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Captive Hydrogen Generation Market Size - By Process (Steam Reformer, Electrolysis), By Application (Petroleum Refining, Chemical, Metal), Regional Outlook & Forecast, 2024 – 2032

  • Report ID: GMI9594
  • Published Date: May 2024
  • Report Format: PDF

Captive Hydrogen Generation Market Size

Captive Hydrogen Generation Market was valued at USD 132.3 billion in 2023 and is anticipated to grow at a CAGR of over 6.4% from 2024 to 2032. It refers to the on-site production of hydrogen specifically for the use of a single facility or organization. It is specially designed to meet the specific needs of the facility where they are installed and ensures a reliable, cost-effective, and efficient supply of hydrogen, tailored to the operational demands of the end user.

Captive Hydrogen Generation Market

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 is set to influence the product adoption. Further, improving advancements in clean energy production to enhance the efficiency, cost effectiveness, and scalability of products is set to escalate the process adoption.

Increasing demand for consistent and reliable hydrogen supply from industries with critical operational needs, such as petrochemical plants, and refineries is boosting the process demand owing to its reduced supply chain distribution risk and fluctuating market prices. Furthermore, supportive government policies and incentives aimed at promoting clean energy adoption and encouraging companies to invest in clean gas production will strengthen the market landscape.

Captive Hydrogen Generation Market Trends

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.

Captive Hydrogen Generation Market Analysis

Captive Hydrogen Generation Market Size, By Process, 2022-2032 (USD Billion)

Based on process, the steam reformer segment is projected to surpass USD 197 billion by 2032 on account of its high efficiency, and capability of converting hydrocarbons such as natural gas or methane into hydrogen with high yields. Its scalability allows clean fuel production at varying capacities to meet the specific needs of different applications and industries, making the process as a preferred choice, suitable for both small-scale and large-scale hydrogen production facilities.

Captive Hydrogen Generation Market Share, By Application, 2023

Based on application, the metal segment is set to grow at a CAGR of over 7.2% through 2032. Increasing demand for hydrogen production processes with reduced reliance on external suppliers and transportation costs is influencing 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 scenario.

Europe Captive Hydrogen Generation Market Size, 2022-2032 (USD Billion)

Europe captive hydrogen generation market is likely to exceed USD 46.6 billion by 2032. Rising implementation of ambitious renewable energy targets and hydrogen strategies to reduce carbon emissions and achieve climate neutrality by 2050 will influence the market growth. Growing investments in the development of hydrogen infrastructure, including production, storage, and distribution facilities, to support clean energy economy is set to stimulate the business landscape.

In the U.S. rising implementation of energy transition initiatives aimed at reducing greenhouse gas emissions and promoting clean energy technologies will propel the process adoption. Increasing companies investments in developing advanced technologies for hydrogen production, storage, and utilization will augment the business growth.

Captive Hydrogen Generation Market Share

Eminent players are heavily investing in R&D to enhance efficiency, scalability, and sustainability in hydrogen production, aiming to gain a competitive edge and overcome evolving customer demands. Additionally, they are expanding their geographic footprint by entering new markets, and establishing partnerships, and subsidiaries in key regions. Key players are accessing new opportunities and diversifying their revenue by participating in hydrogen projects and initiatives.

Captive Hydrogen Generation Market Companies

Eminent players operating in the captive hydrogen generation industry are:

  • Air Products and Chemicals, Inc
  • Cummins Inc
  • Enapter
  • Hitachi Zosen Corporation
  • HoSt Group
  • Linde plc
  • McPhy Energy S.A
  • Messer Group GmbH
  • NEL Hydrogen
  • NEXT Hydrogen
  • Siemens Energy
  • Teledyne Energy Systems, Inc

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 2032, 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
    • Netherland
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
  • Middle East & Africa
    • Saudi Arabia
    • Iran
    • UAE
    • South Africa
  • Latin America
    • Brazil
    • Argentina
    • Chile
Authors: Ankit Gupta, Pooja Shukla

Frequently Asked Questions (FAQ) :

The market size of captive hydrogen generation was reached USD 132.3 billion in 2023 and will grow at 6.4% CAGR during 2024 to 2032, driven by rising shift towards decarbonization.

The steam reformer process segment of the captive hydrogen generation market is projected to grow by more than USD 197 billion by 2032, on account of its high efficiency, and capability of converting hydrocarbons such as natural gas or methane into hydrogen with high yields.

Europe captive hydrogen generation market is anticipated to exceed USD 46.6 billion by 2032, driven by the rising implementation of ambitious renewable energy targets.

Air Products and Chemicals, Inc, Cummins Inc, Enapter, Hitachi Zosen Corporation, HoSt Group, Linde plc, McPhy Energy S.A, Messer Group GmbH, NEL Hydrogen, NEXT Hydrogen, and Siemens Energy among others.

Captive Hydrogen Generation Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 12
  • Tables & Figures: 65
  • Countries covered: 17
  • Pages: 95
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