USD 243.1 billion
Hydrogen Market Size, Share, and Growth Analysis
Hydrogen Market By Sector (Generation Type, Storage), By Application (Energy, Mobility), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG10A2019 |
Region:
Global |
Published Date: January, 2025
Pages:
157
|Tables:
65
|Figures:
75
Format -
Hydrogen Market Insights
Hydrogen Market size was valued at USD 243.1 billion in 2023 and is poised to grow from USD 260.36 billion in 2024 to USD 450.7 billion by 2032, growing at a CAGR of 7.1% during the forecast period (2025-2032).
The government of each respective country's on-going efforts towards the usage of low emission fuels along with regulations to reduce the overall emissions level in the industries is predicted to drive the demand of hydrogen. This is because the sector is going through a phase where it wants to decarbonize by adopting low-carbon production methods for hydrogen and utilizing it in the manufacture of ammonia, methanol, and other chemicals.
The industry went through technological changes that made the process more cost-effective, cleaner, and sustainable. Upgradation of the existing gas infrastructure, including pipelines coupled with ongoing government initiatives for scaling up the existing hydrogen infrastructure will significantly lower the distribution costs, thereby augmenting the requirement of clean hydrogen technologies.
Commercial and industrial demand for hydrogen fuel cell vehicles will be the major driver of the product, since there is increasing interest in it, which is further boosted by the adoption of hydrogen buses and trains, particularly in Europe and Asia. For instance, H2X, an Australian startup, designs and develops FCVs that take only a few minutes to refuel and have a longer mileage per refill than battery-powered vehicles. Apart from this, hydrogen trains are being increasingly used in place of diesel engines, and in Europe where electrification of train lines is costly or even impossible.
The acceleration and deployment of hydrogen relies mainly on lawmakers who make suitable policies that ensure monetary benefit as well as thorough roadmaps. Many countries have created or are in the process of creating national strategies for hydrogen to gain decarbonization and energy security. Governments across the globe have promised subsidies and grants in addition to tax breaks, saving costs associated with building production facilities, fueling stations, and other hydrogen storage facilities to make this wave of business happen. In addition to this, business would receive the economical edge when low carbon sources reduce their pollution emissions thereby aiding global hydrogen market growth.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Grey Hydrogen
Fastest Growth
Blue Hydrogen
Growth Rate
7.1% CAGR
Global Hydrogen Market ($ Bn)
Country Share for North America (%)
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Hydrogen Market Segments Analysis
Global Hydrogen Market is segmented by Sector, Application and region. Based on Sector, the market is segmented into Generation Type, Storage and Transportation. Based on Application, the market is segmented into Energy, Mobility, Chemical & Refinery and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis By Source
As per the 2024 global hydrogen market analysis, the grey hydrogen segment dominated the market by gaining a significant share with a market value of around USD 254.89 billion. Grey hydrogen is generated by reformatting natural gas, whereby it can remake the molecular architecture of hydrocarbons. As compared to green and blue hydrogen, grey hydrogen is less costly. Grey hydrogen is the market leader as compared to blue and green hydrogen. Hydrogen is produced from natural gas, which is a reforming process that produces hydrogen, carbon monoxide, and carbon dioxide. The generation of hydrogen from natural gas is also expected to sustain its lead in the forecast period.
The global hydrogen market is expected to witness a sharp rise throughout the forecast period, of which blue hydrogen is one of the major components for the overall transition into a low-carbon economy. Blue hydrogen, created by utilizing natural gas with CCS, is gradually emerging as a cleaner alternative to traditional hydrogen, as governments and companies globally push for the reduction of carbon emissions. Growth is catalyzed by rising investments, favorable policies, and CCS technology advancement. In addition, the rising demand for hydrogen in power generation, transportation, and other industrial applications contributes to blue hydrogen's rise in the world energy landscape.
Analysis By Generation and Delivery Type
Based on the 2024 global hydrogen market forecast, the captive hydrogen segment accounted for the largest market share and is expected to grow at a CAGR of 8.66%. In-house production is preferred by companies consuming high volumes of hydrogen in the refinery and chemical industries. For large consumers, it indeed plays a critical role in several chemical processes where petroleum refining, ammonia production, and methanol manufacturing are its industrial uses. Captive hydrogen production helps companies avoid reliance on external vendors or distribution networks and provides a stable, predictable, and cost-effective supply. This approach provides higher operational efficiency, risk mitigation, and long-term cost savings for industries with a high demand for hydrogen.
