Hydrogen Generation Market (By Technology: Coal Gasification, Steam Methane Reforming, and Others; By Application: Methanol Production, Ammonia Production, Petroleum Refinery, Transportation, Power Generation, and Others; By System Type: Merchant and Captive) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2021 - 2030


The global hydrogen generation market size was valued at US$ 129.6 billion in 2020 and expected to hit US$ 219.2 billion by 2030, poised to grow at a noteworthy compound annual growth rate (CAGR) of 5.4% from 2021 to 2030.

Hydrogen Generation Market Size 2021 to 2030

Growth Factors

The rising global warming issues coupled with deteriorating climatic and environmental conditions due to the excess pollution have necessitated the development and adoption of clean and green energy. Therefore, the hydrogen is a source of clan and green energy and is expected to grow at a significant rate during the forecast period. Rising government initiatives to reduce carbon footprint is encouraging the production and consumption of hydrogen thereby boosting the hydrogen generation market across the globe. The demand for hydrogen has witnessed three-fold growth since 1975. The rising demand for the green energy across various industries is boosting the growth of the hydrogen generation market globally. At present natural gas is the main source of hydrogen generation followed by coal. Around 6% of the natural gas and 2% of the coal is used in the generation of hydrogen. Hydrogen is commonly used as an alternative to electric energy. The hydrogen fuel is extensively used in fuel cell devices. This is a major factor that propels the growth of the global hydrogen generation market.

Various developmental strategies such as partnerships and agreements are being adopted by the market players to manufacture hydrogen energy, using zero-emission technology. For instance, Brookfield Renewable Partners and Plug Power, Inc. entered into a partnership agreement to develop a hydrogen plant in the US. This plant aims at producing around 15 metric tons of liquid hydrogen daily using 100% renewable resources to reduce carbon footprint. These type of developmental strategies is expected to offer new growth avenues in the upcoming future and boost the growth of the global hydrogen generation market. Moreover, the government policies favoring the hydrogen generation has a crucial role to play in the development of the market. The government in developed and developing economies are coming forward with various policies that supports the reduction of carbon emission and encourages the adoption of clean energy. For instance, the US and India decided to include low carbon technology in their strategic energy collaboration.

Segmental Insights

Technology Insights

Based on technology, the steam methane reforming segment dominated the global hydrogen generation market in 2020, in terms of revenue and is estimated to sustain its dominance during the forecast period. This is attributable to the extensive use of the steam methane reforming technology in the hydrogen generation process across the globe. The rapidly growing demand for the hydrogen energy had resulted in the exponential growth of this segment across the globe.

Hydrogen Generation Market Share, By Technology, 2020 (%)

On the other hand, the coal gasification is projected to be the fastest-growing segment during the forecast period. Coal gasification is also a widely used technology just after the steam methane reforming technology. The abundant availability of coal in various nations like India has propelled the usage of coal in the hydrogen generation market in the past.

Application Insights

Based on application, the ammonia production segment dominated the global hydrogen generation market in 2020, in terms of revenue and is estimated to sustain its dominance during the forecast period. The ammonia manufacturing plants are the highest consumer of the hydrogen energy. The on-site production of hydrogen has further boosted its consumption in the ammonia plants. Ammonia is commonly used to manufacture fertilizers.

On the other hand, petroleum refinery segment is expected to foresee a considerable growth rate. This is attributed to the growing government initiatives regarding reducing the use of Sulphur fuels for the betterment of the environment. The others segment includes chemical industry, iron & steel industry, oil refining industry, and others. The others segment is expected to be the fastest-growing segment owing to the growing production and consumption of hydrogen in the chemical industry. In the chemical industry, hydrogen is obtained as a by-product and is consumed on the site and also supplied to other industries. Hence, the chemical industry is expected to witness a significant growth rate during the forecast period.

System Type Insights

Based on system type, the merchant segment dominated the global hydrogen generation market in 2020, garnering a market share of around 60%, in terms of revenue and is estimated to sustain its dominance during the forecast period. The hydrogen is produced in bulk and is supplied through pipeline or other means to the consumers. The developed pipeline networks in the mature markets like North America and Europe is boosting the growth of this segment.

Hydrogen Generation Market Share, By System, 2020 (%)

On the other hand, the captive segment is estimated to be the most opportunistic segment during the forecast period. Captive segment means the on-site generation of hydrogen. The increased penetration of this segment in the developed markets like North America and Europe is fueling the growth of this segment in the upcoming years.

Region Insights

Based on region, the Asia Pacific dominated the global hydrogen generation market in 2020, in terms of revenue and is estimated to sustain its dominance during the forecast period. Asia Pacific is the top consumer of the hydrogen power. The rapid growth of various industries in the various economies such as South Korea, China, Japan, and India showed a robust economic development that fostered the growth of the hydrogen generation market in this region.

Hydrogen Generation Market Share, By Region, 2020 (%)

Asia Pacific is also estimated to be the fastest growing market owing to the rising demand for hydrogen for power generation in countries like China and India. Moreover, rising government initiatives in the nations like India, Japan, and Australia to promote clean and green energy is boosting the market growth.

Key Companies & Market Share Insights

The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.

In March 2021, Brookfield Renewable Partners and Plug Power, Inc. entered into a partnership agreement to develop a hydrogen plant in the US. This plant aims at producing around 15 metric tons of liquid hydrogen daily using 100% renewable resources to reduce carbon footprint.

The various developmental strategies like partnerships, joint ventures, and agreements fosters market growth and offers lucrative growth opportunities to the market players.

Some of the prominent players in the global hydrogen generation market include:

  • Linde plc
  • Air Liquide International S.A.
  • Hydrogenics
  • Inox
  • Messer Group GmbH
  • Air Products and Chemicals, Inc.
  • Weldstar, Inc.
  • Praxair, Inc.
  • McPhy
  • LNI Swissgas

Report Scope of the Hydrogen Generation Market

Report Highlights Details
Market Size in 2020 US$ 129.6 Billion
Growth Rate CAGR of 5.4% from 2021 to 2030
Market Size US$ 219.2 Billion by 2030
Largest Market Asia Pacific
Base Year 2021
Historic Data 2017 to 2020
Forecast Period 2021 to 2030
Segments Covered Technology, System Type, Application, Region
Companies Mentioned Linde plc, Air Liquide International S.A., Hydrogenics, Inox, Messer Group GmbH, Weldstar, Inc., Praxair, Inc., McPhy, LNI Swissgas

 

Segments Covered in the Report

By Technology

  • Coal Gasification
  • Steam Methane Reforming
  • Others

By Application

  • Methanol Production
  • Ammonia Production
  • Petroleum Refinery
  • Transportation
  • Power Generation
  • Others

By System Type

  • Merchant
  • Captive

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Rest of the World

Frequently Asked Questions

What is the current size of global hydrogen generation market?
The global hydrogen generation market size was valued at US$ 129.6 billion in 2020 and is expected to reach US$ 219.2 billion by 2030.
The global hydrogen generation market is expected to grow at a CAGR of 5.4% from 2021 to 2030.
Rising government initiatives to reduce carbon emission and rising demand for green energy in developed countries are driving factors of the hydrogen generation market.
The major players in the hydrogen generation market are Linde plc, Air Liquide International S.A., Hydrogenics, Inox, Messer Group GmbH, Weldstar, Inc., Praxair, Inc., McPhy, LNI Swissgas
The Asia Pacific dominated the global hydrogen generation market in near future.

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