The global hydrogen generation market reached a value of nearly USD 181.19 Billion in 2024. The market is assessed to grow at a CAGR of 9.30% during the forecast period of 2025-2034 to attain a value of around USD 440.90 Billion by 2034. The market is being aided by rising investments in green hydrogen infrastructure, favourable government initiatives supporting the transition to a hydrogen economy, technological advancements in hydrogen production, and the rising adoption of hydrogen fuel cell vehicles (FCVs).
Governments are supporting the deployment and development of hydrogen energy through subsidies, tax incentives, and research funding. In September 2024, the DOE of the United States announced USD 62 million for 20 projects across 15 states to accelerate hydrogen technology. The development of hydrogen-based energy storage systems that address the intermittency issues of renewable energy sources like wind and solar is anticipated to further revolutionise the hydrogen generation market landscape in the forecast period.
The growing focus on circular economy and advancements in waste-to-hydrogen technologies are fuelling the hydrogen generation market expansion. Waste-to-hydrogen uses waste such as municipal solid waste, agricultural residues, plastic wastes, and biomass to produce hydrogen, addressing waste disposal issues while generating sustainable hydrogen. Advancements in technologies such as supercritical water gasification, plasma arc gasification, and biological hydrogen production aimed at improving the scalability and efficiency of waste-to-hydrogen processes are expected to drive the market development in the forecast period.
Blue hydrogen is produced through autothermal reforming (ATR) or steam methane reforming (SMR) and captures and stores hydrogen using carbon capture and storage (CCS) technologies. Though not emission-free, it is a more sustainable option than grey hydrogen. Governments in countries with abundant natural gas reserves such as Russia, Canada, and the United States are boosting the generation of blue hydrogen. In February 2024, bp signed a licensing agreement with BASF to use the latter’s gas-treating technology, OASE® white, for capturing carbon dioxide (CO2) generated during hydrogen production at the company’s proposed blue hydrogen facility in Teesside.
Grey hydrogen is produced from steam methane reforming (SMR), results in high carbon emissions, and is widely used in applications like ammonia production, petroleum refining, and methanol production. The low production costs of grey hydrogen enhance its appeal for use in diverse end-use sectors.
In coal gasification, coal is heated in a low-oxygen environment to produce a synthetic gas (syngas). It is highly carbon-intensive and generates significant CO 2 emissions, making it less environmentally friendly compared to other methods. Meanwhile, partial oxidation involves the partial combustion of oil with oxygen at high temperatures to produce syngas and lower greenhouse gas emissions.
Partial oxidation of oil, involving the reaction of hydrocarbons with a controlled amount of oxygen, is generally used in large-scale hydrogen production plants as it does not require expensive renewable infrastructure. Meanwhile, electrolysis of water generates green hydrogen with no associated carbon emissions, making it a leading technology for decarbonising energy systems.
Meanwhile, captive hydrogen is produced on-site by companies for their use in production processes like steel production, petroleum refining, and fertiliser manufacturing. Sectors with high hydrogen demand generate hydrogen on-site as it is more cost-effective as compared to purchasing merchant hydrogen. The increasing adoption of green hydrogen production technologies by captive hydrogen companies is supporting the hydrogen generation market development.
Hydrogen is also used for desulphurisation, hydrocracking, and hydrotreating in petroleum refining applications for improving the quality of fuels and removing contaminants like nitrogen and sulphur. The shift towards cleaner and low-emission fuels such as gasoline and low-sulphur diesel is creating lucrative hydrogen generation market opportunities. Conversely, in the production of ammonia, hydrogen is reacted with nitrogen at high temperatures. There is a growing interest in the use of utilisation blue and green hydrogen to sustainably produce ammonia.
Hydrogen is used as an energy carrier in power generation and in fuel cells to produce electricity. The growing focus on decarbonising electric grids and the rising use of hydrogen as a long-term storage solution for renewable energy is driving the segment’s growth. Meanwhile, hydrogen offers an energy-dense and clean alternative to conventional gasoline and diesel engines in the transportation sector, especially for vehicles such as trucks and buses that significantly contribute to air pollution.
