Hydrogen Generation Market (By Systems: Merchant, Captive; By Technology: Steam Methane Reforming, Coal Gasification; By Application; By Source) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2022-2030

The global hydrogen generation market was surpassed at USD 129.9 billion in 2021 and is expected to hit around USD 225.73 billion by 2030, growing at a CAGR of 6.33% from 2022 to 2030

Hydrogen Generation Market Size 2021 to 2030

Report Highlights

  • Coal Gasification held a share of 34.6% in the global Hydrogen Generation Market in 2021. 
  • Ammonia production segment led the market and accounted for the largest revenue share of more than 20.32% in 2021. The ammonia production segment will maintain its lead throughout the forecast period. 
  • In source, natural gas segment led the market in 2021. 
  • Based on systems Merchant generation segment led the market in 2021. 
  • The Asia Pacific dominated the global market in 2021 and accounted for the largest revenue share of over 41.62%. 

The global hydrogen generation market is likely to be driven by the growing demand for cleaner fuel, coupled with increasing governmental regulations for the desulphurization of petroleum products.

Hydrogen is an effective energy carrier, and this quality is expected to contribute, significantly, to its further penetration into newer markets. The global electricity demand is anticipated to witness an increase by nearly two-thirds of the current demand in the forecast period. Focus on the projects, related to distributed power & utility, expected to bolster the demand for hydrogen generation market growth during the forecast period.

The Methane Reforming segment led the market in 2021. This was the dominant segment in 2021 and is expected to keep its position during the forecast period. Steam Methane reforming is a method for producing hydrogen, along with other gases including carbon monoxide and carbon dioxide. The steam methane reforming process is a mature and advanced technology in hydrogen generation. The growing demand for hydrogen generation across the globe is a crucial driving factor for steam methane reformers technology, as steam methane reforming is the most economical method for hydrogen generation.

In Application, the ammonia production segment led the market in 2021. The ammonia segment will keep its lead during the forecast period. The future growth of the hydrogen generation market is expected to have steady growth in all the segments as application cases for hydrogen increase.

In source, the natural gas segment led the market in 2021. Hydrogen is created from natural gas reforming which produces hydrogen, carbon monoxide, and carbon dioxide. Hydrogen production from natural gas is the cheapest method of producing hydrogen. Hydrogen production from natural gas is expected to keep its lead during the forecast period.

Based on systems, the merchant generation segment led the market in 2021. Merchant generation of hydrogen means hydrogen is produced at a central production facility. It is transported and sold to the consumer by bulk tank, pipeline, or cylinder truck. In many countries such as the U.S., Canada, and Russia there is an extensive existing natural gas pipeline network that could be used to transport and distribute hydrogen. The merchant generation segment is expected to keep its lead during the forecast period.

Growing investments in smart “energy-saving” residential and commercial buildings are expected to provide an impetus toward the adoption of hydrogen for energy generation. Hydrogen is a financially viable option to investors as they also comply with federal and environmental regulations, catering to the ever-increasing demand for energy. Factors including shifting trend toward cleaner energy and favorable government regulations are contributing to the development of the hydrogen generation market. 

Scope of The Report

Report Coverage Details
Market Size in 2021 USD 129.9 billion
Revenue Forecast by 2030 USD 225.73 billion
Growth rate from 2022 to 2030 CAGR of 6.33%
Base Year 2021
Forecast Period 2022 to 2030
Segmentation Technology, application, systems, source, region
Companies Covered Linde Plc; Messer; Air Products and Chemicals, Inc; Air Liquide International S.A; INOX Air Products Ltd.; Matheson Tri-Gas, Inc.; SOL Group; Iwatani Corporation; Hydrogenics Corporation; Tokyo Gas Chemicals Co., Ltd.; Taiyo Nippon Sanso Corporation; Teledyne Technologies Incorporated; Hygear; Claind; Advanced Specialty Gases Inc.

 

Technology Type Insights

On the basis of Technology Type, the global market has been further divided into Steam Methane Reforming, Coal Gasification, plus Others. The steam methane reforming process is a mature and advanced technology in hydrogen generation. The growing demand for hydrogen generation across the globe is a crucial driving factor for steam methane reformers technology, as steam methane reforming is the most economical method for hydrogen generation. Other factors driving the growth of the market include operational benefits such as high conversion efficiency associated with the steam methane reforming process. The Steam Methane Reforming segment is expected to keep its lead during the forecast period.

Coal Gasification held a share of 34.6% in the global Hydrogen Generation Market in 2021. Coal gasification which uses coal as a raw material for producing hydrogen has been in practice for nearly two centuries, moreover, it is also recognized as a mature technology for hydrogen generation. The U.S. has a huge domestic resource in coal. The use of coal to generate hydrogen for the transportation sector is expected to help America in reducing its dependency on imported petroleum products.

Technologies considered under others segment include electrolysis and pyrolysis process, electrolyzes. Over the last decade, there has been an increase in new electrolysis installation with an aim to produce hydrogen from water, wherein PEM technology is gaining a significant share in the market since the process emits only oxygen as a by product without carbon emission. Presently most of the electrolysis projects are in Europe; however, the new and upcoming projects have been announced in Australia, China, and America.

Application Insights

Ammonia production segment led the market and accounted for the largest revenue share of more than 20.32% in 2021. The ammonia production segment will maintain its lead throughout the forecast period. Ammonia’s potential as a carbon-free fuel, hydrogen carrier, and energy store represents an opportunity for renewable hydrogen technologies to be deployed at an even greater scale. Hydrogen is typically produced on-site at ammonia plants from a fossil fuel feedstock. The most common feedstock is natural gas, which feeds a steam methane reforming (SMR) unit. Coal can also be used to produce ammonia via a partial oxidation (POX) process.

The market is estimated to have a steady growth in all segments as the demand for hydrogen increases. Methanol is currently considered one of the most useful chemical products and is a promising building block for obtaining more complex chemical compounds, such as acetic acid, methyl tertiary butyl ether, dimethyl ether, methylamine, etc. Methanol is the simplest alcohol, appearing as a colorless liquid and with a distinctive smell, and can be produced by converting CO2 and H2, with the further benefit of significantly reducing CO2 emissions in the atmosphere.

Hydrogen-based power generation technology has comfortably positioned itself in mature markets, such as North America and Europe, where clean yet effective energy is one of the primary aspects. Hydrogen-based power generation, which is cost-effective and a reliable source of power generation, are generating optimistic demands.

Turning crude oil into various end-user products such as transport fuels and petrochemical feedstock are some of the major applications of hydrogen.  Hydro treatment and hydro-cracking are the main hydrogen-consuming processes in the refinery. Hydro treatment is used to remove impurities, especially Sulphur, and accounts for a large share of refinery hydrogen use, globally. Hydrocracking is a process that uses hydrogen to upgrade heavy residual oils into higher-value oil products.

Source Insights

In source, natural gas segment led the market in 2021. Hydrogen is produced from natural gas reforming which produces hydrogen, carbon monoxide, and carbon dioxide. Hydrogen production from natural gas is the cheapest method of producing hydrogen. It is expected to keep its lead during the forecast period.

Systems Insights

Based on systems Merchant generation segment led the market in 2021. Merchant generation of hydrogen means hydrogen is produced at a central production facility and is transported and sold to a consumer by bulk tank, pipeline or cylinder truck. In many countries such as the U.S., Canada, and Russia there is an extensive existing natural gas pipeline network that could be used to transport and distribute hydrogen. The merchant generation segment is expected to keep its lead during the forecast period.

Regional Insights

The Asia Pacific dominated the global market in 2021 and accounted for the largest revenue share of over 41.62%. China led the Asia Pacific regional market in 2021, in terms of revenue. The presence of a greater number of refineries within the Asia Pacific region, in major countries such as China and India, has resulted to drive the utilization of hydrogen generation in the region. Further, governments in some of the Asia Pacific countries such as Japan and Australia are evaluating greener and cleaner technologies for hydrogen generation.

Hydrogen producers in the region are looking to expand their geographical reach and target countries like Vietnam, Indonesia, and South Africa among other developing nations, to boost their revenue. U.S.-based market players like Praxair Inc., and Air Liquide are looking to expand their operations in the countries with increasing demand for hydrogen, as part of their strategic growth plans.

The expansion of the hydrogen generation industry in North America has been underway for several years. The industry has grown at a brisk pace with contributions from each application and technology. Methanol production and ammonia production are the fastest growing sector with countries such as the U.S. and Canada, witnessing significant growth in the last five years.

Growth in hydrogen generation is expected in the region on account of the development and deployment of fuel cell systems in Europe which is witnessing an increase due to the projects announced by the European Commission through organizations such as Fuel Cells and Hydrogen Joint Undertaking (FCH JU). These projects have been announced with an objective to increase the adoption of fuel cell vehicles in Europe and this will assist in the development of supportive hydrogen infrastructure for the fuel cell vehicles in the major European countries.

Key Players

  • Air Liquide International S.A
  • Air Products and Chemicals, Inc
  • Hydrogenics Corporation
  • INOX Air Products Ltd.
  • Iwatani Corporation
  • Linde Plc
  • Matheson Tri-Gas, Inc.
  • Messer
  • SOL Group
  • Tokyo Gas Chemicals Co., Ltd.

Market Segmentation

  • By Technology Outlook
    • Steam Methane Reforming
    • Coal Gasification
    • Others
  • By Application Outlook
    • Methanol Production
    • Ammonia Production
    • Petroleum Refining
    • Transportation
    • Power Generation
    • Others
  • By Systems Outlook
    • Captive
    • Merchant
  • By Source Outlook
    • Natural Gas
    • Coal
    • Biomass
    • Water
  • By Regional Outlook
    • North America
      • U.S.
      • Canada
      • Mexico
    • Europe
      • Germany
      • Russia
      • U.K.
      • France
      • Spain
      • Italy
    • Asia Pacific
      • China
      • India
      • Japan
      • South Korea
      • Australia
    • Central & South America
      • Brazil
      • Colombia
      • Paraguay
    • Middle East & Africa
      • Saudi Arabia
      • U.A.E
      • South Africa
      • Egypt

Report Detail

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