Asia Pacific Chemical Hydrogen Market Size - By Type (Grey, Blue, Green), Regional Outlook, Competitive Industry Share & Forecast, 2024 – 2032

Asia Pacific Chemical Hydrogen Market Size - By Type (Grey, Blue, Green), Regional Outlook, Competitive Industry Share & Forecast, 2024 – 2032

Asia Pacific chemical hydrogen generation market size is expected to record over 6.3% CAGR from 2024 to 2032 driven by the accelerating industrialization and increasing demand for hydrogen as a clean energy source. Chemical hydrogen generation methods, such as steam methane reforming (SMR) and partial oxidation are providing a reliable and cost-effective means to produce hydrogen at scale for supporting various industrial applications including ammonia synthesis, petroleum refining, and methanol production. For instance, in April 2024, Panasonic Corporation launched a new pure hydrogen fuel cell generator in Australia and China for producing power through a chemical reaction between high-purity hydrogen and oxygen from the air.

Government policies and regulations for promoting hydrogen as a major component of energy transition strategies are also fostering market growth. The development of hydrogen fuel cell technologies and the integration of hydrogen into energy systems for transportation and power generation are leading to increasing R&D efforts for improving hydrogen production efficiency and reducing costs.

The overall industry is divided into delivery mode, process, and country.

Based on delivery mode, the APAC chemical hydrogen generation market from the captive segment is poised to witness decent growth during 2024-2032 due to the rising need for on-site hydrogen production in various industrial processes. Industries, such as petrochemicals, refineries, and fertilizers require a consistent and reliable supply of hydrogen to maintain operations, making captive hydrogen generation an attractive solution.

In terms of process, the Asia Pacific chemical hydrogen generation industry size from the electrolysis segment is anticipated to grow at a significant CAGR over 2024-2032. This is owing to its ability to produce green hydrogen using renewable energy sources like wind and solar power. Electrolysis offers a sustainable and eco-friendly alternative to traditional hydrogen production methods. The push for decarbonization and meeting stringent emission targets will also add to the segment growth.

China chemical hydrogen generation industry size will grow significantly through 2032 attributed to the ambitious goals for carbon neutrality and the presence of an extensive industrial base requiring significant hydrogen supplies. The chemical sector, which is a major consumer of hydrogen, benefits from these policies on account of the spurring development of efficient hydrogen generation methods, such as coal gasification and water electrolysis in the country.