Hydrogen Generation Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The report covers Global Hydrogen Generation System Market Forecast and it is segmented by Source (Blue hydrogen, Green hydrogen, and Grey Hydrogen), Technology (Steam Methane Reforming (SMR), Coal Gasification, and Other Technologies), Applications (Oil Refining, Chemical Processing, Iron & Steel Production, and Other Applications), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East & Africa). The market size and forecasts for hydrogen generation are provided in terms of revenue (USD Billion) for all the above segments.

Hydrogen Generation Market Size

Hydrogen Generation Market Summary
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Study Period 2019 - 2028
Market Size (2023) USD 177.24 Billion
Market Size (2028) USD 218.03 Billion
CAGR (2023 - 2028) 4.23 %
Fastest Growing Market Asia-Pacific
Largest Market North America

Major Players

Hydrogen Generation Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Hydrogen Generation Market Analysis

The Hydrogen Generation Market size is estimated at USD 177.24 billion in 2023, and is expected to reach USD 218.03 billion by 2028, growing at a CAGR of 4.23% during the forecast period (2023-2028).

The market was negatively impacted by COVID-19 in 2020. Presently the market has reached pre-pandemic levels.

  • Over the long term, factors such as increased government regulations for desulphurization, greenhouse gas emissions, and encouraged production and consumption of hydrogen are likely to drive the hydrogen generation market during the forecast period.
  • On the other hand, high capital costs of hydrogen energy storage are expected to restrain the hydrogen generation market.
  • The steam methane reforming technology segment is expected to dominate the hydrogen market over the forecast period.
  • Nevertheless, technological advancements in extracting hydrogen from renewable sources and increased applications of hydrogen as a fuel are likely to create lucrative growth opportunities for the hydrogen generation market during the forecast period.
  • Asia-Pacific is the fastest-growing market during the forecast period due to the rising hydrogen demand. This growth is attributed to increasing investments, coupled with supportive government policies in the countries of this region, including India, China, and Australia.

Hydrogen Generation Market Trends

This section covers the major market trends shaping the Hydrogen Generation Market according to our research experts:

Blue Hydrogen Segment Expected to see Significant Growth

  • Blue hydrogen is made by combining natural gas with heated steam in the steam reforming process. Natural gas is used to produce blue hydrogen, a low-carbon fuel. It is used to power vehicles, generate energy, and heat buildings, among other things.
  • The CO2 created in blue hydrogen does not escape into the atmosphere. Instead, CO2 is caught and stored separately at the production site. Carbon capture and storage (CCS) is a technique that aids in reducing carbon emissions into the atmosphere. As a result, it is more environmentally benign than grey hydrogen, although blue hydrogen increases the cost of carbon storage.
  • The blue hydrogen market is expected to be driven by the growing use of hydrogen in fuel cell-powered automobiles. Fuel cells are an environment-friendly mode of transportation that can replace fossil fuels. Furthermore, governments from all over the world support the usage of fuel cell vehicles to minimize greenhouse gas emissions. Subsidies and tax breaks are being offered, and more money is being invested in developing infrastructure for fuel cell vehicles. As a result, the increased use of hydrogen in the vehicle industry is expected to drive the demand for blue hydrogen over the forecast period.
  • According to IEA, in January 2022, there were at least 50 blue hydrogen projects in the works around the world, with capacity expected to grow more than tenfold by 2030. One such project is a joint venture between Equinor and Engie to produce low-carbon hydrogen at a large scale and at competitive cost levels. They will use a process known as auto thermal reforming (ATR), which allows for decarbonization rates above 95%.
  • Hence, owing to the above points, the blue hydrogen segment is likely to see significant growth in the hydrogen generation market during the forecast period.
Hydrogen Generation Market : Hydrogen Demand, By Sector in the Net Zero Scenario, Global, 2020-2030

Asia-Pacific Region Fastest Growing Market

  • The Asia- Pacific region is the fastest-growing market due to the rising hydrogen demand for power generation in China and India. Furthermore, increased government measures to promote clean and green energy in countries such as India, Japan, and Australia are encouraging market growth.
  • The rapid development of numerous sectors in various economies, such as South Korea, China, Japan, and India, demonstrated a robust economic development that aided the growth of the hydrogen-generating industry in this region. The increasing demand for fuel cell-powered electric vehicles in the area is mainly responsible for the region's appealing growth. Aside from that, power generation via renewable energies is expanding in the region.
  • China is the most significant and fastest-growing market for hydrogen generation. In recent years, the country's oil and gas and manufacturing industries have experienced tremendous expansion.
  • According to the National Development and Reform Commission (NDRC) and energy regulator National Energy Administration (NEA), by 2025, China plans to manufacture 100,000-200,000 metric tons of green hydrogen from renewable sources per year, reducing CO2 emissions by 1-2 million metric tons annually.
  • The factors mentioned above are likely to help the hydrogen market grow in the Asia-Pacific region during the forecast period.
Hydrogen Generation Market : Growth Rate by Region, 2022-2027

Hydrogen Generation Industry Overview

The hydrogen generation market is moderately fragmented. Some of the major players in the market (in no particular order) include ITM Power plc, Linde plc, Engie SA, The Messer Group GmbH, and Air Liquide S.A.

