Hydrogen Generation Market Size - By Delivery Mode (Captive, Merchant), By Process (Steam Reforming, Electrolysis), By Application (Petroleum Refining, Chemical, Metals), Forecast, 2025 - 2034

Hydrogen Generation Market Size

The global hydrogen generation market size was valued at USD 165.8 billion in 2024 and is estimated to grow at a CAGR of 7.2% from 2025 to 2034. Rising demand for lower-carbon industrial fuels and the growing shift from conventional fossil-based feedstocks are expected to propel process deployment. Additionally, growing focus on the decarbonization of ammonia production, refining processes, and synthetic fuel manufacture will boost low-carbon hydrogen adoption.
 

Government-supported hydrogen production projects within national energy transition schemes are likely to impact industry development. In March 2024, the U.S. Department of Energy committed up to USD 750 million to back 52 clean hydrogen technology projects covering electrolyzer innovation, manufacturing, and deployment. The projects will work towards lowering the cost of clean hydrogen to USD 1 per kg by 2031, supporting the market penetration.
 

Increased private and public investments in industrial-scale hydrogen infrastructure are anticipated to propel market growth. In September 2024, A final investment decision was announced by BP and Iberdrola for a 25 MW green hydrogen plant at BP's Castellón refinery in Spain, backed by approximately USD 74 million and USD 16 million of EU funding. The facility will produce 2,800 tonnes of green hydrogen annually, reducing CO? emissions by 23,000 tonnes per year, thereby augmenting industry growth.
 

Growing adoption of hydrogen fuel cell vehicles, including buses, trucks, trains, and ships, along with the expansion of hydrogen refueling stations to support the adoption of FCVs, will stimulate process adoption. Increasing use of hydrogen in steel production, chemical manufacturing, and refining processes to reduce carbon emissions coupled with Financial incentives, grants, and subsidies are provided to support the development of hydrogen infrastructure and technologies will drive the business scenario.
 

Tariffs imposed by the trump administration on imported hydrogen production equipment and related components are expected to influence market growth. The trade actions may raise capital expenditure for developers of hydrogen projects, particularly those who import storage vessels and electrolyzers from Europe and Asia. Disrupted supply chains and stringent access to affordable technologies may inhibit project scalability and deployment timelines, possibly constraining overall growth rates in the global hydrogen production market.
 

Hydrogen Generation Market Trends

• The growth of large-scale hydrogen infrastructure projects worldwide is expected to impact the market growth. In January 2025, Spain’s Moeve announced plans to begin construction of a 400 MW green hydrogen facility, aiming to scale up to 2 GW capacity by 2030 as part of its broader USD 8.6 billion investment in low-carbon energy. Moreover, the initiative aligns with the European Commission’s renewable hydrogen goals, further supporting the global expansion of the hydrogen economy.
   
• The trend towards diversification and energy resilience in the nation's energy policy is poised to supplement the adoption of hydrogen production. Hydrogen is increasingly being taken up by nations as an ancillary pillar of their energy mix in a bid to decrease imported fossil fuel dependence and improve supply security. This strategic realignment is set to push investments into local hydrogen production infrastructure, thus supplementing long-term market growth.
   
• Increased growth of the hydrogen project pipeline globally at a rapid rate is anticipated to propel industry growth. As of December 2023, the Hydrogen Council indicated an expansion of 35% of announced hydrogen projects since January 2023, at more than 1,400 projects and cumulative investments of over USD 570 billion up to 2030. This surge in project announcements indicates a strong momentum in the hydrogen sector, thereby augmenting market expansion.
   
• Supportive regulatory frameworks and emission reduction mandates will complement the expansion of hydrogen generation systems. Governments are implementing long-term hydrogen strategies, production targets, and financial incentives to encourage large-scale adoption. These policy actions are to further drive the energy transition and reach net-zero ambitions, hence supporting the development and market scaling of clean hydrogen production technologies across the globe.
   

Hydrogen Generation Market Analysis

• The hydrogen generation market was valued at USD 151.6 billion, USD 158.3 billion, and USD 165.8 billion in 2022, 2023, and 2024, respectively. Based on delivery mode, the market is segmented into captive and merchant categories.
   
• The merchant market is expected to expand at a CAGR of over 8% by 2034, influenced by growing industrial demand and increasing export prospects for green hydrogen. In January 2024, ReNew Power declared a USD 3.2 billion green hydrogen project in Kerala with a 220 KTPA production capacity, mainly committed to export markets. Furthermore, this expansion highlights the increasing importance of merchant hydrogen supply in supporting global decarbonization objectives.
   
• The captive market is projected to be worth over USD 268 billion by 2034, boosted by rising industrial and commercial consumers investing in on-site hydrogen generation in a bid to lower supply chain threats and increase energy security. Increasing use of green hydrogen technologies for in-house consumption among refining and chemical industries will drive market growth. Moreover, policy incentives to integrate clean energy will further strengthen the hydrogen utilization.
   

• Based on process, the hydrogen generation market is segmented into steam reformer, electrolysis, and others. The steam reforming segment held 88.3% market share in 2024, driven by its low-cost hydrogen production and widespread infrastructure. Its utilization with existing natural gas infrastructure and wide usage across the refining and petrochemical sectors will further drive market growth. Moreover, advancements in carbon capture technologies will support the ongoing use of steam reforming while reducing associated environmental impacts.
   
