Grey Hydrogen Market Size & Share 2024 to 2032
Market Size by Source (Natural Gas, Coal), by Application (Petroleum Refinery, Chemical), Regional Outlook & Global Forecast.
Report ID: GMI9505
|
Published Date: May 2024
|
Report Format: PDF
Download Free PDF
Authors:
Ankit Gupta, Srishti Agarwal
Grey Hydrogen Market Size
Grey Hydrogen Market was valued at USD 147.5 billion in 2023 and is anticipated to grow at a CAGR of over 3.4% from 202 to 2032. Grey hydrogen is a type of hydrogen produced from fossil fuels, primarily natural gas, through a process called steam methane reforming (SMR). In this method, methane (CH) from natural gas reacts with steam (HO) at high temperatures to produce hydrogen (H), carbon monoxide (CO), and a small amount of carbon dioxide (CO2). The carbon monoxide then reacts with more steam to produce additional hydrogen and carbon dioxide.
Grey Hydrogen Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Grey hydrogen is the most widely produced form of hydrogen owing to its relatively low production costs and established infrastructure. It accounts for the majority of global hydrogen production, on account of use of mature processes and facilities for steam methane reforming (SMR). Increasing emphasis on reducing greenhouse gas emissions to combat climate change along with mounting pressure on industries to transition away from high emission processes will augment the industry landscape. The product leaves substantial carbon footprint, however, governments and regulatory bodies are increasingly implementing policies and incentives to reduce carbon emissions, which impacts the attractiveness of grey hydrogen.
Increasing cost competitiveness of grey hydrogen in comparison to other types of hydrogen primarily in regions where natural gas is abundant and inexpensive will drive the market growth. Growing investments aimed at improving the efficiency and reducing the emissions of existing SMR processes, including partial implementation of carbon capture technologies is likely to strengthen the business statistics. Additionally, industries heavily reliant on hydrogen, comprising refining, ammonia production, and chemicals, to reduce the carbon footprint will complement the product adoption.
Grey Hydrogen Market Trends
The existing grey hydrogen infrastructure is extensive and deeply integrated into the global industrial landscape. The majority of grey hydrogen is produced using SMR, wherein the facilities are widespread and constitute the backbone of the grey hydrogen supply chain. Growing infrastructure of dedicated hydrogen pipelines to transport hydrogen from production sites to industrial users, wherein the extensive network is used for hydrogen blending will boost the business scenario. Furthermore, some grey hydrogen facilities are beginning to integrate CCS technologies to reduce their carbon footprint and transition towards clean hydrogen production.
Grey Hydrogen Market Analysis
Based on source, the natural gas segment is anticipated to cross USD 125.5 billion by 2032. It is a common and well established process, primarily due to its cost-effectiveness and the availability of natural gas. The process typically has an efficiency of around 65-75%, meaning a significant portion of the input energy is converted to hydrogen. Furthermore, The existing infrastructure for natural gas extraction, transport, and distribution supports the widespread use of SMR for hydrogen production.
Based on application, the chemical segment is set to register about 1% CAGR through 2032. The primary use of grey hydrogen in the chemical industry is for ammonia (NH) production. In the Haber-Bosch process, nitrogen (N) from the air reacts with hydrogen under high pressure and temperature in the presence of a catalyst to produce ammonia. It is a critical feedstock for producing fertilizers such as urea, ammonium nitrate, and ammonium sulfate, essential for global agriculture, thereby augmenting the product demand. Additionally, methanol is a versatile chemical used as an antifreeze, solvent, fuel, and feedstock for producing acetic acid, formaldehyde, and other chemicals, which will boost the product adoption.
Grey hydrogen is essential for hydrocracking and hydrotreating processes to produce clean fuels. Further, it can be used in steel production to reduce iron ore to iron in more environmentally friendly processes, although this application is still developing and is anticipated to grow with the transition to cleaner production methods.
Asia Pacific grey hydrogen market is poised to reach more than USD 137 billion by 2032. Countries like China, Australia, Malaysia, Indonesia, and India are significant natural gas producers in the region. Australia, in particular, has vast offshore gas fields and is a leading LNG (liquefied natural gas) exporter. Extensive networks of offshore platforms, onshore drilling sites, and processing plants are in place to extract and process natural gas will positively impact the industry growth. In addition, several countries in the region, such as Japan, South Korea, China, and India, are among the largest LNG importers globally, with numerous import terminals to regasify LNG for domestic use, will stimulate the industry trend.
Grey Hydrogen Market Share
Reliance Industries, Linde plc, Air Liquide, Air Products & Chemicals, Sinopec are some leading players operating in the industry. The companies are actively exploring growth ventures to expand their market presence, enhance efficiency, and transition towards more sustainable practices. These ventures often involve technological innovation, strategic partnerships, investments in infrastructure, and the integration of carbon capture technologies.
Grey Hydrogen Market Companies
Eminent players operating in the grey hydrogen industry are:
Grey Hydrogen Market News
This grey hydrogen market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in “USD Million & MW” from 2021 to 2032, for the following segments:
Click here to Buy Section of this Report
Market, By Source
Market, By Application
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →