Merchant Hydrogen Generation Market Size - By Process (Steam Reformer and Electrolysis), By Application (Petroleum Refining, Chemical, Metal), Forecast, 2025 – 2034

Merchant Hydrogen Generation Market Size

The global merchant hydrogen generation market size was valued at USD 27.5 billion in 2024 and is estimated to grow at a CAGR of 7.8% from 2025 to 2034. The growing emphasis on decarbonization, backed by government policies and industry initiatives focused on cutting carbon emissions to address climate change, will encourage wider adoption of these processes. In parallel, the rapid expansion of renewable energy capacity, along with the increasing demand for efficient energy storage and management solutions, is set to reshape the market landscape.
 

Planned large-scale project investments and export-oriented hydrogen production strategies are expected to foster merchant hydrogen market growth. In May 2025, Juno Joule Green Energy signed an MoU with Germany-based Select Energy GmbH to develop a USD1.3billion green hydrogen plant at Mulapeta Port, targeting 180 KTPA production by 2029 and conversion to one million tonnes of green ammonia for export. Additionally, such cross-border collaborations will augment merchant hydrogen generation market expansion.
 

Advancements in clean fuel production technologies aimed at enhancing efficiency and reducing costs, alongside innovations in electrolysis methods like proton exchange membrane and solid oxide electrolysis, will drive the process adoption. Additionally, the increasing transition toward sustainable practices by industries such as steel manufacturing, chemicals, and refining is expected to significantly impact market dynamics.

Rising public funding through EU innovation mechanisms is expected to foster merchant hydrogen generation market capacity. In May 2025, the European Commission awarded USD1.1billion in subsidies to 15 renewable hydrogen projects across five countries via the second European Hydrogen Bank auction, targeting production of nearly 2.2million tons over the next decade. Additionally, such incentives will influence infrastructure development and long-term market growth.
 

Growing decarbonization targets across industrial sectors are expected to foster merchant hydrogen generation. Several industries lack the infrastructure for captive hydrogen production and are increasingly relying on external suppliers to meet clean fuel requirements. This dependency is set to expand as governments introduce stricter emission norms. Additionally, the scalability and flexibility of merchant hydrogen supply will complement the transition toward low-carbon industrial processes, thereby supporting market growth.
 

Merchant Hydrogen Generation Market Trends

• The increasing focus on producing green hydrogen using renewable energy sources, driven by strict environmental regulations and global efforts to lower carbon emissions, is expected to drive market growth. Additionally, expanding clean fuel infrastructure, backed by both government initiatives and private sector investments in developing end-to-end supply chains, including production plants, storage systems, and distribution networks, will further accelerate hydrogen production demand.
   
• Expansion of merchant liquefaction and distribution capabilities will foster hydrogen availability in the transport and industrial sectors. In April 2025, Plug Power’s Hidrogenii joint venture commissioned a 15TPD hydrogen liquefaction plant in St.Gabriel, Louisiana, increasing its U.S. capacity to 40TPD and enabling spot-market trailer shipments for industrial customers. Additionally, growing demand for flexible hydrogen delivery options will augment market growth.
   
• Rising focus on decarbonizing emission-intensive sectors and the lack of on-site hydrogen generation among end users will stimulate merchant hydrogen demand. Industries such as refining, steel, and chemicals are shifting towards cleaner hydrogen sources to meet emission targets without investing in production infrastructure. Additionally, the growing preference for offtake agreements and hub-based supply chains will influence the expansion of merchant hydrogen generation capacity.
   
• Development of large-scale green hydrogen hubs integrated with electrolysis and export infrastructure will stimulate merchant market scale. In May 2024, Amp Energy secured an option to purchase 630ha at CapeHardy port, Australia, for a 1GW electrolyser hub, potentially scaling to 10GW, using desalinated water and aiming at global fuel supply. Such offshore integration will enhance export capability, thereby supporting long-term expansion.
   

