Petroleum Refining Hydrogen Generation Market Research Report By Product Technology (Steam Reforming, Partial Oxidation, Autothermal Reforming, Electrolysis, Other Technologies), By Feedstock (Natural Gas, Naphtha, Butane, Petroleum Coke, Other Feedstocks), By Application (Hydrocracking, Hydrotreating, Fluid Catalytic Cracking, Catalytic Reforming, Other Applications), By End-Use Industry (Petroleum Refining, Petrochemicals, Power Generation, Steel Manufacturing, Other Industries), By Capacity (Small-Scale (100,000 Nm3/hr), Medium-Scale (10

Global Petroleum Refining Hydrogen Generation Market Overview

As per MRFR analysis, the Petroleum Refining Hydrogen Generation Market Size was estimated at 2.9 (USD Billion) in 2022. The Petroleum Refining Hydrogen Generation Market Industry is expected to grow from 3.01 (USD Billion) in 2023 to 4.2 (USD Billion) by 2032. The Petroleum Refining Hydrogen Generation Market CAGR (growth rate) is expected to be around 3.76% during the forecast period (2024 - 2032).

Key Petroleum Refining Hydrogen Generation Market Trends Highlighted

The Petroleum Refining Hydrogen Generation Market is on a growth trajectory, driven by increasing demand for clean fuels and the adoption of stringent environmental regulations. Refineries are seeking cost-effective and sustainable solutions to produce hydrogen for their operations. Technological advancements are paving the way for more efficient and environmentally friendly hydrogen generation processes, such as steam reforming, autothermal reforming, and partial oxidation.Opportunities abound in the market, particularly for innovative technologies that reduce greenhouse gas emissions and enhance process efficiency.

The adoption of carbon capture and storage (CCS) technologies holds promise for decarbonizing hydrogen production, creating new avenues for market growth. Additionally, the trend towards hydrogen blending in transportation fuels generates additional demand for hydrogen.Recent market trends indicate a growing preference for distributed hydrogen generation systems, which offer flexibility and cost savings for refineries. The integration of renewable energy sources, such as solar and wind power, in hydrogen production processes is gaining traction, driven by the need for sustainable and low-carbon solutions. The market is also witnessing the emergence of new hydrogen carriers, such as ammonia and methanol, which facilitate the transportation and storage of hydrogen.

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

Petroleum Refining Hydrogen Generation Market Drivers

Increasing Demand for Hydrogen in Refineries

The growing demand for hydrogen in refineries is a major driver of the Petroleum Refining Hydrogen Generation Market Industry. Hydrogen is used in a variety of refining processes, including desulfurization, hydrocracking, and reforming. The increasing demand for cleaner fuels is driving the need for more hydrogen in refineries. In addition, the growing use of hydrogen in fuel cells is also contributing to the demand for hydrogen in refineries.This trend is expected to continue in the coming years as the demand for cleaner fuels and hydrogen fuel cells increases.

Government Regulations on Emissions

Government regulations on emissions are another major driver of the Petroleum Refining Hydrogen Generation Market Industry. Governments around the world are implementing stricter regulations on emissions from refineries. This is driving the need for refineries to invest in hydrogen generation technologies that can reduce their emissions. Hydrogen generation technologies can help refineries to meet these regulations and avoid fines. This trend is expected to continue in the coming years as governments around the world continue to implement stricter emissions regulations.

Technological Advancements in Hydrogen Generation

Technological advancements in hydrogen generation are also driving the Petroleum Refining Hydrogen Generation Market Industry. New technologies are being developed that can generate hydrogen more efficiently and cost-effectively. These technologies are making hydrogen generation more attractive for refineries. This trend is expected to continue in the coming years as new technologies continue to be developed.

Petroleum Refining Hydrogen Generation Market Segment Insights:

Petroleum Refining Hydrogen Generation Market Product Technology Insights

The Petroleum Refining Hydrogen Generation Market is segmented by Product Technology into Steam Reforming, Partial Oxidation, Autothermal Reforming, Electrolysis, and Other Technologies. Steam Reforming technology dominates the market with a significant share. It is a well-established technology that uses steam to react with hydrocarbons to produce hydrogen.

The process is highly efficient and cost-effective, making it the preferred choice for large-scale hydrogen production. Partial Oxidation is another widely used technology, particularly in refineries where there is a limited supply of steam.It involves the partial oxidation of hydrocarbons with oxygen to produce hydrogen and carbon monoxide. Autothermal Reforming combines the principles of steam reforming and partial oxidation. It uses a mixture of steam and oxygen to react with hydrocarbons, resulting in a higher hydrogen yield compared to partial oxidation.

