Merchant Hydrogen Generation Market Size - By Process (Steam Reformer, Electrolysis and Others), By Application (Petroleum Refining, Chemical, Metal), Regional Outlook & Forecast, 2024 – 2032

Merchant Hydrogen Generation Market Size - By Process (Steam Reformer, Electrolysis and Others), By Application (Petroleum Refining, Chemical, Metal), Regional Outlook & Forecast, 2024 – 2032

Global Merchant Hydrogen Generation Market will expand at 7.6% CAGR from 2023 to 2032, driven by the growing demand for clean energy. According to the World Economic Forum, global renewable capacity increased by 50% in 2023 compared to the previous year. The COP28 climate talks emphasized the need to triple renewable energy capacity and double energy efficiency improvements by 2030. Similarly, the IEA estimated approximately USD 2.8 trillion to be invested in energy in 2023, with over USD 1.7 trillion allocated to clean energy. This includes grids, renewable power, nuclear, low-emission fuels, storage, efficiency enhancements, and electrification and end-use renewables.

As industries and governments prioritize reducing carbon emissions, hydrogen emerges as a key clean energy solution. Technological advancements and supportive policies further enhance hydrogen production efficiency and viability. The growing adoption of hydrogen in sectors such as transportation, industrial processes, and energy storage drives market expansion. Additionally, substantial investments in renewable energy infrastructure and hydrogen projects bolster the market's growth prospects.

The overall merchant hydrogen generation industry is categorized based on process, application, and region.

The electrolysis process segment will gain prominence over 2024-2032, propelled by the need for sustainable and clean hydrogen production methods. Electrolysis, which uses renewable electricity to split water into hydrogen and oxygen, aligns with global decarbonization goals. Technological advancements have improved the efficiency and cost-effectiveness of electrolysis systems. Additionally, supportive government policies and incentives for green hydrogen production, in line with growing investments in renewable energy infrastructure, further drive the adoption of electrolysis in the merchant hydrogen market.

The market share from the petroleum refinery segment will expand appreciably through 2032, stimulated by the need for cleaner and more efficient processing. Hydrogen is essential for desulfurization and other refining processes to meet stringent environmental regulations. Increasing emphasis on reducing carbon emissions and improving fuel quality drives the adoption of hydrogen in refineries. Additionally, advancements in hydrogen production technologies and supportive government policies further enhance its use in the petroleum refining sector, promoting market growth.

Europe merchant hydrogen generation industry will grow notably over 2024-2032 due to strong governmental support for green energy initiatives and stringent emission reduction targets. Significant investments in renewable energy infrastructure and technological advancements in hydrogen production enhance its feasibility and cost-effectiveness. Additionally, Europe's focus on transitioning to a low-carbon economy and increasing industrial applications of hydrogen in sectors such as transportation, manufacturing, and energy storage further drive market growth, solidifying the region's leadership in the hydrogen economy.