GVR Report cover Hydrogen Generation Market Size, Share & Trends Report

Hydrogen Generation Market Size, Share & Trends Analysis Report By Systems Type (Merchant, Captive), By Technology (Steam Methane Reforming, Coal Gasification), By Application, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Mar, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-2-68038-517-5
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 121

Report Overview

The global hydrogen generation market size was valued at USD 120.77 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.7% from 2021 to 2028. An exponential increase in the demand for clean and green fuel with the rising pollution levels, coupled with the growing government regulations to control and curb the sulfur content in fuels, is expected to drive the market for hydrogen generation. Increasing application of the product in various industries is anticipated to be the major driving force for the industry globally. Hydrogen is produced using numerous resources like biomass, natural gas, coal, along with various other renewable and non-renewable sources of energy.

U.S. hydrogen generation market size, by technology, 2016 - 2028 (USD Billion)

Presently, natural gas is the primary source of making hydrogen, and steam methane reformers using natural gas are majorly used in hydrogen production. However, hydrogen is also produced by the adoption of newer technologies, such as electrolysis and pyrolysis.

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 storage infrastructure.

Moreover, this plan provided deliverables that were set by the Federal government to support the development of storage and distribution infrastructure in the country. The plan was developed in accordance with the National Hydrogen Energy Vision and Roadmap.

Manufacturers in the U.S. are looking to enlarge their geographical reach and target countries like Indonesia, Vietnam, and South Africa among other developing nations, to boost their revenue. Furthermore, U.S.-based companies such as Air Liquide and Praxair Inc. are looking to expand their operations in countries with increasing demand for the product as part of their strategic growth plans.

The expansion of the 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. The application of hydrogen in methanol and ammonia production is growing at a high rate in the U.S.

Technology Insights

Steam methane reforming technology held the largest revenue share of over 62.0% in 2020. Steam methane reforming is a method of producing hydrogen, along with other gases including carbon monoxide and carbon dioxide. The steam methane reforming process is a mature and advanced technology in hydrogen generation.

The increasing demand for hydrogen across the globe is one of the significant factors for the growth of steam methane reforming technology as it is the most cost-effective technology for hydrogen generation. Operational benefits such as high conversion efficiency associated with the steam methane reforming process are driving the segment.

Coal gasification technology accounted for the second-largest revenue share in 2020 and is projected to expand at the highest revenue-based CAGR during the forecast period. Coal gasification, which uses coal as a raw material for producing hydrogen, has been in practice for nearly two centuries. Moreover, it is recognized as a mature technology like steam methane reforming for hydrogen generation.

Systems Type Insights

The merchant segment held the largest revenue share of over 59.0% in 2020. Merchant generation of hydrogen means hydrogen is produced at a central production facility and is transported and sold to a consumer by a bulk tank, cylinder truck, or pipeline. 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. In emerging economies of the Asia Pacific region, new infrastructure is being developed, with dedicated pipeline and shipping networks potentially allowing large-scale overseas hydrogen transport.

The captive segment is expected to expand at the highest CAGR in terms of revenue, during the forecast period. Socio-economically developing regions, particularly North America and Europe, have a large-scale penetration of this technology, given the ease of adoption. Captive generation of hydrogen is defined as on-site generation that abolishes several problems linked to the conveyance and distribution of hydrogen, and therefore the market is expected to grow substantially. For small-scale industries, on-site generation of hydrogen has gained popularity owing to new technologies being offered at reasonable costs in comparison to delivered distributed channels.

Application Insights

The ammonia production segment held the largest revenue share of over 20.0% in 2020 and is projected to witness significant growth during the forecast period. A large quantity of hydrogen produced is consumed in ammonia plants. Typically, hydrogen is produced on-site at ammonia plants from a fossil fuel feedstock. Traditionally, this application has large-scale penetration owing to easy adoption, coupled with affordable prices. Ammonia finds large-scale adoption in the manufacturing process of fertilizers.

