North America Petroleum Refining Hydrogen Generation Market Analysis

North America Petroleum Refining Hydrogen Generation Market Analysis

Based on deliver mode, the market is segmented into captive and merchant. Captive is projected to grow by more than USD 10.6 billion by 2032. Rising adoption of cost efficient and control methods for hydrogen generation is driving on site processes demand to reduce transportation and distribution costs associated with sourcing hydrogen from external suppliers. Additionally, having control over the clean fuel production process allows refineries to optimize operational efficiencies and reduce overall expenses thereby boosting the business scenario.
 

Based on process, the North America petroleum refining hydrogen generation market is segmented into steam reformer, electrolysis and others. Electrolysis is set to grow at a CAGR of over 6% through 2032. Rising focus of government and regulatory bodies on reducing carbon emissions and promoting cleaner energy sources is set to boost the process demand. Growing advancements in technology to improve its efficiency and reduce costs coupled with rising innovations comprising proton exchange membrane (PEM) electrolysis and solid oxide electrolysis cells (SOEC) to enhance the efficiency, scalability, and cost-effectiveness of hydrogen production, which will stimulate the process penetration.
 

U.S. petroleum refining hydrogen generation market is anticipated to grow over USD 13 Billion by 2032. Stringent environmental regulations in the U.S., including the Clean Air Act and the Renewable Fuel Standard (RFS) are driving the industry growth. Rising shift towards producing hydrogen from renewable sources comprising electrolysis of water using renewable electricity coupled with increasing investments in developing advanced technologies to optimize production costs and reduce environmental impacts will impact the business landscape. Increasing investments in clean energy infrastructure to support transition to a low carbon economy and accelerate the adoption of clean energy carriers which will enhance the uptake of sustainable energy solutions, supporting the environmental goals.