Hydrogen Market Research Report Information By Source (Blue Hydrogen, Grey Hydrogen, Green Hydrogen), By Technology (Steam Methane Reforming (SMR), Partial Oxidation (POX), Coal Gasification, Electrolysis), By Generation and Delivery Type (Captive, By-product, Merchant), By Storage (On-board Storage, Underground Storage, Power-to-Gas Storage), By Application (Petroleum Refinery, Ammonia Production, Methanol Production, Transportation, Power Generation, Others) and By Region - Global Forecast to 2030

Global Hydrogen Market Overview

Hydrogen Market Size was valued at USD 274.39 billion in 2022. The Hydrogen Market industry is projected to grow from USD 287.49 billion in 2023 to USD 525.95 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 8.47% during the forecast period (2024 - 2030).

Hydrogen, the first element of the periodic table and the lightest and most abundant of all elements, is also a cornerstone and commodity of world industry. While the element has numerous chemical properties and qualities in compounds, hydrogen is commonly referred to in various industries as its common gaseous elemental form of H2. Given its clean-burning nature, which produces water when combusted with oxygen and is assisted by a fuel cell design, hydrogen has been investigated as an alternative transportation fuel. Hydrogenation is a well-established food industry technology for extending the shelf life of products by converting unsaturated to saturated (hydrogenated) fats and oils. When hydrocarbons are "purified" of sulphur and nitrogen and to create different saturated hydrocarbon chains characteristic of olefins, paraffin, LPG, jet fuel and diesel, hydrogen is a major feedstock for the refining of crude oil (petroleum), natural gas and other hydrocarbons in processes such as hydrocracking, hydrotreating and hydro processing. Hydrogen is also employed in semiconductor manufacturing as an electron donor for amorphous and oxide materials. Hydrogen isotopes are more rare and are used in nuclear fission control and nuclear weapons.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Hydrogen Market Trends

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  Rising Demand for Cleaner Fuel to Achieve Net Zero Targets

  
  

The rising global warming issues coupled with deteriorating climatic and environmental conditions due to excess pollution have taken the development and adoption of clean and green energy.  As a result, hydrogen is a source of clean and environmentally friendly energy and is anticipated to expand significantly throughout the course of the projection period. Increasing government measures to lessen carbon emissions are promoting the production and consumption of hydrogen, which is driving up the market for hydrogen generating globally. The global market for hydrogen generation is expanding as a result of the increasing need for green energy across numerous industries. Coal and natural gas are now the two main sources for producing hydrogen. The production of hydrogen uses about 6% of natural gas and 2% of coal. A typical substitute for electric energy is hydrogen. In fuel cell technology, hydrogen fuel is widely used. This is one of significant drivers of the global market for hydrogen generation's expansion.

Hydrogen is one of the best possibilities for storing renewable energy in the power generation industry, and ammonia and hydrogen can be utilized in gas turbines to increase the flexibility of the power system. In order to cut emissions in coal-fired power plants, ammonia could potentially be used. Renewable energy sources could contribute considerably more thanks to hydrogen. There are few low-carbon fuel options for shipping and aircraft, which presents a chance for hydrogen-based fuels. Longer-term prospects could include the direct use of hydrogen in hydrogen boilers or fuel cells. Hydrogen could be added to existing natural gas networks in buildings, with multifamily and commercial buildings, particularly in crowded cities, showing the greatest potential. Industry currently uses hydrogen mostly for the manufacturing of steel, ammonia, methanol, and refined oil. As almost all of this hydrogen is produced using fossil fuels, clean hydrogen offers a substantial opportunity to reduce emissions. In the transportation sector, fuel cell costs and refueling stations determine how competitive hydrogen fuel cell automobiles are, but for trucks, lowering the supplied price of hydrogen is a top concern. It might help with variable production from renewable energy sources like wind and solar photovoltaics (PV), whose availability doesn't always match up well with demand. One of the top possibilities for storing energy from renewable sources is hydrogen, which has the potential to be the least expensive way to store electricity for days, weeks, or even months. Energy from renewable sources can be transported over great distances using hydrogen and hydrogen-based fuels, from places with plentiful solar and wind resources, like Australia or Central America, to energy-starved cities thousands of kilometers distant.

