Merchant Hydrogen Market to reach $153 Billion by 2030; Increasing global efforts to reduce carbon emissions, government incentives, subsidies, frameworks and policies for hydrogen production and growing demand for chemicals are fueling the Merchant

The Merchant Hydrogen Market size is estimated to reach $153 Billion by 2030, growing at a CAGR of 7.2% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Merchant Hydrogen Market – By Process (Water Electrolysis, Steam Methane Reforming, Coal Gasification and Others), By Type (Liquid and Gas), By End Use Industry (Chemical, Food and Beverage, Construction, Automobile, Refineries, Electrical and Electronics, Agriculture, Paper and Others), By Distribution (Pipeline, Bulk Tank and Cylinder Truck Delivery), By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030.” 

The main driver of the merchant hydrogen market is the rising demand to decrease the greenhouse gas emissions globally. Furthermore, hydrogen is crucial in the synthesis of several chemicals. Additionally, the growing usage of ultra-low sulfur diesel also boosts the merchant hydrogen market.

In 2023, North America held the largest share of 37% in the Merchant Hydrogen Market. For instance, In August 2024, Linde signed a long-term agreement to supply clean hydrogen to Dow’s Fort Saskatchewan Path2Zero Project in Alberta, Canada. The company will invest over $2 billion to build, own, and operate a world-scale integrated clean hydrogen and atmospheric gases facility, set for completion in 2028. This facility will be the largest clean hydrogen production site in Canada and one of the largest globally. The facility will utilize autothermal reforming and Linde’s proprietary HISORP carbon capture technology, capturing over 2 million metric tons of CO₂ annually for sequestration. It will supply clean hydrogen, nitrogen, and other services to support Dow’s net-zero emissions integrated ethylene cracker and derivatives site, while also providing clean hydrogen to other industrial customers for decarbonization. Such technological advancements and investments in hydrogen industry is driving the growth of merchant hydrogen market in this region.

The global rise in demand of hydrogen from refineries is propelling the merchant hydrogen market globally. Hydrogen plays a crucial role in refining processes which reduce sulfur content and improve fuel quality. For instance, India’s state-run oil and gas companies are targeting to build a combined green hydrogen generation capacity of 38,000 tonnes per annum by the financial year 2024-2025, according to The Economic Times journal. The planned green hydrogen facilities would require setting up a combined electrolyzer capacity of 279 MW by 2024-25, according to the energy transition advisory committee of the petroleum ministry. Of this, Hindustan Petroleum is planning to have 115 MW capacity at its refineries in Visakhapatnam and Barmer. Gas pipeline operator GAIL is targeting a capacity of 60 MW while Indian Oil, the nation’s largest refiner, aims to develop a capacity of 56 MW at its Mathura and Panipat refineries.

The rising demand to reduce the greenhouse gas emissions is the primary driver which is driving the merchant hydrogen market globally. As per National Grid, when natural gas is burnt it provides heat energy and carbon dioxide. Carbondioxide is a major greenhouse gas and is the primary cause of global warming. According to the Intergovernmental Panel on Climate Change, a 2°C rise in global temperature is considered a critical threshold that could lead to dangerous and cascading effects. Hence, there is an urgent need to reduce carbon emissions. Burning hydrogen does not release carbon dioxide. Therefore, hydrogen is considered a clean fuel driving its demand.

Key companies profiled in the Merchant Hydrogen Market are  Linde plc, Air Liquide, Air Products and Chemicals, Inc., Messer Group GmbH, Iwatani Corporation, Cummins Inc., ENGIE, Uniper SE, Kenan Advantage Group, Inc., Taiyo Nippon Sanso Corporation and Others. 

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