The global hydrogen generation market size was estimated at USD 170.14 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 9.3% from 2024 to 2030. Demand for cleaner fuel and increasing government regulations for desulphurization of petroleum products. Hydrogen is an effective energy carrier, and this attribute is expected to contribute significantly to its further penetration into newer markets. Global electricity demand is anticipated to witness an increase of nearly two-thirds of current demand over the forecast period. Focus on projects related to distributed power & utility is anticipated to bolster industry’s growth.

U.S. is among the early adopters of clean energy solutions in world for sectors such as power generation, manufacturing, and transportation. The U.S. Department of Energy (DOE) and Department of Transportation (DOT) introduced a Hydrogen Posture Plan in December 2006. This plan was aimed at enhancing research and development (R&D) and validating technologies that can be employed for setting up hydrogen infrastructure.

Gather more insights about the market drivers, restrains and growth of the Global hydrogen generation market

Hydrogen Generation Market Segments Highlights:

1. Based on technology type, global market is divided into steam methane reforming, coal gasification, and others. Steam methane reforming process is a mature and advanced technology in hydrogen generation.

2. Growing global demand for hydrogen generation is a crucial driving factor for steam methane reformers technology, as this is the most economical hydrogen generation method.

3. Coal gasification hold a revenue share of more than 34.0% in 2023. Coal gasification which uses coal as a raw material for producing hydrogen has been in practice for nearly two centuries, moreover, is it also recognized as a mature technology for hydrogen generation.

4. Technologies in “others” segment include electrolysis and pyrolysis process and electrolyzers.

5. Natural gas led hydrogen generation industry with a revenue share of more than 72.0% in 2023. Hydrogen is produced from natural gas reforming which produces hydrogen, carbon monoxide, and carbon dioxide. Hydrogen production from natural gas is the cheapest method of producing hydrogen. Hydrogen production from natural gas is expected to keep its lead in the forecast period.

6. Based on system, the merchant generation segment led with a revenue share of about 60.0% in 2023. Merchant generation of hydrogen means hydrogen is produced at a central production facility and is transported and sold to a consumer by bulk tank, pipeline, or cylinder truck.

7. Ammonia production accounted for the largest revenue share of above 21.0% in 2023. It is expected to maintain its lead throughout the forecast period.

8. Natural gas is the most common feedstock, which feeds a steam methane reforming (SMR) unit. Coal can also be used to produce ammonia via a partial oxidation (POX) process.

9. Turning crude oil into various end-user products such as transport fuels and petrochemical feedstock are some of the major applications of hydrogen.

10. Asia Pacific accounted for the largest revenue share of over 35.14% in 2023.China led it in 2023, in terms of revenue. Presence of a high number of refineries in major countries such as China and India has resulted in driving the utilization of hydrogen generation.

11. Methanol production and ammonia production are the fastest growing sectors with countries such as the U.S. and Canada witnessing significant growth in the last five years.

12. Growth in hydrogen generation is expected on account of fuel cell development and deployment in Europe, which is witnessing an increase due to the projects announced by European Commission (EU) through organizations such as Fuel Cells and Hydrogen Joint Undertaking (FCH JU).

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2. Zero Liquid Discharge Market: The global zero liquid discharge (ZLD) market is expected to register significant growth over the forecast period. The growing emphasis on water treatment is anticipated to drive the market growth of ZLD in the coming years.

Hydrogen Generation Market Segmentation

Grand View Research has segmented the hydrogen generation market based on technology, application, system, source, and region: 

Hydrogen Generation Technology Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)

1. Steam Methane Reforming

2. Coal Gasification

3. Others

Hydrogen Generation Application Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)

1. Methanol production

2. Ammonia Production

3. Petroleum Refining

4. Transportation

5. Power Generation

6. Others

Hydrogen Generation System Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)

1. Captive

2. Merchant

Hydrogen Generation Source Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)

1. Natural Gas

2. Coal

3. Biomass

4. Water

Hydrogen Generation Regional Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)

1. North America

2. Europe

3. Asia Pacific

4. Central & South America

5. Middle East & Africa

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