India Hydrogen Market By Technology (Steam Methane Reforming, Membrane Cell Technology, Methanol Reforming, Coal Gasification and others), By Mode (Captive, Merchant), By Application (Petroleum Refinery, Fertilizers, Chemical & Petrochemical, Metal Processing, Automotive, Energy and Others), By Region, Competition, Forecast and Opportunities, 2020-2030F

Market Overview

India Hydrogen Market achieved a total market volume of 7.12 Million Tonnes in 2024 and is expected to reach 10.78 Million Tonnes by 2030 with a CAGR of 7.35% during the forecast period.

Hydrogen is a colorless, odorless, and highly flammable gas that plays a vital role in clean energy and industrial applications. It can generate electricity through fuel cells with water as the only byproduct, making it a promising solution for transportation and power generation. Hydrogen is also widely used in ammonia production, petroleum refining, chemical manufacturing, and rocket fuel.

India’s goal of achieving net-zero carbon emissions by 2070 has accelerated focus on hydrogen development, supported by initiatives such as the National Green Hydrogen Mission launched in 2023. Rising investments and technological advancements are improving production efficiency, though high costs and infrastructure challenges remain key hurdles for the market’s long-term expansion.

Key Market Drivers

Net-Zero Emission Targets

• India’s net-zero commitment is becoming a core growth driver for the hydrogen market because it provides long-term policy direction, improves investment visibility, and builds demand confidence for green hydrogen across refining, fertilizers, mobility, and heavy industry. This has shifted hydrogen from a future opportunity to a defined decarbonization pathway with practical commercial relevance.

• The National Green Hydrogen Mission is central to this shift because it creates a structured framework around production incentives, pilot projects, research, and downstream adoption. This policy clarity matters because companies are more willing to commit capital when government targets, renewable energy linkages, and transmission-related support mechanisms are clearly articulated and backed by institutional intent.

• The net-zero push is also encouraging public sector and industrial partnerships that connect hydrogen not only to climate goals but also to real applications such as green ammonia, green methanol, and broader industrial decarbonization. For instance, the Union Cabinet approved the National Green Hydrogen Mission with an outlay of "Rs " 19,744 crore and a target of at least 5 million metric tonnes of annual green hydrogen production by 2030, alongside about 125 GW of associated renewable energy capacity.

Technological Advancements

• Technological advancements are strengthening the India hydrogen market by reducing barriers across production efficiency, end-use application, and infrastructure readiness, which are the three areas that most influence whether hydrogen can move beyond pilot-stage deployment into broader commercial use. This is making hydrogen more viable for transport and industrial decarbonization.

• Progress in electrolyser systems, fuel cells, hydrogen storage, dispensing networks, and integrated testing facilities is improving the usability of hydrogen in real operating environments. This is especially important in India because future cost competitiveness will depend not only on renewable energy availability but also on domestic engineering capability and the ability to validate hydrogen systems under Indian conditions.

• As a result, companies are increasingly investing in dedicated hydrogen research and development assets that can accelerate commercialization, improve localization, and reduce dependence on imported technical know-how. For instance, Tata Motors unveiled two hydrogen-focused R&D facilities in Pune, including an engine test cell for hydrogen internal combustion engine development and storage and dispensing infrastructure for fuel cell and H_2 ICE vehicles, after delivering two hydrogen fuel cell buses to Indian Oil in September 2023.

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Key Market Challenges

High Production Costs

• High production costs remain one of the most significant restraints in the India hydrogen market because green hydrogen produced through electrolysis must absorb the combined burden of renewable electricity expenses, electrolyser capital costs, water treatment, compression, storage, transport, and safety systems before it can reach the end user at a commercially viable price.
• This cost structure keeps green hydrogen less competitive than conventional hydrogen produced through fossil-based routes, which slows adoption across highly price-sensitive sectors such as refining, fertilizers, steel, and long-haul mobility. As a result, industrial users may delay switching unless policy support, scale efficiencies, and offtake certainty improve meaningfully.
• The challenge extends beyond production because hydrogen’s low volumetric energy density also makes storage and transportation expensive, requiring high-pressure systems, specialized materials, and dedicated logistics infrastructure that raise delivered cost even after hydrogen is generated. These economics increase investor risk during the scale-up phase. For instance, an IEEFA-linked assessment reported that green hydrogen costs in India may still need to fall by up to 40 percent to reach about "Rs " 260 to "Rs " 310 per kilogram.

