Captive Hydrogen Generation Market Size - By Process (Steam Reformer, Electrolysis), By Application (Petroleum Refining, Chemical, Metal), & Global Forecast, 2025 - 2034

Captive Hydrogen Generation Market Size

The global captive hydrogen generation market was valued at USD 138.4 billion in 2024 and is estimated to grow at a CAGR of 6.6% from 2025 to 2034. The rising shift towards decarbonization and the adoption of sustainable energy solutions to reduce greenhouse gas emissions, particularly in industries including refining, chemical production, and transportation, are set to influence the on-site market statistics. Improving advancements in clean energy production to enhance the efficiency, cost-effectiveness, and scalability of products are expected to escalate the process of adoption.
 

Increasing hydrogen demand in the forecasted period will encourage companies to propel on site clean fuel generation, leading to augment the captive hydrogen generation market scenario. As per IEA, the hydrogen demand could reach 530 Mt by 2050 under a net-zero scenario, up from around 97 Mt in 2023. Moreover, numerous industrial plants have existing feedstocks such as naphtha or natural gas in stock. This makes it easy to incorporate steam methane reforming or partial oxidation units leading to improve flexibility and optimizes the use of assets.
 

Growing technological advancements and falling capital costs for small-scale hydrogen production systems are making captive plants more viable for medium-sized facilities. Modular reformers and electrolyzers have expanded the scope for localized production. Additionally, favorable policies, including tax incentives, carbon pricing, and grants for clean hydrogen projects, are boosting economic prospects. Particularly where hydrogen is integrated within wider net-zero emissions frameworks, this is increasingly the case.
 

Rising industry participants’ investment in on-site hydrogen production facilities, as this strategy minimizes transportation costs and dependence on third party companies will complement the business trend. In November 2023, NPCIL plans to install 10 Nm³/hour hydrogen generating units in Rajasthan and Maharashtra. These plants will use nuclear power from the site to produce hydrogen via electrolysis. Moreover, the decreased costs associated with renewable energy sources and electrolysis are improving the market position of green hydrogen and facilitating further business development.
 

The imposition of tariffs under President Trump's administration will have significant impact in the captive hydrogen generation market, particularly affecting green hydrogen projects reliant on imported electrolyzers and components. The import tariffs on electrolyzers produced in Europe are likely to increase the costs and disrupt the supply chains of U.S. projects. As a result, some companies have admitted to pausing their initiatives in the U.S. due to the changing policies, which have led to more project delays and more thorough reevaluation concerning the project's economic feasibility.
 

Captive Hydrogen Generation Market Trends

• Increasing industry demand for a steady and dependable hydrogen supply, especially by operationally sensitive industries such as refineries and petrochemical plants, is boosting the process demand supply chain distribution. Furthermore, supportive government policies for clean energy and their motivation for funding initiatives aimed at encouraging businesses to invest in clean gas production will stimulate the process growth.
   
• Active stakeholders have begun seeking assistance from established firms to escalate on-site hydrogen generation and overcome the clean fuel hydrogen demand gap. In May 2022, Ambani Reliance announced the initiation of an investment program in renewable energy infrastructure comprising power plants, solar panels, and electrolyzers worth USD 75 billion. As part of this green energy shift, Reliance Industries signed a deal with Norway’s Nel ASA, securing exclusive rights to manufacture and use Nel’s alkaline electrolyzers in India, and for captive use globally. 
   
• Rising inclination of companies to adopt solutions with reduced logistic costs and avoid the price volatility associated with hydrogen procurement from external suppliers is expected to enhance the process penetration. Furthermore, increasing industries adoption of processes offering customized products to meet precise requirements, optimizing efficiency and reducing operational costs will create opportunities for market growth.
   
• Rising investments by key players for establishing new facilities in developing nation will complement the industry growth.  In August 2022, Avaada Group plans to invest USD 5 billion in an integrated green hydrogen and ammonia facility in Rajasthan, powered by captive renewable energy. The company has signed an MoU with the Rajasthan government to support the project. Moreover, high hydrogen demand from industrial sector, especially from sectors such as refining, chemicals and steelmaking, will complement the business growth.
   

Captive Hydrogen Generation Market Analysis

• The global market for captive hydrogen generation was valued at USD 127 billion, USD 132.3 billion, and USD 138.4 billion in 2022, 2023, and 2024, respectively. Based on the process, the industry is segmented into steam reformer, electrolysis and others.
   
• Steam reformers segment is projected to hit USD 224 billion by 2034 on account of their high efficiency, and capability of converting hydrocarbons such as natural gas or methane into hydrogen with high yields. Refineries growing shift towards on-site hydrogen generation will foster the process growth. For instance, in July 2024, Mangalore Refinery and Petrochemicals Ltd began work on a 500 500-tonne-per-annum green hydrogen plant within its refinery, utilizing steam methane reforming technology.
   
• The electrolysis market is anticipated to grow at a CAGR of over 7.1% between 2025 and 2034, due to its capacity to produce green hydrogen through renewable electricity which supports decarbonization goals. Moreover, the process is scalable, permitting industries to regulate hydrogen production by demand, making it an optimal solution for hydrogen where clean, flexible, and self-sufficient energy is needed.
   

• Based on application, the captive hydrogen generation market is segmented into petroleum refinery, chemical, metal and others. The petroleum refinery segment held 36% market share in 2024.
   
• The Petroleum refinery industry is expected to achieve over 6.3% CAGR through 2034, due to the growing demand for a reliable and economical supply of hydrogen for the hydrocracking and desulfurization processes. On-site production improves energy security and reduces dependencies on outside suppliers as well as costs associated with logistics in refinery applications. In November 2021, India Oil Corp announced plans to set up green hydrogen production facilities at their Mathura and Panipat refineries of 5000 MT and 2000 MT per annum respectively, under a Build-Own-Operate model.
   
