Europe Hydrogen Market Size - By Type (Grey, Blue, Green), By Application (Petroleum Refinery, Chemical), Country Outlook & Forecast, 2025 – 2034

Europe Hydrogen Market Size

The Europe hydrogen market size was valued at USD 40.2 billion in 2024 and is estimated to grow at a CAGR of 4.2% from 2025 to 2034. The need to cut down emissions along with the growing industrial bases in developing economies are expected to boost business growth. Many Europe nations like German, Spain, and France have specific production and investment goals so that they are able to scale up hydrogen operations. The region has plans for a wide hydrogen infrastructure network, which will connect various hydrogen hubs stimulating the product demand.

Introduction of hydrogen programmes across the region, growing requirement to reduce carbon emissions and increasing adoption of hydrogen across fuel cells will drive the business scenario. In January 2025, the Spanish Government chose 16 projects to finance in the hydrogen valley program, with a budget of USD 1.25 Billion. The program is expected to benefit large corporations such as Repsol, Moeve, and bp.
 

Europe is actively developing strategy to ensure that hydrogen becomes one of the main pillars of the continent’s decarbonization efforts. Proposed funding programs through its Clean Hydrogen Alliance and Horizon Europe will foster technological advancements, thereby driving the Europe hydrogen market scenario. For instance, UK Hydrogen Strategy, introduced in 2021 emphasizes on hydrogen as a key solution to decarbonizing industries and transport.
 

Furthermore, countries including the Netherlands, Spain, and Norway have implemented policies that foster hydrogen innovation and have set up international collaboration. Such policies at the EU level will foster a strong regulatory framework to speed up the adoption of hydrogen in the region.
 

Europe Hydrogen Market Trends

• The growing need for more efficient fuel combines with the clean energy movement to enhance hydrogen utilization across many different sectors. For citation, in 2023, project developers distributed funds worldwide amounting to USD 3.5 billion on hydrogen supply initiatives which are currently under construction.
   
• The shift to the decarbonization strategy has spurred government spending on design and sales of hydrogen energy construction works such as the production of green and blue hydrogen, which automatically expands the market. According to IEA, spending on hydrogen supply projects under construction was over 350% higher in 2023 than 2022.
   
• The ability to act as a clean energy carrier, as well as a source of energy that can be produced with insignificant environmental consequences when utilized in fuel cells or as a clean fuel for a variety of industrial processes will boost the Europe hydrogen market growth. Innovations in hydrogen technologies will contribute to the business momentum. In February 2024, Toshiba partnered with Bekaert to commercialize the technology that reduces iridium use by 90%. 
   
• Ongoing shift towards low-carbon hydrogen and the upgrade of existing gas infrastructures, including pipelines will drive the industry outlook. In addition, government policies and investments by leading players will enhance spending in the area. For example, Thyssenkrupp Steel Europe entered in a 10 year contract for hydrogen delivery via pipeline to its Duisburg plant starting from 2028.
   

Europe Hydrogen Market Analysis

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• The blue hydrogen segment is set to reach more than USD 5 billion by 2034 because of both the government’s and the industry’s interest in comparatively cheap and easily adoptable measures of decarbonization.
   
• There is a growing number of blue hydrogen projects in the region. In addition, the rising sophistication of hydrogen production and CCS technologies is driving cooperation among companies in the energy, industrial, and technology domains, making the business environment more competitive. In 2024, Equinor collaborated with the industrial gas firm Linde on the 1 GW blue hydrogen project in the Netherlands.
   
• The green hydrogen market is expected to increase significantly due to aggressive decarbonization targets and considerable government support. The EU's Fit for 55 package is supposed to cut emissions by 55% by 2030 supplemented by funding and policies intended to speed up the product adoption. For example, the EU Innovation 2024 fund granted USD 4.9 billion to 85 innovative projects and one third of the hydrogen projects received awards.
   
• Grey hydrogen is the most common method of hydrogen production in Europe and supplies the majority of the region’s hydrogen. A few industries, such as those that manufacture ammonium, refine or do petrochemical work, depend a lot on grey H₂. These industries have a high requirement of hydrogen as a raw material. For example, in the year of 2022, over 95 million tons of hydrogen were produced globally, and more than 99% of it was made with fossil fuels.
   

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• Based on application, the Europe hydrogen market is segmented into petroleum refinery, chemical and others. The petroleum refinery segment accounted for 60% market share in 2024.
   
• They primarily consume hydrogen to remove the impurities and sulfur content during hydro conversion and hydrotreating processes in refineries. Increasing public and private investments in desulfurizing petroleum products, along with a rising industrial use of methanol, will boost the business potential. Additionally, ongoing adoption of low-cost renewable hydrogen combined with refinery expansions to meet clean energy targets will drive the market growth.
   
• Chemical is set to grow more than CAGR 3.5% by 2034 owing to growing need to reduce their carbon footprint and transition to more sustainable processes. The growing interest in using hydrogen for different industrial tasks, especially in areas that have high energy requirements like steam cracking, as well as refining will expand the business. For instance, in April 2023, Linde signed an agreement with the largest chemical manufacturer, Evonik to provide hydrogen in Singapore.
   
• Others include power generation, aerospace, transport and power generation among others. Hydrogen usage in steel reduction is being pursued to capture market regions that rely on heavy industry investments trying to reduce carbon emissions through decarbonization efforts. To cite an instance, Linde signed an agreement H2 Green Steel for the supply of industrial gases to the world’s first large-scale green steel production plant. In addition, the company will invest USD 150 million to build, own and operate an on-site air separation unit (ASU) in Sweden to start by 2026.
   