Ally Hi-Tech Co.,Ltd.
Ally Hi-Tech Co.,Ltd., based in Taiwan, is a leading company that is engaged in the design, development, and manufacturing of advanced technologies in various industrial sectors, including energy systems, industrial automation, and hydrogen generation. Some of its leading solutions and technologies include fuel cells, green hydrogen, advanced energy storage systems, and solar energy and wind energy systems.
FuelCell Energy, Inc.
FuelCell Energy, Inc., founded in 1969 and headquartered in Connecticut, United States, is involved in designing, manufacturing, and operating direct fuel cell power plants for the utility, industrial, and commercial sectors. The company specialises in clean energy solutions and is a prominent developer of solid oxide fuel cell (SOFC) and molten carbonate fuel cell (MCFC) technologies for generating electricity.
Global Hydrogen Generation Market Overview
The increasing investments in green hydrogen infrastructure due to the potential of green hydrogen to decarbonise various sectors like transportation and heavy industry are revolutionising the hydrogen generation market expansion. In September 2024, bp and Iberdrola formed a joint venture to develop a 25MW green hydrogen project, which is expected to be operational by the second half of 2026. In addition, the rising use of hydrogen as a viable solution for hard-to-decarbonise sectors, including cement production, steel manufacturing, and shipping, among others, is aiding the market.Governments are supporting the deployment and development of hydrogen energy through subsidies, tax incentives, and research funding. In September 2024, the DOE of the United States announced USD 62 million for 20 projects across 15 states to accelerate hydrogen technology. The development of hydrogen-based energy storage systems that address the intermittency issues of renewable energy sources like wind and solar is anticipated to further revolutionise the hydrogen generation market landscape in the forecast period.
Global Hydrogen Generation Market Growth
There is a growing trend of blending hydrogen into natural gas networks to reduce the environmental impacts associated with natural gas leakage. This is boosting the demand for hydrogen, encouraging investments in production technologies like steam methane reforming and electrolysis. Regulatory frameworks and policies supporting the blending of hydrogen into natural gas networks are driving the development of hydrogen generation technologies. For instance, the Department of Energy of the US introduced HyBlend initiative in 2021 aimed at addressing technical barriers to blending hydrogen in natural gas pipelines.The growing focus on circular economy and advancements in waste-to-hydrogen technologies are fuelling the hydrogen generation market expansion. Waste-to-hydrogen uses waste such as municipal solid waste, agricultural residues, plastic wastes, and biomass to produce hydrogen, addressing waste disposal issues while generating sustainable hydrogen. Advancements in technologies such as supercritical water gasification, plasma arc gasification, and biological hydrogen production aimed at improving the scalability and efficiency of waste-to-hydrogen processes are expected to drive the market development in the forecast period.
Key Trends and Development
Growing transition to a hydrogen economy; integration of hydrogen in smart grids; increasing investments in hydrogen research and development; and technological advancements in hydrogen production are favouring the hydrogen generation market expansion.November 2024
Haffner Energy launched its hydrogen production, testing, and training centre, deploying its patented biomass and organic waste thermolysis process, in Champagne, France. The centre is designed to operate continuously for 8,000 hours a year and will produce mobility-grade hydrogen at the rate of 15 kg/hour, or almost 120 metric tonnes per.October 2024
Greenzo Energy launched a 1 MW alkaline electroyser stack, the Un Wheel, to deliver hydrogen at 30 bar pressure, eliminate the requirement for additional compressors, and revolutionise hydrogen generation. The electrolyser includes advanced monitoring features such as pressure levels, water quality, and hydrogen purity, ensuring efficient and safe hydrogen generation.October 2024
YTL PowerSeraya Pte. Limited commenced the development of a 600MW hydrogen-ready Combined Cycle Gas Turbine (CCGT) at its Pulau Seraya Power Station (PSPS) site. The project is targeted for completion by 31 December 2027 and aims to advance the Singapore energy landscape.July 2024
Tecnimont Private Limited and NEXTCHEM announced that the first green hydrogen production plant for GAIL (India) Limited was inaugurated at Vijaipur, Madhya Pradesh, India. The facility aims to produce 4.3 tons per day of green hydrogen via 10 megawatt-based electrolysers and aligns with India’s Hydrogen Mission of achieving at least 5 million tons of annual green hydrogen production capacity by 2030.Growing Transition to Hydrogen Economy
