Hydrogen Generation Market Size - By Delivery Mode (Captive, Merchant), By Process (Steam Reforming, Electrolysis), By Application (Petroleum Refining, Chemical, Metal), Industry Analysis Report, Regional Outlook, & Global Forecast, 2023-2032

Hydrogen Generation Market Size - By Delivery Mode (Captive, Merchant), By Process (Steam Reforming, Electrolysis), By Application (Petroleum Refining, Chemical, Metal), Industry Analysis Report, Regional Outlook, & Global Forecast, 2023-2032

Global Hydrogen Generation Market is primed to amass substantial gains during 2023-2032 owing to the commendable rise in crude oil consumption. Moreover, surging investments toward expanding existing refining facilities in developing economies will boost product adoption in the upcoming years.

Supportive funding programs and investments in new clean hydrogen production projects will also propel product adoption. For instance, in March 2023, the U.S. DOE announced an investment of $750 million for R&D and a transition program to reduce the cost of clean hydrogen. This initiative will aid in achieving a clean electrical grid by 2035 and net-zero carbon emissions by 2050, thus, accelerating hydrogen commercialization in the coming years.

The key players in the hydrogen generation market are focusing on new product launches and R&D programs to attain a competitive edge. To cite an instance, in March 2023, Cummins Inc., a fuel engine and generators manufacturing firm, launched a new power business unit, Accelera which will provide zero-emissions solutions for major industries transitioning to a sustainable future. With this, the company aims to expand its product offerings and boost its market position.

The hydrogen generation market is bifurcated in terms of delivery mode, process, application, and region.

Based on delivery mode, the merchant segment is primed to exhibit a remarkable growth rate over 2023-2032 due to the cost-effective benefits associated with merchant delivery mode and the increasing awareness regarding hydrogen in transportation, power generation, and industrial processes. Merchant hydrogen saves capital investments and long-term maintenance costs which is fueling the product adoption. Moreover, the merchant delivery mode offers scalability and flexibility that enables companies to adjust their hydrogen consumption at any time.

With respect to application, the hydrogen generation market size from others segment is expected to depict considerable growth from 2023 to 2032. The others segment includes glass, agriculture, pharmaceuticals, semiconductors, and transport. The expansion of buildings, the power industry, and the transport sector will complement the industry outlook. As aviation and shipping industries have limited options in terms of low-carbon fuel, hydrogen caters to their environmental targets. The IEA speculates that by 2030, around 4 metric tons of blended hydrogen will be potentially utilized for heating buildings.

Regionally, the Europe hydrogen generation market revenue share was over USD 29 billion in 2022. The regional growth can be attributed to the ongoing government regulations & policies to minimize carbon footprints. Large-scale production processes in industries, including transport, food & beverage, and semiconductors are projected to foster product demand. In March 2023, the European Commission announced plans to boost and invest in sustainable hydrogen production under European Hydrogen Bank to achieve climate neutrality by 2050.