Global hydrogen generation market share, by application, 2020 (%)

Petroleum refinery accounted for a considerable revenue share in 2020 owing to the growing government regulations to encourage desulphurization of fuels to conserve the environment. The others application segment is expected to exhibit the fastest revenue-based CAGR over the forecast period. The segment includes the chemical industry, oil refining, and iron and steel industry. The chemical sector is a major producer of by-product hydrogen, which is consumed within the sector as well as distributed for industrial use

Regional insights

In 2020, Asia Pacific accounted for the largest revenue share of over 35.0%, and the trend is expected to continue till 2028. The Asia Pacific market involves key countries like China, Japan, South Korea, India, and Australia. Robust economic performance, along with large-scale investments in R&D in developing countries of Asia Pacific, is predicted to enhance the market growth. China is undertaking massive changes in the fuel and petroleum industry to overcome numerous challenges, including pollution and economic disparity between the urban and rural population. Air pollution and increasing sulfur content in the environment are also acting as challenges for the nation.

Furthermore, the presence of a high number of refineries in major APAC countries, such as China and India, has resulted in driving the utilization of hydrogen generation in the region. Additionally, the governments in some of the Asia Pacific countries, such as Japan and Australia, are evaluating greener and cleaner technologies for hydrogen generation, which is expected to boost the regional market growth.

Key Companies & Market Share Insights

Key players control a substantial revenue share in the market through domestic and international sales. Some of the international companies have deals with local players to provide after-sales services at affordable rates. Large corporations have a wide product portfolio through carefully curated channels and integrated retailers. These players adopt various organic and inorganic growth strategies to expand their product portfolio and geographical reach.

In May 2018, Southern California Gas Co. (SoCalGas), the Stars Corp., and Pacific Northwest National Laboratory (PNNL) have introduced a brand new solar-powered hydrogen generation system. This system harnesses sunlight to convert water and natural gas into hydrogen and captures carbon dioxide to avoid carbon emissions. Some prominent players in the global hydrogen generation market include:

  • Linde plc

  • Air Liquide International S.A.

  • Messer Group GmbH

  • Air Products and Chemicals, Inc.

  • Weldstar, Inc.

  • Hydrogenics

  • Inox

Hydrogen Generation Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 124.52 billion

Revenue forecast in 2028

USD 184.11 billion

Growth Rate

CAGR of 5.7% from 2021 to 2028 (Revenue-based)

Market demand in 2021

98.8 million metric tons

Volume forecast in 2028

204.46 million metric tons

Growth Rate

CAGR of 11.0% from 2021 to 2028 (Volume-based)

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Volume in million metric tons, revenue in USD billion, and CAGR from 2021 to 2028

Report coverage

Volume forecast, revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Technology, application, systems type, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; MEA

Country scope

U.S.; Canada; Mexico; U.K.; Germany; Italy; Russia; Spain; France; China; India; Japan; South Korea; Australia; Brazil; Colombia; Paraguay; Saudi Arabia; South Africa; Egypt; UAE

Key companies profiled

Linde plc; Air Liquide International S.A.; Messer Group GmbH; Air Products and Chemicals, Inc.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts volume and revenue growth at the global, regional, and country levels, and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global hydrogen generation market report based on technology, application, systems type, and region:

  • Technology Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2016 - 2028)

    • Coal Gasification

    • Steam Methane Reforming

    • Others

  • ApplicationOutlook (Volume, Million Metric Tons; Revenue, USD Billion, 2016 - 2028)

    • Methanol Production

    • Ammonia Production

    • Petroleum Refinery

    • Transportation

    • Power Generation

    • Others

  • Systems Type Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2016 - 2028)

    • Merchant

    • Captive

  • Regional Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2016 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • Russia

      • U.K.

      • Spain

      • Italy

      • France

    • Asia Pacific

      • China

      • Japan

      • South Korea

      • India

      • Australia

    • Central & South America

      • Brazil

      • Paraguay

      • Colombia

    • Middle East and Africa

      • UAE

      • South Africa

      • Egypt

      • Saudi Arabia

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