Hydrogen Market Segment Insights:

Hydrogen Market by Source Insights

Based on the Source, the Hydrogen Market has been segmented into blue hydrogen, grey hydrogen, and green hydrogen. In 2022, the grey hydrogen segment drove the Hydrogen Market by holding a substantial market share with a market value of USD 254.89 billion. It is projected to register a CAGR of 8.34% during the projected timeframe. Grey hydrogen is produced by reforming natural gas and is used to restructure the molecular structure of hydrocarbons. Grey hydrogen is less expensive to produce than both blue and green hydrogen. In comparison to blue and green hydrogen, grey hydrogen accounts for the majority of the market. Hydrogen is created through the reforming of natural gas, which creates hydrogen, carbon monoxide, and carbon dioxide. Natural gas-derived hydrogen generation is also predicted to maintain its advantage over the forecast period.

Hydrogen Market by Technology Insights

Based on the technology, the Hydrogen Market has been segmented into steam methane reforming (SMR), partial oxidation (POX), coal gasification and electrolysis. In 2021, the steam methane reforming (SMR) segment drove the Hydrogen Market by holding a substantial market share with a market value of USD 1,44,343.96 million. It is projected to register a CAGR of 9.07% during the projected timeframe. The segment's size is primarily owing to its use in hydrogen production from conventional fuels such as natural gas. Natural gas is an important source of hydrogen, accounting for approximately half of global hydrogen production. Additional factors driving growth include operational advantages such as the high conversion efficiency of the steam methane reforming process. Throughout the projected period, the steam methane reforming segment is expected to maintain its lead.

Hydrogen Market by Generation and Delivery Type Insights

Based on generation and delivery type, the Hydrogen Market has been segmented into captive, by-product and merchant. In 2021, the captive segment drove the Hydrogen Market by holding a substantial market share with a market value of USD 1,72,094.07 million. It is projected to register a CAGR of 8.66 % during the projected timeframe. Hydrogen is a critical chemical commodity in the refining of petroleum, the manufacturing of ammonia, and the production of methanol. Some businesses require so much hydrogen that the majority of it is purposely created on-site. This is referred to as captive hydrogen production. The consumer often produces "captive" hydrogen for internal usage.

Hydrogen Market by Generation and Delivery Type Insights

Based on storage, the Hydrogen Market has been segmented into on-board storage, underground storage, and power-to-gas storage. In 2021, the underground storage segment drove the Hydrogen Market by holding a substantial market share with a market value of USD 2,05,775.87 million. It is projected to register a CAGR of 8.28 % during the projected timeframe. Underground hydrogen storage in geological formations provides a low-cost, ecologically beneficial medium and long-term storage option. Underground, hydrogen can be held in many layers such as aquifers, permeable rocks, and salt caverns. To meet the needs of the hydrogen market, salt caverns provide flexibility in their injection and withdrawal cycles. Salt caverns, due to its tightness, allow for the safe storage of enormous amounts of hydrogen under pressure.

Hydrogen Market by Application Insights

Based on application, the Hydrogen Market has been segmented into petroleum refinery, ammonia production, methanol production, transportation, power generation and other applications. In 2021, the petroleum refinery segment drove the Hydrogen Market by holding a substantial market share with a market value of USD 1,16,987.10 million. It is projected to register a CAGR of 9.10 % during the projected timeframe. This considerable growth is due to the ongoing need for H2 to desulfurize diesel fuel and comply with rigorous requirements. as a result of an increase in revamping and restructuring initiatives for existing refineries. In order to comply with government rules aimed at reducing emissions, refineries have shifted their focus towards low-carbon hydrogen fuels. Furthermore, the rapid development of improved reforming technology will push petroleum refining facilities to utilize hydrogen instead of diesel fuels to manufacture value products.

