Hydrogen Gas Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Volume (2025) | 113.86 Million tons |
| Market Volume (2030) | 137.53 Million tons |
| Growth Rate (2025 - 2030) | 3.85% CAGR |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Hydrogen Gas Market Analysis by Mordor Intelligence
The Hydrogen Gas Market size is estimated at 113.86 million tons in 2025, and is expected to reach 137.53 million tons by 2030, at a CAGR of 3.85% during the forecast period (2025-2030). Cost-driven regional competitiveness, government subsidies, and decarbonization mandates are the principal forces shaping the hydrogen gas market, with Japan earmarking USD 20 billion for nationwide infrastructure and the European Union pressing toward a 20% hydrogen blend in natural-gas grids by 2030. Production location and carbon intensity now dictate strategic positioning, pushing producers to co-locate electrolysis or blue-hydrogen facilities near low-cost renewable or natural-gas resources. Emerging export hubs in the Middle East and Australia add a new trade dimension, while the steady rollout of fuel-cell vehicles builds anchor demand that underwrites a wider refueling network.
Key Report Takeaways
- By distribution, pipeline held 58.76% of the hydrogen gas market share in 2024 and is expanding at a 4.23% CAGR through 2030.
- By application, ammonia accounted for 29.54% of the hydrogen gas market size in 2024, whereas fuel-cell vehicles are advancing at the fastest 4.56% CAGR to 2030.
- By geography, the Asia-Pacific region commanded a 34.57% share of the hydrogen gas market size in 2024; the Middle East and Africa is recording the highest 4.15% CAGR through 2030.
Global Hydrogen Gas Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Demand for Low-Carbon Ammonia Production | +1.2% | Global, with concentration in Asia-Pacific and Middle East | Medium term (2-4 years) |
| Refinery Desulfurization Regulations | +0.8% | Global, particularly North America and Europe | Short term (≤ 2 years) |
| Government Incentives for Green H₂ | +1.0% | Europe, North America, Japan, Australia | Medium term (2-4 years) |
| Rising Fuel-Cell Vehicle Rollout | +0.6% | Asia-Pacific, Europe, California | Long term (≥ 4 years) |
| Hydrogen-Gas-Grid Blending Mandates | +0.4% | Europe, UK, select North American regions | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Demand for Low-Carbon Ammonia Production
Global maritime decarbonization triggers demand for green ammonia, elevating the hydrogen gas market as shippers seek carbon-neutral bunkering solutions. The International Maritime Organization’s 2050 net-zero pledge accelerates producer pivots, with Yara and Engie linking renewable power to fertilizer complexes to safeguard export eligibility in carbon-constrained markets[1]Costas Paris, “Shipping Lines Eye Ammonia Fuel,” Wall Street Journal, wsj.com . Competitive advantage now hinges on hydrogen carbon intensity rather than merely feedstock price, injecting long-term structural growth into ammonia-linked hydrogen volumes.
Refinery Desulfurization Regulations
The 2020 IMO sulfur cap and regional fuel-quality standards lifted refinery hydrogen offtake by nearly 15%, anchoring base-load demand in the hydrogen gas market. Heavier crude slates need deeper hydroprocessing, prompting blue-hydrogen investments adjacent to refineries. These captive integration models ensure offtake certainty and streamline carbon-capture economics through shared utilities.
Government Incentives for Green H₂
Fiscal stimulus underpins the hydrogen gas market everywhere policymakers view hydrogen as an energy-security lever. The United States reserved USD 9.5 billion for hydrogen hubs, while the European Union mobilized EUR 5.4 billion under REPowerEU and Australia allotted USD 1.1 billion for export-oriented megaprojects. Subsidies trim delivered green-hydrogen costs by up to 30%, enabling earlier parity with blue-hydrogen pathways and steering capital toward electrolysis gigawatt rollouts.
Rising Fuel-Cell Vehicle Rollout
Commercial fleet operators embrace hydrogen to dodge battery-weight penalties on payload. The global refueling network surpassed 1,000 stations in 2024 and should hit 6,000 by 2030, with California, Japan, and Germany at the forefront. Fleet demand supplies predictable baseloads that improve station utilization, narrowing the delivered-hydrogen cost curve and fostering wider mobility adoption.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High Cost of Green/Blue H₂ Production | -0.9% | Global, most pronounced in regions without subsidies | Short term (≤ 2 years) |
| Expensive Storage and Transport Logistics | -0.6% | Global, particularly affecting long-distance trade | Medium term (2-4 years) |
| Community Opposition to New H₂ Pipelines | -0.3% | North America and Europe | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
High Cost of Green/Blue H₂ Production
Green hydrogen currently ranges between USD 3 and 8 per kg depending on renewable electricity pricing and electrolyzer performance, outstripping gray alternatives at USD 1-2 per kg. Blue hydrogen narrows the gap but entails carbon-capture costs and regulatory scrutiny. Only premium applications with carbon-pricing compliance can presently absorb these premiums, temporarily limiting widespread uptake across the hydrogen gas market.
Expensive Storage and Transport Logistics
Hydrogen’s low volumetric energy density demands either 350-700-bar compression or −253 °C liquefaction, steps that add up to 40% to the delivered price when distances exceed 200 km. New pipelines cost roughly USD 1 million per km, and liquefied-hydrogen shipping remains nascent, elevating delivered-cost dispersion across regions and slowing intercontinental trade.
Segment Analysis
By Distribution: Pipeline Infrastructure Dominance
Pipeline networks captured 58.76% of the hydrogen gas market share in 2024 as large industrial corridors exploit existing right-of-way assets, and this modality is growing at 4.23% CAGR through 2030. The European Hydrogen Backbone’s planned 28,000 km of lines will lower delivered costs by 30-50% relative to road trailers, reinforcing scale economies across the hydrogen gas market. High-pressure tube trailers remain crucial for islanded demand centers and early-stage deployments, while cylinders serve specialized or remote users.
In emerging markets without legacy gas grids, tube-trailer logistics bridge the readiness gap, fostering early adoption despite premium transport costs. As permitting accelerates in Europe and the United States, dedicated hydrogen pipelines will broaden from refining clusters to include steel and chemical plants, providing the backbone required for deeper industrial decarbonization and wider hydrogen gas market reach.
Note: Segment shares of all individual segments available upon report purchase
By Application: Ammonia Production Leads Industrial Demand
Ammonia retained 29.54% of 2024 consumption, making it the single-largest industrial anchor for the hydrogen gas market, while fuel-cell vehicles top the growth leaderboard at 4.56% CAGR to 2030. Rising maritime interest in green ammonia fuels and farm-sector sustainability targets underpin ammonia’s dependable pull. Simultaneously, refining remains a core sink as sulfur caps drive incremental hydrogen injection into desulfurizers, securing baseload demand.
Direct-reduced iron projects and low-carbon methanol initiatives further diversify the demand stack. Hydrogen-based steel pilots across Europe and Asia signal an emerging large-volume application that could expand materially after 2028. Electronics, glass, and food-processing uses add stable smaller-volume demand that rounds out broader offtake, spreading baseline volumes across the hydrogen gas market.
Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
Asia-Pacific accounted for 34.57% of the hydrogen gas market size in 2024, anchored by China’s heavy-industry uptake, Japan’s hydrogen-society agenda, and South Korea’s fuel-cell power rollouts. China’s carbon-neutrality pledge and pilot hydrogen-steel projects keep regional volumes elevated. Japan’s USD 20 billion public-funding pool accelerates both supply and demand infrastructure, while South Korea’s K-New Deal integrates hydrogen into power and transport goals.
Europe positions hydrogen as a strategic lever for gas-supply diversification under REPowerEU, catalyzing domestic electrolyzer builds and import-terminal investments. Germany leads installed electrolysis capacity, and the Netherlands is remaking Rotterdam into a continental intake hub for global hydrogen shipments. Nordic hydro and wind resources underpin green-hydrogen export ambitions, with Norway exploring pipeline and maritime routes to serve continental demand.
North America leverages ample natural-gas reserves for blue-hydrogen economics while boosting green output under the USD 9.5 billion hydrogen-hubs program. California’s Low Carbon Fuel Standard underwrites the world’s largest non-Asian refueling network, and Canada targets export parity with liquefied shipments to Asia. Middle East and Africa score the fastest 4.15% CAGR, led by Saudi Arabia’s NEOM and the UAE’s export road map, stitching together sun-rich renewable resources with scale electrolysis to supply both local industry and overseas consumers.
Competitive Landscape
The hydrogen gas market is moderately fragmented; the top five producers accounted for roughly 68% of 2024 output, leaving significant headroom for new entrants. Industrial-gas incumbents Air Liquide and Linde leverage decades-old supply contracts and pipeline grids, while energy majors such as Equinor and Shell marry upstream expertise with large-scale blue- and green-hydrogen projects[2]“Industrial-Gas Giants Race for Low-Carbon Edge,” Reuters, reuters.com . Renewable developers are partnering with electrolyzer specialists to integrate generation and hydrogen production, chasing LCOH targets below USD 2 per kg by 2030.
