Hydrogen Generation Market Size, Share, Trends, Growth and Forecast 2030

Report Description

Forecast Period	2026-2030
Market Size (2024)	USD 173.65 Billion
CAGR (2025-2030)	5.26%
Fastest Growing Segment	Chemical Processing
Largest Market	Asia Pacific
Market Size (2030)	USD 236.19 Billion

Market Overview

The Global Hydrogen Generation Market, valued at USD 173.65 Billion in 2024, is projected to experience a CAGR of 5.26% to reach USD 236.19 Billion by 2030. Hydrogen generation refers to the production of hydrogen gas from diverse feedstocks, including fossil fuels and water, through various processes such as steam methane reforming and electrolysis. The market's growth is fundamentally driven by global decarbonization initiatives, governmental policies providing supportive incentives, and the increasing demand for cleaner industrial feedstocks and fuels across sectors like refining and chemicals. According to the Hydrogen Council, clean hydrogen projects that reached final investment decision increased from 102 in 2020 to 434 in 2024, representing a rise in committed investment from USD 10 billion to USD 75 billion during this period.

A significant challenge impeding market expansion is the substantial capital expenditure required for developing comprehensive hydrogen infrastructure, encompassing production, storage, and distribution networks. This financial hurdle, coupled with ongoing uncertainties in regulatory frameworks, can delay project implementation and hinder widespread adoption.

Key Market Drivers

The global hydrogen generation market is substantially influenced by two principal factors: global decarbonization goals and supportive government policies. The overarching imperative to achieve global decarbonization and net-zero emission targets drives significant demand for clean energy carriers like hydrogen. This is evidenced by the growing industrial requirement for low-emission feedstocks and energy solutions across various hard-to-abate sectors, including refining, chemical processing, and steel manufacturing. According to the IEA's Global Hydrogen Review 2024, published in October 2024, global hydrogen demand reached 97 million tonnes in 2023, an increase of 2.5% compared to 2022, underscoring the immediate pressure to transition towards cleaner production methods. Hydrogen's versatility as an energy carrier is critical for helping industries reduce their carbon footprint and meet ambitious climate objectives.

Complementing decarbonization efforts are supportive government policies and robust regulatory frameworks, which are instrumental in accelerating market expansion by creating a predictable investment environment. These policies encompass financial incentives, national hydrogen strategies, and international collaborations designed to reduce risks and foster innovation. For instance, according to the European Commission's announcement on 30 April 2024 regarding the European Hydrogen Bank pilot auction results, seven projects across the EU were awarded a total of €720 million, with plans to produce 1.58 million tonnes of renewable hydrogen over ten years. This direct financial support helps bridge the economic viability gap for emerging hydrogen technologies and infrastructure. Overall, the market for hydrogen generation continues to expand, with installed water electrolyser capacity reaching 1.4 GW by the end of 2023 and projected to reach 5 GW by the end of 2024, demonstrating tangible progress driven by these factors.

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Key Market Challenges

A significant challenge impeding the Global Hydrogen Generation Market's expansion is the substantial capital expenditure required for developing comprehensive hydrogen infrastructure, encompassing production, storage, and distribution networks. This financial hurdle creates a considerable barrier to project implementation. Developing large-scale facilities and extensive networks demands substantial upfront investment, often deterring potential investors or extending project development timelines as developers struggle to secure the necessary funding.

This capital intensity directly restricts the speed at which hydrogen generation projects can transition from planning to operational phases. According to the International Energy Agency (IEA), in 2024, only USD 39 billion of the USD 570 billion in announced hydrogen projects had moved past the financing stage. This considerable disparity between proposed projects and those that have secured financial commitment highlights the pervasive difficulty in mobilizing the vast capital necessary to build out the hydrogen economy. Consequently, this constrains supply growth despite increasing demand signals, directly hampering overall market growth and delaying the widespread adoption of hydrogen as a clean energy carrier and industrial feedstock.

Key Market Trends

Technological progress within electrolyzer systems represents a significant trend driving the global hydrogen generation market. Ongoing research and development efforts are enhancing the efficiency, durability, and cost-effectiveness of various electrolyzer types, including alkaline and proton exchange membrane technologies. These advancements are crucial for making green hydrogen production economically viable and scalable. According to Intesa Sanpaolo Innovation Center's 2023 Industry Trends Report on Hydrogen, annual electrolyzer capacity additions for green hydrogen are projected to grow exponentially from just 4.9 gigawatts globally in 2023 to over 300 gigawatts by 2030. This demonstrates the direct impact of improved technology on increasing production capacity and accelerating market expansion.

