Global Hydrogen Generation Market size and share is currently valued at USD 169.34 billion in 2023 and is anticipated to generate an estimated revenue of USD 364.84 billion by 2032, according to the latest study by Polaris Market Research. Besides, the report notes that the market exhibits a robust 9.1% Compound Annual Growth Rate (CAGR) over the forecasted timeframe, 2024 – 2032
Market Overview:
The hydrogen generation market is experiencing significant growth as industries and governments worldwide focus on clean energy alternatives to reduce carbon emissions. Hydrogen, known for its high energy content and versatility, is used across various sectors, including transportation, industrial manufacturing, power generation, and chemicals.
Hydrogen can be produced through multiple processes, including steam methane reforming (SMR), electrolysis, and coal gasification, with a growing emphasis on green hydrogen produced via renewable energy-powered electrolysis. As the global transition toward sustainable energy solutions accelerates, hydrogen is playing a crucial role in decarbonization efforts and the shift towards a hydrogen-based economy.
Market Growth Drivers:
Several key factors are fueling the expansion of the hydrogen generation market:
- Rising Demand for Clean Energy Solutions: Governments and industries are investing in low-carbon and renewable energy sources to meet global climate goals.
- Increasing Adoption of Hydrogen in Transportation: The rise of hydrogen fuel cell vehicles (FCVs) and hydrogen-powered public transport is driving demand for clean hydrogen production.
- Expansion of Hydrogen in Industrial Applications: Hydrogen is widely used in oil refining, steel production, fertilizers, and chemical manufacturing, creating a steady demand for hydrogen generation technologies.
- Government Policies and Incentives for Hydrogen Production: Many countries are introducing subsidies, tax incentives, and funding programs to support hydrogen infrastructure and production facilities.
- Advancements in Electrolysis Technology: Green hydrogen production via water electrolysis using renewable energy is becoming more cost-effective, reducing reliance on fossil fuel-based hydrogen.
Major Key Players:
- ITM Power
- Air Products and Chemicals, Inc.,
- FuelCell Energy, Inc.,
- Iwatani Corporation,
- The Messer Group GmbH,
- Taiyo Nippon Sanso Corporation,
- Linde Plc
- Uniper SE,
- Green Hydrogen Systems,
- Hydrogenics Corporation
- Tokyo Gas Chemical Co., Ltd
- INOX Air Products Ltd.
Recent Developments in the Hydrogen Generation Market:
- Linde Secures Long-Term Contract to Supply Green Hydrogen to Evonik (April 2023)
- Linde plc signed a long-term agreement to supply green hydrogen to Evonik, a leading manufacturer of specialty chemicals.
- This collaboration aims to support Evonik’s sustainability goals by integrating low-carbon hydrogen into its production processes.
- Chevron’s New Energy Division Deploys 5-MW Electrolyzer for Low-Carbon Hydrogen Production (March 2024)
- Chevron New Energy received a 5-MW electrolyzer system from Accelera by Cummins to produce low-carbon intensity hydrogen.
- The electrolyzer, installed at Chevron’s Lost Hills, California facility, is designed to enhance hydrogen production capacity while reducing emissions.
- GAIL India Launches First Green Hydrogen Project (May 2024)
- GAIL Ltd., India’s state-owned natural gas company, launched its first-ever green hydrogen project in central India.
- The plant will use renewable energy-powered electrolysis to generate 4.3 tons per day (TPD) of green hydrogen.
- It features 10MW Proton Exchange Membrane (PEM) electrolyzer units, imported from Canada, to support India’s clean energy transition.
𝐒𝐞𝐠𝐦𝐞𝐧𝐭𝐚𝐥 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬:
The research study includes segmental analysis that divides the market into distinct groups or segments based on common characteristics. With market segmentation, businesses can identify specific customer groups that are more likely to be interested in specific products or services. Also, it enables these businesses to focus their marketing efforts and resources more efficiently, leading to higher conversion rates and improved return on investment. Furthermore, segmentation analysis helps companies develop personalized products or services, which can result in increased customer loyalty and improved customer satisfaction.
Hydrogen Generation Market, Technology Outlook (Revenue – USD Billion, 2019-2032)
- Coal Gasification
- Steam Methane Reforming
- Others
Hydrogen Generation Market, Application Outlook (Revenue – USD Billion, 2019-2032)
- Power Generation
- Transportation
- Petroleum Refining
- Ammonia Production
- Methanol Production
- Others
Hydrogen Generation Market, System Outlook (Revenue – USD Billion, 2019-2032)
- Captive
- Merchant
Hydrogen Generation Market, Source Outlook (Revenue – USD Billion, 2019-2032)
- Water
- Biomass
- Coal
- Natural Gas
The hydrogen generation market is at the forefront of the global energy transition, offering a viable solution for decarbonizing industries, transportation, and power generation. With advancements in electrolysis, increased government support, and the expansion of hydrogen infrastructure, hydrogen is emerging as a key pillar of the future energy landscape. As innovations continue and economies shift towards sustainable energy solutions, hydrogen generation is set to play a crucial role in achieving net-zero emissions and a cleaner, greener future.
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