Hydrogen Generation Market Size
| Study Period | 2020-2029 |
| Market Size (2024) | USD 184.74 Billion |
| Market Size (2029) | USD 227.25 Billion |
| CAGR (2024 - 2029) | 4.23 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Hydrogen Generation Market Analysis
The Hydrogen Generation Market size is estimated at USD 184.74 billion in 2024, and is expected to reach USD 227.25 billion by 2029, growing at a CAGR of 4.23% during the forecast period (2024-2029).
Over the medium term, factors such as supportive government policies coupled with the increasing demand from refineries and the industrial sector are likely to drive the hydrogen generation market during the forecast period.
- On the other hand, high production costs of hydrogen energy storage are expected to restrain the hydrogen generation market.
- Nevertheless, technological advancements in extracting hydrogen from renewable sources and increased applications of hydrogen as a fuel are likely to create lucrative growth opportunities for the hydrogen generation market during the forecast period.
- Asia-Pacific is the fastest-growing market during the forecast period due to the rising hydrogen demand. This growth is attributed to increasing investments, coupled with supportive government policies in the countries such as India, China, and Japan.
Hydrogen Generation Market Trends
Oil Refining Segment Expected to Dominate the Market
- The use of hydrogen in oil refining is indispensable. Oil refineries are used to remove sulfur from the fuels they produce in a chemical separation process called hydro desulphurization. It is also used for hydro-cracking and reforming processes in oil refineries. Reforming is the process of removal of sulfur compounds from petroleum to obtain high-grade fuel, thus reducing air pollution. Hydrogen is added to crude oil and oxygen to deliver refined petroleum products (e.g., diesel, LPG, and gasoline).
- According to the Energy Institute Statistical Review of World Energy, the oil refining capacity witnessed a growth rate of 0.5% between 2021 and 2022, whereas the annual growth rate in the last decade was 0.7%. The oil refining capacity is expected to follow the growth trend in the coming years due to various upcoming projects in the Asia-Pacific region. The market's growth is also expected to be driven by the demand for cleaner fuels, government regulations for the desulfurization of petroleum products, and the general decline in crude oil quality. As the rate of crude decreases, the volume of hydrogen required for the refinement process increases to maintain the quality of end products.
- As per the information provided by the US Energy Information Administration, there are at least nine refinery projects in Asia and the Middle East that are in the process of commencing operations or were slated to become operational by the conclusion of 2023. These projects, based on their intended capacities, are expected to contribute an additional 2.9 million barrels per day (b/d) to the global refinery capacity when they reach full operational status. Thus, this is anticipated to drive the demand for hydrogen generation during the forecast period.
- The pace and refinery investments continue to follow the increase in the oil demand. In the International Energy Agency's (IEA) June 2022 Oil Market Report, the IEA expects net global refining capacity to expand by one million BPD in 2022 and by an additional 1.6 million BPD in 2023, which is expected to increase the demand for hydrogen generation during the forecast period.
- Moreover, by investing in technologies that reduce the carbon footprint of hydrogen production, such as carbon capture and utilization, the oil refining segment can align with global sustainability objectives and proactively influence the role of hydrogen as a green energy source.
- For instance, in February 2023, the leading Indian oil company, Indian Oil Corporation (IOC), embarked on a green transformation strategy worth INR 2 trillion, with the aim of achieving net-zero emissions from its operational activities by 2046. As part of this initiative, Indian Oil Corporation plans to establish green hydrogen facilities at all of its refineries.
- Therefore, as per the points mentioned above, the refinery segment is expected to dominate the market during the forecast period.
Asia-Pacific Region Fastest Growing Market
- The Asia-Pacific region has emerged as a pivotal player in the global hydrogen generation market, with countries like China, India, Japan, and South Korea at the forefront of this rapidly evolving industry. This dynamic shift can be attributed to several factors, including the increasing demand for clean and sustainable energy sources and the region's commitment to reducing carbon emissions and achieving ambitious climate goals.
- These countries' strategic initiatives, comprehensive research, and concerted efforts make the Asia-Pacific hydrogen generation market a hub for innovation and investment. The Asia-Pacific hydrogen generation market is characterized by a diverse range of technologies and projects aimed at harnessing the potential of hydrogen as a clean energy carrier.
- In 2022, the Chinese government unveiled its inaugural long-range blueprint for hydrogen, outlining the period spanning from 2021 to 2035. As per the most recent government blueprint, China aims to manufacture between 100,000 and 200,000 tons of renewable hydrogen each year and establish a fleet of 50,000 hydrogen-powered vehicles by 2025.
- Similarly, India's pursuit of green hydrogen is marked by various initiatives, both at the governmental and private sector levels. The government has introduced several policy measures and incentives to encourage green hydrogen projects and infrastructure development. The National Hydrogen Energy Mission (NHEM), launched by the Indian government, outlines a roadmap for hydrogen production, storage, and utilization.
- Several companies and research institutions are engaged in pilot projects and partnerships to assess the viability of hydrogen production. The country’s comprehensive approach, combining green and blue hydrogen initiatives, aligns with its commitment to lowering carbon emissions throughout the hydrogen supply chain.
- For instance, in May 2023, the Tokyo Tech InfoSyEnergy Research and Education Consortium, in collaboration with the Tokyo Tech Academy of Energy and Informatics, introduced a fuel cell capable of producing electricity using a combination of hydrogen and hydrogen derived from waste plastic materials.
- Therefore, as per the points mentioned above, the Asia-Pacific region is expected to witness significant growth during the forecast period.
Hydrogen Generation Industry Overview
The hydrogen generation market is moderately fragmented. Some of the major players in the market (in no particular order) include ITM Power plc, Linde plc, Engie SA, The Messer Group GmbH, and Air Liquide SA.
Hydrogen Generation Market Leaders
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ITM Power plc
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Linde plc
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Engie SA
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Air Liquide S.A
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The Messer Group GmbH
*Disclaimer: Major Players sorted in no particular order
Hydrogen Generation Market News
- October 2023: H2B2, a technology company with a portfolio in Hydrogen production systems, unveiled the green hydrogen plant, which is expected to become operational in North America, the SoHyCal facility located in Fresno, California, United States. The project envisages 100 percent clean hydrogen production using PEM technology.
- October 2023: Hygenco Green Energies announced its plans to operate and construct a cent percent green H2 gas plant in Maharashtra, India. The company also plans to supply green hydrogen and green oxygen to Sterlite Technologies Ltd. This is expected to become one of the first hydrogen Generation Plants in Maharashtra.
- May 2023: RWE and the Westfalen Group announced their joint plans to supply green hydrogen gas to fuel-cell electric vehicles in Germany. According to the joint venture, both companies are expected to aim to develop up to 70 hydrogen stations, which could be developed by 2030. The first public hydrogen fuel station under the JV will be installed in front of RWE's Emsland gas-fired power station.
Hydrogen Generation Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD, till 2028
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.1.1 Favorable Government Policies
- 4.5.1.2 Increasing Demand From Refinery and Industrial Sector
- 4.5.2 Restraints
- 4.5.2.1 Higher Production Cost
- 4.6 Supply Chain Analysis
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4.7 Porter's Five Forces Analysis
- 4.7.1 Bargaining Power of Suppliers
- 4.7.2 Bargaining Power of Consumers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitutes Products and Services
- 4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Source
- 5.1.1 Blue hydrogen
- 5.1.2 Green hydrogen
- 5.1.3 Grey Hydrogen
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5.2 Technology
- 5.2.1 Steam Methane Reforming (SMR)
- 5.2.2 Coal Gasification
- 5.2.3 Other Technologies
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5.3 Application
- 5.3.1 Oil Refining
- 5.3.2 Chemical Processing
- 5.3.3 Iron & Steel Production
- 5.3.4 Other Applications
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5.4 Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)})
- 5.4.1 North America
- 5.4.1.1 United States
- 5.4.1.2 Canada
- 5.4.1.3 Rest of North America
- 5.4.2 Europe
- 5.4.2.1 Germany
- 5.4.2.2 France
- 5.4.2.3 Italy
- 5.4.2.4 United Kingdom
- 5.4.2.5 Russian Federation
- 5.4.2.6 Rest of Europe
- 5.4.3 Middle East & Africa
- 5.4.3.1 Saudi Arabia
- 5.4.3.2 United Arab Emirates
- 5.4.3.3 South Africa
- 5.4.3.4 Rest of Middle East and Africa
- 5.4.4 Asia-Pacific
- 5.4.4.1 China
- 5.4.4.2 India
- 5.4.4.3 Japan
- 5.4.4.4 South Korea
- 5.4.4.5 Rest of Asia-Pacific
- 5.4.5 South America
- 5.4.5.1 Brazil
- 5.4.5.2 Argentina
- 5.4.5.3 Rest of South America
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers, Acquisitions, Collaboration and Joint Ventures
- 6.2 Strategies Adopted by Key Players
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6.3 Company Profiles
- 6.3.1 Linde plc
- 6.3.2 Air Liquide
- 6.3.3 Messer Group GmbH
- 6.3.4 ITM Power plc
- 6.3.5 Engie SA
- 6.3.6 Cummins
- 6.3.7 Air Products & Chemicals
- 6.3.8 Fuel Cell Energy
- 6.3.9 Taiyo Nippon
- 6.3.10 McPhy Energy
- 6.3.11 Enapter
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Technological Advancements
Hydrogen Generation Industry Segmentation
Hydrogen generation refers to the process of producing hydrogen gas, typically from hydrogen-containing compounds or sources. There are several methods for hydrogen generation, each with its own set of advantages and drawbacks.
