Hydrogen Generation Market Size, Share, Opportunities, And Trends By Technology (Steam Methane Reforming, Coal Gasification, Others), By System (Captive, Merchant), By Source (Natural Gas, Coal, Biomass, Water), By Application (Methanol production, Ammonia Production, Petroleum Refining, Transportation, Power Generation, Others), And By Geography - Forecasts From 2024 To 2029

The hydrogen generation market is projected to grow considerably during the forecast period.

Demand for cleaner fuel and tightening government guidelines for petroleum product desulfurization is increasing the hydrogen generation market growth.

Because it is a highly efficient energy carrier, hydrogen is anticipated to continue to expand into previously untapped markets. Throughout the forecast period, it is expected that the global electricity demand will increase by almost two-thirds of its current level. It is expected that concentrating on distributed power and utility projects will support the industry’s expansion. The market is also dominated by a shift in emphasis toward cleaner energy sources and by regulations that are favourable to the industry. The global energy crisis has sparked investigations into alternate energy sources and several sustainable conservation projects.

What are the hydrogen generation market growth drivers?

Increasing demand for blue hydrogen

The rising use of hydrogen in fuel cell-powered vehicles is anticipated to propel the blue hydrogen. Fossil fuels can be replaced by fuel cells, an environmentally friendly form of transportation. In addition, governments everywhere encourage the use of fuel-cell automobiles as a way to reduce greenhouse gas emissions. Tax breaks and subsidies are being provided, and more funds are being allocated to the infrastructure development of fuel-cell automobiles. Therefore, throughout the forecast period, it is anticipated that the growing use of hydrogen in the automotive industry will propel demand for blue hydrogen and lead to market growth.

Demand for clean energy and rising government initiatives

As a clean energy source, hydrogen is becoming more popular, particularly in industries where decarbonization is a top concern. Since hydrogen can produce energy with no emissions, it is viewed as a promising alternative to fossil fuels by the industrial sector.

Moreover, hydrogen is being invested in by numerous governments across the globe as a means of mitigating the effects of climate change. Market expansion is being promoted by tax breaks, subsidies, and regulatory frameworks that encourage the development and application of hydrogen in a variety of industries.

Technological advancements and increasing industrial applications

Hydrogen generation techniques are becoming more efficient and economical due to ongoing research and technological advancements. The viability of producing hydrogen is increasing with developments in electrolysis, catalysts, and the integration of renewable energy sources. Furthermore, within the chemicals and materials sector, hydrogen is used in several industries, such as methanol production, ammonia production, refining, and other chemical processes. The market is growing because of the need for hydrogen as a feedstock for these processes.

Strict regulations to reduce greenhouse gas emission

Infrared radiation, also known as net heat energy, can be absorbed by greenhouse gases from the earth's surface, re-radiated there, and added to the overall effect. The use of fossil fuels and the world's fast industrialization are the main causes of the ongoing increase in greenhouse gas emissions. For instance, the Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule was created by the National Highway Traffic Safety Administration (NHTSA) and the US Environmental Protection Agency (EPA) in response to this problem. This rule establishes lower standards for Corporate Average Fuel Economy (CAFE) and GHG emissions for cars built in the United States between 2021 and 2026.

High use of Ammonia

The use of ammonia as a carbon-free fuel, hydrogen carrier, and energy store presents a chance to further expand the use of renewable hydrogen technologies. At ammonia plants, hydrogen is usually produced on-site using a feedstock of fossil fuels. The most popular feedstock for a steam methane reforming (SMR) unit is natural gas. Through a partial oxidation (POX) process, ammonia can also be produced from coal. As the need for hydrogen grows, the market is expected to grow steadily across all segments. Presently regarded as one of the most valuable chemical products, methanol holds great potential as a building block for the synthesis of more complex chemical compounds.

Rising use of steam methane reforming process

This procedure involves heating gases, like methane, with steam and a catalyst to produce an endothermic reaction. It is expected that this reaction will further break down the methane molecule into hydrogen and carbon monoxide. It is expected that the carbon monoxide will undergo a water gas shift reaction to release hydrogen gas. The Middle East and African countries' abundant fossil fuel reserves may present the best chance for the market to expand. The advancement of carbon capture technology in recent times has the potential to create additional avenues for the expansion of hydrogen production via the steam reforming process.

What are the key geographical trends shaping the hydrogen generation market?

Asia Pacific is projected to grow at a high rate during the forecast period

The fastest-growing market is in the Asia-Pacific area because of the growing demand for hydrogen in China and India for electricity generation.

Additionally, countries like Australia, Japan, and India are seeing an increase in government initiatives to support clean and green energy, which is driving market expansion. A strong economic development that supported the expansion of the hydrogen-generating industry in this region was evidenced by the quick development of multiple sectors in different economies, including South Korea, China, Japan, and India. The area's attractive growth is mostly due to the growing demand for electric vehicles that run on fuel cells. In addition, the area is seeing an increase in the production of electricity through renewable sources.