The diversification of industrial hydrogen applications constitutes another pivotal trend influencing market growth. Beyond its traditional uses in refining and ammonia production, hydrogen is increasingly finding utility in new, hard-to-abate sectors seeking decarbonization solutions. Industries such as steel manufacturing, heavy-duty transportation, and aviation are exploring hydrogen as a clean energy carrier and feedstock, opening up substantial new demand pathways. For instance, according to ResearchGate's International Journal of Hydrogen Energy, July 2024, a study on global demand for green hydrogen-based steel projected that it could constitute 2% of current total steel production by 2030. This expansion into diverse industrial processes broadens the market for hydrogen generation and underscores its versatility in achieving global emission reduction targets.

Segmental Insights

The Chemical Processing segment is experiencing rapid growth within the Global Hydrogen Generation Market, driven by hydrogen's indispensable role as a critical feedstock and a key enabler for decarbonization. The escalating demand for essential chemicals, including ammonia for fertilizers and methanol for various industrial applications, necessitates substantial hydrogen input. Furthermore, the chemical industry's commitment to achieving net-zero emissions, aligning with global sustainability objectives, compels a transition from conventional, carbon-intensive production methods towards cleaner hydrogen alternatives. This strategic shift, supported by an increasing focus on sustainable manufacturing processes and advancements in hydrogen production technologies, positions chemical processing as a pivotal and expanding application area for hydrogen generation.

Regional Insights

Asia Pacific leads the global hydrogen generation market due to substantial industrial demand, particularly from sectors such as petroleum refining, ammonia production, and steelmaking across major economies like China and India. The region benefits significantly from proactive government policies and strategic national hydrogen roadmaps, including initiatives like India's National Green Hydrogen Mission and Japan's Basic Hydrogen Strategy, which foster investment and accelerate adoption of hydrogen technologies. Furthermore, increasing investments in clean energy infrastructure, coupled with a strong regional commitment to decarbonization and energy security, are driving the expansion of hydrogen production and its integration into diverse applications.

Recent Developments

In October 2025, M-Spin, an Imperial College London spin-out, reached a new stage in scaling its advanced materials with the opening of its pilot laboratory. The company has developed ultra-high surface area metallic and ceramic meshes designed to significantly improve electrolyzer performance. Its nanofibre-based metallic mats have demonstrated up to a fivefold increase in hydrogen production rate and approximately 10 percent higher efficiency in water electrolysis, potentially reducing green hydrogen generation costs by up to 30 percent.

In October 2025, NTPC Green Energy Ltd (NGEL), a subsidiary of NTPC Ltd, and Japan's ENEOS Corporation signed a Memorandum of Understanding (MoU). This collaboration will explore a potential agreement for the supply of green methanol and green hydrogen derivative products. The partnership is centered on NGEL's Green Hydrogen Hub at Pudimadaka, India, which is being developed as an integrated facility for green chemical production and export, aiming to align ENEOS's demand with NGEL's renewable energy and hydrogen initiatives.

In April 2024, Topsoe achieved a significant breakthrough in green hydrogen technology by demonstrating robust results with its Solid Oxide Electrolysis Cell (SOEC) system. The demo involved 12 stacks and 1200 cells, maintaining a combined stack power of 350 kW with notable stability and efficiency over 2250 hours of operation. This innovative technology achieved an efficiency of approximately 93%, positioning SOEC as a promising solution for future sustainable energy transitions by enhancing the efficiency of green hydrogen production.

In February 2024, Chiyoda Corporation and Toyota Motor Corporation entered into a strategic partnership to jointly develop a large-scale electrolysis system. This collaboration aims to combine Toyota's fuel cell technology for electrolysis cell stacks with Chiyoda's expertise in processing plant design and construction. The objective is to create a competitive large-scale electrolysis system with high hydrogen production efficiency, designed to adapt to the expanding global hydrogen production markets and contribute to government targets for electrolysis equipment introduction.

