Hydrogen Generation Global Market Report 2024

The global hydrogen generation market has grown strongly in recent years. It will grow from $141.88 billion in 2023 to $154.42 billion in 2024 at a compound annual growth rate (CAGR) of 8.8%. During the historical period, growth can be attributed to several factors including industrial hydrogen demand, compliance with environmental regulations, the adoption of hydrogen as a clean fuel, advancements in natural gas reforming, government incentives and subsidies, the ongoing global energy transition, and the development of fuel cells.

The global hydrogen generation market is expected to see strong growth in the next few years. It will grow to $210.49 billion in 2028 at a compound annual growth rate (CAGR) of 8.1%. In the forecast period, growth can be linked to various factors such as investments in hydrogen infrastructure, the expansion of hydrogen production capacities, decreasing costs associated with electrolysis, initiatives focused on deriving hydrogen from biomass, the initiation of green hydrogen production projects, increased adoption of hydrogen-powered vehicles, and the utilization of hydrogen for decarbonization efforts. Noteworthy trends anticipated in this period encompass technological advancements, substantial policy backing and investments, integration with renewable energy systems, heightened attention toward blue hydrogen, the recognition of hydrogen as an energy carrier, and the integration of hydrogen within heavy industries.

Anticipated growth in the hydrogen generation market is driven by increasing demand within the industrial sector. This sector relies significantly on hydrogen, serving as a key component in numerous chemical products and facilitating hydrocracking for petroleum product creation, such as gasoline and diesel. Notably, the International Energy Agency reported a 5% rise in global hydrogen demand to 94 Mt in September 2022, largely attributed to heightened activities in the chemical and refining industries. Additionally, 2021 saw a 60% surge in demand for hydrogen across various applications, including industry, transportation, and new uses, reaching approximately 40 kt H2.

The projected growth of the hydrogen generation market is propelled by the expansion of oil and gas pipelines. These pipelines, used for the long-distance transport of liquids or gases, have potential for repurposing to accommodate hydrogen, thus enhancing its cost-effective distribution. For example, in 2022, four significant natural gas pipeline expansion projects were announced in the USA, expanding the capacity of the Permian natural gas infrastructure. Such expansions, like the Gulf Coast Express and Whistler Pipelines, contribute to increased capacity, reaching up to 2.65 Bcf/d and enabling more efficient hydrogen transportation, furthering the importance of hydrogen as a clean energy source.

A notable trend in the hydrogen generation market involves the advancement of green hydrogen production technologies. Key market players are actively developing technologies to strengthen their market standing. For instance, in March 2022, Honeywell International introduced innovative catalyst-coated membrane (CCM) technology for green hydrogen production, focusing on Proton Exchange Membrane (PEM) and Anion Exchange Membrane (AEM) CCMs. These advancements showcased improved electrolyzer efficiency, increased electric current density, and cost reduction of the electrolyzer stack by an estimated 25%.

Major companies in the hydrogen generation market are concentrating on product innovation through the establishment of green hydrogen electrolyzer gigafactories. These facilities are dedicated to manufacturing electrolyzers utilized in green hydrogen production. For instance, in August 2021, Ohmium International inaugurated India's pioneering green hydrogen electrolyzer gigafactory in Bengaluru. The facility aims to produce proton exchange membrane (PEM) hydrogen electrolyzers, starting with an annual manufacturing capacity of 500 MW, scaling up to 2 GW. These electrolyzers are crucial in generating eco-friendly green hydrogen.

In June 2022, TotalEnergies, a France-based energy company, acquired Adani Enterprises' arm for the green hydrogen business for an undisclosed amount. Through this acquisition, the strategic alliance between the Adani Portfolio and TotalEnergies now covers LNG terminals, the gas utility business, the renewables business, and green hydrogen production. Adani Enterprises is an Indian-based conglomerate with diversified business interests in various sectors.

Major companies operating in the hydrogen generation market report are Air Liquide SA, Air Products Inc., Iwatani Corporation, McPhy Energy SA, Messer Group GmbH, Altergy Systems, Ballard Power Systems Inc., BayoTech Inc., Doosan Fuel Cell Co. Ltd., EKME S.A., Enapter AG, Engineering, Procurement and Construction, Frame Power India Pvt. Ltd., Giner ELX Inc., Green Hydrogen Systems AS, Greenlane Renewables Inc., GRZ Technologies Ltd., Horváth & Partners Ltd., Cummins Inc., ITM Power PLC, Linamar Corporation, Linde PLC, Nel ASA, Plug Power Europe GmbH, Plug Power Inc., Proton OnSite LLC, Siemens Energy AG, Taiyo Nippon Sanso Corporation, Teijin Engineering Ltd., Teledyne Energy Systems Inc., Toshiba Energy Systems & Solutions Corp., VRV SpA

Asia Pacific was the largest region in the hydrogen generation market in 2023. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the hydrogen generation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hydrogen generation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Hydrogen generation comprises on-site and portable methods utilizing sources like blue hydrogen, grey hydrogen, and green hydrogen. These are produced and distributed by dedicated merchants employing technologies such as steam methane reforming, coal gasification, electrolysis, and partial oxidation. These variations find application across industries like methanol and ammonia production, petroleum refining, transportation, power generation, and other sectors.

This report provides hydrogen generation market statistics, including hydrogen generation industry global market size, regional shares, competitors with a hydrogen generation market share, detailed hydrogen generation market segments, market trends and opportunities, and any further data you may need to thrive in the hydrogen generation industry. This hydrogen generation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The hydrogen generation market consists of sales of brown hydrogen, yellow hydrogen, turquoise hydrogen, and pink hydrogen. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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