The global hydrogen generation market size was valued at USD 155.35 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 9.3% from 2023 to 2030. The growth is anticipated to be driven by the demand for cleaner fuel and the increasing governmental regulations for the desulphurization of petroleum products. Hydrogen is an effective energy carrier, and this attribute is expected to contribute significantly to its further penetration into newer markets. The global electricity demand is anticipated to witness an increase of nearly two-thirds of the current demand over the forecast period. Focus on projects related to distributed power & utility is anticipated to bolster the industry’s growth over the forecast period.
The U.S. is among the early adopters of clean energy solutions in the world for sectors such as power generation, manufacturing, and transportation. The U.S. Department of Energy (DOE) and the Department of Transportation (DOT) introduced a Hydrogen Posture Plan in December 2006. The aim of this plan was to enhance R&D and validate technologies that can be employed for setting up hydrogen infrastructure.
Moreover, this plan provided deliverables that were set by the Federal government to support the development of hydrogen infrastructure in the country. The plan was developed in accordance with the National Hydrogen Energy Vision and Roadmap. The development and construction of cost-effective and energy-saving hydrogen stations across the country are among the key objectives planned by the government agency. All these factors are expected to propel the demand for hydrogen generation in the U.S.
The German Ministry of Transport took an initiative in June 2012 to establish a countrywide hydrogen network and boost the hydrogen infrastructure for hydrogen refueling stations. As part of this initiative, the Ministry signed a letter of intent (LoI) with industry players such as Total, The Linde Group, Air Products and Chemicals, Inc., Daimler AG, and Air Liquide. Under the terms of which these industry players were given a target to construct at least 50 hydrogen fueling stations by 2015 in metropolitan cities and major corridors in Germany.
Based on technology type, the global market has been further divided into steam methane reforming, coal gasification, and others. The steam methane reforming process is a mature and advanced technology in hydrogen generation. The growing demand for hydrogen generation across the globe is a crucial driving factor for steam methane reformers technology, as steam methane reforming is the most economical method for hydrogen generation. Other factors driving the growth include operational benefits such as high conversion efficiency associated with the steam methane reforming process. The steam methane reforming segment is expected to maintain its lead during the forecast period.
Coal gasification hold a revenue share of 34.11% in 2022. Coal gasification which uses coal as a raw material for producing hydrogen has been in practice for nearly two centuries, moreover, is it also recognized as a mature technology for hydrogen generation. The U.S. has a huge domestic resource in coal. The use of coal to generate hydrogen for the transportation sector is expected to aid America in reducing its dependency on imported petroleum products.
Technologies considered under the others segment include electrolysis and pyrolysis process and electrolyzers. Over the last decade, there has been an increase in new electrolysis installation with an aim to produce hydrogen from water, wherein PEM technology is gaining a significant share in the market as the process emits only oxygen as a byproduct without carbon emission. Presently most of the electrolysis projects are in Europe; however, the new and upcoming projects have been announced in Australia, China, and America.
The natural gas segment led the hydrogen generation market in 2022. Hydrogen is produced from natural gas reforming which produces hydrogen, carbon monoxide and carbon dioxide. Hydrogen production from natural gas is the cheapest method pf producing hydrogen. Hydrogen production from natural gas is expected to keep its lead in the forecast period.
Based on systems, the merchant generation segment led the market in 2022. Merchant generation of hydrogen means hydrogen is produced at a central production facility and is transported and sold to a consumer by bulk tank, pipeline or cylinder truck. In many countries such as the U.S., Canada, and Russia there is an extensive existing natural gas pipeline network that could be used to transport and distribute hydrogen. Merchant generation segment is expected to retain its lead during the forecast period.
Ammonia production segment led the market and accounted for the largest revenue share of 21.98% in 2022. The segment is expected to maintain its lead throughout the forecast period. Ammonia’s potential as a carbon-free fuel, hydrogen carrier, and energy store represents an opportunity for renewable hydrogen technologies to be deployed at an even greater scale. Hydrogen is typically produced on-site at ammonia plants from a fossil fuel feedstock. The most common feedstock is natural gas, which feeds a steam methane reforming (SMR) unit. Coal can also be used to produce ammonia via a partial oxidation (POX) process.
The market is anticipated to witness a steady growth across all segments as the demand for hydrogen increases. Methanol is currently considered one of the most useful chemical products and is a promising building block for obtaining more complex chemical compounds, such as acetic acid, methyl tertiary butyl ether, dimethyl ether, methylamine, etc. Methanol is the simplest alcohol, appearing as a colorless liquid and with a distinctive smell, and can be produced by converting CO2 and H2, with the further benefit of significantly reducing CO2 emissions in the atmosphere.
Hydrogen based power generation technology has comfortably positioned themselves in mature markets, such as North America and Europe, where clean yet effective energy is one of the primary aspects. Hydrogen based power generation, which is cost-effective and a reliable source of power generation, are generating optimistic demands.
Turning crude oil into various end-user products such as transport fuels and petrochemical feedstock are some of the major applications of hydrogen. Hydrotreatment and hydrocracking are the main hydrogen-consuming processes in the refinery. Hydrotreatment is used to remove impurities, especially Sulphur and accounts for a large share of refinery hydrogen use globally. Hydrocracking is a process that uses hydrogen to upgrade heavy residual oils into higher-value oil products.