Key Market Players

Air Liquide S.A.
Messer SE & Co. KGaA
ITM Power plc
Engie SA
Cummins Inc.
Air Products and Chemicals, Inc.
FuelCell Energy, Inc.
Nippon Sanso Holdings Corporation
McPhy Energy SA
Linde Plc

By Source	By Technology	By Application	By Region
Blue hydrogen Green hydrogen Grey Hydrogen	Steam Methane Reforming (SMR) Coal Gasification Other	Oil Refining Chemical Processing Iron & Steel Production Other	North America Europe South America Middle East & Africa Asia Pacific

Report Scope:

In this report, the Global Hydrogen Generation Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Hydrogen Generation Market, By Source:

o Blue hydrogen

o Green hydrogen

o Grey Hydrogen

Hydrogen Generation Market, By Technology:

o Steam Methane Reforming (SMR)

o Coal Gasification

o Other

Hydrogen Generation Market, By Application:

o Oil Refining

o Chemical Processing

o Iron & Steel Production

o Other

Hydrogen Generation Market, By Region:

o North America

§ United States

§ Canada

§ Mexico

o Europe

§ France

§ United Kingdom

§ Italy

§ Germany

§ Spain

o South America

§ Brazil

§ Argentina

§ Colombia

o Middle East & Africa

§ South Africa

§ Saudi Arabia

§ UAE

o Asia Pacific

§ China

§ India

§ Japan

§ Australia

§ South Korea

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Hydrogen Generation Market.

Available Customizations:

Global Hydrogen Generation Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Hydrogen Generation Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Hydrogen Generation Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Source (Blue hydrogen, Green hydrogen, Grey Hydrogen)

5.2.2. By Technology (Steam Methane Reforming (SMR), Coal Gasification, Other)

5.2.3. By Application (Oil Refining, Chemical Processing, Iron & Steel Production, Other)

5.2.4. By Region

5.2.5. By Company (2024)

5.3. Market Map

6. North America Hydrogen Generation Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Source

6.2.2. By Technology

6.2.3. By Application

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States Hydrogen Generation Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Source

6.3.1.2.2. By Technology

6.3.1.2.3. By Application

6.3.2. Canada Hydrogen Generation Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Source

6.3.2.2.2. By Technology

6.3.2.2.3. By Application

6.3.3. Mexico Hydrogen Generation Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Source

6.3.3.2.2. By Technology

6.3.3.2.3. By Application

7. Europe Hydrogen Generation Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Source

7.2.2. By Technology

7.2.3. By Application

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Hydrogen Generation Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Source

7.3.1.2.2. By Technology

7.3.1.2.3. By Application

7.3.2. France Hydrogen Generation Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Source

7.3.2.2.2. By Technology

7.3.2.2.3. By Application

7.3.3. United Kingdom Hydrogen Generation Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Source

7.3.3.2.2. By Technology

7.3.3.2.3. By Application

7.3.4. Italy Hydrogen Generation Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Source

7.3.4.2.2. By Technology

7.3.4.2.3. By Application

7.3.5. Spain Hydrogen Generation Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Source

7.3.5.2.2. By Technology

7.3.5.2.3. By Application

8. Asia Pacific Hydrogen Generation Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Source

8.2.2. By Technology

8.2.3. By Application

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Hydrogen Generation Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Source

8.3.1.2.2. By Technology

8.3.1.2.3. By Application

8.3.2. India Hydrogen Generation Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Source

8.3.2.2.2. By Technology

8.3.2.2.3. By Application

8.3.3. Japan Hydrogen Generation Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Source

8.3.3.2.2. By Technology

8.3.3.2.3. By Application

8.3.4. South Korea Hydrogen Generation Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Source

8.3.4.2.2. By Technology

8.3.4.2.3. By Application

8.3.5. Australia Hydrogen Generation Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Source

8.3.5.2.2. By Technology

8.3.5.2.3. By Application

9. Middle East & Africa Hydrogen Generation Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Source

9.2.2. By Technology

9.2.3. By Application

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Hydrogen Generation Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Source

9.3.1.2.2. By Technology

9.3.1.2.3. By Application

9.3.2. UAE Hydrogen Generation Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Source

9.3.2.2.2. By Technology

9.3.2.2.3. By Application

9.3.3. South Africa Hydrogen Generation Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Source

9.3.3.2.2. By Technology

9.3.3.2.3. By Application

10. South America Hydrogen Generation Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Source

10.2.2. By Technology

10.2.3. By Application

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Hydrogen Generation Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Source

10.3.1.2.2. By Technology

10.3.1.2.3. By Application

10.3.2. Colombia Hydrogen Generation Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Source

10.3.2.2.2. By Technology

10.3.2.2.3. By Application

10.3.3. Argentina Hydrogen Generation Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Source

10.3.3.2.2. By Technology

10.3.3.2.3. By Application

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Hydrogen Generation Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Air Liquide S.A.

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Messer SE & Co. KGaA

15.3. ITM Power plc

15.4. Engie SA

15.5. Cummins Inc.

15.6. Air Products and Chemicals, Inc.

15.7. FuelCell Energy, Inc.

15.8. Nippon Sanso Holdings Corporation

15.9. McPhy Energy SA

15.10. Linde Plc

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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