Lack of Skilled Workforce

• Lack of a skilled workforce is another major challenge for the India hydrogen market because the sector requires specialized expertise in electrolyser manufacturing, fuel cell systems, hydrogen handling, process integration, renewable energy coupling, high-pressure storage, and safety compliance, and these capabilities are not yet available at sufficient scale across the country.

• This talent gap can slow project execution, raise commissioning risk, and limit the pace at which pilot initiatives transition into commercial operations, especially when companies need engineers and technicians who understand both chemical process systems and clean energy technologies. Without trained manpower, operational reliability and deployment speed can suffer significantly.

• The issue becomes more pressing as India simultaneously advances hydrogen manufacturing, mobility pilots, industrial decarbonization, and domestic technology development, all of which compete for the same limited pool of qualified professionals. Structured training, upskilling, and certification will therefore be critical to avoid bottlenecks in installation, maintenance, operations, and safety management. For instance, the National Green Hydrogen Mission portal lists announced electrolyser manufacturing capacities of 5000 MW for Adani, 2000 MW for Greenko and John Cockerill, 2000 MW for Ohmium, and 1000 MW for Hild Electric.

Key Market Trends

Growing Adoption of Hydrogen Fuel Cell Vehicles

• Growing adoption of hydrogen fuel cell vehicles is becoming an important trend in the India hydrogen market as commercial vehicle manufacturers, public agencies, and policymakers increasingly view fuel cell mobility as a practical route for decarbonizing heavy transport without compromising range, payload capacity, or refuelling speed.

• This momentum is especially strong in buses, trucks, and fleet-based applications, where battery-only solutions can face operational constraints related to long duty cycles, charging downtime, and load requirements. In such use cases, hydrogen offers a more compelling value proposition through faster refuelling and better suitability for centralized fleet operations.

• Government support is playing a major role in accelerating this trend by lowering early-stage risk through pilot programs, targeted funding, and regulatory facilitation that allow manufacturers and operators to validate hydrogen mobility under Indian operating conditions rather than relying solely on international market experience.

• Automakers are also beginning to support this opportunity with visible capital commitments, indicating that hydrogen mobility in India is moving beyond proof-of-concept and into broader ecosystem development. For instance, the National Green Hydrogen Mission has earmarked "Rs " 496 crore through 2025-26 for transport pilot projects covering buses, trucks, and four-wheelers, while Tata Motors secured India’s first CMVR type approval for a green hydrogen fuel cell bus and Hyundai announced plans to invest about $746 million to help build a hydrogen ecosystem in India.

Segmental Insights

Technology Insights

Based on Technology, the Steam Methane Reforming emerged as the dominating segment in the Indian market for Hydrogen in 2024. This is driven by its cost-effectiveness, proven technology, established infrastructure, and the availability of natural gas. SMR stands out as the most economically viable option for large-scale hydrogen production. It utilizes natural gas, which is relatively low-cost and readily available compared to other feedstocks. India's extensive infrastructure for natural gas extraction, transport, and processing further supports SMR as a cost-efficient choice. The existing hydrogen production facilities in India predominantly use SMR, establishing a strong industry precedent. Additionally, SMR’s capability to produce hydrogen at scale is crucial for fulfilling the needs of various sectors, such as refineries and fertilizer plants, where hydrogen is a key feedstock.

Application Insights

Based on Application, Petroleum Refining emerged as the dominating segment in the Indian market for Hydrogen in 2024. Hydrogen plays a vital role in the hydrocracking and desulfurization processes within petroleum refining. It is essential for removing sulfur from crude oil, thereby producing cleaner fuels, which is a key aspect of refining operations in India. The application of hydrogen in refining is a well-established practice, with technologies like hydrocracking and hydrodesulfurization being mature and widely implemented.

In 2023, Indian Oil Corporation (IOC) announced plans to install green hydrogen plants at all its refineries by 2047, as part of INR 2 lakh crore green transition initiative aimed at achieving net-zero emissions. A significant portion of the hydrogen produced in India is utilized by petroleum refineries, making this sector the largest hydrogen consumer. The infrastructure and technology for hydrogen use in refining are well-developed. Refineries are a critical component of India’s energy sector, and their extensive hydrogen usage solidifies its position as the leading application in the hydrogen market.

There is a strategic emphasis on enhancing and expanding refining capabilities, which includes increasing hydrogen use to improve processing efficiency and meet regulatory standards. Additionally, in July 2024, Bharat Petroleum Corporation Limited (BPCL) announced plans to build a new 12 million metric tonnes per annum (MMTPA) refinery, reflecting ongoing significant investments in refining technology to boost efficiency and comply with environmental standards. This continuous investment ensures a sustained high demand for hydrogen.