The growing transition to a hydrogen economy amid the growing requirement for clean energy sources is aiding the hydrogen generation market expansion. Governments, businesses, and industries globally are committing to carbon neutrality and energy diversification, surging the production of hydrogen. In July 2024, the US Department of Energy (DOE), along with ARCHES, signed a landmark agreement worth USD 12.6 billion to build a clean, renewable Hydrogen Hub in California to facilitate a network of clean, renewable hydrogen production sites to cut fossil fuel use throughout the region. The increasing focus on decarbonisation in sectors like iron, steel, chemicals, and transportation is boosting the demand for hydrogen to strengthen energy security and reduce greenhouse gas emissions.Integration of Hydrogen in Smart Grids
The growing integration of hydrogen as an efficient, flexible, and sustainable way to store and distribute energy in smart grids is driving the hydrogen generation market development. The production of hydrogen in a decentralised manner makes it a valuable asset in smart grids operating across multiple communities or regions. Smart grids require constant load balancing, making hydrogen beneficial to provide backup and peak load power. With the increasing integration of renewable energy into the grid, hydrogen is used as a versatile solution to handle fluctuations in supply. In the forecast period, surging grid modernisation and digitalisation of smart grids are expected to surge the demand for sophisticated hydrogen generation systems that can dynamically adjust hydrogen production, storage, and distribution based on real-time demand.Investment in Hydrogen Research and Development (R&D)
With the intensifying push for clean energy, key players are increasingly investing in research and development activities to improve hydrogen production technologies, enhance the cost-effectiveness of hydrogen, and scale up production capacity. In September 2024, the DOE of the United States announced funding of USD 15 million in research and development (R&D) to enhance the availability and affordability of clean hydrogen for electricity generation, transportation, and industrial decarbonisation. Moreover, the development of advanced catalysts that can lower energy requirements for hydrogen production is expected to bolster the hydrogen generation market expansion.Technological Advancements in Hydrogen Production
Technological advancements aimed at making hydrogen production more scalable, efficient, and cost-effective are shaping the hydrogen generation market trends and dynamics. The development of advanced electrolysis technologies such as alkaline electrolysers, proton exchange membrane (PEM) electrolysers, and solid oxide electrolysers (SOECs) to lower costs, reduce energy consumption, and enhance operational lifespan is also bolstering the market. As per the International Renewable Energy Agency, the cost of green hydrogen is expected to reduce by 30% amid decreasing costs of renewable energy and advancements in electrolyser technology. Key players are further developing innovative hydrogen storage technologies, including sold-state hydrogen storage, compressed hydrogen storage, and liquid hydrogen storage, to enable efficient and cost-effective transportation of hydrogen from production sites to end-users. Besides, the emergence of biological hydrogen production involving the usage of algae or bacteria to produce hydrogen and utilise waste products as feedstocks is expected to revolutionise the market in the forecast period.Global Hydrogen Generation Market Trends
The growing transition to a hydrogen economy, driven by the global demand for clean energy, is fueling the expansion of the hydrogen generation market. Governments and industries are committing to carbon neutrality, leading to increased hydrogen production. Notable initiatives like the US Department of Energy’s USD 12.6 billion agreement for a clean hydrogen hub in California emphasise this shift. Sectors such as iron, steel, chemicals, and transportation are prioritising decarbonization, further driving hydrogen demand to reduce greenhouse gas emissions and enhance energy security. Technological advancements in hydrogen production, particularly in electrolysis technologies (alkaline, PEM, SOECs), are improving scalability, efficiency, and cost-effectiveness. The cost of green hydrogen is expected to decrease by 30%, thanks to advancements in electrolyser technology and renewable energy costs. Innovative hydrogen storage solutions and biological hydrogen production methods involving algae and bacteria are poised to revolutionise the market.Opportunities in the Global Hydrogen Generation Market
Rising Adoption of Hydrogen Fuel Cell Vehicles (FCVs)
The increasing adoption of hydrogen fuel cell vehicles (FCVs), buoyed by government initiatives promoting clean energy in the transportation sector, is surging the demand for hydrogen as a fuel source. The expansion of hydrogen fuelling stations is further opening new avenues for hydrogen generation technologies such as steam methane reforming (SMR), electrolysis, and biomass gasification. In December 2024, Fountain Fuels secured an investment of USD 8.7 million from the Dutch government to expand its hydrogen refuelling station network and construct XL hydrogen stations in strategic locations such as Nijmegen and Rotterdam.Advancements in Electrolysis Technology
Advancements in electrolysis technology, such as proton exchange membrane (PEM) and alkaline electrolysis, aimed at increasing the efficiency and scalability of hydrogen generation are aiding the market. Manufacturers are increasingly focusing on developing cost-effective electrolysis systems that can leverage surplus renewable energy and innovative materials such as advanced catalysts to produce hydrogen at competitive prices.Global Hydrogen Generation Market Restraints
The growth of the hydrogen generation industry can be challenged by the high production costs associated with hydrogen production. The production of hydrogen requires setting up hydrogen production plants, equipment, and infrastructure requires high upfront costs, deterring potential investors. The lack of hydrogen storage, transportation, production, and fuelling stations, especially in developing countries, can impede the market expansion. Moreover, hydrogen competes with other clean energy technologies like battery storage systems, solar and wind energy, biofuels, and electric vehicles (EVs), some of which can be more affordable. Lack of standardisation and inconsistent regulatory environments across different countries can hinder the adoption of hydrogen technologies.Global Hydrogen Generation Industry Segmentation
The report titled "Global Hydrogen Generation Market Report and Forecast 2025-2034" offers a detailed analysis of the market based on the following segments:Market Breakup by Source
- Blue Hydrogen
- Green Hydrogen
- Grey Hydrogen
Market Breakup by Technology
- Steam Methane Reforming
- Coal Gasification
- Partial Oxidation of Oil
- Electrolysis of Water
- Others
Market Breakup by System Type
- Merchant
- Captive
Market Breakup by Application
- Methanol Production
- Petroleum Refinery
- Ammonia Production
- Power Generation
- Transportation
- Others
Market Breakup by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Global Hydrogen Generation Market Share
By Source Insights
Green hydrogen, produced through electrolysis, uses electricity from renewable energy sources like solar, wind, hydropower, or geothermal. As the production of green hydrogen produces no carbon emissions, it plays a key role in achieving net-zero emission targets. The rising use of green hydrogen in sectors like heavy industry, transportation, and power generation is shaping the hydrogen generation market dynamics.Blue hydrogen is produced through autothermal reforming (ATR) or steam methane reforming (SMR) and captures and stores hydrogen using carbon capture and storage (CCS) technologies. Though not emission-free, it is a more sustainable option than grey hydrogen. Governments in countries with abundant natural gas reserves such as Russia, Canada, and the United States are boosting the generation of blue hydrogen. In February 2024, bp signed a licensing agreement with BASF to use the latter’s gas-treating technology, OASE® white, for capturing carbon dioxide (CO2) generated during hydrogen production at the company’s proposed blue hydrogen facility in Teesside.
Grey hydrogen is produced from steam methane reforming (SMR), results in high carbon emissions, and is widely used in applications like ammonia production, petroleum refining, and methanol production. The low production costs of grey hydrogen enhance its appeal for use in diverse end-use sectors.
By Technology Insights
Steam methane reforming accounts for a major share of the hydrogen generation market share as it is the cheapest and most mature method for hydrogen production. It is commonly used for hydrogen production in sectors like ammonia production, petroleum refining, methanol synthesis, and other chemical processes.In coal gasification, coal is heated in a low-oxygen environment to produce a synthetic gas (syngas). It is highly carbon-intensive and generates significant CO 2 emissions, making it less environmentally friendly compared to other methods. Meanwhile, partial oxidation involves the partial combustion of oil with oxygen at high temperatures to produce syngas and lower greenhouse gas emissions.
