Hydrogen Generation Market To Reach $317.39 Billion By 2030

November 2023 | Report Format: Electronic (PDF)

Hydrogen Generation Market Growth & Trends

The global hydrogen generation market size is expected to reach USD 317.39 billion by 2030, registering a CAGR of 9.3% from 2024 to 2030, according to a new report by Grand View Research, Inc. The global hydrogen generation market is likely to be driven by the growing demand for cleaner fuel, coupled with increasing governmental regulations for the desulphurization of petroleum products.

Hydrogen is an effective energy carrier, and this quality is expected to contribute, significantly, to its further penetration into newer markets. The global electricity demand is anticipated to witness an increase by nearly two-thirds of the current demand in the forecast period. Focus on the projects, related to distributed power & utility, expected to bolster the demand for hydrogen generation market growth during the forecast period.

The Methane Reforming segment led the market in 2021. This was the dominant segment in 2021 and is expected to keep its position during the forecast period. Steam Methane reforming is a method for 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 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.

In Application, the ammonia production segment led the market in 2021. The ammonia segment will keep its lead during the forecast period. The future growth of the hydrogen generation market is expected to have steady growth in all the segments as application cases for hydrogen increase.

In source, the natural gas segment led the market in 2021. Hydrogen is created from natural gas reforming which produces hydrogen, carbon monoxide, and carbon dioxide. Hydrogen production from natural gas is the cheapest method of producing hydrogen. Hydrogen production from natural gas is expected to keep its lead during the forecast period.

Based on systems, the merchant generation segment led the market in 2021. Merchant generation of hydrogen means hydrogen is produced at a central production facility. It is transported and sold to the 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. The merchant generation segment is expected to keep its lead during the forecast period.

Growing investments in smart “energy-saving” residential and commercial buildings are expected to provide an impetus toward the adoption of hydrogen for energy generation. Hydrogen is a financially viable option to investors as they also comply with federal and environmental regulations, catering to the ever-increasing demand for energy. Factors including shifting trend toward cleaner energy and favorable government regulations are contributing to the development of the hydrogen generation market. 

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Hydrogen Generation Market Report Highlights

  • Coal gasification hold a revenue share of 34.0% in 2023. The use of coal to generate hydrogen for the transportation sector is expected to aid America in reducing its dependency on imported petroleum products.

  • The ammonia production segment dominated the market and accounted for more than 21.0% of the revenue share in 2023

  • As of 2023, Asia Pacific accounted for about 35.14% revenue share in the overall market. The presence of a high number of refineries within major Asian nations such as China and India has resulted in hydrogen generation within the region. Further, governments in some of the Asia Pacific countries such as Japan and Australia are evaluating greener and cleaner technologies for hydrogen generation.

  • Various strategic initiatives were recorded during the past few years to boost the growth of the market. For instance, in 2019 Linde Plc announced that it has started a new gas production facility that supplies methane, carbon dioxide, and, hydrogen to Evonik Industries. The new plant is likely to incorporate advanced technologies that would enhance the plant's efficiency and reliability.

Hydrogen Generation Market Segmentation

Grand View Research has segmented the hydrogen generation market based on technology, application, system, source, and region: 

Hydrogen Generation Technology Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)

  • Steam Methane Reforming

  • Coal Gasification

  • Others

Hydrogen Generation Application Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)

  • Methanol production

  • Ammonia Production

  • Petroleum Refining

  • Transportation

  • Power Generation

  • Others

Hydrogen Generation System Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)

  • Captive

  • Merchant

Hydrogen Generation Source Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)

  • Natural Gas

  • Coal

  • Biomass

  • Water

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • Russia

    • UK

    • 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

List of Key Players of Hydrogen Generation Market

  • 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.

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