Merchant Hydrogen Market is Expected to grow at a robust CAGR of 8.13% through 2030F
The increasing global merchant hydrogen
market is driven by shift toward green and blue hydrogen, rise of hydrogen hubs
and industrial clusters during the forecast period 2026-2030F.
According to TechSci Research report, “Merchant Hydrogen Market – Global
Industry Size, Share, Trends, Competition Forecast & Opportunities, 2020-2030F”, The
Global Merchant Hydrogen Market was valued at USD 27.51 Billion in 2024 and is
expected to reach USD 44.37 Billion by 2030 with a CAGR of 8.13% during the
forecast period. A major trend in the merchant hydrogen market is the shift
from grey hydrogen (produced from fossil fuels) to green (via electrolysis
using renewables) and blue hydrogen (produced from fossil fuels but with carbon
capture and storage). This transition is driven by stricter carbon regulations,
corporate sustainability targets, and investor demand for decarbonization. Over
100 gigawatts of electrolyzer capacity is currently in development globally,
and blue hydrogen projects are gaining traction in regions with established
natural gas infrastructure. While green hydrogen currently makes up less than
5% of total production, this figure is expected to rise sharply in the next
five years. Countries such as Germany, Japan, and Australia are rolling out
multi-billion-dollar national hydrogen strategies, with a significant portion
allocated to merchant green hydrogen. Additionally, carbon capture rates in
blue hydrogen projects have improved, with some achieving 90–95% CO₂ capture. This shift is also
prompting traditional hydrogen suppliers to retrofit existing facilities and
invest in clean production technologies. As the green and blue hydrogen value
chains mature, merchant suppliers that offer certified low-emission hydrogen
will gain a competitive edge, especially in serving sustainability-focused
industries and mobility applications.
Another emerging trend is the
development of hydrogen hubs—geographic zones where production, storage,
distribution, and end use are integrated. These hubs are being established near
industrial clusters, ports, and transport corridors to reduce logistical costs
and consolidate demand. Governments in North America, Europe, and Asia are
incentivizing such hubs to attract merchant hydrogen producers. In the United
States alone, more than $8 billion has been allocated under the Bipartisan
Infrastructure Law for regional clean hydrogen hubs. Europe’s “Hydrogen
Valleys” initiative supports over 50 integrated projects across the continent.
These hubs facilitate co-location of supply and demand, improving utilization
rates and enabling long-term merchant contracts. They also help create
economies of scale, reducing production costs by up to 25%. Common
infrastructure such as pipelines, liquefaction units, and storage tanks lowers
capital expenditure for individual firms. By anchoring merchant hydrogen supply
in such concentrated zones, producers can more easily form strategic
partnerships with off-takers in sectors like refining, cement, steel, and
transport. This trend signals a shift away from fragmented distribution to a
more consolidated and collaborative model.
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Merchant Hydrogen Market"
Based on production method, coal
gasification is the fastest growing segment in the global Merchant Hydrogen market
during the forecast period, primarily due to its strategic relevance in
coal-abundant regions, integration with carbon capture technologies, and its
ability to support large-scale, low-cost hydrogen production. Coal gasification
involves converting coal into syngas (a mixture of hydrogen, carbon monoxide,
and CO₂), from which hydrogen is separated. This method is
gaining momentum in countries like China, India, and South Africa, where coal
remains a readily available and economically favorable resource. For example,
China—home to nearly 50% of global coal consumption—has invested heavily in
coal-to-hydrogen projects as part of its national energy security strategy and
decarbonization goals.
One of the key advantages of coal gasification is its cost
competitiveness. In regions with inexpensive domestic coal and limited access
to natural gas, hydrogen production via gasification can be priced as low as USD1.50–2.00/kg,
making it a viable alternative to natural gas-based Steam Methane Reforming
(SMR). Additionally, integration with Carbon Capture, Utilization, and Storage
(CCUS) is helping transform conventional coal gasification into a low-carbon
solution. Modern gasification facilities can achieve CO₂ capture rates exceeding 90%, significantly improving
environmental performance.
