Hydrogen Generation Market Size, Share & Trends Analysis Report By System (Merchant, Captive), By Technology (Steam Methane Reforming, Coal Gasification), By Application, By Source, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

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.

Technology Insights

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.

Source Insights

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.

System Insights

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.

Application Insights

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.

Regional Insights

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.

Key Companies & Market Share Insights

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.

Hydrogen Generation Market Report Scope

Global Hydrogen Generation Market Report Segmentation

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