Hydrogen Generation Market Size

Transition to clean energy power to propel the market growth

For instance, according to the Statistical Review of World Energy 2020 by BP, which was released in June 2020, the Asia Pacific region's overall energy consumption increased from roughly 249.4 exajoules in 2018 to around 257.6 exajoules in 2019. Thus, this factor is driving the market CAGR.

Furthermore, with an increase in population, there will be a twofold increase in food demand. Intense farming, protective cropping techniques, and the finest fertilizer management procedures will all be necessary to increase agricultural production in order to fulfill this expanding need. 

Nitrogen fertilizers will be employed for fertilizer management. One of the main ingredients of nitrogen fertilizers is ammonia, and ammonium nitrate is the recommended form. A tremendous demand for agricultural products will result from the growing world population, necessitating the development of better fertilization management systems. Due to the increased need for ammonia to produce these systems, the market will develop as a result.

However, the market is anticipated to gain from rising research and development spending for hydrogen as well as rising interest among top automakers in hydrogen's advantages as a fuel throughout the projected period. Thus, it is anticipated that this aspect will accelerate hydrogen generation market revenue globally.

The Global Hydrogen Generation Market Industry is poised for substantial growth, with projections indicating a market size of 131.2 USD Billion in 2024 and an anticipated increase to 330.6 USD Billion by 2035. This growth trajectory reflects a compound annual growth rate of 8.76% from 2025 to 2035. Factors contributing to this expansion include rising demand for clean energy, technological advancements, government support, and increasing industrial applications of hydrogen. The market's evolution is indicative of a broader shift towards sustainable energy solutions, positioning hydrogen as a key player in the global energy landscape.

The Global Hydrogen Generation Market Industry is witnessing a surge in demand for clean energy solutions as countries strive to meet their climate goals. Governments worldwide are implementing policies and incentives to promote hydrogen as a clean fuel alternative. For instance, the European Union aims to produce 10 million tons of renewable hydrogen by 2030, which is expected to significantly boost the market. This increasing focus on sustainability is projected to drive the market's growth, with the industry valued at 131.2 USD Billion in 2024 and anticipated to reach 330.6 USD Billion by 2035, reflecting a compound annual growth rate of 8.76% from 2025 to 2035.

Government initiatives and supportive policy frameworks are crucial drivers of the Global Hydrogen Generation Market Industry. Many nations are establishing hydrogen roadmaps that outline strategies for hydrogen production, distribution, and utilization. For instance, the United States has launched the Hydrogen Energy Earthshot initiative, aiming to reduce the cost of clean hydrogen production to 1 USD per kilogram by 2030. Such policies not only foster investment in hydrogen technologies but also encourage collaboration between public and private sectors. This supportive environment is likely to contribute to the market's growth, with an expected valuation of 131.2 USD Billion in 2024.

The industrial sector's increasing reliance on hydrogen for various applications is a significant driver of the Global Hydrogen Generation Market Industry. Hydrogen is being utilized in refining processes, ammonia production, and as a feedstock for chemical manufacturing. The demand for hydrogen in these sectors is expected to rise as industries seek cleaner alternatives to fossil fuels. For example, the ammonia production process, which traditionally relies on natural gas, is increasingly incorporating green hydrogen to reduce carbon emissions. This trend is anticipated to bolster the market, with projections indicating a robust growth trajectory leading to a market size of 330.6 USD Billion by 2035.

The development of hydrogen infrastructure is essential for the expansion of the Global Hydrogen Generation Market Industry. Investments in hydrogen refueling stations, pipelines, and storage facilities are crucial for facilitating the widespread adoption of hydrogen as a fuel source. Countries like Japan and Germany are leading the way in establishing comprehensive hydrogen infrastructure, which supports the integration of hydrogen into their energy systems. This infrastructure development is expected to enhance the accessibility and viability of hydrogen, thereby driving market growth. As the industry evolves, the establishment of robust infrastructure will likely play a pivotal role in achieving the projected market valuation of 330.6 USD Billion by 2035.

Innovations in hydrogen production technologies are propelling the Global Hydrogen Generation Market Industry forward. Advancements in electrolysis, steam methane reforming, and biomass gasification are enhancing efficiency and reducing costs. For example, the development of proton exchange membrane electrolyzers has improved hydrogen production rates while minimizing energy consumption. These technological improvements not only make hydrogen generation more economically viable but also align with global sustainability efforts. As a result, the market is expected to expand significantly, with projections indicating a market size of 330.6 USD Billion by 2035, driven by these technological breakthroughs.

Major market players are spending a lot on R&D to increase their product lines, which will help the hydrogen generation industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations. Competitors in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.

One of the primary business strategies manufacturers adopt in the global hydrogen generation industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, hydrogen generation industry has provided medicine with some of the most significant benefits. 

The hydrogen generation market major player such as Praxair Inc. (US), Air Liquide S.A. (France), Air Products and Chemicals Inc. (US), Hydrogenics (Canada), Iwatani (Japan), Messer Group (Germany), Plug Power (US), Linde (US), Showa Denko (Japan), Ballard Power systems (Canada) and Fuelcell Energy (US).

Leading engineering and industrial gas business Linde offers cutting-edge solutions to several industries, including manufacturing, food & beverage, chemicals, and refining. Additionally, the business offers cutting-edge gas processing solutions to meet customer needs while increasing productivity and lowering emissions. It attempts to offer creative answers for maintaining cutting-edge technologies, solutions, and goods. 

In February 2022, a contract between LINDE and BASF for the supply of hydrogen to a BASF industrial site has been signed. According to the contract, Linde will plan, construct, and run a new hydrogen production facility at the French chemical park Chalampé. The factory will provide materials to BASF's new hexamethylenediamine (HMD) production facility.

Also, the development of hydrogen fuel cell devices to replace traditional batteries in electrically powered equipment and vehicles is the focus of the American company Plug Power Inc. The business has offices in Spokane, Washington, and Rochester, New York, in addition to its headquarters in Latham, New York. In July 2021, together with Apex Clean Energy, one of the top hydrogen technology companies, Plug Power enters a 345 MW wind power purchase agreement (PPA). 

One of a number of liquid hydrogen plants will be fueled by the energy produced by the wind farm, which is thought to be the largest wind-driven hydrogen project in the United States. By 2025, according to Plug Power's forecast, daily demand for hydrogen would exceed 100 tonnes, necessitating the development of hydrogen generation capacity.