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• The Germany hydrogen market is anticipated to exceed over USD 5.2 billion by 2034. Set up of national hydrogen strategies with specific goals and investment plans to scale up production and infrastructure will drive the business scenario.
   
• Several government initiatives, scale up the production of renewable hydrogen and various funding programs across the region will stimulate the product adoption. For instance, the National Hydrogen Strategy has set a green hydrogen production target of 5 GW by 2030, with an additional 5 GW to be built in 2035-2040.
   
• Furthermore, growing number of hydrogen refueling stations in Netherlands, projects linking wind and solar power to hydrogen production, and a national hydrogen strategy that includes building a large-scale hydrogen pipeline network will influence the business statistics. To cite an instance, Resato aligned with European Union’s Sustainable and Smart Mobility Strategy, plans to deploy 1,000 hydrogen refueling stations by 2030.
   
• UK market will grow at a CAGR of over 4% through 2034. Expansion of the hydrogen pipeline network, refurbishment of the existing infrastructure and ongoing blending of H2 into natural gas pipelines will drive the business scenario. For instance, in December 2023, the UK Government decided to support adding hydrogen to gas networks in Great Britain, with large-scale hydrogen blending could begin by 2025–2026.
   

Europe Hydrogen Market Share

• Top 5 players operating in the hydrogen industry include Plug Power, Air Liquide, Nel ASA, Ballard Power Systems and Cummins. Public and private investment in hydrogen technologies, infrastructure, and joint ventures will likely accelerate as demand for low-carbon energy grows.
   
• Hydrogen will be incorporated into heavy industry, transportation, and power generation. Businesses that are able to incorporate hydrogen into multiple sectors will have a clear advantage. The continued cooperation of EU member countries and businesses, and different borderless activities will help develop regional hydrogen markets.
   

Europe Hydrogen Market Companies

• Plug Power dominates in the production of liquid green hydrogen, being the only company that does it commercially. Plug Power is also the third largest in North America in the production of liquid hydrogen. The company's revenue as of Q3 2024 was 173.7 million USD. In addition, it partnered with Carreras Grupo Logístico to develop green hydrogen ecosystem in Spain.
   
• Nel ASA is a major company in the field of hydrogen technology on account of its focus on renewables-based hydrogen production, storage, and distribution. Most recently, they reported a revenue of USD 32.62 million for Q3 of 2024. The company recently purchased an equity stake of 4.85% in Cavendish Hydrogen.
   
• Ballard Power Systems offers clean and reliable energy solutions for automotive, maritime, rail, and backup power applications. As of 2023, the company reported revenues of USD 102.4 Million, a 25.1% increase from the previous year’s revenue.
   
• Air Liquide serves over 4 million customers by being a leader in gazes, services and technology in the industrial sector and the healthcare field. The company reported a revenue for USD 6,968 Million in Q3 of 2024. Moreover, the company received the EU support to develop a large scale project for the production, liquefaction and distribution of low carbon hydrogen from ammonia.
   

Eminent players operating in the Europe hydrogen market are:

• Air Liquide
• Air Products and Chemicals
• Ballard Power Systems
• Cummins
• CALORIC
• Claind
• ENGIE
• Enel Spa
• HyGear
• Linde
• Messer
• McPhy Energy
• Mahler AGS GmbH
• Nuvera Fuel Cells
• Nel ASA
• Plug Power
• Resonac Holdings Corporation
• Taiyo Nippon Sanso Corporation
• Teledyne Technologies Incorporated
• Xebec Adsorption
   

Europe Hydrogen Industry News:

• In February 2025, Plug Power launched the first spot pricing program for liquid green hydrogen. The buyers now can purchase hydrogen from Plug’s production plants on-demand and without the limitations of long-term take-or-pay agreements. It allows customers like retailers, industrial manufacturers, and power plant operators to optimize their hydrogen sources efficiently, reacting swiftly to fluctuating energy demands without being tied down by long-term contracts.
   
• In October 2024, Nel ASA’s EPC partner, Saipem, reveals the IVHY 100, which is a 100 MW green hydrogen shift emerging from the company’s technology. It will facilitate the decarbonization of hydrogen production for hard to abate industries. The novel renewable hydrogen generation system is designed and manufactured in a manner where it can be expanded, and large scale systems can easily be installed and put into operation. Moreover, it fosters innovative and environmentally friendly approaches to renewable hydrogen technologies and is a tremendous achievement on its own.
   
• Air Liquide issued a statement back in March 2023, intending to build a pilot facility in Belgium which will target ammonia cracking at an industrial scale. The new facility will use advanced technology to change ammonia into hydrogen, which will help towards Energy Ammonia's shift. This move is beneficial to Air Liquide as it enhances its asset portfolio and builds its name in the Europe hydrogen market.
   
• In October 2022, Nuvera Fuel Cells made a Memorandum of Understanding (MoU) with the Italian system integrator H2Boat, which focuses on marine applications. According to the MoU, NUVERA is to provide an E-45 fuel cell engine to H2Boat. The E-45 is intended to receive a marine kind approval certification and is set to be integrated into H2Boat’s upcoming HP Energy Pack which has a power output of more than 40kW. These factors significantly help reduce the negative impacts of diesel vessels. These efforts shall give fortify NUVERA’s foothold in the European market.
   

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

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Market, By Type

• Grey
• Blue
• Green

Market, By Application

• Petroleum Refinery
• Chemicals
• Others

The above information has been provided for the following countries:

• Germany
• UK
• France
• Italy
• Netherlands
• Russia