Petroleum Refinery Hydrogen Market Research Report: By Production Process (Steam Reforming, Partial Oxidation), By Application (Hydrotreating, Hydrocracking, Fluid Catalytic Cracking (FCC)), By Type (Merchant Hydrogen, Captive Hydrogen), By End-Use Industry (Petroleum Refining, Chemical & Petrochemical Production) and By Regional (North America, Europe, South America, Asia-Pacific, Middle East and Africa) - Forecast to 2032

Global Petroleum Refinery Hydrogen Market Overview

As per MRFR analysis, the Petroleum Refinery Hydrogen Market Size was estimated at 26.91 (USD Billion) in 2022. The Petroleum Refinery Hydrogen Market Industry is expected to grow from 28.65(USD Billion) in 2023 to 50.3 (USD Billion) by 2032. The Petroleum Refinery Hydrogen Market CAGR (growth rate) is expected to be around 6.46% during the forecast period (2024 - 2032).

Key Petroleum Refinery Hydrogen Market Trends Highlighted

The global petroleum refinery hydrogen market is growing owing to the need for clean fuels, increased regulations on emissions, and technological improvements. Hydrogen demand for use as a transport fuel coupled with the increased use of hydrogen in low-carbon chemical production processes is also bolstering the demand for the market. The design, process, and cost models of hydrogen production units are being developed by refineries in response to the increasing appetite for clean fuels. It is projected that the market will grow further as an increasing number of businesses shift towards the use of renewable sources on top of their advantages and practicality. In recent times, a number of key trends have emerged where hydrogen is used in combination with other technologies, such as carbon capture and storage or carbon dioxide utilization, to enhance efficiency and decrease emissions.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Petroleum Refinery Hydrogen Market Drivers

Increasing Demand for Cleaner Fuels

The growing demand for cleaner fuels, such as gasoline and diesel, is a major driver of the Global Petroleum Refinery Hydrogen Market Industry. Hydrogen is used in the refining process to remove sulfur from crude oil, which results in cleaner fuels that meet environmental regulations. As governments around the world implement stricter emission standards, the demand for cleaner fuels is expected to continue to grow, driving the demand for hydrogen in the petroleum refining industry.Additionally, the increasing use of renewable energy sources, such as wind and solar, is also driving the demand for hydrogen, as it can be used to store excess energy and provide backup power when renewable energy sources are not available.

Growing Refining Capacity

The growing refining capacity in emerging economies, such as China and India, is another major driver of the Global Petroleum Refinery Hydrogen Market Industry. As these economies continue to develop, the demand for refined petroleum products is increasing, which is leading to the construction of new refineries and the expansion of existing refineries. This growth in refining capacity is creating a need for more hydrogen, as it is used in the refining process to remove impurities from crude oil.

Technological Advancements

Technological advancements in the petroleum refining industry are also driving the demand for hydrogen. New technologies, such as hydrocracking and hydrotreating, are being developed to improve the efficiency of the refining process and to produce cleaner fuels. These technologies require hydrogen as a feedstock, which is driving the demand for hydrogen in the petroleum refining industry.

Petroleum Refinery Hydrogen Market Segment Insights:

Petroleum Refinery Hydrogen Market Production Process Insights

The Global Petroleum Refinery Hydrogen Market is segmented into various production processes, including steam reforming and partial oxidation. Steam reforming is the dominant process, accounting for over 90% of global hydrogen production from petroleum refineries. It involves reacting hydrocarbons with steam in the presence of a catalyst to produce hydrogen and carbon dioxide. Partial oxidation, on the other hand, involves reacting hydrocarbons with oxygen to produce hydrogen and carbon monoxide. Steam reforming is preferred due to its high efficiency and relatively low operating costs.The process is typically carried out in a reformer furnace, where hydrocarbons are heated to high temperatures in the presence of a nickel-based catalyst. The resulting mixture of hydrogen, carbon monoxide, and steam is then cooled and separated to produce pure hydrogen. Partial oxidation is less efficient than steam reforming but can be used to produce hydrogen from a wider range of feedstocks, including heavier hydrocarbons. The process is typically carried out in a partial oxidation reactor, where hydrocarbons are reacted with oxygen in the presence of a catalyst.The growth of the market is attributed to the increasing demand for hydrogen in various applications, including fuel cells, refineries, and chemical production. The rising adoption of hydrogen as a clean and sustainable fuel is expected to drive the demand for hydrogen from petroleum refineries in the coming years.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Petroleum Refinery Hydrogen Market Application Insights

The Global Petroleum Refinery Hydrogen Market segmentation by Application includes Hydrotreating, Hydrocracking, and Fluid Catalytic Cracking (FCC). The Hydrotreating segment held the largest market share in 2023 and is expected to continue its dominance throughout the forecast period. The Hydrocracking segment is anticipated to exhibit a significant growth rate during the forecast period, owing to the increasing demand for middle distillates such as diesel and jet fuel. The FCC segment is also expected to witness steady growth due to its wide application in the production of gasoline and other light products.Overall, the Global Petroleum Refinery Hydrogen Market is expected to witness significant growth in the coming years due to the rising demand for cleaner fuels and the growing adoption of hydrogen as a refining feedstock.

Petroleum Refinery Hydrogen Market Type Insights

The Global Petroleum Refinery Hydrogen Market is segmented by Type into Merchant Hydrogen and Captive Hydrogen. In 2023, the Merchant Hydrogen segment held a larger share of the market, accounting for around 60% of the Global Petroleum Refinery Hydrogen Market revenue. The Captive Hydrogen segment is expected to grow at a faster CAGR during the forecast period, owing to the increasing adoption of hydrogen as a clean fuel in refineries. The growth of the Captive Hydrogen segment is also driven by the rising demand for hydrogen in the production of low-carbon fuels, such as biofuels and synthetic fuels.