Technological differentiation centers on electrolyzer efficiency, carbon-capture rates, and integrated storage options rather than commodity hydrogen quality. Material-science breakthroughs in pipeline steel and composite storage tanks promise cost compression on logistics, a white-space arena where mid-stream specialists and start-ups jostle for early advantage. M&A activity is heating up, highlighted by Linde’s USD 2.3 billion acquisition of Praxair’s European hydrogen assets and Air Products’ USD 7 billion Louisiana blue-hydrogen complex, signaling bets on location and carbon intensity as the new competitive moats.
Near-term strategy revolves around securing renewable-power purchase agreements, landing government incentives, and locking in long-term offtake with steelmakers, refineries, and ammonia producers. Firms able to combine low-carbon production, advantaged logistics, and strong balance sheets are poised to scale fastest as global demand for the hydrogen gas market accelerates through 2030.
Hydrogen Gas Industry Leaders
-
Air Liquide
-
Linde plc
-
Air Products and Chemicals, Inc.
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Messer SE & Co. KGaA
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TAIYO NIPPON SANSO CORPORATION
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- December 2024: Air Liquide secured a 110 million euro European Innovation Fund grant for its ENHANCE project in Belgium's port of Antwerp-Bruges. The project involves building Europe's first large-scale renewable ammonia cracking plant and hydrogen liquefier for low-carbon hydrogen production.
- August 2024: Linde signed a long-term clean hydrogen supply agreement with Dow's Fort Saskatchewan Path2Zero Project. The company will invest over USD 2 billion to build an integrated clean hydrogen and atmospheric gases facility in Alberta, Canada.
Global Hydrogen Gas Market Report Scope
Hydrogen gas is a clean, burning, and efficient fuel used in refining processes and producing many chemicals like ammonia and methanol. Hydrogen gas is created through steam methane reforming, coal gasification, and water electrolysis.
The hydrogen gas market is segmented by distribution, application, and geography. By distribution, the market is segmented into pipelines, high-pressure tube trailers, and cylinders. By application, the market is segmented into ammonia, methanol, refining, direct reduced iron (DRI), fuel cell vehicles (FCV), and other applications (glass, welding, power generation, etc.). The report also covers the market size and forecasts for the hydrogen gas market in 27 countries across major regions. For each segment, the market sizing and forecasts are provided based on volume (kilotons).
| Pipeline |
| High-pressure tube trailer |
| Cylinder |
| Ammonia |
| Methanol |
| Refining |
| Direct Reduced Iron (DRI) |
| Fuel-cell Vehicles (FCVs) |
| Other Applications |
| Asia-Pacific | China |
| India | |
| Japan | |
| South Korea | |
| ASEAN Countries | |
| Rest of Asia-Pacific | |
| North America | United States |
| Canada | |
| Mexico | |
| Europe | Germany |
| United Kingdom | |
| France | |
| Italy | |
| Russia | |
| NORDIC Countries | |
| Rest of Europe | |
| South America | Brazil |
| Argentina | |
| Rest of South America | |
| Middle East and Africa | Saudi Arabia |
| South Africa | |
| Rest of Middle East and Africa |
| By Distribution | Pipeline | |
| High-pressure tube trailer | ||
| Cylinder | ||
| By Application | Ammonia | |
| Methanol | ||
| Refining | ||
| Direct Reduced Iron (DRI) | ||
| Fuel-cell Vehicles (FCVs) | ||
| Other Applications | ||
| By Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| ASEAN Countries | ||
| Rest of Asia-Pacific | ||
| North America | United States | |
| Canada | ||
| Mexico | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| Russia | ||
| NORDIC Countries | ||
| Rest of Europe | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Middle East and Africa | Saudi Arabia | |
| South Africa | ||
| Rest of Middle East and Africa | ||
Key Questions Answered in the Report
What is the projected volume for the hydrogen gas market in 2030?
The market is forecast to reach 137.53 million tons by 2030, growing at a 3.85% CAGR.
Which region currently leads demand?
Asia-Pacific commands 34.57% of global volume, driven by China and Japan.
Which distribution method is most prevalent?
Pipeline infrastructure held 58.76% share in 2024 and is expanding fastest through 2030.
What is hindering faster green-hydrogen adoption?
High production costs and expensive logistics currently curb large-scale uptake.
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