Hydrogen Generation Market - By Source , By Type , By Technology , By System , By Application , By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030

Hydrogen Generation Market Overview

Hydrogen Generation market size is forecast to reach US$366.9 million by 2030, after growing at a CAGR of 10.1% during 2024-2030. Hydrogen is a versatile energy carrier, which can help in addressing various critical energy challenges. The Hydrogen Generation market is driven by the growing trend for more feasible low-carbon and sustainable energy solutions to mitigate the effects of rising greenhouse gas emissions. There are numerous applications for hydrogen. Fuel cells may produce heat and electricity using hydrogen, a high-density energy carrier that is non-toxic, non-corrosive, and non-polluting. Additionally, it is a valuable raw element for numerous industrial sectors. It can be transported in liquid or gaseous form and stored in enormous quantities. Additionally, governments incentives for hydrogen generation globally are propelling the growth of hydrogen generation market. 

A major trend in the market is the growing demand for fuel cell electric vehicles (FCEVs). Fuel cell electric vehicles (FCEVs), use electricity to power an electric motor, similar to all-electric vehicles. In contrast to other EVs, FCEVs generate power from a hydrogen-powered fuel cell instead of relying entirely on a battery. For instance, BMW and Toyota Motor Corporation plans to launch their first-ever series production fuel cell electric vehicle (FCEV) in 2028. Such initiatives are aiming to accelerate the adoption of zero-emission vehicles, increasing demand for hydrogen as a clean energy source. Additionally, the rise in production of green hydrogen is propelling the growth of hydrogen generation market globally. The International Energy Agency (IEA) estimates that it would make it possible to save the 830 million tons of CO2 per year that originate when this gas is produced using fossil fuels. 

Market Snapshot: 

Hydrogen Generation Market - Report Coverage:

The “Hydrogen Generation Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Hydrogen Generation Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

• Due to COVID the hydrogen generation industry was heavily impacted. Lockdowns, travel restrictions, and employee shortages caused numerous hydrogen infrastructure projects to be postponed. Both new hydrogen generation facilities and improvements to already-existing infrastructure were impacted.
• The Russia-Ukraine conflict impacted the Hydrogen Generation market. The availability of essential materials and components for hydrogen generation was impacted by the war's disruption of global supply lines. Economic uncertainties caused by the conflict led to increased costs for raw materials, transportation and labor which resulted in overall increased cost of hydrogen generation.  

Key Takeaways

Gray Hydrogen the Largest Segment

Gray Hydrogen is the largest segment in the Hydrogen Generation Market, in terms of source. Gray hydrogen is the most common form and is generated from natural gas, or methane, through a process called steam reforming. Gray hydrogen makes up the majority of the hydrogen produced. It is frequently used in the chemical industry to refine oil and create fertilizer because it is relatively inexpensive. For instance, according to a 2023 report from Emkay Global Financial Services, India’s hydrogen consumption at present is over 6 million metric tons per annum (MTPA), of which about 3 million MTPA is used by oil refineries for desulphurisation of fuels and upgrading to higher value products, over 2.5 million MTPA is used in ammonia production for urea and other fertilizers, while the remaining quantity is used in the steel and chemicals industry. It is also expected that the refining sector’s hydrogen demand would reach about 4.5 million metric tonnes per annum by 2030 with hydrogen intake per refinery likely to grow given further sulphur removal policies and thrust on higher value products. Such factors are driving the growth of gray hydrogen in hydrogen generation market globally. 