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Regional Insights

Based on Region, West India emerged as the dominant region in the Indian market for Hydrogen in 2024. Western India, notably Gujarat and Maharashtra, is home to some of the country’s largest and most advanced oil refineries, including those operated by Reliance Industries and Indian Oil Corporation. These refineries are significant hydrogen consumers due to their reliance on hydrogen for hydrocracking and desulfurization processes, which are crucial for producing cleaner fuels. Additionally, the region houses substantial petrochemical complexes that use hydrogen in various industrial applications. The Western region benefits from a comprehensive industrial infrastructure, including facilities for hydrogen production, storage, and transportation. Its economic policies have supported growth across multiple sectors, such as chemicals, petrochemicals, and metal processing, all of which heavily depend on hydrogen, reinforcing the region’s market leadership.

Western India also has access to major ports like Kandla, which facilitate the import of raw materials and the export of hydrogen and hydrogen-based products. In 2024, Maharashtra's state government signed seven memoranda of understanding (MoUs) for green hydrogen projects valued at INR 2,76,300 crore and an MoU with ArcelorMittal Nippon Steel for a INR 40,000 crore steel plant. These initiatives aim to produce 910 KTPA of green energy and create 63,900 jobs. The Gujarat state government has actively promoted industrial development and infrastructure enhancements, including policies that incentivize investments in hydrogen technology and renewable energy, further driving the adoption and integration of hydrogen in industrial processes.

Recent Development

• In May 2025, AM Green and the Port of Rotterdam Authority signed an MoU to build a green energy supply chain connecting India with Northwestern Europe via Rotterdam. The partnership is intended to support exports of up to 1 million tonnes a year of green fuels, including hydrogen-based products such as green ammonia and sustainable aviation fuels, while also developing the port and terminal infrastructure needed for distribution across Europe. This was a major collaboration for India’s hydrogen industry because it linked emerging Indian green-hydrogen production clusters to one of Europe’s most important energy gateways and created the framework for trade worth about $1 billion annually.

• In June 2025, Toyota Kirloskar Motor partnered with Bengaluru-based Ohmium International to co-develop green hydrogen-based integrated power solutions in India, with an initial focus on microgrid applications. Under the agreement, Toyota is contributing fuel-cell modules, technical expertise, and systems-integration support, while Ohmium is leading the design, development, and performance evaluation of the microgrid prototype using its PEM electrolyser technology. This stood out as an innovation-led collaboration because it broadened hydrogen use cases in India beyond transport and industrial feedstock into decentralized clean-power solutions for remote locations and data-centre-style applications.

• In June 2025, Adani New Industries commissioned India’s first off-grid 5 MW green hydrogen pilot plant in Kutch, Gujarat. Reports said the facility is powered entirely by solar energy and battery storage, allowing it to operate independently of the grid while demonstrating a fully renewable, self-sustaining hydrogen production model. This was a breakthrough development for India’s hydrogen sector because it showed how green hydrogen can be produced in remote, intermittency-prone environments without relying on conventional grid-backed power.

• In April 2025, Bharat Petroleum commissioned a 5 MW green hydrogen plant at its Bina Refinery in Madhya Pradesh, described as the company’s first such project and one of the country’s largest operational hydrogen facilities at the time. The plant is expected to produce more than 780 tonnes of green hydrogen annually for refinery operations, marking a practical step in decarbonising conventional industrial hydrogen demand in India’s downstream energy sector. This was a significant milestone because it moved green hydrogen from policy ambition into commercial refinery deployment at industrial scale.

Key Market Players

• Reliance Industries Limited
• Gujarat Alkalies and Chemicals Limited
• Indian Oil Corporation Limited
• INOX-Air Products Inc.
• DCW Limited
• Larsen & Toubro Limited
• Grasim Industries Limited.
• Bhuruka Gases Limited
• Air Liquide India
• Tata Chemicals Limited

Report Scope:

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

• India Hydrogen Market, By Technology:

o   Steam Methane Reforming

o   Membrane Cell Technology

o   Methanol Reforming

o   Coal Gasification

o   Others

• India Hydrogen Market, By Mode:

o   Captive

o   Merchant

·         India Hydrogen Market, By Application:

o   Petroleum Refinery

o   Fertilizers

o   Chemical & Petrochemical

o   Metal Processing

o   Automotive

o   Energy

o   Others

• India Hydrogen Market, By Region:

o   West India

o   North India

o   South India

o   East India

Competitive Landscape

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

Available Customizations:

India Hydrogen Market report with the given market data, Tech Sci 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).

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