Global Hydrogen Generation Market Size Booming at Significant CAGR of 8.51% During 2024–2030 to Surpass USD 298 Billion by 2030

Published | 03 February 2024

Global Hydrogen Generation Market is flourishing due to the governments’ heightened focus on meeting their net zero targets and decarbonization goals with clean fuels, particularly hydrogen.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the Global Hydrogen Generation Market size at USD 168.52 billion in 2023. During the forecast period between 2024 and 2030, BlueWeave expects the Global Hydrogen Generation Market size to expand at a CAGR of 8.51% reaching a value of USD 298.55 billion by 2030. The International Renewable Energy Agency (IRENA) estimates that the global production of pure hydrogen is approximately 75 MtH2/yr and an additional 45 MtH2/yr of hydrogen as part of a mix of gases. The Global Hydrogen Generation Market is propelled by the increasing government mandates for the desulphurization of petroleum products and the growing demand for cleaner fuels. Hydrogen’s inherent quality is expected to play a pivotal role in facilitating the expanded adoption of hydrogen as a major fuel in emerging markets. Projections indicate a substantial uptick of almost two-thirds in global electricity demand during the forecast period. The global electricity market's growth is expected to be further fortified by a concentrated emphasis on distributed power and utility projects. Governments across various emerging and developed nations are actively pursuing carbon neutrality, demonstrating a notable commitment to environmental sustainability. Also, these administrations have revised their strategic frameworks to incorporate clean energy sectors in their future plans, thereby fostering the growth of the hydrogen generation industry. The surging demand for fuel cell electric vehicles (FCEVs), including passenger vehicles, buses, trucks, and other heavy-duty automobiles, is also poised to drive market growth. FCEVs incorporate a fuel cell device that operates by utilizing hydrogen as its primary fuel, facilitating emission-free operation. Notably, ambitious deployment targets set by various governments have resulted in a substantial rise in the number of FCEVs on roadways. Hence, these growth aspects are expected to boost the expansion of the Global Hydrogen Generation Market during the period in analysis.

Opportunity – Hydrogen’s expanding applications and new markets

The landscape of hydrogen generation is evolving, with traditional methods dominating while innovative technologies like electrolysis and carbon capture and storage (CCS) are gaining significant momentum. Blue hydrogen, a product of CCS, adeptly captures and stores carbon emissions, while green hydrogen from electrolysis aligns with renewable energy sources. Electrolysis and CCS technologies, marked by their eco-friendly attributes, are not only meeting emission standards but also expanding the horizons of hydrogen applications. The emphasis on green and blue hydrogen signifies a shift toward more sustainable practices, opening new markets and applications that comply with environmental norms.

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Impact of Geopolitical Tensions on Global Hydrogen Generation Market

The Global Hydrogen Generation Market is significantly influenced by geopolitical tensions in several ways. These tensions present notable challenges, including the imposition of high production costs hindering the commercial production of hydrogen fuel. The ongoing energy transition, driven by the imperative for renewables and energy efficiency, amplifies these obstacles. Geopolitical uncertainties, coupled with substantial capital requirements for plant setup and operation, impede the market's momentum. Hydrogen emerges as a core pillar in the European Union's plan to end reliance on Russian gas, with a call to quadruple hydrogen use by 2030, aligning with the global push for clean energy alternatives. Moreover, energy-intensive technologies, such as water electrolysis, contribute to production costs by necessitating additional electricity. Uncertainties in the geopolitical landscape may result in growing regionalization in energy relations, particularly due to the high costs of transporting hydrogen. Despite these challenges, hydrogen's role in energy trade fosters positive developments, introducing new patterns of interdependence and bilateral relations. Hydrogen diplomacy becomes integral to economic relations as countries strategically consider hydrogen as an element of energy security. Countries with abundant renewable power explore becoming green hydrogen producers, potentially altering geoeconomic dynamics. Despite the competitive yet less lucrative nature of the hydrogen business compared to oil and gas, technological advancements and global efforts can shape transparent rules and standards, ensuring a coherent and equitable global hydrogen trade system. Access to hydrogen technologies in developing countries promotes global stability and equity while reducing supply chain risks. Balancing immediate advantages and applications ensures a cost-effective and sustainable hydrogen market, driving global energy stability in the long run.

Global Hydrogen Generation Market

Segmental Information

Global Hydrogen Generation Market – By Technology

By technology, the Global Hydrogen Generation Market is divided into Steam Methane Reforming (SMR), Partial Oxidation (POX), Auto Thermal Reforming (ATR), Coal Gasification, and Electrolysis segments. The SMR segment holds the highest share in the Global Hydrogen Generation Market by technology. The SMR process stands as a mature and advanced technology in the Global Hydrogen Generation Market by technology. The substantial increase in worldwide demand for hydrogen serves as a pivotal catalyst for the prominence of SMR technology, given its status as the most cost-effective method for hydrogen generation. Additional factors fueling the growth of the SMR technology segment encompass operational advantages, notably the high conversion efficiency inherent in the SMR process. It is also anticipated that the SMR segment will continue to dominate and retain its leading position in the Global Hydrogen Generation Market by technology over the forecast period.

Global Hydrogen Generation Market – By Region

The in-depth research report on the Global Hydrogen Generation Market covers the market in a number of major countries across five regions: North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. The Asia Pacific region holds the highest share in the Global Hydrogen Generation Market and is expected to maintain its dominance over the forecast period. The regional prominence is driven by favorable government policies, ambitious targets for fuel cell vehicles, a surge in energy demand, and substantial investments in hydrogen refueling infrastructure. Notably, in Japan, the Ministry of Economy, Trade, and Industry (METI) revised the national hydrogen strategy in March 2019, setting targets of 200,000 FCEV units by 2025 and 800,000 units by 2030. Meanwhile, North America is expected to record the fastest growth rate during the forecast period. Regional authorities are actively involved in dedicated research and development programs to support various hydrogen-based activities and applications. For instance, the Hydrogen and Fuel Cell Technologies Office, a division of the U.S. Department of Energy (DoE), launched the Hydrogen Program in the United States. The program aims to bolster hydrogen production, infrastructure, delivery, storage, and utilization across sectors, such as industrial and transportation.

Competitive Landscape

The Global Hydrogen Generation Market is fragmented, with numerous players serving the market. The key players dominating the Global Hydrogen Generation Market include Air Products and Chemicals, Inc., Linde plc, Air Liquide S.A., Hydrogenics Corporation, Plug Power Inc., McPhy Energy S.A., Iwatani Corporation, Nel ASA, Mitsubishi Power, Ltd, and Siemens Energy AG. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge in the overall market.

Don’t miss the business opportunity of the Global Hydrogen Generation Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The report's in-depth analysis provides information about growth potential, upcoming trends, and the Global Hydrogen Generation Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the Global Hydrogen Generation Market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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