• The electrolysis segment is projected to grow at a CAGR of more than 7.7% from 2025 to 2034 due to the increasing shift toward decarbonizing industrial energy supply chains. In March 2025, Siemens Energy and BASF opened a 54 MW PEM electrolyzer at BASF Ludwigshafen, which can yield 8,000 tons of green hydrogen per year. Moreover, the site is likely to cut 72,000 tons of annual CO? emissions, facilitating the adoption of green hydrogen.
   
• Others include processes comprising ATR which will continue adoption in large-scale hydrogen hubs due to better integration with CCUS. It is further preferred owing to better carbon dioxide efficiency. Biomass gasification is another process gaining attention for carbon-negative hydrogen when paired with carbon capture. However, the process is still niche in nature and thus will slowly augment the market growth in the long run.
   

• The U.S. hydrogen generation market was valued at USD 13.9 billion, USD 14.4 billion, and USD 15 billion in 2022, 2023, and 2024, respectively. The North American industry held a market share of 11.6% in 2024 owing to growing adoption of hydrogen for power generation and increased integration of clean fuels into transport usage. Utilities are increasingly moving towards hydrogen-based solutions to improve grid flexibility and decrease dependence on fossil fuels. Furthermore, public and private efforts to decarbonize heavy mobility, including buses and freight, will continue to influence the ongoing penetration of clean hydrogen technologies.
   
• The European hydrogen generation market is projected to grow at over 7.6% CAGR from 2025 to 2034, supported by favorable government support and cross-border funding mechanisms. In March 2024, the UK government pledged USD 504 million to 11 low-carbon hydrogen schemes in its Hydrogen Allocation Round 1, part of the country's national strategy to reach 10 GW capacity by 2030. The EU also gave a green light to a USD 1.08 billion Dutch plan to enhance electrolysis infrastructure.
   
• The Asia Pacific hydrogen generation market is anticipated to value more than USD 182 billion by 2034, driven by massive investment in renewable energy and increasing domestic production capabilities. In December 2024, Ashoka Buildcon invested USD 1.08 billion for commissioning a green hydrogen unit in Bihar, India. The plan includes a 1,250 MW solar power plant to power electrolysis, with phase 1 in Begusarai set to become functional within 1.5–2 years of clearance. Furthermore, growing industrial decarbonization aspirations will add to industry penetration.
   

Hydrogen Generation Market Share

• The top 5 players, including Air Liquide, Linde, Air Products and Chemicals, Engie, and Plug Power, hold about 39% market share. They concentrate on scaling green hydrogen production with big electrolyzer projects, research and development investments for boosting efficiency and lowering costs, and integrated hydrogen supply chain construction. Strategic partnerships and acquisitions allow them to increase production in the industry, transport, and energy sectors globally.
   
• Leading companies focus on sustainability with the increase in their green hydrogen production using renewable energy sources by aligning it with global carbon reduction targets. They make investments towards the expansion of hydrogen fueling stations and industrial use to generate demand and enhance the development of the hydrogen economy. Technologies for storage and transportation also enhance their market dominance.
   

Hydrogen Generation Market Companies

• Air Liquide commissioned a 20 MW green hydrogen electrolyzer at Oberhausen in Germany in 2024. The plant is intended to generate around 8 tonnes of hydrogen per day, or roughly 2,900 tonnes a year. The project is set to provide hydrogen to numerous industries, such as transportation and energy sectors, in support of the shift to a low-carbon economy.
   
• Plug Power secured a USD 1.66 billion loan guarantee in January 2025, from the U.S. Department of Energy, to construct up to six green hydrogen manufacturing facilities across the United States. The first of these facilities is planned for Graham, Texas, and is expected to produce up to 15 tons of liquid hydrogen daily. Every plant has eight 5 MW electrolyzers and will cost about USD 250 million. These plants will assist in offering clean energy solutions to large clients like Walmart and Amazon.
   

Eminent players operating in the hydrogen generation market are:

• Air Liquide
• Air Products and Chemicals
• Ally Hi-Tech
• Ballard Power Systems
• Caloric
• Claind
• Engie
• HyGear
• Iwatani Corporation
• Linde
• Mahler
• McPhy Energy
• Messer
• Nel
• Nuvera Fuel Cells
• Plug Power
• Resonac Holdings Corporation
• Taiyo Nippon Sanso Corporation
• Teledyne Technologies Incorporated
• Xebec Adsorption
   

Hydrogen Generation Industry News:

• In May 2024, GAIL (India) Limited's first green hydrogen plant was inaugurated at Vijaipur, Madhya Pradesh. The 10 MW plant employs a proton exchange membrane electrolyzer imported from Canada, producing approximately 4.3 tonnes of green hydrogen per day with a purity level of 99.999%. The hydrogen will be used for captive application at the Vijaipur plant in the first phase, with a long-term plan to supply retail consumers in the locality. The project falls under India's National Green Hydrogen Mission with a vision to achieve 5 million tonnes of green hydrogen manufacturing capacity by 2030.
   
• In October 2022, Air Products and Chemicals invested around USD 500 million to build, own, and operate a green liquid hydrogen production plant along with distribution & dispensing operations in New York. The plant is estimated to start commercially in 2026-27. In July 0222, this project was provided support by the New York Authority (NYPA) board, permitting 94 MW of affordable St. Lawrence hydroelectric power for the plant. The investment allowed the company to showcase its portfolio across the industry.
   

The 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 Delivery Mode

• Captive
• Merchant

Market, By Application

• Petroleum refinery 
• Chemical
• Metal
• Others

Market, By Process

• Steam reforming
• Electrolysis
• Others

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

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