The hydrogen generation market is segmented by source, technology, application, and geography. By source, the market is segmented as blue hydrogen, green hydrogen, and grey hydrogen; by technology, the market is segmented as steam methane reforming (SMR), coal gasification, and other technologies. By application, the market is segmented as oil refining, chemical processing, iron and steel production, and other applications. The report also covers the size and forecasts for the hydrogen generation market across major regions. For each segment, the market sizing and forecasts have been done based on revenue (USD).
| Source | Blue hydrogen | |
| Green hydrogen | ||
| Grey Hydrogen | ||
| Technology | Steam Methane Reforming (SMR) | |
| Coal Gasification | ||
| Other Technologies | ||
| Application | Oil Refining | |
| Chemical Processing | ||
| Iron & Steel Production | ||
| Other Applications | ||
| Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)}) | North America | United States |
| Canada | ||
| Rest of North America | ||
| Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)}) | Europe | Germany |
| France | ||
| Italy | ||
| United Kingdom | ||
| Russian Federation | ||
| Rest of Europe | ||
| Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)}) | Middle East & Africa | Saudi Arabia |
| United Arab Emirates | ||
| South Africa | ||
| Rest of Middle East and Africa | ||
| Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)}) | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)}) | South America | Brazil |
| Argentina | ||
| Rest of South America |
Hydrogen Generation Market Research FAQs
How big is the Hydrogen Generation Market?
The Hydrogen Generation Market size is expected to reach USD 184.74 billion in 2024 and grow at a CAGR of 4.23% to reach USD 227.25 billion by 2029.
What is the current Hydrogen Generation Market size?
In 2024, the Hydrogen Generation Market size is expected to reach USD 184.74 billion.
Who are the key players in Hydrogen Generation Market?
ITM Power plc, Linde plc, Engie SA, Air Liquide S.A and The Messer Group GmbH are the major companies operating in the Hydrogen Generation Market.
Which is the fastest growing region in Hydrogen Generation Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Hydrogen Generation Market?
In 2024, the North America accounts for the largest market share in Hydrogen Generation Market.
What years does this Hydrogen Generation Market cover, and what was the market size in 2023?
In 2023, the Hydrogen Generation Market size was estimated at USD 176.93 billion. The report covers the Hydrogen Generation Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Hydrogen Generation Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key trends observed in the Global Hydrogen Generation Market?
The key trends observed in the Global Hydrogen Generation Market are a) Increasing demand for hydrogen in various applications such as ammonia production, petroleum refining, transportation, and power generation b) Shift towards more sustainable and low-carbon energy solutions
What are the challenges faced by the Global Hydrogen Generation Market?
The challenges faced by the Global Hydrogen Generation Market are a) Underdeveloped hydrogen infrastructure and high-cost production techniques b) Lack of an existing clean hydrogen value chain and the high capital investment
Hydrogen Industry Report
The global hydrogen generation market is experiencing significant growth, driven by the increasing demand for sustainable and low-carbon energy solutions. This market is segmented based on technology, application, source, and region, catering to industries like transportation, power generation, and industrial applications such as ammonia and methanol production. Key technologies include steam methane reforming (SMR), electrolysis, and coal gasification, with electrolysis projected as the fastest-growing segment due to its role in producing green hydrogen. The market is witnessing a surge in investments aimed at reducing carbon emissions, especially in heavy industries and long-distance transport sectors. Regionally, North America and Asia Pacific lead in hydrogen market size, with significant contributions from the US, China, and India, which are actively enhancing their hydrogen infrastructure. Supported by stringent environmental regulations and advancements in technology that lower costs and increase efficiency, the hydrogen generation market is poised for robust growth. The hydrogen demand forecast indicates a continuing upward trend, emphasizing hydrogen's critical role in the global shift towards sustainable energy. For detailed global hydrogen production statistics, market share, size, and revenue growth rate, access a sample of the industry analysis as a free report PDF download from Mordor Intelligence™ Industry Reports.
