrogen, is expected to dominate the market, leveraging its position to enhance collaboration with neighboring countries and expand its renewable energy infrastructure.

Europe is anticipated to be the largest regional market for green hydrogen, supported by substantial investments and a strong policy framework at both the EU and national levels. The REPowerEU plan, initiated in response to the Russian military intervention in Ukraine, aims to significantly boost renewable energy production, with hydrogen playing a central role in the EU's energy transition and industrial decarbonization efforts. The phase-out of grey hydrogen is expected to accelerate, driven by regulatory measures such as the Emissions Trading System and carbon border tax adjustments. Germany's strategic initiatives, including expanding electrolyser capacity and developing hydrogen pipelines, are set to reinforce its leadership in the market. The market landscape is characterized by consolidation, with major players like Linde PLC, Air Liquide, and Engie SA actively shaping the industry's future.

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Europe Hydrogen Generation Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Installed Capacity and Forecast in million tons per year (MTPA), till 2027

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitutes Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

Europe Hydrogen Generation Market Size FAQs

The Europe Hydrogen Generation Market is projected to register a CAGR of greater than 7.5% during the forecast period (2024-2029)

Linde PLC, Air Liquide, Messer Group GmbH, Plug Power Inc. and Engie SA are the major companies operating in the Europe Hydrogen Generation Market.

Hydrogen Generation Market in Europe Report Snapshots

Europe Hydrogen Generation Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)