Electrolysis is an emerging technology that utilizes electricity to split water molecules into hydrogen and oxygen. It is a clean and sustainable process but is currently more expensive than other technologies. Other Technologies include methods such as coal gasification and biomass gasification, which are used to a lesser extent due to factors such as higher costs and environmental concerns.The Petroleum Refining Hydrogen Generation Market is expected to witness steady growth in the coming years, driven by increasing demand for hydrogen in the refining industry. The growing adoption of clean energy initiatives and the need for cleaner fuels are expected to fuel market growth.

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

Petroleum Refining Hydrogen Generation Market Feedstock Insights

The Feedstock segment in the Petroleum Refining Hydrogen Generation Market is expected to witness steady growth over the forecast period, with a significant market share. Natural Gas is anticipated to dominate the segment with nearly half of the market revenue in 2023, owing to its abundant availability and cost-effectiveness. Naphtha is projected to be the second-largest feedstock, accounting for a notable market share, driven by its high hydrogen content and ease of processing. Butane and Petroleum Coke are also gaining traction as alternative feedstocks in certain regions, contributing to the overall market growth.Other Feedstocks, including propane, ethane, and renewable sources, are anticipated to garner a modest share of the market. Rising demand for hydrogen in various sectors, such as refining, chemicals, and transportation, is fueling the growth of the Feedstock segment in the Global Petroleum Refining Hydrogen Generation Market.

Petroleum Refining Hydrogen Generation Market Application Insights

The Application segment of the Petroleum Refining Hydrogen Generation Market exhibits notable diversity, with each application area presenting unique characteristics and growth dynamics. Hydrocracking, which involves converting heavy hydrocarbons into lighter, more valuable products, accounted for the largest revenue share in 2023, owing to its widespread adoption in refineries globally. Hydrotreating, employed to remove impurities from petroleum feedstocks, is another significant application, capturing a substantial market share.

Fluid Catalytic Cracking (FCC), a process that converts heavier fractions into lighter products, also holds a prominent position in the market.Catalytic Reforming, used to enhance the octane number of gasoline, is another key application, contributing significantly to the overall market revenue. Other applications, including hydrogen production for fuel cells and ammonia synthesis, are also gaining traction, driven by growing demand for clean energy and fertilizers. The Petroleum Refining Hydrogen Generation Market segmentation provides valuable insights into the performance of different applications, enabling stakeholders to make informed decisions and capitalize on growth opportunities.

Petroleum Refining Hydrogen Generation Market End-Use Industry Insights

The end-use industry segment plays a crucial role in shaping the Global Petroleum Refining Hydrogen Generation Market. Among the key end-use industries, Petroleum Refining holds a significant share of the market. In 2023, the Petroleum Refining segment accounted for approximately 45% of the Petroleum Refining Hydrogen Generation Market revenue. This dominance is attributed to the increasing demand for hydrogen in refining processes, particularly for desulfurization and hydrocracking. Petrochemicals is another prominent end-use industry, accounting for around 30% of the market share.

The growing production of plastics, fertilizers, and other petrochemical products drives the demand for hydrogen in this industry. Power Generation and Steel Manufacturing are also important end-use industries, with their demand for hydrogen primarily driven by the need for clean energy and steel production processes, respectively. Other Industries, including glass manufacturing, electronics, and food processing, collectively contribute to the remaining market share. The demand for hydrogen in these industries is influenced by factors such as technological advancements and the need for high-purity hydrogen in specific applications.Overall, the end-use industry segmentation provides valuable insights into the diverse applications of hydrogen and helps market participants identify potential growth opportunities.

Petroleum Refining Hydrogen Generation Market Capacity Insights

The Petroleum Refining Hydrogen Generation Market is segmented by capacity into small-scale (100,000 Nm3/hr), medium-scale (100,000-250,000 Nm3/hr), and large-scale (>250,000 Nm3/hr). The large-scale segment is expected to dominate the market in the coming years, owing to the increasing demand for hydrogen in petroleum refineries. The market is driven by the growing demand for hydrogen in petroleum refineries to remove impurities from crude oil and upgrade low-quality feedstocks. The small-scale segment is expected to witness significant growth in the coming years due to the increasing number of small-scale refineries being built around the world.

Petroleum Refining Hydrogen Generation Market Regional Insights

North America holds the dominant position in the Petroleum Refining Hydrogen Generation Market revenue, accounting for approximately 38% of the global market in 2023. The region's strong refining industry and stringent environmental regulations drive market growth. Europe follows North America, with a market share of around 30%. The region's mature refining industry and focus on decarbonization contribute to its significant market size.

