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Hydrogen Generation Market Size
Hydrogen Generation Market size surpassed USD 158.3 billion in 2023 and is anticipated to witness 6.6% CAGR from 2024 to 2032, driven by the growing preference for energy-efficient fuels globally.
Due to hydrogen's flexibility and capacity to decarbonize difficult-to-abate industries, offer energy security, and redistribute renewable energy across geographies, the industry will gain significant momentum. The rapid transition from traditional fuels to renewable energy sources, as well as wide applications in sectors, such as semiconductors, will fuel industry expansion. Increasing crude oil consumption, along with increased expenditures in expanding existing refining facilities in developing nations, will present potential growth opportunities for market participants through 2032.
Report Attributes | Details |
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Base Year: | 2023 |
Market Size in 2023: | USD 158.3 Billion |
Forecast Period: | 2024 to 2032 |
Forecast Period 2024 to 2032 CAGR: | 6.6% |
2032 Value Projection: | USD 276.6 Billion |
Historical Data for: | 2019 to 2023 |
No. of Pages: | 250 |
Tables, Charts & Figures: | 395 |
Segments covered: | Delivery Mode, Process, Application |
Growth Drivers: |
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Pitfalls & Challenges: |
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The hydrogen generation market will observe slow rise owing to the availability of cost-effective alternatives. In addition, the hydrogen production process is inefficient and costly when compared to other kinds of energy. Furthermore, high production costs, safety issues, poor infrastructure development, and constant changes in government regulations, are limiting the use of hydrogen. However, as public awareness of the product's benefits increases, hydrogen will gain popularity in the future.
Hydrogen Generation Market Analysis
The hydrogen generation industry size from the captive segment generated over USD 126 billion in 2022 and is foreseen to expand significantly till 2032 attributed to the large-scale adoption of captive fleet cars, and the substantial hydrogen usage in the metal sector. In January 2023, Hy24, a joint venture between Ardian and FiveT Hydrogen, launched 'The Clean H2 Infra Fund', a €2 billion infrastructure investment fund in several upstream projects, including renewable and low-carbon hydrogen production and downstream projects, such as captive fleets and refueling stations. Moreover, various technical breakthroughs are likely to drive process adoption in a wide range of applications.
Hydrogen generation market from the steam methane reforming process type will exceed USD 240 billion by 2032. The abundant supply of conventional fuels, which leads to lower operational costs, coupled with the improvements in economic and operational advantages, is likely to raise demand for SMR. The key advantage of steam reforming is that it generates the highest yield of hydrogen, which has boosted its use in most hydrogen production facilities, including central oil plants and gas refineries. Moreover, a growing emphasis on funding programs with the objective of tapping regional product demand will provide business growth opportunities.
The industry revenues from the chemical sector amassed more than USD 84 billion in 2022 and is set to observe a rapid rate through 2032. The increasing need for energy goods, including industrial feedstocks, as well as the increased demand for ammonia and methanol production will boost segment growth. However, cost-effectiveness and large-scale utilization in multiple verticals will drive the market development.
The North America captured more than 11.5% of the industry share in 2022. With around 10 million metric tons of hydrogen generated annually in the United States, the need for hydrogen for petroleum refining and ammonia manufacturing is increasing. In addition, favorable government actions to encourage the use of renewable fuels to minimize GHG emissions, in conjunction with energy restrictions, will strengthen the market statistics during 2023-2032.
Hydrogen Generation Market Share
Major participants in the market for hydrogen generation include:
- Air Products and Chemicals, Inc.
- Cummins Inc.
- CALORIC
- Iwatani Corporation
- NUVERA FUEL CELLS, LLC
- Messer
- RESONAC HOLDINGS CORPORATION
- Plug Power Inc.
- Ally Hi-Tech Co., Ltd.
- Nel ASA
These firms are often engaged in strategic projects to improve their market standing, such as collaborations and service portfolio expansions.
Hydrogen Generation Market News
- In September 2022, Air Products and Chemicals, Inc., an American international corporation, was awarded a hydrogen contract by Imperial Oil Limited, a Canada-based crude oil producer & petroleum refiner, to supply low-carbon hydrogen for Imperial’s planned renewable diesel complex at its refinery site. Air Products will also supply a pipeline from its hydrogen plant, which is under construction.
- In March 2023, Thermax Limited, a leading provider of energy and environmental solutions, and Fortescue Future Industries, an Australia-based green energy and green technology firm, signed an MOU to explore green hydrogen projects, including new production facilities in India.
This market research report on hydrogen generation includes in-depth coverage of the industry with estimates & forecasts in terms of “USD Billion” from 2019 to 2032 for the following segments:
to Buy Section of this Report
Market, By Delivery Mode
- Captive
- Merchant
Market, By Process
- Steam Reforming
- Electrolysis
- Others
Market, By Application
- Petroleum Refining
- Chemical
- Metal
- Others
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Netherlands
- Russia
- Asia Pacific
- China
- India
- Japan
- Middle East & Africa
- Saudi Arabia
- Iran
- UAE
- South Africa
- Latin America
- Brazil
- Argentina
- Chiles
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