Global Hydrogen Market – Industry Trends and Forecast to 2030

The Hydrogen Market is experiencing robust expansion, with market size projected to increase from (287.50 Billion) 2024 to (525.95 Billion) 2030, demonstrating a consistent year-over-year growth rate of 8.48%. Hydrogen Market Size, Share, Competitive Landscape and Trend Analysis Report, by Types (Blue Hydrogen, Grey Hydrogen, Green Hydrogen), by Applications (Transportation, Petroleum Refinery, Methanol Production, Power Generation, Ammonia Production, Others) , by Technology (Coal Gasification, Steam Methane Reforming (SMR), Partial Oxidation (POX), Electrolysis), by Storage (Underground Storage, On-board Storage, Power-to-Gas Storage) And Regions (North America (United States, Canada, Mexico), South America (Brazil, Argentina, Chile, Rest of South America), Europe (Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific), MEA (Middle East, Africa)) : Industry Forecast and Opportunity Analysis for 2024 - 2030

The hydrogen industry, which includes hydrogen production, distribution, and end use, is a vibrant, fast-growing area. Hydrogen is the most abundant element in the universe and has great promise as a clean and versatile fuel. It can be produced by different means, from fossil fuels to biomass to renewable energy through electrolysis. The market encompasses an entire value chain, including the production, storage, transportation, and end-use applications of hydrogen. This market is gaining momentum because of the increasing global interest in decarbonization and sustainable energy needs. Hydrogen can undertake the major challenge of decarbonizing multiple sectors, which include transportation, industry, and power generation. It can be used as a fuel in fuel cells for powering vehicles and as a feedstock in certain chemical processes, along with storing and transferring renewable energy.

Hydrogen Report Highlights

Report Metrics	Details
Forecast period	2019-2030
Base Year Of Estimation	2024
Growth Rate	CAGR of 8.48%
Forecast Value (2030)	USD 525.95 Billion
By Product Type	Blue Hydrogen, Grey Hydrogen, Green Hydrogen
Key Market Players	BASF SE Messer SE & Co. KGaA Thai Special Gas Company Limited Yueyang Kaimeite Electronic Specialty Rare Gases Co., Ltd. Taiyo Nippon Sanso Corporation Air Products and Chemicals, Inc. Linde Plc Bhuruka Gases Limited Air Liquide Coregas Others
By Region	North America (United States, Canada, Mexico) South America (Brazil, Argentina, Chile, Rest of South America) Europe (Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe) Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific) MEA (Middle East, Africa)

Hydrogen Market Trends

Currently, the hydrogen market is undergoing a transformation toward sustainable and low-carbon energy sources, which is playing a major role in the growth of the hydrogen market. The transition is fuelled by a global impetus to lower atmospheric carbon emissions, which in turn increases government support and investment in renewable energy technologies for green hydrogen production. Other notable trends include the incorporation of hydrogen into transportation (especially fuel cell electric vehicles), industrial processes, and energy storage. Countries across the world have established various policies and incentives for the development and adoption of green hydrogen, such as the Inflation Reduction Act of the U.S. government. The combined efforts with funding from the public and private sectors should aim to develop the concept of scaling up green hydrogen production to be a pillar of the energy landscape of the future.

Hydrogen Market Leading Players

The key players profiled in the report are Thai Special Gas Company Limited, Air Products and Chemicals, Inc., Bhuruka Gases Limited, Linde Plc, Messer SE & Co. KGaA, Yueyang Kaimeite Electronic Specialty Rare Gases Co., Ltd., Coregas, Air Liquide, Taiyo Nippon Sanso Corporation, BASF SE, Others

Growth Accelerators

The hydrogen market is booming as industries seek to decarbonise while low-carbon hydrogen production methods are gaining acceptance. Hydrogen's versatility as a clean fuel is promoting its applications in the production of chemicals like ammonia and methanol, where the move to blue hydrogen natural gas with carbon capture is opening new market avenues. Further, demand for energy-efficient fuels is being generated by the rise of hydrogen-based fuel cell vehicles (FCVs) in the market. The hydrogen market is enhanced by various factors, such as environmental and social concerns, increasing populations worldwide, and urbanization. Hydrogen application in petroleum refineries has increasingly become a significant driver: it reduces carbon emissions and lowers the sulphur content of fuels. Global demand is reaffirmed by government support, state-led programs for clean energy, and emerging exporters like Canada.

Hydrogen Market Segmentation analysis

The Global Hydrogen is segmented by Type, Application, and Region.
By Type, the market is divided into Distributed Blue Hydrogen, Grey Hydrogen, Green Hydrogen . The Application segment categorizes the market based on its usage such as Transportation, Petroleum Refinery, Methanol Production, Power Generation, Ammonia Production, Others. Geographically, the market is assessed across key Regions like North America (United States, Canada, Mexico), South America (Brazil, Argentina, Chile, Rest of South America), Europe (Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific), MEA (Middle East, Africa) and others, each presenting distinct growth opportunities and challenges influenced by the regions.

Competitive Landscape

Major global companies such as Air Liquide, Linde, Air Products, Shell, and Plug Power are the major players in hydrogen competition and are investing significantly in hydrogen production, storage, and distribution. These companies compete in areas such as innovation in green hydrogen technologies, advances in cost-effective production methods, and the formation of strategic partnerships. With the push for clean energy and supportive government policies coalescing under hydrogen as a major pillar of decarbonization, competition has sharpened further as companies try to scale up efforts into electrolysis, hydrogen fuel cells, and infrastructure. At the same time, regional companies and new start-ups are entering markets in hydrogen for applications including mobility, industrial applications, and energy storage with layers of innovation. Here, grand mergers and acquisitions and joint ventures are taking place with the aim of resource-optimizing respective supply chains and taking up spaces in the market.

Challenges In Hydrogen Market

Indeed, the hydrogen market bears great promise, yet there are considerable challenges it faces. One is production cost, with "green hydrogen" corresponding to hydrogen produced by renewable energy sources being quite expensive compared to fossil fuel production methods. This barrier must first be overcome so that hydrogen can emerge as the next competitive energy source. Another challenge would be to develop an adequate infrastructure for hydrogen production, storage, and transportation. Hydrogen has lower volumetric energy density when compared with fossil fuels, and thus, it requires a larger amount for storage and specialized pipelines or transport. The construction of such infrastructure requires substantial investment and coordination among various sectors.

Risks & Prospects in Hydrogen Market

The hydrogen market boasts tremendous opportunities across various sectors. First, the increasing global awareness of decarbonisation is coupled with clean energy needs, among which hydrogen is likely to become a primary player. Its ability to decarbonize the transportation sector by means of fuel cell vehicles, to replace fossil fuels in manufacturing processes, and to act as a clean, backup, dispatchable energy generation source offers a vast array of opportunities for the production and use of hydrogen technologies. Secondly, the construction of a viable hydrogen infrastructure comprising production facilities, storage methods, and transportation systems brings the chances of enormous capital investment. This includes the establishment of green hydrogen production using renewable energy sources, thus offering the hydrogen market further sustainability.

Key Target Audience

A variety of end users makes up the hydrogen market target. On the supply side, these would be energy companies, chemical manufacturers, and technology providers involved in hydrogen production, storage, and distribution. Their make-up goes from the traditional players of the energy sector to start-up companies specializing in hydrogen technologies, such as electrolysers and fuel cells, and they are typically inclined towards the development and deployment of hydrogen infrastructure and solutions.,, On the demand side, the main audience sectors are those industries that specifically can use hydrogen for fuel or feedstock: transport (fuel cell vehicles), power generation (hydrogen power plants), and others like steelmaking and chemical processing.

Merger and acquisition

The market for hydrogen has witnessed a greater movement in M&A as companies are trying to consolidate or build their capabilities. For example, in November 2024, ANDRITZ AG acquired HydrogenPro AS to strengthen the green hydrogen sector in its favour by joining its advanced electrolyser technology. In another case, in July 2024, Komatsu Group acquired GHH Group to extend Komatsu's product line into underground-mining products used for hydrogen production. The hydrogen-related deal data indicate a certain degree of cyclicity. In Q3 2024, 18 power deals involving hydrogen were announced for a total of $1.2 billion. This estimated volume was up 38% compared to the previous quarter and up 64% over the same quarter of 2023. However, the aggregate value dropped by 52% against the previous quarter and was down 54% against the same quarter of the previous year. These ups and downs are nevertheless indicative of strategic interest in mergers and acquisitions concerning the hydrogen landscape. >

Analyst Comment

The hydrogen market is soaring due to increasing demand for clean energy alternatives and government programs to help decrease carbon emissions. Revenues are expected to reach $288.3 billion by 2032. The chemical industry's need for low-carbon substitutes and the rapidly growing application of hydrogen in fuel cell electric vehicles (FCEVs) and power generation prop up this growth. In 2025, the Asia-Pacific region is likely to hold the largest market share, occupying nearly 37% of the market, which may be contributed to by its growing inclination towards clean energy and renewable hydrogen production. While blue hydrogen is presently projected to lead in the U.S. in 2025, green hydrogen is also set to gain traction owing to advancements in technology and a decrease in the cost of production. Some of the major players in the market include L'Air Liquide S.A., Air Products and Chemicals, Inc., and Plug Power Inc., all of whom support the hydrogen sector's growth and innovation.