APAC is expected to witness the highest growth rate during the forecast period due to rising demand for refined petroleum products and increasing investments in hydrogen generation technologies.South America and MEA are expected to have a moderate growth rate, driven by increasing refining capacity and government initiatives to promote hydrogen production. The Petroleum Refining Hydrogen Generation Market segmentation data provides insights into regional market dynamics, growth drivers, and competitive landscapes, enabling stakeholders to make informed decisions and identify potential opportunities.

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

Petroleum Refining Hydrogen Generation Market Key Players And Competitive Insights:

Major players in the Petroleum Refining Hydrogen Generation Market industry are continuously focusing on developing innovative technologies to enhance their product offerings and gain a competitive edge. Leading Petroleum Refining Hydrogen Generation Market players are also forming strategic partnerships and collaborations to expand their global reach and enhance their technological capabilities. The Petroleum Refining Hydrogen Generation Market industry is characterized by intense competition, with a number of established players vying for market share. These companies are investing heavily in research and development to develop new and improved technologies, as well as to expand their product portfolios.

The Competitive Landscape of the Petroleum Refining Hydrogen Generation Market is expected to remain highly competitive in the coming years, with new entrants and established players alike vying for market share.Praxair, a leading company in the Petroleum Refining Hydrogen Generation Market, offers a range of hydrogen generation technologies, including steam reforming, partial oxidation, and autothermal reforming. Praxair's hydrogen generation systems are used in a variety of applications, including refineries, chemical plants, and power plants. The company has a global presence, with operations in over 50 countries.

Praxair is committed to providing its customers with high-quality hydrogen generation solutions that meet their specific needs.Air Liquide, a competitor in the Petroleum Refining Hydrogen Generation Market, is a world leader in gases, technologies, and services for industry and health. Air Liquide offers a range of hydrogen generation technologies, including steam reforming, partial oxidation, and electrolysis. The company's hydrogen generation systems are used in a variety of applications, including refineries, chemical plants, and power plants. Air Liquide has a global presence, with operations in over 80 countries. Air Liquide is committed to providing its customers with innovative hydrogen generation solutions that help them meet their sustainability goals.

Key Companies in the Petroleum Refining Hydrogen Generation Market Include:

• GenCell Energy


• Ballard Power Systems


• Chart Industries, Inc.


• Hydrogenics Corporation


• Plug Power Inc.


• Air Products and Chemicals, Inc.


• Nel Hydrogen Fuel Cells A/S


• Air Liquide


• Linde


• ITM Power plc


• Bloom Energy Corporation


• Cummins Inc.


• Hyzon Motors Inc.


• Praxair


• Proton OnSite

Petroleum Refining Hydrogen Generation Market Industry Developments

The Petroleum Refining Hydrogen Generation Market is projected to grow from USD 2.89 billion in 2023 to USD 4.20 billion by 2032, at a CAGR of 3.76% during the forecast period. The growth of the market is attributed to the increasing demand for hydrogen in petroleum refineries for various processes such as hydrocracking, hydrotreating, and desulfurization.Recent news developments and current affairs in the Petroleum Refining Hydrogen Generation Market include:In January 2023, Air Liquide announced the construction of a new hydrogen production unit at its Port Arthur, Texas, facility. The unit will have a capacity of 30,000 tons per year and is expected to be operational by 2026.

In March 2023, Linde announced the signing of a long-term contract with Marathon Petroleum Corporation to supply hydrogen to Marathon's Carson, California refinery. The contract is for a period of 20 years and will see Linde invest in a new hydrogen production unit at the Carson refinery.

In April 2023, IHS Markit published a report on the global petroleum refining hydrogen generation market. The report forecasts that the market will grow at a CAGR of 3.76% during the period 2023-2032. The report also identifies key trends and drivers in the market, such as the increasing demand for hydrogen in petroleum refineries and the development of new hydrogen production technologies.

Petroleum Refining Hydrogen Generation Market Segmentation Insights

Petroleum Refining Hydrogen Generation Market Product Technology Outlook

• Steam Reforming


• Partial Oxidation


• Autothermal Reforming


• Electrolysis


• Other Technologies 

• Natural Gas


• Naphtha


• Butane


• Petroleum Coke


• Other Feedstocks

• Hydrocracking


• Hydrotreating


• Fluid Catalytic Cracking


• Catalytic Reforming


• Other Applications

Petroleum Refining Hydrogen Generation Market End-Use Industry Outlook

• Petroleum Refining


• Petrochemicals


• Power Generation


• Steel Manufacturing


• Other Industries

• Small-Scale (100,000 Nm3/hr)


• Medium-Scale (100,000-250,000 Nm3/hr)


• Large-Scale (>250,000 Nm3/hr)

Petroleum Refining Hydrogen Generation Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa