North America Merchant Hydrogen Generation Market - Size By Process (Steam Reformer, Electrolysis and Others), By Application (Petroleum Refining, Chemical, Metal), Country Outlook & Forecast, 2024 – 2032

North America Merchant Hydrogen Generation Market Size

North America Merchant Hydrogen Generation Market was valued at USD 6.4 billion in 2023 and is anticipated to grow at a CAGR of 6.6% through 2032. It refers to the production of hydrogen by a company or entity specifically for sale to third parties. Unlike captive hydrogen production, where hydrogen is produced for the company's own use, merchant hydrogen generation is geared towards meeting external market demand. This hydrogen is typically produced at centralized facilities and distributed to various industries such as chemicals, refineries, and fuel cell applications.
 

Rising regulatory support and government initiatives, policies and grants including the Department of Energy’s (DOE) hydrogen energy Earthshot initiative aims to reduce the cost of clean hydrogen by 80% to US$1 per kilogram within a decade are set to influence the industry growth. Growing emphasis on reducing carbon emissions and combating climate change is driving hydrogen adoption as a versatile energy carrier that can be used in various sectors, including transportation, power generation, and industrial processes thereby propelling the delivery mode adoption.
 

Rising petrochemical industry reliance on hydrogen for hydrocracking and desulfurization processes and operation decarbonization creates opportunities for third party hydrogen manufacturers thereby escalating the industry growth. Growing strategic partnerships and collaborations among companies to leverage each other’s strengths in technology, infrastructure, and market access are additional factors driving market.
 

North America Merchant Hydrogen Generation Market Trends

Extending support in terms of investments and funding from both public and private sectors in clean fuel projects and startups, enabling the development of new production facilities, research and development of advanced technologies, and infrastructure expansion thereby complementing the business scenario. Rising integration of renewable energy sources, such as wind and solar, with hydrogen production to balance the grid by storing excess renewable energy and also ensure a sustainable and zero-emission clean fuel production process is set to augment the industry growth.
 

North America Merchant Hydrogen Generation Market Analysis

Based on process, the steam reformer is projected to hit USD 10.2 billion by 2032. Rising adoption of production processes in industries such as petroleum refining, ammonia production, and methanol production, driven by growth in industrial activities and stricter environmental regulations is fostering the process demand. Presence of key players in the region and continuous advancements in technology to improve efficiency and reduce operational costs, particularly in applications where large volumes of hydrogen are required cost-effectively are boosting the process growth.
 

Based on application, the North America merchant hydrogen generation market is segmented into petroleum refinery, chemical, metal and others. Among these the metal segment is set to grow at a CAGR of over 6.7% through 2032. Increasing adoption of hydrogen as a low-carbon alternative to traditional fossil fuels in processes of metal applications such as steel production and metal refining is bolstering the industry landscape. Increasing interest of manufacturers in enhancing their environmental credentials and mitigating climate risks prioritizing the integration of hydrogen technologies to achieve operational efficiency and reduce carbon footprints are additional factors stimulating the business scenario.
 

The U.S. merchant hydrogen generation market is anticipated to cross over USD 9 billion by 2032. Government rising focus on energy transition and climate change mitigation supported by policies such as the Biden Administration's commitments to achieve net-zero emissions by 2050 and investments in clean energy technologies incentivizing the deployment of hydrogen as a clean energy carrier are impacting the business growth.
 

Furthermore, growing initiatives such as the Infrastructure Investment and Jobs Act (IIJA) allocate funds for clean fuel infrastructure development, including production facilities and distribution networks, thereby supporting market growth. Increasing collaboration among industry players, research institutions, and government entities in line with initiatives such as the H2USA partnership and regional hydrogen hubs promotes collaboration across the hydrogen value chain, from production to distribution and utilization, driving market expansion and adoption.
 

North America Merchant Hydrogen Generation Market Share

Eminent players are focusing on expanding their production capacities to meet growing demand, involving investments in new production facilities and upgrades to existing infrastructure, leveraging economies of scale to enhance efficiency and reduce production costs. Companies are investing heavily in research and development to advance hydrogen production technologies. This includes developing more efficient electrolysis systems, enhancing steam methane reforming processes with carbon capture and storage, and exploring novel methods such as solid oxide electrolysis cells for hydrogen production.
 

North America Merchant Hydrogen Generation Market Companies

Eminent players operating in the North America merchant hydrogen generation industry are:

• Air Liquide
• Air Products and Chemicals, Inc
• Cummins Inc
• Chart Industries, Inc.
• ITM Power Inc.
• Linde Plc
• Nel Hydrogen
• Nuvera Fuel Cells, LLC
• Plug Power Inc
• Sumitomo Corporation
• TotalEnergies SE
• Uniper SE
   

North America Merchant Hydrogen Generation Industry News

• In January 2024, Linde announced plans to supply clean hydrogen and captured carbon dioxide to Celanese. Linde's advanced facility in Texas captures the carbon dioxide, which Celanese will use, along with clean hydrogen, as feedstock to produce lower-carbon methanol. The company aims to actively support its customers' decarbonization goals and expand its services globally.
   
• In January 2021, Sumitomo Corporation of Americas (SCOA), a subsidiary of Sumitomo Corporation, invested in OneH2, a North Carolina-based hydrogen fuel company. This investment will aid OneH2 in establishing a national hydrogen fuel production and distribution network, offering competitive pricing for the transportation sector.
   

This North America 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 to 2032, 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 countries:

• U.S.
• Canada
• Mexico