Partial oxidation of oil, involving the reaction of hydrocarbons with a controlled amount of oxygen, is generally used in large-scale hydrogen production plants as it does not require expensive renewable infrastructure. Meanwhile, electrolysis of water generates green hydrogen with no associated carbon emissions, making it a leading technology for decarbonising energy systems.
By System Type Insights
Merchant hydrogen is produced and sold to third parties for use in sectors like chemical production, refining, and ammonia manufacturing. It is typically produced in large-scale plants, and the hydrogen is sold to customers via pipelines, trucks, or other distribution methods. Merchant hydrogen suppliers are increasingly investing in renewable energy production amid the growing customer focus on sustainability.Meanwhile, captive hydrogen is produced on-site by companies for their use in production processes like steel production, petroleum refining, and fertiliser manufacturing. Sectors with high hydrogen demand generate hydrogen on-site as it is more cost-effective as compared to purchasing merchant hydrogen. The increasing adoption of green hydrogen production technologies by captive hydrogen companies is supporting the hydrogen generation market development.
By Application Insights
As per the hydrogen generation market analysis, hydrogen is a critical feedstock in the production of methanol used in a wide range of industrial applications such as plastics, adhesives, and pharmaceuticals. The growing demand for methanol amid rapid industrialisation and the robust growth of the chemical sector is surging the demand for hydrogen. Key players are also attempting to utilise green hydrogen as a sustainable option in methanol production amid the growing environmental consciousness.Hydrogen is also used for desulphurisation, hydrocracking, and hydrotreating in petroleum refining applications for improving the quality of fuels and removing contaminants like nitrogen and sulphur. The shift towards cleaner and low-emission fuels such as gasoline and low-sulphur diesel is creating lucrative hydrogen generation market opportunities. Conversely, in the production of ammonia, hydrogen is reacted with nitrogen at high temperatures. There is a growing interest in the use of utilisation blue and green hydrogen to sustainably produce ammonia.
Hydrogen is used as an energy carrier in power generation and in fuel cells to produce electricity. The growing focus on decarbonising electric grids and the rising use of hydrogen as a long-term storage solution for renewable energy is driving the segment’s growth. Meanwhile, hydrogen offers an energy-dense and clean alternative to conventional gasoline and diesel engines in the transportation sector, especially for vehicles such as trucks and buses that significantly contribute to air pollution.
Global Hydrogen Generation Market Regional Insights
North America Hydrogen Generation Market Trends
The hydrogen generation demand growth in North America is being fuelled by the growing demand for sustainable energy sources, including hydrogen, in sectors like transportation, heavy industry, and heating. Canada ranks as one of the leading hydrogen producers and generates over 3 million tonnes of hydrogen annually for industrial use. Increasing research and development activities aimed at producing hydrogen economically through net-zero carbon pathways are propelling the hydrogen generation market development. For instance, the US Department of Energy aims to develop technologies to generate hydrogen at $2/kg by 2026 and $1/kg by 2031 via net-zero-carbon pathways.Europe Hydrogen Generation Market Dynamics
The growing use of hydrogen as a feedstock source is boosting the Europe hydrogen generation market revenue. At the end of 2022, Europe boasted 476 operational hydrogen production facilities, with a total capacity of 11.30 million tons, with Germany, Poland, France, Italy, and the Netherlands representing 56% of the total hydrogen capacity. The introduction of favourable government initiatives aimed at boosting the generation of clean hydrogen is aiding the market. The European Commission launched the REPowerEU Strategy of 2022, aimed at producing 10 million tonnes of hydrogen and importing 10 million tonnes by 2030.Asia Pacific Hydrogen Generation Market Outlook