Petroleum Refinery Hydrogen Market End-Use Industry Insights

 The end-use industry segment of the Global Petroleum Refinery Hydrogen Market is categorized into petroleum refining, chemical petrochemical production, and other industries. Petroleum refining is the dominant end-use industry, accounting for a significant share of the global Petroleum Refinery Hydrogen Market revenue. The rising demand for refined petroleum products, such as gasoline, diesel, and jet fuel, is driving the growth of the petroleum refining industry. Chemical petrochemical production is another major end-use industry for Petroleum Refinery Hydrogen, primarily used as a feedstock in the production of chemicals, fertilizers, and plastics.The increasing demand for petrochemicals, coupled with the growing population and urbanization, is expected to contribute to the growth of the Petroleum Refinery Hydrogen Market in this end-use industry.

Petroleum Refinery Hydrogen Market Regional Insights

The Global Petroleum Refinery Hydrogen Market is expected to grow significantly in the coming years, driven by increasing demand for hydrogen in petroleum refineries. The Global Petroleum Refinery Hydrogen Market revenue is expected to reach USD 32.44 Billion by 2024, growing at a CAGR of 6.75% from 2024 to 2032. Regionally, North America is expected to dominate the Global Petroleum Refinery Hydrogen Market throughout the forecast period. The region is home to a large number of petroleum refineries, which are expected to drive demand for hydrogen.Europe is expected to be the second-largest market for petroleum refinery hydrogen, followed by APAC. South America and MEA are expected to experience steady growth in the Global Petroleum Refinery Hydrogen Market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Petroleum Refinery Hydrogen Market Key Players And Competitive Insights:

Major players in the Petroleum Refinery Hydrogen Market industry are constantly competing to gain a larger market share. Leading Petroleum Refinery Hydrogen Market players are investing heavily in research and development to develop new and innovative technologies. This is expected to intensify the competition in the Petroleum Refinery Hydrogen Market in the coming years. The Petroleum Refinery Hydrogen Market is expected to grow at a significant rate in the coming years due to the increasing demand for hydrogen in the refining industry. This growth is expected to be driven by the growing demand for transportation fuels, as well as the increasing use of hydrogen in the chemical industry.Air Liquide SA, one of the leading players in the Petroleum Refinery Hydrogen Market, is a French multinational company that specializes in industrial gases and services. The company has a strong presence in the Petroleum Refinery Hydrogen Market and offers a wide range of products and services, including hydrogen production, storage, and distribution. Air Liquide SA has a global presence and operates in over 80 countries. The company has a strong focus on innovation and is constantly developing new and innovative technologies. Air Liquide SA is well-positioned to benefit from the growing demand for hydrogen in the refining industry.Linde plc, another leading player in the Petroleum Refinery Hydrogen Market, is a German multinational company that specializes in industrial gases and engineering. The company has a strong presence in the Petroleum Refinery Hydrogen Market and offers a wide range of products and services, including hydrogen production, storage, and distribution. Linde plc has a global presence and operates in over 100 countries. The company has a strong focus on innovation and is constantly developing new and innovative technologies. Linde plc is well-positioned to benefit from the growing demand for hydrogen in the refining industry.

Key Companies in the Petroleum Refinery Hydrogen Market Include:

• Chart Industries


• Linde plc


• Air Products and Chemicals


• Air Liquide


• Airgas


• Messer Group GmbH


• Linde


• Air Liquide S.A.


• Iwatani Corporation


• SHV Energy


• Taiyo Nippon Sanso Corporation


• BASF SE


• Nippon Sanso Holdings Corporation


• Praxair


• Messer

Petroleum Refinery Hydrogen Market Industry Developments

The global Petroleum Refinery Hydrogen market is anticipated to reach a valuation of USD 50.3 billion by 2032, expanding at a CAGR of 6.46% from 2024 to 2032. The increasing demand for cleaner fuels, coupled with stringent environmental regulations, is driving the market growth. Additionally, technological advancements, such as the development of more efficient hydrogen production processes, are further propelling the market forward.Recent developments in the market include collaborations between major industry players to expand production capacities and enhance hydrogen distribution infrastructure. For instance, in 2023, Air Products and ACWA Power announced a joint venture to build a green hydrogen production facility in Saudi Arabia. Such partnerships are expected to contribute to the long-term growth of the Petroleum Refinery Hydrogen market.

Petroleum Refinery Hydrogen Market Segmentation Insights

• Petroleum Refinery Hydrogen Market Production Process Outlook
  
  
  
  • Steam Reforming
  
  
  • Partial Oxidation
  
  
  
  

• Petroleum Refinery Hydrogen Market Application Outlook
  
  
  
  • Hydrotreating
  
  
  • Hydrocracking
  
  
  • Fluid Catalytic Cracking (FCC)
  
  
  
  

• Petroleum Refinery Hydrogen Market Type Outlook
  
  
  
  • Merchant Hydrogen
  
  
  • Captive Hydrogen
  
  
  
  

• Petroleum Refinery Hydrogen Market End-Use Industry Outlook
  
  
  
  • Petroleum Refining
  
  
  • Chemical Petrochemical Production
  
  
  
  

• Petroleum Refinery Hydrogen Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia-Pacific
  
  
  • Middle East and Africa