2022 September:OCP Group signed an agreement to acquire 50% stake in animal nutrition business, GlobalFeed, from Spanish fertilizers group, Fertinagro Biotech

Hydrogen Market Regional Insights

Based on region, the Hydrogen Market has been segmented into North America, South America, Europe, Asia-Pacific, and the Middle East & Africa. In 2021, the Asia-Pacific region drove the Hydrogen Market by holding a substantial market share with a market value of USD 92,977.76 million. It is projected to register a CAGR of 9.46 % during the projected timeframe. The Asia-pacific region is also anticipated to drive the Hydrogen Markets throughout the forecast period. The target region is anticipated to offer a total incremental opportunity of USD 2,00,892.33 million by the end of 2030. The increasing number of refinery projects to meet the growing demand for fuels in China, India, and South Korea are the primary factors driving the Asian market. The existence of a large number of refineries in the Asia Pacific area, particularly in major countries such as China and India, has resulted in increased consumption of hydrogen generation in the region. Furthermore, governments in Asia Pacific countries such as Japan and Australia are investigating greener and cleaner hydrogen producing technology.

Hydrogen Key Market Players & Competitive Insights

The Hydrogen Market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive with all the players competing to gain maximum market share. Rapid advancements in processes, extraction, processing, and the growing application of hydrogen in end-use industries are the key factors that affect the global market growth. The vendors compete based on cost, product quality, availability, and reliability of the products. It is crucial for the vendors to provide cost-effective and high-quality Hydrogen to compete in the market. The competitive scenario is fragmented between the tier-1 and tier-2 companies.

The growth of market players is dependent on market conditions, government regulations, and industry development. Thus, the players should focus on expanding their production capacities to meet the demand and enhancing their services. BASF SE, Air Liquide, Air Products and Chemicals, Inc., Linde Plc, Messer SE & Co. KGaA, Bhuruka Gases Limited, Thai Special Gas Company Limited, Taiyo Nippon Sanso Corporation, Yueyang Kaimeite Electronic Specialty Rare Gases Co., Ltd., Yueyang Kaimeite Electronic Specialty Rare Gases Co., Ltd., Coregas,  among others are the major companies in the market that compete in terms of quality, price, and processes incorporated. These players are primarily focusing on the development of more sophisticated and advanced products. Although the international players are dominating the market, regional and local players with small market shares also have a moderate presence. The international players with presence across the globe, with established manufacturing units or sales offices, have strengthened their presence across major regions such as North America, Europe, and Asia-Pacific.

The competitive market strategy analysis is expected to be highly inclined toward direct and secondary competition during the forecast period. However, tertiary competition from the tier-3 players is expected to intensify the competition from moderate to high for the tier–1 and tier–2 players during the review period. The business sectors of the tier-3 companies are tangentially related to the market, however, with the significant growth of the hydrogen market during the forecast period, the tier-3 companies may expand their business and product portfolio, which is expected to be highly concentrated toward the production of hydrogen. These factors are expected to influence the market dynamics in the coming future and intensify the competition during the forecast period.

BASF SE:BASF SE (BASF) operates through six segments: materials, industrial solutions, chemicals, surface technologies, agricultural solutions, and nutrition & care. BASF operates in 90 countries and has six Verbund sites and 232 additional production sites worldwide. Its Verbund site in Ludwigshafen, Germany, is the largest in the world, where production facilities, energy flow, logistics, and infrastructure are networked together intelligently. BASF is in the top three market positions in over 80% of the business sectors in which it operates. For industrial purposes, this section develops and sells ingredients and additives. Process Research & Chemical Engineering (Ludwigshafen, Germany); Advanced Materials & Systems Research (Shanghai, China); and Bioscience Research are the three global divisions that manage the company's primary research from Europe, Asia-Pacific, and North America. BASF provides goods and services to almost 90,000 clients from various industries. Its customers include substantial multinational corporations, small and medium-sized businesses, and individual consumers. It primarily operates in Europe and has an active presence in the Americas, Asia-Pacific, the Middle East & Africa. As an energy source for welding and lead soldering, hydrogen is generated by BASF for these purposes: as a blanketing gas for heat treatment, in chemical syntheses for hydrogenations, and in the mineral and oil industries for hydrogenations. Hydrogen is notable for its invisibility, odor lessness, and severe flammability.

