Chemical Merchant Hydrogen Generation

Global Chemical Merchant Hydrogen Generation Market to Reach US$20.5 Billion by 2030

The global market for Chemical Merchant Hydrogen Generation estimated at US$14.2 Billion in the year 2024, is expected to reach US$20.5 Billion by 2030, growing at a CAGR of 6.3% over the analysis period 2024-2030. Steam Reformer Process, one of the segments analyzed in the report, is expected to record a 7.3% CAGR and reach US$9.9 Billion by the end of the analysis period. Growth in the Electrolysis Process segment is estimated at 5.7% CAGR over the analysis period.

The U.S. Market is Estimated at US$3.9 Billion While China is Forecast to Grow at 10.0% CAGR

The Chemical Merchant Hydrogen Generation market in the U.S. is estimated at US$3.9 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$4.2 Billion by the year 2030 trailing a CAGR of 10.0% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.0% and 6.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.1% CAGR.

Global Chemical Merchant Hydrogen Generation Market - Key Trends & Drivers Summarized

Why is Merchant Hydrogen Generation Becoming a Key Industry Trend?

The demand for merchant hydrogen generation is experiencing a sharp rise, driven by the global push towards clean energy and industrial decarbonization. Merchant hydrogen, produced at central facilities and distributed to end-users, is increasingly becoming a vital part of the hydrogen supply chain. With growing concerns over climate change and carbon emissions, industries are seeking cleaner alternatives to traditional fossil fuels, positioning hydrogen as a key energy carrier. The expansion of the hydrogen economy is primarily fueled by its use in industrial applications, transportation, and power generation. Hydrogen’s potential as a zero-emission fuel source is being actively explored by governments and industries looking to meet sustainability goals. Key players in the chemical, refining, and manufacturing sectors are investing in merchant hydrogen supply chains to ensure a steady, cost-effective supply of hydrogen for various applications. The emergence of hydrogen refueling infrastructure, coupled with advancements in production and distribution technologies, is expected to further accelerate market growth.

How is Technology Enhancing Hydrogen Generation Efficiency?

Innovations in hydrogen production technologies are significantly improving the efficiency and cost-effectiveness of merchant hydrogen generation. Traditional hydrogen production methods, such as steam methane reforming (SMR), are being optimized with carbon capture and storage (CCS) solutions, reducing emissions while maintaining economic feasibility. Moreover, the increasing investment in electrolysis-based hydrogen production is enabling the development of green hydrogen, which utilizes renewable energy sources such as solar and wind power to generate hydrogen without carbon emissions. The integration of artificial intelligence (AI) and digital twin technology is further enhancing the efficiency of hydrogen production plants, optimizing energy consumption, monitoring equipment performance, and reducing operational downtime. Additionally, the development of modular and decentralized hydrogen generation systems is making on-site production more accessible for industrial end-users, reducing reliance on long-distance transportation and enhancing supply chain resilience.

Which Industries Are Driving Demand for Merchant Hydrogen?

Several industries are at the forefront of merchant hydrogen adoption, primarily driven by its diverse applications in energy, transportation, and industrial processes. The petrochemical and refining sectors are some of the largest consumers of merchant hydrogen, using it for hydrotreating, hydrocracking, and desulfurization processes to produce cleaner fuels. However, with stringent carbon reduction targets, many refineries are shifting towards blue and green hydrogen solutions to minimize their environmental footprint. The transportation industry is another significant driver, with hydrogen fuel cell technology gaining traction in heavy-duty trucks, buses, trains, and even maritime vessels. Countries investing in hydrogen-powered public transportation and logistics fleets are creating substantial demand for merchant hydrogen supply chains. Additionally, power generation companies are integrating hydrogen-based energy storage solutions to balance intermittent renewable energy sources, further driving the market’s expansion. The steel and cement industries, both major carbon emitters, are also exploring hydrogen-based production techniques to decarbonize their operations.

What Factors Are Driving Market Growth?

The growth in the Chemical Merchant Hydrogen Generation market is driven by several factors, including technological advancements, regulatory policies, and shifting industry priorities. Governments worldwide are implementing hydrogen roadmaps, subsidies, and carbon pricing mechanisms to accelerate the adoption of low-carbon hydrogen solutions. The declining cost of renewable energy is also making green hydrogen production more competitive, encouraging industries to transition away from fossil-fuel-based hydrogen generation. Furthermore, the rising demand for hydrogen-based energy storage solutions is enhancing the market’s scalability, particularly as nations expand their renewable energy capacity. The expansion of hydrogen refueling stations and distribution networks is also a critical factor, enabling broader adoption of hydrogen-powered vehicles and industrial applications. Additionally, evolving consumer preferences for sustainable products are pushing industries to incorporate low-carbon hydrogen solutions into their supply chains. With cross-sector collaboration and increased investment in hydrogen infrastructure, the merchant hydrogen market is poised for long-term growth, playing a central role in the future energy transition.

SCOPE OF STUDY:

The report analyzes the Chemical Merchant Hydrogen Generation market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Process Type (Steam Reformer Process, Electrolysis Process, Other Types)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 42 Featured) -

• Air Liquide S.A.
• Air Products and Chemicals, Inc.
• Airgas, Inc.
• Bloom Energy Corporation
• BP plc
• Cummins Inc.
• ENGIE SA
• ExxonMobil Corporation
• Iberdrola
• ITM Power PLC
• Johnson Matthey
• Linde plc
• McPhy Energy
• Mitsubishi Power
• Nel ASA
• Plug Power Inc.
• Shell plc
• Siemens Energy AG
• Thyssenkrupp Nucera
• TotalEnergies SE

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

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APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

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Reciprocal and Bilateral Trade & Tariff Impact Analyses:

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CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

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