The hydrogen generation demand forecast in the Asia Pacific is being fuelled by favourable government initiatives and increasing investments in renewable energy production by private companies. Under the Hydrogen Industry Development Plan (2021-2035), China aims to generate up to 200,000 tonnes per year by 2025. India, under its National Green Hydrogen Mission, aims to produce 5 million tonnes of renewable hydrogen by 2030. Besides, Japan has emerged as a leader in hydrogen technology development, attributed to its strategic emphasis on hydrogen as a next-generation energy source and the rising use of hydrogen in applications like steelmaking.Opportunities in the Latin America Hydrogen Generation Market
The introduction of government initiatives, such as Chile's Green Hydrogen Strategy and Mexico's National Hydrogen Strategy, aimed at boosting hydrogen production is supporting the Latin America hydrogen generation market development. Latin America is home to several high-emission industries such as steel, chemical, and fertiliser, which are exploring hydrogen as a cleaner alternative to fossil fuels in production processes. In addition, the rising adoption of hydrogen fuel cell vehicles (FCVs) and hydrogen-powered buses, trucks, and trains in the region is driving the market development.Middle East and Africa Hydrogen Generation Market Drivers
Countries, particularly Saudi Arabia, Egypt, Morrocco, and the UAE, in the Middle East and Africa boast vast solar and wind energy potential. This provides a lucrative opportunity to increase the production of cost-effective green hydrogen. Due to abundant renewable energy reserves, advanced energy infrastructure, and strategic geographical position, countries like the UAE, Saudi Arabia, and Oman are attempting to become leading exporters of green hydrogen. Moreover, increasing investments in hydrogen R&D activities and rising focus on integrating green hydrogen into energy systems are revolutionising the hydrogen generation market landscape in the Middle East and Africa.Competitive Landscape
Key hydrogen generation market players are investing in green hydrogen production by using renewable energy sources to power the electrolysis process. They are also exploring alternative methods to produce hydrogen, such as photo-electrochemical water splitting and biomass gasification, with enhanced efficiency and cost-effectiveness.Ally Hi-Tech Co.,Ltd.
Ally Hi-Tech Co.,Ltd., based in Taiwan, is a leading company that is engaged in the design, development, and manufacturing of advanced technologies in various industrial sectors, including energy systems, industrial automation, and hydrogen generation. Some of its leading solutions and technologies include fuel cells, green hydrogen, advanced energy storage systems, and solar energy and wind energy systems.
Caloric Anlagenbau GmbH
Caloric Anlagenbau GmbH, headquartered in Graefelfing, Germany, is a leading international engineering company that specialises in the design, development, and construction of advanced industrial plants. The company is renowned for its hydrogen production, energy, process technology, and environmental protection.Linde AG
Linde AG, founded in 1879, is a leading industrial gas and engineering company that is renowned for its innovative technologies and solutions that support various sectors, including chemicals, energy, healthcare, manufacturing, and food processing. Headquartered in Munich, Germany, the company has established itself as a leading producer and supplier of industrial gases.FuelCell Energy, Inc.
FuelCell Energy, Inc., founded in 1969 and headquartered in Connecticut, United States, is involved in designing, manufacturing, and operating direct fuel cell power plants for the utility, industrial, and commercial sectors. The company specialises in clean energy solutions and is a prominent developer of solid oxide fuel cell (SOFC) and molten carbonate fuel cell (MCFC) technologies for generating electricity.
Table of Contents
1 Executive Summary
2 Market Overview and Stakeholder Insights
3 Economic Summary
4 Country Risk Profiles
5 Global Hydrogen Generation Market Analysis
6 Regional Analysis
7 Market Dynamics
9 Trade Data Analysis (HS Code - 28410)
10 Price Analysis
11 Competitive Landscape
Companies Mentioned
The key companies featured in this Hydrogen Generation market report include:- Ally Hi-Tech Co.,Ltd.
- Caloric Anlagenbau GmbH
- Linde AG
- FuelCell Energy, Inc.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 151 |
| Published | August 2025 |
| Forecast Period | 2025 - 2034 |
| Estimated Market Value ( USD | $ 181.19 Billion |
| Forecasted Market Value ( USD | $ 440.9 Billion |
| Compound Annual Growth Rate | 9.3% |
| Regions Covered | Global |
| No. of Companies Mentioned | 5 |
