Grey Hydrogen Market Size - By Source (Natural Gas, Coal), By Application (Petroleum Refinery, Chemical), Regional Outlook & Global Forecast, 2024 – 2032

Grey Hydrogen Market Size - By Source (Natural Gas, Coal), By Application (Petroleum Refinery, Chemical), Regional Outlook & Global Forecast, 2024 – 2032

Global Grey Hydrogen Market will record a 3.4% CAGR from 2024 to 2032 due to its established production infrastructure and high demand in industrial applications. The well-developed technology for producing grey hydrogen through steam methane reforming (SMR) of natural gas ensures a steady supply. Additionally, its crucial role in industries like petroleum refining, ammonia production, and methanol synthesis creates consistent demand. This established infrastructure and industrial reliance make grey hydrogen a key component in meeting current energy needs, driving market expansion, and maintaining its prominence in the energy sector.

For instance, in April 2024, Reliance Industries, Tata Motors, and Indian Oil Corporation are set to be key bidders for a government project on green and grey hydrogen in transportation, supporting India's goals to decarbonize, reduce fossil fuel reliance, and lead in hydrogen technology. As these major players participate in the initiative, it highlights the ongoing importance of grey hydrogen in meeting current energy needs and transitioning towards cleaner technologies. This development suggests that while green hydrogen is gaining attention, grey hydrogen remains a significant and necessary component in the energy landscape, reinforcing its role in the global market.

The grey hydrogen industry is classified based on source, application, and region.

The coal segment will experience marked growth through 2032, attributed to its pivotal role in traditional hydrogen production methods. Grey hydrogen is primarily produced from coal through gasification, which remains a prevalent and cost-effective method for large-scale hydrogen generation. Despite growing environmental concerns, coal-based hydrogen production continues to dominate due to established infrastructure and lower costs compared to alternative methods. This ongoing reliance on coal for grey hydrogen production ensures its leading position in the market.

The petroleum refinery segment will witness a substantial uptick between 2024 and 2032, propelled by its extensive use of hydrogen in refining processes. Grey hydrogen, produced through steam methane reforming (SMR) of natural gas, is a vital component in refining operations for removing sulfur and other impurities from crude oil. This established integration of hydrogen production within refineries ensures its dominant role in meeting the sector's hydrogen needs, thereby driving significant demand in the market.

Europe grey hydrogen market will demonstrate a decent CAGR during 2024 and 2032, spurred by its established industrial infrastructure and substantial demand for hydrogen in various sectors, including refining and chemical production. The region's extensive use of grey hydrogen in these industries, coupled with its focus on transitioning to cleaner energy sources, maintains its leading position. Despite growing interest in green hydrogen, Europe's reliance on grey hydrogen for current industrial needs ensures its prominent role and continued influence as a key contributor in the market.