by Product Hydrogen Market Report 2026

The by product hydrogen market size has grown strongly in recent years. It will grow from $59.13 billion in 2025 to $63.74 billion in 2026 at a compound annual growth rate (CAGR) of 7.8%. The growth in the historic period can be attributed to expansion of chlor-alkali and refining operations, availability of excess hydrogen from industrial processes, early use of hydrogen in refining applications, development of industrial gas distribution networks, rising interest in alternative energy carriers.

The by product hydrogen market size is expected to see strong growth in the next few years. It will grow to $86.79 billion in 2030 at a compound annual growth rate (CAGR) of 8%. The growth in the forecast period can be attributed to increasing adoption of hydrogen in mobility and power generation, expansion of hydrogen blending in gas networks, rising investments in hydrogen infrastructure, growing focus on circular industrial energy use, increasing regulatory support for low-carbon hydrogen. Major trends in the forecast period include increasing utilization of industrial by product hydrogen streams, rising integration of hydrogen recovery systems, growing demand for low-carbon hydrogen supply, expansion of hydrogen purification and compression infrastructure, enhanced focus on hydrogen storage and distribution.

The growing renewable energy penetration is anticipated to drive the growth of the by-product hydrogen market in the coming years. Renewable energy penetration refers to the increasing share of electricity generated from renewable sources such as solar, wind, and hydropower in the total energy mix. The rise in renewable energy deployment is being driven by government policies and energy security concerns, as countries seek to reduce dependence on fossil fuel imports following geopolitical disruptions. Expanding renewable electricity capacity creates surplus low-cost power that enables cost-effective hydrogen production through electrolysis. For example, in January 2024, according to the U.S. Energy Information Administration, a US-based federal agency, planned solar initiatives are expected to boost the electric power sector's solar capacity by 38%, rising from 95 gigawatts (GW) at the close of 2023 to 131 GW by the end of 2024. Therefore, growing renewable energy penetration is driving the growth of the by-product hydrogen market.

Companies operating in the by-product hydrogen market are focusing on developing advanced waste stream purification technologies to convert industrial off-gases into high-purity hydrogen, improving resource efficiency, and supporting decentralized hydrogen supply. Waste stream purification technologies involve treating industrial waste gases or liquids to eliminate impurities and extract usable materials, enhance resource utilization, and support the reuse of recovered outputs. For example, in July 2025, Independence Hydrogen, a US-based by-product hydrogen producer, secured a strategic investment from Sumitomo Corporation to expand decentralized hydrogen production and distribution projects. The company utilizes a proprietary purification process that upgrades industrial by-product gas streams into fuel-cell-grade hydrogen, which is then compressed and distributed, highlighting the growing market trend toward transforming waste streams into valuable clean hydrogen supplies and accelerating broader hydrogen deployment initiatives.

In March 2025, Saudi Aramco, a Saudi Arabia-based integrated energy and chemicals company, acquired Blue Hydrogen Industrial Gases Company (BHIG) for an undisclosed amount. Through this acquisition, Aramco seeks to expand its lower-carbon hydrogen portfolio and accelerate the development of a hydrogen network in Saudi Arabia’s Eastern Province to supply both domestic and regional markets with hydrogen, including lower-carbon variants, thereby strengthening its position in the evolving hydrogen economy and supporting its broader new energies strategy. Blue Hydrogen Industrial Gases Company is a Saudi Arabia-based industrial gases company focused on the production of hydrogen, particularly lower-carbon “blue hydrogen” derived from natural gas with carbon capture and storage integration.

Major companies operating in the by product hydrogen market are thyssenkrupp AG, Siemens Energy AG, Cummins Inc, Linde plc, Enbridge Inc, Mitsubishi Heavy Industries Ltd., Fluor Corporation, Air Products and Chemicals Inc, McDermott International Ltd, KBR Inc, ITM Power Plc, Technip Energies N.V., Topsoe A/S, Black & Veatch Holding Company, Hexagon Composites ASA, Jacobs Engineering Group Inc., Hatch Ltd, Mott MacDonald Group Ltd, Plug Power Inc, Nel ASA, and Ballard Power Systems Inc.

Tariffs are influencing the by product hydrogen market by increasing costs of imported compressors, purification units, storage vessels, pipelines, and liquefaction equipment used across hydrogen recovery and distribution systems. Industrial hubs in North America and Europe are most affected due to reliance on imported processing equipment, while Asia-Pacific faces higher capital costs for hydrogen infrastructure expansion. These tariffs are increasing operational costs and slowing capacity upgrades. However, they are also encouraging domestic equipment manufacturing, localized hydrogen processing facilities, and regional hydrogen supply chain development that support long-term decarbonization goals.

The by product hydrogen market research report is one of a series of new reports that provides by product hydrogen market statistics, including by product hydrogen industry global market size, regional shares, competitors with a by product hydrogen market share, detailed by product hydrogen market segments, market trends and opportunities, and any further data you may need to thrive in the by product hydrogen industry. This by product hydrogen market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

By product hydrogen refers to hydrogen that is produced incidentally as a secondary output during industrial operations such as chlor-alkali processing, oil refining, steel production, and chemical manufacturing. This hydrogen is utilized as a cost-efficient and relatively low-carbon energy source for uses including fuel generation, power production, refining activities, and chemical synthesis.

The key hydrogen types of by-product hydrogen include gray hydrogen, blue hydrogen, green hydrogen, turquoise hydrogen, and pink hydrogen. Gray hydrogen refers to hydrogen produced from fossil fuels without capturing the associated carbon emissions. These solutions are generated through different production pathways, including fossil fuel-based production, carbon capture integrated production, renewable energy-based electrolysis, and nuclear energy-based electrolysis. They are applied across various sectors, such as energy and power generation, industrial feedstock, transportation and mobility, chemical processing, and steel manufacturing, serving multiple end-use industries, including chemicals, petroleum refining, metal processing, electronics, food processing, and others.

The by product hydrogen market consists of sales of hydrogen-rich synthesis gas, hydrogen blends, compressed hydrogen cylinders, and liquid 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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