Merchant Hydrogen Generation Market Analysis

• The merchant hydrogen generation industry was valued at USD 24.6 billion, USD 26 billion, and USD 27.5 billion in 2022, 2023, and 2024, respectively. Based on process, the market is segmented into steam reformer, electrolysis, and other categories.
   
• The steam reformer segment will grow at 7.6% CAGR from 2025 to 2034, driven by cost-effectiveness and alignment with natural gas infrastructure. In December 2023, BayoTech commissioned its first merchant hydrogen hub in Wentzville, Missouri, and plans two more in Northern and Southern California in 2024, aiming to develop 12 hubs nationwide, scaling spot-market industrial capacity. Additionally, integration with existing gas networks will complement merchant hydrogen generation market growth.
   
• The electrolysis market is expected to be valued at more than USD 4.7 billion by 2034, driven by advancements in high-efficiency electrolyser technologies and their compatibility with renewable energy systems. In August2024, NextHydrogen was selected by the UniversityofMinnesota to supply its 3rdgeneration alkaline electrolyzers, offering improved energy efficiency, higher current density, and dynamic load-following capability, set to be operational in 2025. Additionally, deployment in research and industrial contexts will augment segment growth.
   
• The other category, including autothermal reforming and by-product recovery, will grow at 10.5% CAGR from 2025 to 2034 on account of efficiency gains and wateruse minimization. In August 2023, the University of Wyoming launched a USD 10million DOE-funded SMR/ATR demonstration integrating produced water from oil and gas operations, aiming to optimize resource usage. Additionally, such circulareconomy approaches will stimulate segment growth.
   

• Based on the applications, the merchant hydrogen generation market is segmented into petroleum refinery, chemical, metal, and other segments. The petroleum refinery segment held a market share of 52.2% in 2024, driven by decarbonization initiatives and the transition to green feedstocks. Increasing petroleum refinery focus on integrating clean fuel in their operation will foster the business trend. For instance, in January 2025, L&T Energy Green Tech won a tender to build a green hydrogen facility at IOCL’s Panipat refinery, designed to produce 10,000t/y of green hydrogen, significantly reducing emissions from refining operations. Additionally, the rising adoption of hydrogen in fuel desulfurization will complement segment growth.
   
• The chemical segment is estimated to cross more than USD 29.5 billion, driven by the rising shift toward low-carbon feedstocks and mounting pressure to decarbonize ammonia and methanol production. Growing adoption of hydrogen as a clean alternative to natural gas-based synthesis processes will encourage merchant supply models. Additionally, expanding regulatory frameworks and corporate decarbonization targets will foster the penetration of merchant hydrogen across chemical manufacturing.
   
• The metal segment will grow at 8.6% CAGR from 2025 to 2034, driven by the shift toward blast furnace decarbonization using hydrogen injection technologies. In January 2025, Primetals Technologies secured a USD1.95million EU grant to develop its Sequence Impulse Process (SIP) for direct hydrogen injection into blast furnaces, aiming to reduce CO₂ emissions by up to 20% during industrial demonstration by 2028. Additionally, hydrogen integration in conventional steelmaking will complement segment expansion.
   

• The U.S. merchant hydrogen generation market was valued at USD 4.9 billion, USD 5.2 billion, and USD 5.4 billion in 2022, 2023, and 2024, respectively. The North American industry held a market share of 24.3% in 2024.
   
• Strong federal support and public-private partnerships will foster merchant hydrogen supply in the U.S. In January 2025, Port Houston secured a USD25million federal grant to develop a Bayport hydrogen refueling station, aimed at supporting heavy-duty trucks across Texas and the Gulf Coast. Additionally, expanding infrastructure and logistics networks will complement sector resilience and industrial adoption.
   