Steam Methane Reforming the Largest Segment

Steam Methane Reforming is the largest segment in the Hydrogen Generation Market, in terms of technology due to its mature production process. For instance, according to U.S. Department of Energy, 95% of the hydrogen produced in the United States is made by natural gas reforming in large central plants. Natural gas contains methane (CH4) that can be used to produce hydrogen with thermal processes, such as steam-methane reformation. Most hydrogen produced currently in the United States is made via steam-methane reforming, a mature production process in which high-temperature steam (700°C–1,000°C) is used to produce hydrogen from a methane source, such as natural gas. In steam-methane reforming, methane reacts with steam under 3–25 bar pressure in the presence of a catalyst to produce hydrogen, carbon monoxide and a relatively small amount of carbon dioxide. In October 2024, Maire announces that NEXTCHEM (Sustainable Technology Solutions), through its subsidiary KT Tech, was awarded by Binh Son Refining and Petrochemical Joint Stock Company (BSR) the licensing and the Process Design Package (PDP) for a new hydrogen production unit, as part of the larger upgrading and expansion project of Dung Quat Refinery in Vietnam. KT Tech will design the new hydrogen production unit with a capacity of 22,676 cubic metres per hour (Nm3/h), leveraging on its proprietary technology. Once the project reaches the construction phase, KT TECH will also supply the proprietary equipment for the steam methane reforming process.

North America Dominates the Market

The North America region dominated the Hydrogen Generation market in 2023. Governments in countries like US and Canada have implemented various policies and incentives to promote clean energy and reduce greenhouse gas emissions. For instance, in March 2024, U.S. Department of Energy (DOE) announced $750 million for 52 projects across 24 states to reduce the cost of clean hydrogen and reinforce America's global leadership in the growing clean hydrogen industry. These projects funded by the Bipartisan Infrastructure Law will help advance electrolysis technologies and improve manufacturing and recycling capabilities for clean hydrogen systems and components. Managed by Hydrogen and Fuel Cell Technologies Office (HFTO), these projects represent the first phase of implementation of two provisions of the Bipartisan Infrastructure Law, which authorizes $1 billion for research, development, demonstration and deployment activities to reduce the cost of clean hydrogen produced via electrolysis and $500 million to support improved processes and technologies for manufacturing and recycling clean hydrogen systems and materials. Such investments in hydrogen industry are fueling the growth of Hydrogen Generation market in this region. 

Increasing Adoption of Fuel Cells in Automotive Boosts the Market

The increasing adoption of fuel cells in automotive & transportation is driving the demand of Hydrogen Geration market globally. For instance, Fuel Cell Electric Vehicles (FCEVs) are fueled with pure hydrogen gas stored in a tank on the vehicle. Major automobile manufacturers are offering a limited but growing number of production FCEVs to the public in certain markets, which is fueling the growth of hydrogen generation market globally. For instance, Chinese government is targeting to build at least 1,200 hydrogen refueling stations for mobility across the country by 2025. Additionally, China is forecast to have 12,000 to 18,000 fuel-cell vehicles (FCVs) plying its roads in 2024. This success in FCVs is generating demand for hydrogen refueling stations as well as hydrogen generation, and even the country's local governments have now begun to include in plans and regulations. As a result, Hydrogen Generation market is witnessing significant growth globally. 

Storage Density and Infrastructure Costs to Hamper the Market

Hydrogen's low volumetric energy density poses a significant challenge for Hydrogen Generation market globally. Hydrogen gas (approximately 11 times lighter than the air we breathe) occupies a much larger volume than the other gases under normal atmospheric pressure. To store 1 kg of hydrogen, a volume of about 11 m3 is needed. For mobile applications where space is limited, this problem can be especially severe. Additionally, a significant amount of money is needed to build and maintain hydrogen storage facilities. Many companies may not be able to afford the infrastructure costs which range from specialized tanks to cryogenic equipment for liquid hydrogen. These costs cover things like liquefiers, compressors, safety measures and monitoring apparatus. Economies of scale may eventually result from increased output. The high upfront cost, however, may deter lot of prospective consumers. 

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 Key Market Players

Global Hydrogen Generation top 10 companies include: 

1. Air Liquide S.A.
2. Iwatani Corporation 
3. Linde plc
4. Messer Group GmbH 
5. Alumifuel Power Corporation 
6. Caloric Anlagenbau GmbH 
7. Claind S.R.L 
8. Erredue S.P.A. 
9. Hydrogenics Corporation 
10. Hygear

Scope of the Report: 

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