Furthermore, coal gasification supports large-scale,
centralized production, which is ideal for merchant hydrogen suppliers serving
multiple industrial clients. With global hydrogen demand increasing across
sectors like refining, chemicals, and power generation, the scalability of
coal-based hydrogen plants becomes a crucial advantage. Governments in
Asia-Pacific are also implementing supportive policies, subsidies, and R&D
initiatives to develop clean coal technologies and secure domestic energy
pathways. As a result, coal gasification is gaining traction as a strategic and
transitional production route, fueling its rapid growth in the merchant
hydrogen segment.
Based on region, Asia Pacific is the
fastest growing region in the Global Merchant Hydrogen Market during the
forecast period driven by strong government initiatives, rapid industrialization, rising
energy demand, and the region’s commitment to decarbonization. Countries like China,
Japan, South Korea, and India are leading hydrogen development through
large-scale investments, national strategies, and public–private partnerships. China,
the world’s largest hydrogen producer, consumes over 33 million metric tons
annually, with growing demand from refineries, steel plants, and fuel cell
vehicle manufacturers. The Chinese government has identified hydrogen as a key
component in its long-term energy roadmap, supporting over 100 hydrogen pilot
projects and aiming for 50,000 hydrogen fuel cell vehicles by 2025.
Japan and South Korea are heavily investing in
hydrogen infrastructure and mobility. Japan targets 900 hydrogen refueling
stations and 800,000 FCEVs by 2030, while South Korea aims to produce over 6.2
million tons of hydrogen annually by 2040, with strong backing from private
players like Hyundai and POSCO. These countries also promote merchant hydrogen
to meet demand from distributed industrial clusters and clean transport
networks. India launched the National Green Hydrogen Mission with a funding
outlay of USD2 billion, focusing on scaling up electrolyzer capacity and
merchant hydrogen exports. Its abundance of renewable energy makes it a
promising hub for green hydrogen, with upcoming merchant projects in Gujarat,
Rajasthan, and Tamil Nadu.
Asia Pacific also benefits from cost advantages in
coal gasification, with China and India leveraging domestic coal for hydrogen
production, supported by CCUS technologies to reduce emissions. The region’s
focus on energy self-reliance, net-zero targets, and clean industrial
transformation is creating favorable conditions for merchant hydrogen growth. As
a result, Asia Pacific’s combination of demand, investment, and policy
direction positions it as the fastest growing regional market during the
forecast period.
Key market players in the Global Merchant
Hydrogen market are: -
- Air Liquide
- Linde plc
- Air Products & Chemicals, Inc.
- Messer Group GmbH
- Iwatani Corporation
- Showa Denko K.K.
- Taiyo Nippon Sanso Corporation
- Cummins Inc.
- Engie SA
- Uniper SE
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“The Global Merchant Hydrogen Market offers significant
opportunities driven by the global push for decarbonization and clean energy
transition. Growing demand from industries like refining, chemicals, and steel,
along with the rise of fuel cell vehicles, is expanding merchant supply needs.
Advancements in electrolyzer technology and supportive policies are making
green hydrogen increasingly viable. Emerging markets in Asia, Middle East, and
Africa are investing in infrastructure, creating new commercial avenues.
Additionally, strategic partnerships, hydrogen hubs, and long-term offtake
agreements offer scalable growth opportunities for producers aiming to serve
diverse sectors such as mobility, power generation, and industrial heating.Top
of Form” said
Mr. Karan Chechi, Research Director of TechSci Research, a research-based Global
management consulting firm.
“Merchant
Hydrogen Market - Global Industry Size, Share, Trends, Opportunity, and
Forecast, Segmented By Production Method (Steam Methane Reforming, Coal
Gasification, Electrolysis, Partial Oxidation of Oil, Others), By Distribution
Mode (Pipeline, Bulk, On-site Production, Hydrogen Tube Trailers), By
Application (Oil & Gas, Chemical, Power & Energy, Automotive &
Transportation, Metals & Mining, Others), By Region, and By Competition,
2020-2030F,”
has evaluated the future growth potential of Global Merchant Hydrogen Market
and provides statistics & information on market size, structure, and
future market growth. The report intends to provide cutting-edge market
intelligence and help decision makers take sound investment decisions. Besides
the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in Global Merchant Hydrogen
Market.
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