Recent developments in the hydrogen generation market:

• In July 2023, Air Products, the world's largest hydrogen producer and a pioneer in energy transition projects announced that it has been chosen as the hydrogen and technology provider for Alberta's first hydrogen fuel cell passenger vehicle fleet by Edmonton International Airport.
• Following the agreement, Toyota Mirai hydrogen fuel cell vehicles will receive hydrogen from Air Products, which will set up a mobile hydrogen refueler at the airport. The airport intends to start with a fleet of five hydrogen fuel cell cars for employee use and eventually increase to up to 100 vehicles to operate as a taxi service within the airport.
• In August 2022, a green hydrogen plant at the AM Naik Heavy Engineering Complex of Larsen & Toubro (L&T) was put into service in Hazira, Gujarat, India. The company's Hazira manufacturing complex will use the 45 kg of green hydrogen that the plant is expected to produce each day for internal use.
• In April 2022, Masdar and Hassan Allam signed a deal to build green hydrogen production facilities with a 4-gigawatt (GW) electrolyzer capacity and 480,000 tons of green hydrogen annually by 2030 in Egypt's Suez Canal Economic Zone and along the Mediterranean coast.

Hydrogen Generation Market is analyzed into the following segments:

• By Technology
  • Steam Methane Reforming
  • Coal Gasification
  • Others
• By System
  • Captive
  • Merchant
• By Source
  • Natural Gas
  • Coal
  • Biomass
  • Water
• By Application
  • Methanol production
  • Ammonia Production
  • Petroleum Refining
  • Transportation
  • Power Generation
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Taiwan
    • Others

Key questions answered in this report:

• What is the current market size of the hydrogen generation sector?
• What are the key trends driving the hydrogen generation market growth?
• What are the main challenges faced by the hydrogen generation industry?
• Who are the major players in the hydrogen generation market?
• Which regions are leading the hydrogen generation market? 
• What are the revenue forecasts for the hydrogen generation market over the next five years?
• What are the most significant technological advancements in the hydrogen generation industry?
• What are the regulatory and policy frameworks impacting the hydrogen generation market?
• What are the environmental impacts of hydrogen generation production/ industry?
• How does the government support the hydrogen generation market?

1.  INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Data

2.3. Validation

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Force Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. HYDROGEN GENERATION MARKET BY TECHNOLOGY

5.1. Introduction

5.2. Steam Methane Reforming

5.3. Coal Gasification

5.4. Others

6. HYDROGEN GENERATION MARKET BY SYSTEM

6.1. Introduction

6.2. Captive

6.3. Merchant

7. HYDROGEN GENERATION MARKET BY SOURCE

7.1. Introduction

7.2. Natural Gas

7.3. Coal

7.4. Biomass

7.5. Water

8. HYDROGEN GENERATION MARKET BY APPLICATION

8.1. Introduction

8.2. Methanol production

8.3. Ammonia Production

8.4. Petroleum Refining

8.5. Transportation

8.6. Power Generation

8.7. Others

9. HYDROGEN GENERATION MARKET BY GEOGRAPHY

9.1. Introduction 

9.2. North America

9.2.1. USA

9.2.2. Canada

9.2.3. Mexico

9.3. South America

9.3.1. Brazil

9.3.2. Argentina

9.3.3. Others

9.4. Europe

9.4.1. Germany

9.4.2. France

9.4.3. United Kingdom

9.4.4. Spain

9.4.5. Others

9.5. Middle East And Africa

9.5.1. Saudi Arabia

9.5.2. UAE

9.5.3. Israel

9.5.4. Others

9.6. Asia Pacific

9.6.1. China

9.6.2. Japan

9.6.3. India

9.6.4. South Korea

9.6.5. Indonesia

9.6.6. Taiwan

9.6.7. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisition, Agreements, and Collaborations

11. COMPANY PROFILES

11.1. Linde Plc

11.2. Messer

11.3. Air Products and Chemicals, Inc

11.4. Air Liquide International S.A

11.5. INOX Air Products Ltd.

11.6. Matheson Tri-Gas, Inc.

11.7. SOL Group

11.8. Iwatani Corporation

11.9. Tokyo Gas Chemicals Co., Ltd.

11.10. Taiyo Nippon Sanso Corporation

11.11. Advanced Specialty Gases Inc.

Linde Plc

Messer

Air Products and Chemicals, Inc

Air Liquide International S.A

INOX Air Products Ltd.

Matheson Tri-Gas, Inc.

SOL Group

Iwatani Corporation

Tokyo Gas Chemicals Co., Ltd.

Taiyo Nippon Sanso Corporation

Advanced Specialty Gases Inc