Hydrogen Market Rising demand for cleaner fuel options, driven by increasing government regulations mandating the desulphurization of petroleum products.

The Hydrogen market is estimated to register a CAGR of 8.47% during the forecast period of 2023 to 2030.

MRFR recognizes the following companies as the key players in the global Hydrogen market are BASF SE, Air Liquide, Air Products and Chemicals, Inc., Linde Plc, Messer SE & Co. KGaA, Bhuruka Gases Limited, Thai Special Gas Company Limited, Taiyo Nippon Sanso Corporation, Yueyang Kaimeite Electronic Specialty Rare Gases Co., Ltd., Yueyang Kaimeite Electronic Specialty Rare Gases Co., Ltd., and Coregas.

Hydrogen Market Highlights

The global Hydrogen market is accounted for to register a CAGR of 8.47% during the forecast period and is estimated to reach USD 525.95 billion by 2030.

The demand for Hydrogen is on the rise, rising demand for cleaner fuel to achieve net zero targets.

The rising global warming issues coupled with deteriorating climatic and environmental conditions due to the excess pollution have taken the development and adoption of clean and green energy.

The automotive industry is among the primary consumers of hydrogen and hydrogen-based fuel alternatives among all end users. Over the past three decades, numerous experiments have been conducted in the automobile industry to produce alternative fuel cars.

Hydrogen is the first thing that springs to mind as a remedy in this situation because it is a clean, alternative energy source that can stop the global warming brought on by fossil fuels. because hydrogen is a fuel that may either be used catalytically or transformed into electrical energy using a fuel cell. Internal combustion engines (ICEs) can run on hydrogen either as the primary fuel or as a secondary fuel when combined with other fuels. When hydrogen is utilised as the fuel for an ICE, a tiny amount of water vapour is released through the exhaust pipe along with other pollutants. 

Whereas a design of a fuel cell-based plug-in hybrid electric vehicle (FC-PHEV) and a fuel cell-electric vehicle (FCEV) are recognised as zero CO2emissions or air pollution-free automobiles. By significantly reducing emissions in the world's energy consumption, the proportion of hydrogen fuel cell cars (HFCEVs) in the automotive sector will rise. 

Notwithstanding the efficiency benefits mentioned above, there are many barriers to the adoption of hydrogen vehicle technology because it will need a significant technological shift. Another factor is the hydrogen storage options that are available. Battery chemistry, electrical power density, lifetime, safety, and cost all need to be improved for storage solutions. Fuel cells in hybrid electric vehicles (FCHEVs) must considerably improve battery performance while also experiencing cost reductions in order to spread quickly.

The market players are adopting a variety of development tactics, including partnerships and agreements, to produce hydrogen energy using zero-emission technologies. For instance, a collaboration deal was made to build a hydrogen plant in the US by Brookfield Renewable Partners and Plug Power, Inc. To lessen its carbon impact, this plant plans to produce about 15 metric tonnes of liquid hydrogen every day from 100 percent renewable resources. 

These kinds of development techniques are anticipated to open up new potential opportunities in the near future and accelerate the expansion of the market for hydrogen generation worldwide. Furthermore, the market's development is greatly influenced by government regulations that support the production of hydrogen. Governments in both developed and emerging markets are introducing a variety of policies to support the reduction of carbon emissions and promote the use of renewable energy. 

For instance, in their strategic energy partnership, the US and India opted to integrate low carbon technology. Therefore, the success of net zero targets over the anticipated timeframe would be significantly impacted by the expansion of the hydrogen market due to all these demand reasons across many industries for a cleaner and greener fuel option.

Browse In-depth Details [Table of Content, List of Figures, List of Tables] of Hydrogen Market Trends

Segment Analysis

The global Hydrogen market has been segmented based on Source, Technology, Generation and Delivery Type, Storage, Application and region.

Based on the Source, the Global Hydrogen Market has been segmented into blue hydrogen, grey hydrogen, and green hydrogen. In 2022, the grey hydrogen segment drove the Global Hydrogen Market by holding a substantial market share with a market value of USD 254.89 billion. It is projected to register a CAGR of 8.34% during the projected timeframe. Grey hydrogen is produced by reforming natural gas and is used to restructure the molecular structure of hydrocarbons. Grey hydrogen is less expensive to produce than both blue and green hydrogen. 

In comparison to blue and green hydrogen, grey hydrogen accounts for the majority of the market. Hydrogen is created through the reforming of natural gas, which creates hydrogen, carbon monoxide, and carbon dioxide. Natural gas-derived hydrogen generation is also predicted to maintain its advantage over the forecast period.

