Hydrogen Market By Production Process (Steam Methane Reforming, Coal Gasification, and Electrolysis of Water, and Partial Oxidation), By End-Use Industry (Chemicals, Refining, Aerospace & Automotive, Energy, Glass, and Welding & Metal Fabrication), By Distribution (Pipelines, Cylinders, and High-Pressure Tube Trailers), and By Region - Trends, Analysis and Forecast till 2034

Hydrogen Market was valued at US$ 204.4 Billion in 2024 and is projected to grow at a CAGR of 9% to reach US$ 448.9 Billion by 2034.

Hydrogen plays a crucial role in both the chemical and oil & gas industries. There are three forms of hydrogen mainly blue hydrogen, grey hydrogen, and green hydrogen that are extracted through distinct procedures. Grey hydrogen is produced from fossil fuel sources without using the carbon capture and storage procedure and it releases CO₂ as a byproduct. The term blue hydrogen refers to natural gas-derived hydrogen that is supported by carbon capture and storage.

Increasing regulations related to desulphurization and greenhouse gas emissions and increasing research and development (R&D) activities related to green hydrogen production technologies have become the key factors in the growth of the hydrogen market. Growing use of hydrogen in fuel cell electric vehicles (FCEVS) has also contributed in growth of Hydrogen market. 

Increase in government initiatives for the development of fuel cell electric vehicles (FCEVs) due to environmental concerns has become the major factor in the hydrogen market growth. FCEVs consists of Fuel cell stack which is a group of electrodes that utilizes hydrogen and oxygen to produce electricity and Fuel filter which is basically a nozzle from fuel dispenser that is attached to the receptable on the vehicle to fill the tank. FCEVs deployments approved by various governments have led to a consequential increase in the number of FCEVs on roads and that has given rise in target market growth.

For instance, in December 2022, according to TechCrunch, Daimler Truck AG and Volvo Group officially announced their innovative plan for the new fuel-cell joint venture which is also known as cell centric in order to accelerate the use of hydrogen- based fuel cells for long-haul trucks. It will lower the development costs and boost the production volumes. Together with other European truck manufacturers, the two companies are calling for the development of hydrogen refueling stations around Europe over the coming years.

Shifting towards clean energy power to aid expansion

Continuous industrial and urban expansion has hurled the countries to adopt different power generation methods in accordance to their demands.  Due to rapid growing of population, there are certain development initiatives that are taken by several regions across the world such as Asia pacific and Middle East & Africa. To reduce dependability on fossil fuels like crude oils and natural gas there is an increase in the usage of sustainable energy which has driven in the increase of Hydrogen market growth.

For instance, in 2021, according to department of energy, the U.S. Department of Energy (DOE) announced $52.5 million to fund 31 projects towards the advancement of next-generation clean hydrogen technologies and DOE also announced hydrogen energy earth shot initiative that aims to accelerate breakthroughs of more abundant, affordable, and reliable clean energy solutions in order to reduce the cost and accelerate breakthroughs in the clean hydrogen sector.

Restrains:

Financial crisis, economic crisis and popularity of alternative renewable technologies like solar PV and wind would affect the financial support required for the development and eventually restrain the target market growth. High technology costs, lack of adequate international supply chain, and lack of awareness impact the commercialization, infrastructure development and growth of the Hydrogen Market.

Hydrogen Market is segmented based on Production Process, End-User Industry, Distribution and Region.

Production Process Insight

On the basis of Production Process, Hydrogen Market is segmented into Steam Methane Reforming, Coal Gasification, and Electrolysis of Water, and Partial Oxidation. Steam Methane Reforming segment is expected to dominate the target market growth because at the time of reaction it will produce highest yield of hydrogen. Methane reacts with steam under 3–25 bar pressure in the presence of a catalyst and produces hydrogen, and a relatively small amount of carbon dioxide.

End-Use Industry Insights

On the basis of End-Use Industry, Hydrogen Market is segmented into, Chemicals, Refining, Aerospace & Automotive, Energy, Glass, and Welding & Metal Fabrication.  Aerospace & Automotive are expected to dominate the target market growth because as Hydrogen is a clean, renewable energy source and that can be used to power aircraft, satellites, and even spacecraft.

Distribution Insights

On the basis of Distribution, Hydrogen Market is segmented into Pipelines, Cylinders, and High-Pressure Tube Trailers. Pipelines are expected to dominate target market growth as they transport hydrogen safely. Pipelines can take both natural gas and oil over vast distances from one place to other remote places. Pipeline also consists of a booster along with the hydrogen-producing equipment, which removes the impurities in hydrogen gas.

Regional Insights:

On the basis of region, the hydrogen Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The China’s market that comes under Asia Pacific   is estimated to witness a significantly high revenue share over the forecast period, because of its large share of the global chemical market and its considerable oil refining capacity which are the primary sources of hydrogen. Increase in usage of hydrogen as industrial feedstock to produce ammonia, methanol, and for petroleum refining that are anticipated to increase the demand for hydrogen in the region.

Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 – 2034. For the purpose of this study, has segmented the Hydrogen Market report based on Production Process, End-User Industry, Distribution and Region:

Hydrogen Market by Production Process:

• Steam Methane Reforming
• Coal Gasification
•  Electrolysis of Water
• Partial Oxidation

Hydrogen Market by End-User Industry:

• Chemicals
• Refining
•  Aerospace & Automotive
•  Energy
•  Glass,
•  Welding & Metal Fabrication

Hydrogen Market by Distribution:

• Pipelines
• Cylinders
•  High Pressure Tube Trailers

Hydrogen Market by Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the hydrogen Market includes, Air Liquide S.A., Linde plc, Inc., Air Products & Chemicals Inc., Showa Denko K.K. (SDK), In Hyster-Yale Materials Handling., Inc., BASF SE, Messer Group GmbH, Universal Industrial Gases., Inc. and Gulf Cryo LLC.

• Air Liquide S.A. 
• Linde plc, Inc.
• Air Products & Chemicals Inc.
• Showa Denko K.K. (SDK)
• In Hyster-Yale Materials Handling. Inc.
• BASF SE
• Messer Group GmbH
• Universal Industrial Gases. Inc.
• Gulf Cryo LLC.

Recent Development:

• In January 2022, Linde plc signed an agreement with Yara for constructing and delivery a 24 MW green hydrogen plant. Linde and Yara both will show that ammonia which are produced using renewable energy, that can reduce the volume of carbon dioxide emitted in fertilizer production. The 24 MW plant will be based on proton exchange membrane (PEM) technology and it will be built in Porsgrunn at Heroya Industry Park in Norway.
• In March 2022, Air products Inc., a world leader in the supply and distribution of hydrogen announced to build their own and operate a 10 metric ton per day facility that would produce green liquid hydrogen in Casa Grande, Arizona. This facility uses two thyssenkrupp nucera’s (a company that supplies clean energy with green hydrogen at industrial scale) electrolyzers to produce gaseous hydrogen, which would then be converted to liquid hydrogen using Air Products' proprietary technology.