The merchant hydrogen category would experience the largest growth over the forecast period due to enhanced demand by various sectors within the transportation sector and power-generating industries. Unlike captive hydrogen, merchant hydrogen is produced at central locations and transported through pipelines, trucks, or cylinders to the customers. Growth in this segment is being encouraged by the trend toward a hydrogen economy, investment in fuel cell technology, and government incentives for clean-energy solutions. All these sectors-moving mobility, renewable energy storage, and industrial decarbonization-will help raise the high growth potential of merchant hydrogen in the future with the growth of demand in low-carbon energy solutions.
Global Hydrogen Market By Source
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Hydrogen Market Regional Insights
Investments in the hydrogen market are gaining momentum in North America, supported by encouraging government policies and enhanced industrial demand. It is observed that the private and public sectors are making huge investments to give a push to the adoption of hydrogen. Canada and the United States have been the prime countries that are offering incentives, subsidies, and regulatory frameworks to promote hydrogen infrastructure and production. Government-led R&D initiatives also drive market growth. Therefore, major industry players such as Linde Plc, Bloom Energy, Plug Power Inc., Cummins, and FuelCell Energy are present in the region, which adds more innovation and competition to the market. All these factors lead to the high growth of the North American hydrogen industry.
The U.S. hydrogen market will reach more than USD 36 billion by 2034, given the leading policy support and investments in hydrogen technology by the government. Industry is being fueled through federal and state initiatives such as the Hydrogen Energy Earthshot and tax incentives. The lead state for hydrogen fuel cell vehicles, adoption and development in California positions the United States to take a significant position in the hydrogen market. Moreover, investment in carbon capture, electrolyzer technology and renewable hydrogen production by both the public and private sector will ensure long-term market growth and make the U.S. a leader in the hydrogen industry.
Fast urbanization and globalization drive increased energy demand in Asia-Pacific, thus driving adoption of hydrogen in transportation, power generation, and chemical manufacturing industries. Rising environmental concerns and ambitious carbon neutrality goals in the region are driving increasing demand for clean fuel alternatives. National hydrogen roadmaps are being established by China, Japan, South Korea, and India. Large-scale hydrogen production projects are being pursued, and hydrogen-powered mobility solutions are being promoted. Government-backed research and demonstration projects are also hastening technology developments. These factors are predicted to contribute positively to the adoption of carbon-negative hydrogen solutions in Asia-Pacific over the next few years.
With the advent of low-cost natural gas and abundant renewable energy sources, the Middle East & Africa is turning into a low-cost hydrogen-producing region. The governments and industries of the region are shifting towards green hydrogen production by tapping into the solar and wind energy of the region. Besides these, strategically located salt deposits in Oman, Saudi Arabia, Kuwait, and the UAE offer additional low-cost hydrogen storage options that supplement the capacity of the region to be supportive for global hydrogen supply chains. Increasing investments and partnerships make the Middle East & Africa well positioned to become a major player in the blue and green hydrogen market.
The European hydrogen market is expected to grow substantially during the forecast period mainly based on policy support, technological breakthroughs, and aggressive decarbonization targets. This European Union hydrogen strategy tries to speed up the roll out of renewable hydrogen. Countries heavily invested in the process include Germany, France, and the Netherlands concerning hydrogen production, infrastructure, and fuel cell technology. Such trends encompass cross-border collaboration, carbon pricing mechanisms, and incentive schemes for projects of clean hydrogen, that support the market scale-up. In Europe, with its commitment toward achieving net-zero emissions by 2050, it is bound to emerge as a hub about hydrogen globally.
Global Hydrogen Market By Geography
- Largest
- Fastest
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Hydrogen Market Dynamics
Hydrogen Market Drivers
Increasing Demand for Decarbonization and Clean Energy
-
Increased interest in reduction of carbon footprint and achievement of net-zero carbon has fueled a significant increase in global demand for hydrogen. This gas is substituted as a direct substitute for fossil fuel in most of the heavy industries such as steel, power generation, and transport. Hydrogen is emerging as a critical component of the future sustainable energy mix as countries transition to renewable energy.
Government Investments & Support
-
To speed up the adoption of hydrogen, governments worldwide are establishing funds, incentives, and subsidies. Initiatives such as the EU Hydrogen Strategy, the U.S. Inflation Reduction Act, and Japan's Hydrogen Roadmap are accelerating large-scale hydrogen projects, infrastructure development, and research and development. These programs aim to promote public-private collaborations, spur international investments in hydrogen production and storage technologies, and reduce the cost of low-carbon hydrogen.
Hydrogen Market Restraints
High Production Costs and Difficulties with Infrastructure
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Electrolysis technology, carbon capture, and renewable energy integration make hydrogen expensive to produce, especially green and blue hydrogen. Infrastructure issues further hinder adoption; there are still few pipelines, storage facilities, and hydrogen filling stations. Mass commercialization of hydrogen is difficult to achieve in poor nations lacking hydrogen infrastructure unless there are considerable cost reductions and improvements in the technology, particularly.