• The European merchant hydrogen generation market will grow at 8.5% CAGR between 2025 to 2034, driven by innovation in sustainable hydrogen production technologies and coordinated funding for cutting-edge projects. In January 2025, the UK HyRES awarded USD3.7million to 10 hydrogen initiatives, including a seawater electrolysis project led by the University of Glasgow exploring direct conversion techniques, reducing reliance on freshwater and enhancing offgrid H deployment. Additionally, ecosystem-wide research integration will complement sector development.
   
• The Asia Pacific merchant hydrogen generation market is projected to reach more than USD 26.7 billion by 2034, driven by supportive policy frameworks and rising demand from energy-intensive sectors. Countries across the region are introducing hydrogen roadmaps, subsidies, and production-linked incentives to scale up clean hydrogen supply. Industrial decarbonization targets in sectors such as refining and steelmaking will further contribute to merchant hydrogen demand. Additionally, rising private sector participation will influence market competitiveness.
   

Merchant Hydrogen Generation Market Share

• The top 3 players, including Air Liquide, Air Products and Chemicals, and Linde, hold about 31.1% share of the merchant hydrogen generation industry. These companies are securing long-term offtake agreements, investing in multi-megawatt electrolyzer deployments, and expanding hydrogen liquefaction and transport capabilities. Their strategies also involve cross-border partnerships, co-location with industrial clusters, and alignment with national hydrogen strategies to reinforce market leadership.
   
• Leading players in the merchant hydrogen market are prioritizing project scalability, low-carbon hydrogen certifications, and regional diversification. They are also focused on developing merchant supply hubs near refineries, chemical zones, and mobility corridors to ensure cost-effective and demand-responsive hydrogen delivery.
   
• Top firms are adopting integrated strategies involving on-site hydrogen production, infrastructure deployment, and digital platform-based delivery management. Their approach includes building pipeline networks, aligning with regulatory funding frameworks, and forming alliances to commercialize clean hydrogen at competitive costs across industries.
   

Merchant Hydrogen Generation Market Companies

• AirLiquide is advancing its role in merchant hydrogen generation by supplying large-scale electrolyzers and hydrogen infrastructure for industrial and mobility applications worldwide. In 2024, it secured a USD120million European Innovation Fund grant for its ENHANCE ammonia-to-hydrogen project in Antwerp-Bruges. In the same year, its total revenue reached USD29.4billion, underscoring its financial strength to support hydrogen market expansion.
   
• Linde is reinforcing its merchant hydrogen generation role by expanding green and blue production capacities and deploying refueling infrastructure. In April2024, its subsidiary White Martins launched a 5MW green hydrogen electrolyzer in Brazil to supply industrial clients. In 2024, Linde achieved USD33billion in revenue, underscoring its capability to drive global hydrogen market growth.
   

Eminent players operating in the merchant hydrogen generation market are:

• Air Liquide
• Axpo Holding
• Air Products and Chemicals
• Cummins
• Coregas
• Linde
• Messer Group
• Nel Hydrogen
• Plug Power
• Sumitomo Corporation
• TotalEnergies
• Uniper
   

Merchant Hydrogen Generation Industry News:

• In July2024, ViryaEnergy, Messer, and Hyoffgreen reached the Final Investment Decision (FID) to build Hyoffwind, Belgium’s first 25MW green hydrogen production plant in Zeebrugge. Slated to produce its first molecules in 2026, the facility will slash 25,000t CO₂ yearly from mobility and industrial sectors, with expansion up to 100MW planned. EPC partners JohnCockerill and Besix were appointed, and the port’s connectivity makes it a strategic hub in northwest Europe’s hydrogen network.
   
• In December 2023, Linde expanded its liquid hydrogen production capacity at its Alabama facility to 30 tons per day to cater to the local merchant market. The move is intended to address the growing demand from sectors such as manufacturing, electronics, space launches, and mobility across the U.S.
   

The merchant hydrogen generation market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in “(USD Billion)” from 2021-2034, for the following segments:

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Market, By Process

• Steam reformer
• Electrolysis
• Others

Market, By Application

• Petroleum refinery 
• Chemical
• Metal
• Others

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

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