Asia Pacific dominated the global market in 2022 and accounted for the largest revenue share of over 34.94%.China led the Asia Pacific regional market in 2022, in terms of revenue. presence of high number of refineries Asia Pacific region in major countries such as China and India have resulted to drive the utilization of hydrogen generation in the region. Further, government in some of the Asia Pacific countries such as Japan and Australia are evaluating greener and cleaner technologies for hydrogen generation.
Hydrogen producers in the region are looking to expand their geographical reach and target countries like Vietnam, Indonesia and South Africa among other developing nations, to boost their revenue. U.S. based market players like Praxair Inc., and Air Liquide are looking to expand their operations in countries with increasing demand for hydrogen as part of their strategic growth plans.
The expansion of hydrogen generation industry in North America has been underway for several years. The industry has grown at a brisk pace with contributions from each application and technology. Methanol production and ammonia production are the fastest growing sector with countries such as the U.S. and Canada witnessing significant growth in the last five years.
Growth in hydrogen generation is expected in the region on account of development and deployment of fuel cell systems in Europe which is witnessing an increase due to the projects announced by the European Commission through organization such as Fuel Cells and Hydrogen Joint Undertaking (FCH JU). These projects have been announced with an objective to increase adoption of fuel cell vehicles in Europe and this will aid in development of supportive hydrogen infrastructure for fuel cell vehicles in the major European countries.
The hydrogen generation industry is competitive with key participants involved in R&D and constant innovation done by the vendors has become one of the most important factors for companies to perform in this industry. For instance, Matheson Tri-Gas, Inc. acquired Linde HyCO business that produces hydrogen, carbon monoxide, or syngas. The acquisition is expected to promote the expansion of the company’s capabilities and serve the petrochemical and refining industries.
Air Liquide announced that the company will manufacture and market renewable liquid hydrogen to U.S. west coast mobility market. The large-scale project is expected to produce 30 tons of liquid hydrogen per day using biogas technology. Some prominent players in the global hydrogen generation market include:
Air Liquide International S.A
Air Products and Chemicals, Inc
Hydrogenics Corporation
INOX Air Products Ltd.
Iwatani Corporation
Linde Plc
Matheson Tri-Gas, Inc.
Messer
SOL Group
Tokyo Gas Chemicals Co., Ltd.
Report Attribute |
Details |
Market size value in 2023 |
USD 170.14 billion |
Revenue forecast in 2030 |
USD 317.39 billion |
Growth rate |
CAGR of 9.3% from 2023 to 2030 |
Base year for estimation |
2022 |
Historical data |
2018 - 2021 |
Forecast period |
2023 - 2030 |
Quantitative units |
Volume in million metric tons, revenue in USD billion and CAGR from 2023 to 2030 |
Report coverage |
Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Technology, application, system, source, region |
Region scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
U.S.; Canada; Mexico; Germany; U.K.; Spain; Italy; France; Russia; China; India; Japan; South Korea; Australia; Brazil; Colombia; Paraguay Saudi Arabia; UAE; South Africa; Egypt |
Key companies profiled |
Linde Plc; Messer; Air Products and Chemicals, Inc; Air Liquide International S.A; INOX Air Products Ltd.; Matheson Tri-Gas, Inc.; SOL Group; Iwatani Corporation; Hydrogenics Corporation; Tokyo Gas Chemicals Co., Ltd.; Taiyo Nippon Sanso Corporation; Teledyne Technologies Incorporated; Hygear; Claind; Advanced Specialty Gases Inc. |
Customization scope |
Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional, and segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. Forthis study, Grand View Research has segmented the global hydrogen generation market report based on technology, application, system, source, and region:
Technology Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)
Steam Methane Reforming
Coal Gasification
Others
Application Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)
Methanol production
Ammonia Production
Petroleum Refining
Transportation
Power Generation
Others
System Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)
Captive
Merchant
Source Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)
Natural Gas
Coal
Biomass
Water
Regional Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)
North America
U.S.
Canada
Mexico
Europe
Germany
Russia
U.K.
France
Spain
Italy
Asia Pacific
China
India
Japan
South Korea
Australia
Central & South America
Brazil
Colombia
Paraguay
Middle East & Africa
Saudi Arabia
U.A.E
South Africa
Egypt
b. The global hydrogen generation market size was estimated at USD 155.35 billion in 2022 and is expected to reach USD 170.14 billion in 2023.
b. The global hydrogen generation market is expected to grow at a compounded annual growth rate of 9.3% from 2023 to 2030 to reach USD 317.39 billion by 2030.
b. The Asia Pacific dominated the hydrogen generation market in terms of revenue with the highest share in 2022. This is attributable to rising healthcare awareness coupled with cloud-based technology acceptance and constant research and development initiatives.
b. Some key players operating in the hydrogen generation market include Linde Plc; Messer; Air Products and Chemicals, Inc; Air Liquide International S.A; INOX Air Products Ltd.; Matheson Tri-Gas, Inc.; SOL Group; Iwatani Corporation.
b. Key factors driving the hydrogen generation market growth include rising demand for petroleum coke in the steel industry; development in the cement and power generation industries; growth in the supply of heavy oils globally and favorable government initiatives regarding the sustainable and green environment.
GET A FREE SAMPLE
This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself.
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.
Contact us now to get our best pricing.
ESOMAR certified & member
ISO Certified
We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure. For more details, please read our privacy policy.
"The quality of research they have done for us has been excellent."
We value your investment and offer free customization with every report to fulfil your exact research needs.