Limitations in Storage and Transportation
-
Hydrogen can only be stored and transported liquefied at low temperature, high pressure in tanks or as a chemical carrier. Hydrogen transport cannot be scaled without the existence of hydrogen transport infrastructure worldwide, pipelines, designated shipping lanes, refueling stations, etc. Another reason is the transportation of liquid hydrogen requires super-low temperatures at -253°C, which significantly increases costs and poses technological problems. These aspects limit the utilization of hydrogen globally in international energy markets.
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Hydrogen Market Competitive Landscape
The global hydrogen market is marked by many global, regional, and local vendors. The market is intensely competitive with all the players vying to get the maximum share in the market. Rapid advances in processes, extraction, processing, and the increasing application of hydrogen in end-use industries are the key factors affecting the global market growth. Vendors compete on the basis of cost, quality of products, availability, and reliability of products. For the vendors, it is crucial to make Hydrogen cost-effective and of high quality to compete in the market. This competitive scenario is divided between the tier-1 companies and the tier-2 companies.
Top Players in Hydrogen Market
- Air Products and Chemicals Inc. (US)
- Air Liquide (France)
- Chevron Corporation (US)
- Saudi Arabian Oil Co. (Saudi Arabia)
- Uniper SE (Germany)
- Worthington Industries (US)
- INOX India Limited (India)
- Cryolor (France)
- Pragma Industries (France)
- BNH Gas Tanks (India)
- Hexagon Purus (Norway)
- NPROXX (Netherlands)
- Oxygen Service Company Inc. (OSC) (US)
- BayoTech (US)
- Luxfer Gas Cylinders (UK)
- Chart Industries (US)
Recent Developments in Hydrogen Market
- In December 2024, Air Liquide received a grant of USD 114 million from the European Innovation Fund to boost its ENHANCE project at the Port of Antwerp-Bruges, Belgium. This innovative project involved large-scale production and distribution of low carbon & renewable hydrogen produced from ammonia. The project included the retrofitting of an existing hydrogen production unit using renewable ammonia and the development of a hydrogen liquefier to reduce CO? emissions by more than 300,000 tons annually and accelerate the decarbonization of industries such as chemicals, refineries, and heavy transportation.
- In June 2024, Australian hydrogen producer, Infinite Green Energy is currently undertaking a project in Italy to generate green hydrogen and convert brownfield sites into green energy hubs. The company aims to develop large-scale green hydrogen production facilities based on renewable sources that will help Italy transit from a high carbon economy. The goal is to use the underutilized industrial lands and transform those into energy-generating landscapes. This program demonstrates Infinite Green Energy's contribution to the development of global hydrogen solutions and supporting the wider goals of Europe's energy transition process.
- In June 2022, a joint venture was announced between Siemens Energy and Air Liquide to develop large-scale electrolyzers for sustainable hydrogen production. The collaboration will help improve green hydrogen technology by increasing efficiency levels and accelerate the process towards building a low-carbon economy through expansion in electrolysis capacity across the industrial and energy sectors globally.
Hydrogen Key Market Trends
- Emergence of Green Hydrogen: Growing investment in electrolysis technology, coupled with decreasing price of solar and wind energy, drives the development of green hydrogen. The governments and industrial units are establishing large-scale renewable energy-powered hydrogen manufacturing facilities. Nations such as Saudi Arabia, Germany, and Australia are at the forefront of green hydrogen initiatives for reducing prices and introducing hydrogen as a clean fuel substitute into international energy infrastructure.
- Growth of Hydrogen Hubs and International Trade: To further expand the hydrogen economy, countries are establishing hydrogen hubs, which encompass production, storage, and delivery infrastructure. In addition, major exporters such as Australia, the Middle East, and North Africa can now supply hydrogen to Europe and Asia due to the development of international hydrogen trade agreements. The global hydrogen industry is also being driven by the development of ammonia-based hydrogen carriers and maritime hydrogen transport.
Hydrogen Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the increasing demand for clean energy, decarbonization, and government support is fueling the growth of the global hydrogen industry at a fast pace. The transition to sustainable energy systems is largely based on green and blue hydrogen, and the nations of the world are investing in hydrogen infrastructure, large-scale production, and technological advancements. Despite such challenges as high production costs and infrastructural limitations, hydrogen adoption is accelerating through continuous R&D, policy incentives, and international collaborations. Other drivers that will propel the market include growth of hydrogen hubs, international trade networks, and electrolyzer and storage technologies improvements. More investment and innovation may make hydrogen a cornerstone of the future energy landscape.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 243.1 billion |
| Market size value in 2032 | USD 450.7 billion |
| Growth Rate | 7.1% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Hydrogen Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Hydrogen Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Hydrogen Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Hydrogen Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Hydrogen Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Hydrogen Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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