The global market for Grey Hydrogen was estimated at US$148.0 Billion in 2024 and is projected to reach US$164.7 Billion by 2030, growing at a CAGR of 1.8% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Grey Hydrogen market.
A key trend in the grey hydrogen market is the growing pressure to transition toward low-carbon alternatives, such as blue and green hydrogen. Governments and industries worldwide are implementing carbon taxation policies, emissions reduction targets, and carbon capture utilization and storage (CCUS) initiatives to mitigate the environmental footprint of hydrogen production. Despite this, grey hydrogen remains the most economically viable option in regions where natural gas is abundant and carbon regulations are less stringent. The continued investment in hydrogen infrastructure, including pipelines, storage facilities, and transportation networks, ensures that grey hydrogen remains a key player in the energy landscape, at least in the short to medium term.
The chemical industry also relies heavily on grey hydrogen for ammonia and methanol production. Ammonia, a critical component in fertilizers, is produced using the Haber-Bosch process, which depends on hydrogen feedstock. Similarly, methanol production, widely used in industrial solvents and fuel blending, remains a key application for grey hydrogen. In addition, the steel sector, which has historically depended on coal-based processes, is beginning to integrate grey hydrogen for direct reduction of iron (DRI) as an intermediate step before transitioning to green steel solutions.
Another key innovation is process optimization in steam methane reforming (SMR). New catalyst technologies and heat integration systems are enhancing the efficiency of hydrogen production, reducing energy consumption, and lowering operational costs. Additionally, hybrid approaches - combining grey hydrogen production with renewable energy integration - are being explored to decrease reliance on fossil fuels. While these advancements do not eliminate emissions, they make grey hydrogen a more viable option in transitional energy markets.
Another key growth driver is the gradual shift toward blue hydrogen. Many existing grey hydrogen producers are investing in carbon capture and utilization (CCU) technologies to upgrade their facilities, reducing emissions while maintaining cost efficiency. Furthermore, hydrogen demand in emerging applications, such as hydrogen-based power generation and industrial heating, is sustaining market demand. While the long-term trajectory favors green hydrogen, grey hydrogen will continue to play a crucial role in the energy transition, bridging the gap between traditional fossil-based hydrogen and sustainable alternatives.
Segments: Source (Natural Gas Source, Coal Source, Other Sources); Application (Petroleum Refinery Application, Chemical Application, Other Applications)
Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.
Global Grey Hydrogen Market - Key Trends & Drivers Summarized
The grey hydrogen market remains a dominant segment in the global hydrogen industry, despite growing concerns about its environmental impact. Grey hydrogen, produced through steam methane reforming (SMR) of natural gas, is currently the most widely used form of hydrogen, accounting for the majority of global hydrogen production. Its cost-effectiveness and well-established infrastructure have made it a preferred choice for industries such as refining, ammonia production, and methanol synthesis. However, the significant carbon dioxide (CO2) emissions associated with its production - approximately 9-10 kg of CO2 per kilogram of hydrogen - have drawn increasing regulatory scrutiny.A key trend in the grey hydrogen market is the growing pressure to transition toward low-carbon alternatives, such as blue and green hydrogen. Governments and industries worldwide are implementing carbon taxation policies, emissions reduction targets, and carbon capture utilization and storage (CCUS) initiatives to mitigate the environmental footprint of hydrogen production. Despite this, grey hydrogen remains the most economically viable option in regions where natural gas is abundant and carbon regulations are less stringent. The continued investment in hydrogen infrastructure, including pipelines, storage facilities, and transportation networks, ensures that grey hydrogen remains a key player in the energy landscape, at least in the short to medium term.
How Is Grey Hydrogen Powering Key Industries?
The refining sector is the largest consumer of grey hydrogen, using it primarily for hydrocracking and desulfurization processes to produce cleaner fuels. As global fuel quality regulations tighten, particularly with the implementation of ultra-low sulfur diesel (ULSD) standards, demand for hydrogen in refineries continues to rise. However, many oil and gas companies are now exploring carbon capture solutions to decarbonize grey hydrogen production and transition toward blue hydrogen.The chemical industry also relies heavily on grey hydrogen for ammonia and methanol production. Ammonia, a critical component in fertilizers, is produced using the Haber-Bosch process, which depends on hydrogen feedstock. Similarly, methanol production, widely used in industrial solvents and fuel blending, remains a key application for grey hydrogen. In addition, the steel sector, which has historically depended on coal-based processes, is beginning to integrate grey hydrogen for direct reduction of iron (DRI) as an intermediate step before transitioning to green steel solutions.
What Are the Latest Innovations & Efficiency Improvements in Grey Hydrogen?
