Hydrogen Generation Market Analysis

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.