Based on the technology, the global hydrogen market has been segmented into steam methane reforming (SMR), partial oxidation (POX), coal gasification and electrolysis. In 2022, the steam methane reforming (SMR) segment drove the Global Hydrogen Market by holding a substantial market share with a market value of USD 150.76 billion. It is projected to register a CAGR of 9.07% during the projected timeframe. 

The segment's size is primarily owing to its use in hydrogen production from conventional fuels such as natural gas. Natural gas is an important source of hydrogen, accounting for approximately half of global hydrogen production. Additional factors driving growth include operational advantages such as the high conversion efficiency of the steam methane reforming process. Throughout the projected period, the steam methane reforming segment is expected to maintain its lead.

Based on generation and delivery type, the global hydrogen market has been segmented into captive, by-product and merchant. In 2022, the captive segment drove the global hydrogen market by holding a substantial market share with a market value of USD 179.04 billion. 

It is projected to register a CAGR of 8.66 % during the projected timeframe. Hydrogen is a critical chemical commodity in the refining of petroleum, the manufacturing of ammonia, and the production of methanol. Some businesses require so much hydrogen that the majority of it is purposely created on-site. This is referred to as captive hydrogen production. The consumer often produces "captive" hydrogen for internal usage.

Based on storage, the global hydrogen market has been segmented into on-board storage, underground storage, and power-to-gas storage. In 2022, the underground storage segment drove the Global Hydrogen market by holding a substantial market share with a market value of USD 213.34 billion. It is projected to register a CAGR of 8.28 % during the projected timeframe. 

Underground hydrogen storage in geological formations provides a low-cost, ecologically beneficial medium and long-term storage option. Underground, hydrogen can be held in many layers such as aquifers, permeable rocks, and salt caverns. To meet the needs of the hydrogen market, salt caverns provide flexibility in their injection and withdrawal cycles. Salt caverns, due to its tightness, allow for the safe storage of enormous amounts of hydrogen under pressure.

Based on application, the global hydrogen market has been segmented into petroleum refinery, ammonia production, methanol production, transportation, power generation and other applications. In 2022, the petroleum refinery segment drove the Global Hydrogen market by holding a substantial market share with a market value of USD 122.22 billion. It is projected to register a CAGR of 9.10 % during the projected timeframe. 

This considerable growth is due to the ongoing need for H2 to desulfurize diesel fuel and comply with rigorous requirements. as a result of an increase in revamping and restructuring initiatives for existing refineries. In order to comply with government rules aimed at reducing emissions, refineries have shifted their focus towards low-carbon hydrogen fuels. Furthermore, the rapid development of improved reforming technology will push petroleum refining facilities to utilise hydrogen instead of diesel fuels to manufacture value products.

Regional Analysis

Based on region, the Global Hydrogen Market has been segmented into North America, South America, Europe, Asia-Pacific, and the Middle East & Africa. In 2022, the Asia-Pacific region drove the Global Hydrogen market by holding a substantial market share with a market value of USD 97.47 billion. It is projected to register a CAGR of 9.46 % during the projected timeframe.  The Asia-pacific region is also anticipated to drive the Global Hydrogen Markets throughout the forecast period. The target region is anticipated to offer a total incremental opportunity of USD 200.89 billion by the end of 2030. 

The increasing number of refinery projects to meet the growing demand for fuels in China, India, and South Korea are the primary factors driving the Asian market. The existence of a large number of refineries in the Asia Pacific area, particularly in major countries such as China and India, has resulted in increased consumption of hydrogen generation in the region. Furthermore, governments in Asia Pacific countries such as Japan and Australia are investigating greener and cleaner hydrogen producing technology.

Key Findings of the Study

• The global Hydrogen market is expected to reach USD 525.95 billion by 2030, at a CAGR of 8.47% during the forecast period.


• The Asia Pacific region accounted for the fastest-growing global market.


• Based on Source, the Grey Hydrogen segment was attributed to holding the largest market in 2022.


• Based on Technology, the Steam Methane Reforming (SMR) segment was attributed to holding the largest market in 2022.


• Based on Generation and Delivery Type, the Captive segment was attributed to holding the largest market in 2022.


• Based on Storage, the Underground Storage segment was attributed to holding the largest market in 2022.


• Based on Application, the Petroleum Refinery segment was attributed to holding the largest market in 2022.


• BASF SE, Air Liquide, Air Products and Chemicals, Inc., Linde Plc, Messer SE & Co. KGaA, Bhuruka Gases Limited, Thai Special Gas Company Limited, Taiyo Nippon Sanso Corporation, Yueyang Kaimeite Electronic Specialty Rare Gases Co., Ltd., Yueyang Kaimeite Electronic Specialty Rare Gases Co., Ltd., Coregas, and Others.