North America Hydrogen Generation Market Outlook 2027

Hydrogen generation or production is the family of industrial methods for obtaining hydrogen gas. Hydrogen can be generated from various domestic resources with a higher potential for net-zero greenhouse gas emissions. In addition to that, once produced, hydrogen generates electric power in a fuel cell with the emission of only warm air and vapor. Also, hydrogen generation holds the potential for growth in stationary as well as transportation energy resources. In North America, hydrogen-based power generation technology has positively positioned itself in various mature markets. Clean and effective energy sources are one of the primary concerns for many developing countries across the region. In North America, the hydrogen generation market is likely to be driven by the demand for cleaner fuel, coupled with growing governmental regulations to reduce harmful tailpipe emissions. Recent years have seen increasing government attention to hydrogen across the region. For instance, in 2019, amendments to the law on carbon fuel standards were introduced with incentives to develop hydrogen refueling and electric vehicle fast-charging stations across various developing countries. Furthermore, in 2020, the United States of America and Canada released non-binding plans to develop hydrogen. North America is a prominent leader in blue hydrogen production across the globe. The region has ample suitable sites for geological carbon sequestration. Low gas prices in North America give acceleration to some of the lowest hydrogen production costs.

According to the research report, North America Hydrogen Generation Market Outlook, 2027, the hydrogen generation market is anticipated to grow at a 3.50% CAGR in terms of value during the forecast period. Growing investments by the major market players in the research and development of hydrogen through renewable and eco-friendly sources is expected to drive the market's higher growth. Also, booming demand for hydrogen-based fuel cell vehicles across the region is accelerating the probability of hydrogen generation. According to an International Energy Agency analysis, in North America, the distribution of fuel cell vehicles was 9380 units at the end of 2020. Also, by the same timeline, the distribution of fuel cell electric vehicle passenger cars across the North American region was calculated to be 9316 units. The North American hydrogen generation market is segmented into three prominent countries, including the United States of America, Canada, and Mexico. Among these countries, the USA is projected to lead the market during the forecast period. The USA is among the early adopters of clean energy solutions across the globe in various sectors. Hydrogen is an emerging key technology in the United States and has the potential to build a multi-billion dollar industry.

The US Department of Energy (DOE) and Department of Transportation (DOT) have introduced a Hydrogen Posture Plan across the country. The main focus of the plan was to enhance the research and development sectors and validate technologies for hydrogen infrastructure. Moreover, this plan provided essential factors that were set by the Federal Government to support the deployment of hydrogen infrastructure in the country. In the USA alone, there are more than 50 hydrogen vehicle fuelling stations, and nearly all are in California. Also, the USA is well placed to produce blue hydrogen using steam methane reformation combined with carbon capture, usage, and storage. To enhance the overall performance, the Hydrogen Shot was established within the USA DOE’s Energy Earthshots Initiative with the aim of reducing the cost of clean hydrogen by 80% to $1 per kg in one decade. Further, the North American hydrogen generation market is segregated into three technology types: steam methane reforming technology, coal gasification, electrolysis, and oil/refining or auto-thermal reformation. In North America, a larger portion of hydrogen is produced through the steam methane reforming technology because it is much simpler and cost-efficient compared to other segments. However, growing emission regulations are driving manufacturers towards green hydrogen (produced from electrolysis technology) production across the region.

Further, based on the application, the North American hydrogen generation market is segmented into various types, including methanol production, ammonia production, petroleum refinery, transportation, power generation, steel & iron production, commercial use, in semiconductors, LEDs, displays, photovoltaic segments, and other electronics. Among these applications, the petroleum refinery segment is projected to acquire more than 45% market share during the forecast period. Existing demands for hydrogen in refineries represent a higher opportunity for low-carbon hydrogen as producers look to enhance the technology. Also, ammonia and methanol production both have the potential to be used as a method for transporting hydrogen and also as an alternative fuel for vehicles. These segments are expected to occupy more than 35% of the market share during the forecast period.

COVID-19 Impact:

The COVID-19 pandemic has severely disrupted the world economy and international trade, resulting in significant losses. The hydrogen generation industry was also hit hard with deployed project pipelines. Due to increasing government regulations for lockdown and social distancing norms, many manufacturing plants remained shut and production processes were at a halt. However, support from the regional government enabled the market to regain the momentum in the hydrogen generation industry, and this will further propel the market's growth.

Major Companies present in the market:

Hydrogenics Corp (HYGS), Messer Group GmbH, LNI Swissgas SA, McPhy Energy S.A., Linde Plc, Air Products and Chemicals, Inc., Air Liquide, Ally Hi-Tech Co., Limited, INOX-Air Products Inc., Weldstar, Inc., Uniper, Plug Power, ENGIE, Iwatani Corporation, Ballard Power Systems, Nel Hydrogen

Considered in this report

• Geography: North America
• Historic Year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report

• North America Hydrogen Generation Market with its value and forecast along with its segments
• Country wise Hydrogen Generation market analysis
• Application wise Hydrogen Generation distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report

• USA
• Canada
• Mexico

Technical types of Hydrogen Generation in the report:

• Steam Methane Reforming
• Coal Gasification
• Others (Electrolysis,oil/refining or auto-thermal reformation)

By ApplicationType in the report:

• Methanol Production
• Ammonia Production
• Petroleum Refinery
• Transportation
• Power Generation
• Others

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to chemical industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.