Hydrogen Generation Market Leaders

  1. ITM Power plc

  2. Linde plc

  3. Engie SA

  4. Air Liquide S.A

  5. The Messer Group GmbH

*Disclaimer: Major Players sorted in no particular order

ITM Power plc, Linde plc, Engie SA, The Messer Group GmbH, and Air Liquide S.A.

Hydrogen Generation Market News

  • In August 2022. Larsen & Toubro (L&T) commissioned a green hydrogen plant at its AM Naik Heavy Engineering Complex in Hazira, Gujarat, India. The plant is likely to produce 45 Kg of green hydrogen daily, which will be used for captive consumption in the company's Hazira manufacturing complex.
  • In April 2022, Masdar and Hassan Allam signed an agreement to establish green hydrogen production plants in Egypt's Suez Canal Economic Zone and along the Mediterranean coast, with 4 gigawatts (GW) of electrolyzer capacity and 480,000 tons of green hydrogen per year by 2030.

Hydrogen Generation Market Report - Table of Contents


    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions




    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

      2. 4.5.2 Restraints

    6. 4.6 Supply Chain Analysis

    7. 4.7 Porter's Five Forces Analysis

      1. 4.7.1 Bargaining Power of Suppliers

      2. 4.7.2 Bargaining Power of Consumers

      3. 4.7.3 Threat of New Entrants

      4. 4.7.4 Threat of Substitutes Products and Services

      5. 4.7.5 Intensity of Competitive Rivalry


    1. 5.1 Source

      1. 5.1.1 Blue hydrogen

      2. 5.1.2 Green hydrogen

      3. 5.1.3 Grey Hydrogen

    2. 5.2 Technology

      1. 5.2.1 Steam Methane Reforming (SMR)

      2. 5.2.2 Coal Gasification

      3. 5.2.3 Other Technologies

    3. 5.3 Application

      1. 5.3.1 Oil Refining

      2. 5.3.2 Chemical Processing

      3. 5.3.3 Iron & Steel Production

      4. 5.3.4 Other Applications

    4. 5.4 Geography

      1. 5.4.1 North America

      2. 5.4.2 Europe

      3. 5.4.3 Middle East & Africa

      4. 5.4.4 Asia-Pacific

      5. 5.4.5 South America


    1. 6.1 Mergers, Acquisitions, Collaboration and Joint Ventures

    2. 6.2 Strategies Adopted by Key Players

    3. 6.3 Company Profiles

      1. 6.3.1 Linde plc

      2. 6.3.2 Air Liquide

      3. 6.3.3 Messer Group GmbH

      4. 6.3.4 ITM Power plc

      5. 6.3.5 Engie SA

      6. 6.3.6 Cummins

      7. 6.3.7 Air Products & Chemicals

      8. 6.3.8 Fuel Cell Energy

      9. 6.3.9 Taiyo Nippon

      10. 6.3.10 McPhy Energy

      11. 6.3.11 Enapter

    4. *List Not Exhaustive

**Subject to Availability

Hydrogen Generation Industry Segmentation

Hydrogen generation is an industrial process for generating hydrogen gas from diverse domestic resources, including fossil fuels, biomass, and water electrolysis with electricity. There are several processes to produce hydrogens, such as Natural Gas Reforming/Gasification, Electrolysis, Renewable Liquid Reforming, and Fermentation. The hydrogen generation market is segmented by source, technology, application, and geography. By source, the market is segmented as Blue Hydrogen, Green Hydrogen, and Grey Hydrogen; by technology, the market is segmented as Steam Methane Reforming (SMR), Coal Gasification, and Other Technologies. By application, the market is segmented as Oil Refining, Chemical Processing, Iron & Steel Production, and Other Applications. By geography, the market is segmented as North America, Europe, Asia-Pacific, South America, and Middle East & Africa. For each segment, the market sizing and forecasts have been done based on revenue (in USD billion).

Blue hydrogen
Green hydrogen
Grey Hydrogen
Steam Methane Reforming (SMR)
Coal Gasification
Other Technologies
Oil Refining
Chemical Processing
Iron & Steel Production
Other Applications
North America
Middle East & Africa
South America

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Hydrogen Generation Market Research FAQs

The Hydrogen Generation Market size is expected to reach USD 177.24 billion in 2023 and grow at a CAGR of 4.23% to reach USD 218.03 billion by 2028.

In 2023, the Hydrogen Generation Market size is expected to reach USD 177.24 billion.

ITM Power plc, Linde plc, Engie SA, Air Liquide S.A and The Messer Group GmbH are the major companies operating in the Hydrogen Generation Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).

In 2023, the North America accounts for the largest market share in the Hydrogen Generation Market.

Hydrogen Industry Report

Statistics for the 2023 Hydrogen market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Hydrogen analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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