Brown Hydrogen Market Report 2026

The brown hydrogen market size has grown strongly in recent years. It will grow from $38.59 billion in 2025 to $40.75 billion in 2026 at a compound annual growth rate (CAGR) of 5.6%. The growth in the historic period can be attributed to coal availability, established gasification infrastructure, ammonia production demand, steel industry usage, refinery hydrogen needs.

The brown hydrogen market size is expected to see strong growth in the next few years. It will grow to $52.58 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to carbon pricing mechanisms, transition to low carbon hydrogen, CCS retrofitting investments, declining coal reliance, regulatory pressures. Major trends in the forecast period include continued use in industrial feedstock applications, rising focus on emission control technologies, growing integration with carbon capture systems, expansion in chemical manufacturing usage, higher scrutiny from environmental regulations.

Growing demand for ammonia production is expected to propel the growth of the brown hydrogen market going forward. Ammonia production involves the creation of ammonia, a colorless gas with a strong odor that is widely utilized across industries such as agriculture, chemicals, and pharmaceuticals. Brown hydrogen can be used in ammonia production by generating hydrogen through coal gasification, purifying it, and then combining it with nitrogen to synthesize ammonia. For instance, in November 2023, according to the World Economic Forum, a Switzerland-based international organization, ammonia production in India accounted for approximately 98% of total value-chain emissions from hydrogen generation, with natural-gas-based methods representing 73% of production, an increase from previous years. Therefore, the growing demand for ammonia production is driving the growth of the brown hydrogen market.

The rising demand for steel is expected to boost the growth of the brown hydrogen market going forward. Steel, an alloy of iron and carbon, is extensively used in construction, transportation, packaging, and the energy sector. Increasing demand for steel, coupled with the need to reduce carbon emissions associated with steel manufacturing, has elevated interest in hydrogen - including brown hydrogen - as a key component in greener steel production. For instance, in June 2024, according to the American Iron and Steel Institute, a US-based industry association, domestic steel mill shipments totaled 89.3 million net tons (NT) in 2023, remaining nearly unchanged from 2022, while U.S. raw steel production reached 89.7 million NT, reflecting a 1.1% rise from the previous year. Therefore, the rising demand for steel is driving the growth of the brown hydrogen market.

Major companies operating in the brown hydrogen market are innovating new platforms, such as hydrogen platforms, to increase profitability and support the sector’s advancement. The Hydrogen Platform represents a new initiative that consolidates advanced material and chemical solutions to accelerate growth within the emerging hydrogen industry. For instance, in July 2024, GoldH2, a US-based clean hydrogen production company, introduced the Black 2 Gold Technology (B2G). This platform uniquely converts depleted oil reservoirs into hydrogen-producing biorefineries capable of generating up to 2.5 tons of hydrogen per day per well. It is specifically engineered for waterfloodable reservoirs with ideal temperatures ranging from 130°F to 180°F.

Major companies operating in the brown hydrogen market are Saudi Aramco, Sinopec Limited, ExxonMobil Corporation, TotalEnergies SE, Valero Energy Corporation, Chevron Corporation, Mitsubishi Cooperation, Shell Japan Limited, Sasol Limited, Kawasaki Heavy Industries Limited, China Petrochemical Corporation, Iwatani Corporation, Ube Industries Ltd., Sumitomo Mitsui Construction Co. Ltd., BP plc, Indian Oil Corporation Limited, CNPC (China National Petroleum Corporation), Petrobras (Petróleo Brasileiro S.A.), Marathon Petroleum Corporation, Phillips 66, Chevron Phillips Chemical Company.

North America was the largest region in the brown hydrogen market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the brown hydrogen market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the brown hydrogen market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The brown hydrogen market consists of revenues earned by entities by providing services such as emissions control, industrial processes, power generation, and syngas cleanup. The market value includes the value of related goods sold by the service provider or included within the service offering. The brown hydrogen market also includes sales of hydrogen storage solutions and synthetic fuels. 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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