Hydrogen Generation Market Size, Share & Trends Analysis Report By System (Merchant, Captive), By Technology (Steam Methane Reforming, Coal Gasification), By Application, By Region, And Segment Forecasts, 2025 - 2030

Hydrogen Generation Market Size & Trends

The global hydrogen generation market size was estimated at USD 186.58 billion in 2024 and is projected to grow at a CAGR of 9.2% from 2025 to 2030. Growth is anticipated to be driven by demand for cleaner fuel and increasing governmental regulations for desulphurization of petroleum products. 

Growth is anticipated to be driven by demand for cleaner fuel and increasing governmental regulations for 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. Global electricity demand is expected to witness an increase of nearly two-thirds of its current demand over the forecast period.

Focus on projects related to distributed power & utility is anticipated to bolster industry’s growth over the forecast period.

The U.S. is among the early adopters of clean energy solutions in world for sectors such as power generation, manufacturing, and transportation. The U.S. Department of Energy (DOE) and 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 development of hydrogen infrastructure in the country. The plan was developed in accordance with National Hydrogen Energy Vision and Roadmap. Development and construction of cost-effective and energy-saving hydrogen stations across the country are among key objectives planned by government agency. All these factors are expected to propel demand for hydrogen generation in the U.S.

German Ministry of Transport took an initiative in June 2012 to establish a countrywide hydrogen network and boost hydrogen infrastructure for hydrogen refueling stations. As part of this initiative, 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 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.

Market Dynamics

Shifting trends towards cleaner energy and favorable government regulations are a preponderance for hydrogen generation industry. Global energy crisis has fostered research and exploration in alternative sources of energy generation, as well as several sustainable conservation initiatives. Sustainability in energy generation is a vast field and includes numerous steps, which are required to be implemented in primary stages, since their potential environmental and commercial impacts can be substantial.

Over the past two decades, research on clean fuels, along with desulfurization of petroleum products, has gained momentum, giving an impetus to studies on environmental catalysis across the world. US EPA regulations currently governing production and distribution of diesel fuels and gasoline have witnessed a marked increase in air emission levels in comparison to statistics presented over the past twenty years.

Technology Insights

Based on technology, the global market has been further divided into steam methane reforming, coal gasification, and others. 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 growth include operational benefits such as high conversion efficiency associated with steam methane reforming process. Steam methane reforming segment is expected to maintain its lead during the forecast period.

Coal gasification holds a revenue share of more than 29.0% in 2024. Coal gasification, which uses coal as a raw material for producing hydrogen, has been in practice for nearly two centuries, moreover, it is also recognized as a mature technology for hydrogen generation. The U.S. has a huge domestic resource in coal. 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 others segment include electrolysis and pyrolysis process and electrolyzers. Over the last decade, there has been an increase in new electrolysis installations with an aim to produce hydrogen from water, wherein PEM technology is gaining a significant share in market as the process emits only oxygen as a byproduct without carbon emission. Presently, most of the electrolysis projects are in Europe; however, new and upcoming projects have been announced in Australia, China, and America.

Systems Insights

Based on systems, the captive generation segment accounted for a notable revenue share of about 64.47% in 2024. Captive hydrogen generation refers to on-site production where hydrogen is generated and consumed at the same facility, eliminating the need for external transport or distribution infrastructure. This approach is increasingly adopted in industries such as refining, chemicals, and steel, where hydrogen demand is continuous and integration with existing operations enhances efficiency. With rising interest in decarbonizing industrial processes and improving energy security, the captive generation segment is expected to grow steadily and maintain a strong position during the forecast period.

Application Insights

The ammonia production segment led the market with the largest revenue share of above 23.56% in 2024. This 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. A 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.

Market is anticipated to witness 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 further benefit of significantly reducing CO2 emissions in atmosphere.

Hydrogen based power generation technology has comfortably positioned itself 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, is generating optimistic demands.

Turning crude oil into various end use products, such as transport fuels and petrochemical feedstock, is one 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 sulfur, 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

The hydrogen generation industry in North America has been witnessing expansion for several years. Industry has grown at a brisk pace with contributions from each application and technology. Methanol production and ammonia production are fastest fastest-growing sector, with countries such as the U.S. and Canada witnessing significant growth in the last five years.

U.S. Hydrogen Generation Market Trends

The hydrogen generation market in the U.S. is anticipated to grow over the forecast period. The U.S.-based market players like Praxair Inc. and Air Liquide are looking to expand their operations in other countries with increasing demand for hydrogen as part of their strategic growth plans.

Asia Pacific Hydrogen Generation Market Trends

Asia Pacific hydrogen generation industry dominated globally in 2024 and accounted for the largest revenue share of over 35.34%.China led the Asia Pacific regional market in 2024, in terms of revenue. The presence of a high number of refineries in Asia Pacific region in major countries such as China and India has resulted in market growth. Furthermore, governments in some of Asia Pacific countries, such as Japan and Australia, are evaluating greener and cleaner technologies for hydrogen generation.

Hydrogen producers in region are looking to expand their geographical reach and targeting countries such as 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 these countries.

Europe Hydrogen Generation Market Trends

The Europe The hydrogen generation market is anticipated to grow over the forecast period due to the development and deployment of fuel cell systems in Europe, which are witnessing an increase due to projects announced by the European Commission through organizations such as Fuel Cells and Hydrogen Joint Undertaking (FCH JU). These projects have been announced with the objective of increasing adoption of fuel cell vehicles in Europe, and this will aid in development of supportive hydrogen infrastructure for fuel cell vehicles in major European countries.

Key Hydrogen Generation Company Insights

Hydrogen generation industry is competitive, with key participants involved in R&D and constant innovation done by vendors has become one of the most important factors for companies to perform in this industry. For instance, Matheson Tri-Gas, Inc. acquired the Linde HyCO business that produces hydrogen, carbon monoxide, or syngas. This acquisition is expected to promote the expansion of the company’s capabilities and serve petrochemical and refining industries.

Air Liquide announced that the company will manufacture and market renewable liquid hydrogen to the U.S. West Coast mobility market. A large-scale project is expected to produce 30 tons of liquid hydrogen per day using biogas technology.

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, 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

  • Industrial Heating

  • Others

• Systems Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)

  • Captive

  • Merchant

• Regional Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • Russia

    • UK

    • France

    • Spain

    • Italy

    • Denmark

    • Netherlands

    • Sweden

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

    • Malaysia

    • Indonesia

  • Latin America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • U.A.E

    • South Africa