While grey hydrogen is inherently carbon-intensive, several technological advancements are improving its efficiency and environmental footprint. The integration of carbon capture and storage (CCS) in grey hydrogen plants is a growing trend, creating a bridge toward blue hydrogen. Advanced CCS technologies, such as chemical looping and direct air capture, are being tested to reduce emissions while maintaining cost efficiency.Another key innovation is process optimization in steam methane reforming (SMR). New catalyst technologies and heat integration systems are enhancing the efficiency of hydrogen production, reducing energy consumption, and lowering operational costs. Additionally, hybrid approaches - combining grey hydrogen production with renewable energy integration - are being explored to decrease reliance on fossil fuels. While these advancements do not eliminate emissions, they make grey hydrogen a more viable option in transitional energy markets.
What Is Driving the Growth of the Grey Hydrogen Market?
The growth in the grey hydrogen market is driven by several factors, including its cost advantage, well-established infrastructure, and the continued reliance of industries on hydrogen as a feedstock. Despite increasing pressure to decarbonize, grey hydrogen remains the most economical option for industries such as refining, chemicals, and steelmaking. The availability of cheap natural gas, particularly in regions like the U.S., Russia, and the Middle East, ensures that grey hydrogen remains competitive in the short term.Another key growth driver is the gradual shift toward blue hydrogen. Many existing grey hydrogen producers are investing in carbon capture and utilization (CCU) technologies to upgrade their facilities, reducing emissions while maintaining cost efficiency. Furthermore, hydrogen demand in emerging applications, such as hydrogen-based power generation and industrial heating, is sustaining market demand. While the long-term trajectory favors green hydrogen, grey hydrogen will continue to play a crucial role in the energy transition, bridging the gap between traditional fossil-based hydrogen and sustainable alternatives.
Report Scope
The report analyzes the Grey Hydrogen market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.Segments: Source (Natural Gas Source, Coal Source, Other Sources); Application (Petroleum Refinery Application, Chemical Application, Other Applications)
Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
Key Insights:
- Market Growth: Understand the significant growth trajectory of the Natural Gas Source segment, which is expected to reach US$92.5 Billion by 2030 with a CAGR of a 1.5%. The Coal Source segment is also set to grow at 2.1% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, estimated at $40.3 Billion in 2024, and China, forecasted to grow at an impressive 3.6% CAGR to reach $30.7 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
Why You Should Buy This Report:
- Detailed Market Analysis: Access a thorough analysis of the Global Grey Hydrogen Market, covering all major geographic regions and market segments.
- Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
- Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Grey Hydrogen Market.
- Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.
Key Questions Answered:
- How is the Global Grey Hydrogen Market expected to evolve by 2030?
- What are the main drivers and restraints affecting the market?
- Which market segments will grow the most over the forecast period?
- How will market shares for different regions and segments change by 2030?
- Who are the leading players in the market, and what are their prospects?
Report Features:
- Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
- In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
- Company Profiles: Coverage of players such as Air Liquide, Air Products and Chemicals, Inc., BASF SE, BP plc, Dow Inc. and more.
- Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.
Select Competitors (Total 34 Featured):
- Air Liquide
- Air Products and Chemicals, Inc.
- BASF SE
- BP plc
- Dow Inc.
- GE Power (a division of General Electric Company)
- Hexagon Composites ASA
- Iwatani Corporation
- Linde plc
- Messer Group GmbH
- Nel ASA
- Plug Power Inc.
- Praxair Technology, Inc. (now part of Linde plc)
- Shell plc
- Showa Denko K.K.
- Siemens Energy
- Sinopec
- Taiyo Nippon Sanso Corporation
- Technip Energies
- Toshiba Energy Systems & Solutions Corporation
Tariff Impact Analysis: Key Insights for 2025
Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.
What’s Included in This Edition:
- Tariff-adjusted market forecasts by region and segment
- Analysis of cost and supply chain implications by sourcing and trade exposure
- Strategic insights into geographic shifts
Buyers receive a free July 2025 update with:
- Finalized tariff impacts and new trade agreement effects
- Updated projections reflecting global sourcing and cost shifts
- Expanded country-specific coverage across the industry
Table of Contents
I. METHODOLOGYII. EXECUTIVE SUMMARY2. FOCUS ON SELECT PLAYERSIV. COMPETITION
1. MARKET OVERVIEW
3. MARKET TRENDS & DRIVERS
4. GLOBAL MARKET PERSPECTIVE
III. MARKET ANALYSIS
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Air Liquide
- Air Products and Chemicals, Inc.
- BASF SE
- BP plc
- Dow Inc.
- GE Power (a division of General Electric Company)
- Hexagon Composites ASA
- Iwatani Corporation
- Linde plc
- Messer Group GmbH
- Nel ASA
- Plug Power Inc.
- Praxair Technology, Inc. (now part of Linde plc)
- Shell plc
- Showa Denko K.K.
- Siemens Energy
- Sinopec
- Taiyo Nippon Sanso Corporation
- Technip Energies
- Toshiba Energy Systems & Solutions Corporation
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 271 |
| Published | April 2025 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value ( USD | $ 148 Billion |
| Forecasted Market Value ( USD | $ 164.7 Billion |
| Compound Annual Growth Rate | 1.8% |
| Regions Covered | Global |