AIR LIQUIDE:Air Liquide, a supplier of gases, technology, and services, provides its products and services to the industrial and healthcare sectors. The company also manufactures gases like oxygen, nitrogen, and hydrogen, in addition to argon and other rare gases. This company provides these gases to clients in various sectors, including steel, food and pharmaceuticals, chemicals, electronics, automotive, and manufacturing. It also builds processing facilities and related infrastructure. It uses regional facilities, tanker trucks, and cylinders to deliver its products. In addition, the company serves over 3.8 million customers in 78 countries. Furthermore, it operates across the Asia-Pacific, the Americas, Europe, Africa, and the Middle East.

Key Companies in the Hydrogen Market includes.

• BASF SE (Germany)


• Air Liquide (France)


• Air Products and Chemicals, Inc.(US)


• Linde Plc (Ireland)


• Messer SE & Co. KGaA (Germany)


• Bhuruka Gases Limited (India)


• Thai Special Gas Company Limited (Thailand)


• Taiyo Nippon Sanso Corporation (Japan)


• Yueyang Kaimeite Electronic Specialty Rare Gases Co., Ltd. (China)


• Coregas (Australia)


• The Wengfu Group (China)

Hydrogen Industry Developments

March 2023:Construction of the first low-carbon hydrogen network in Normandy, one of the biggest industrial basins in Europe. To reduce the carbon footprint of hydrogen generation on its petrochemical platform, Air Liquide is collaborating with Total Energies. In addition to providing low-carbon hydrogen to Total Energies and taking over the current production facility, the two businesses will work together to implement a CO2 capture and storage system (CCS). The current hydrogen network will be connected to an electrolyzer of at least 200 MW by 2025, making it the first low-carbon hydrogen network in the whole globe. In order to build CCS infrastructure, the Group also works with Total Energies, Borealis, Esso, and Yara.

June  2022:Siemens Energy and Air Liquide to develop a large scale electrolyzer joint venture for sustainable hydrogen production

March 2023:Air Products and AES Announced Plans to Invest Approximately USD 4 Billion to Build First Mega-scale Green Hydrogen Production Facility in Texas.

Hydrogen Market Segmentation:

Hydrogen Market Source Outlook

• Blue Hydrogen


• Grey Hydrogen


• Green Hydrogen

Hydrogen Technology Outlook

• Steam Methane Reforming (SMR)


• Partial Oxidation (POX)


• Coal Gasification


• Electrolysis

Hydrogen Generation and Delivery Type Outlook

• Captive


• By-product


• Merchant

Hydrogen Storage Outlook

• On-board Storage


• Underground Storage


• Power-to-Gas Storage

Hydrogen Application Outlook

• Petroleum Refinery


• Ammonia Production


• Methanol Production


• Transportation


• Power Generation


• Others

Hydrogen Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Denmark
  
  
  • Belgium
  
  
  • Poland
  
  
  • Sweden
  
  
  • Netherlands
  
  
  • Croatia
  
  
  • Romania
  
  
  • Russia
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • South Korea
  
  
  • Australia & New Zealand
  
  
  • Vietnam
  
  
  • Singapore
  
  
  • Taiwan
  
  
  • Laos
  
  
  • Malaysia
  
  
  • Thailand
  
  
  • Myanmar
  
  
  • Philippines
  
  
  • Indonesia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Latin America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Chile
  
  
  • Colombia
  
  
  • Peru
  
  
  • Rest of Latin America
  
  
  
  


• Middle East & Africa
  
  
  
  • GCC
  
  
  • North Africa
  
  
  • Iran
  
  
  • Turkey
  
  
  • Rest of Middle East & Africa