• The metal segment is expected to reach USD 14.8 billion by 2034. Increasing demand for hydrogen production processes with reduced reliance on external suppliers and transportation costs is uplifting the process penetration. Furthermore, rising implementation of on-site solutions by the industry for clean energy production to comply with environmental regulations and emissions reduction targets while minimizing its carbon footprint are additional factors driving the market statistics.
   
• The chemicals segment is set to grow at a CAGR of over 6% till 2034. Rising pressure on chemical companies to reduce their carbon footprint and reliance on fossil fuels, is set to influence the business landscape. Chemical companies are establishing new facilities to foster the business growth. Yara International initiated its 24 MW renewable hydrogen and ammonia synthesis facility in Norway in June 2024. It has begun shipment of its fertilizers derived from renewable ammonia, further aiding decarbonization efforts within Yara alongside the food supply chain, shipping fuels, and other energy-intensive sectors.
   
• Moreover, developments in SMR with integrated carbon capture and storage technologies are increasing the sustainability of hydrogen production from natural gas, enhancing the economic feasibility and environmental advantages of on-site generation.
   

• The U.S. captive hydrogen generation market was valued at USD 9 billion, USD 9.2 billion, and USD 9.5 billion in 2022, 2023, and 2024, respectively. As of 2024, North America holds a market share of 9%, which is expected to improve further by 2034.
   
• The growing need of many sectors looking for both energy independence and cost management will support the U.S. captive hydrogen generation industry. Companies are launching new generators to support the on-site clean fuel generation. In March 2023, Element 1 launched a compact, high-efficiency hydrogen generator in Oregon, enabling affordable, on-demand production. It delivers 4–390 kg of hydrogen daily for flexible on-site use. Additionally, increasing companies' investments in developing advanced technologies for hydrogen production, storage, and utilization will augment business growth.
   
• Europe captive hydrogen generation market is likely to exceed USD 53 billion by 2034. Rising implementation of ambitious renewable energy targets and hydrogen strategies to limit carbon emissions and achieve climate neutrality by 2050 will influence market growth. Ongoing investments in the development of hydrogen infrastructure, such as production, storage, and distribution facilities, to support clean energy economy will stimulate the business landscape.
   
• The Asia Pacific captive hydrogen generation market is estimated to grow at a CAGR of 6.5% till 2034 driven by rapid industrialization, energy security concerns, and decarbonization targets. Growing deployment of new plants in the region will stimulate the industry scenario. For instance, in May 2024, GAIL (India) Ltd commissioned a 10 MW captive green hydrogen plant in Madhya Pradesh, advancing its commitment to alternative energy and supporting the goals of the National Green Hydrogen Mission. Rapid expansion of renewable energy capacity, particularly solar and wind power is set to further augment the process demand.
   

Captive Hydrogen Generation Market Share

• The top 3 companies, including Linde, Air Liquide, and Air Products and Chemicals, account for around 35.2% market share. These companies are focusing their resources on improving the adaptability and sustainability of hydrogen production. As a result, they are trying to respond to the needs of the customers and, in turn, attempting to gain an advantage in the industry.
   
• Moreover, companies are broadening their presence by entering new regions as well as forming new partnerships and subsidiaries in strategic locations. Major industry players are further capturing new business opportunities and expanding their revenue streams by engaging in various hydrogen projects and initiatives.
   

Captive Hydrogen Generation Market Companies

• Linde, world’s renowned for industrial engineering and industrial gases, reported USD 33 billion in sales for 2024. The firm is presently nurturing self-owned hydrogen generation through a blend of onsite production technologies and partnerships with industries that require reliable and sustainable hydrogen sources.
   
• Air Products has reported 12.1 billion dollars in sales during the 2024 fiscal year, operating in close to 50 countries and having a market capitalization of roughly 60 billion dollars. The firm produces PRISM hydrogen generators, which manufacture ultra-pure hydrogen using the commercially available SMR technology. Those systems are modular and provide between 200 and 1,800 kg per day of output. The purity of the hydrogen can exceed 99.999%.
   

Eminent players operating in the captive hydrogen generation market are:

• Air Products and Chemicals
• Cummins
• Enapter
• Hitachi Zosen Corporation
• HoSt Group
• Linde
• McPhy Energy
• Messer Group
• NEL Hydrogen
• NEXT Hydrogen
• Siemens Energy
• Teledyne Energy Systems
   

Captive Hydrogen Generation Industry News:

• In October 2023, Linde announced plans to build, own, and operate new on-site facilities to supply hydrogen, compressed dry air and nitrogen to Indian Oil. These facilities will support the Panipat refinery's expansion from 15 to 25 million metric tons annually. The company aims to strengthen its relationship by this agreement with Indian Oil and expand its network in Northern India.
   
• In February 2023, HoSt Group expanded its renewable gases technology portfolio by acquiring Xebec Adsorption Inc subsidiary HyGear, based in the Netherlands, a growing company in small-scale on-site industrial hydrogen generation. This acquisition allows HyGear to accelerate its growth and enables HoSt to offer a comprehensive and competitive range of renewable gas technologies.
   

This captive hydrogen generation market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in “(USD Billion)” from 2021 to 2034, for the following segments:

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Market, By Process

• Steam reformer
• Electrolysis
• Others

Market, By Application

• Petroleum refinery 
• Chemical
• Metal
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • Netherlands
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
• Middle East & Africa
  • Saudi Arabia
  • Iran
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina
  • Chile