Hydrogen Generation Market Share, Growth, Trend & Regional Analysis 2033

(MENAFN- Straits Research) Introduction

The global hydrogen generation market includes the creation of hydrogen gas using processes such as steam methane reforming, coal gasification, electrolysis, and others. Hydrogen is a multifaceted energy carrier and industrial feedstock, utilised in transportation, power generation, refining, and chemical production. The market's expansion is propelled by the rising demand for clean energy solutions, initiatives to mitigate greenhouse gas emissions, and the incorporation of hydrogen into energy systems to facilitate decarbonisation objectives. Technological progress and favourable government policies enhance the acceptance and improvement of hydrogen production technology.

The hydrogen generation industry is driven by the global transition to sustainable energy sources and the necessity to decarbonise many sectors. Governments are enacting rules and allocating resources to facilitate hydrogen production and utilisation. The U.S. government's allocation of USD 7 billion to Clean Energy Hubs seeks to improve hydrogen utilisation and diminish dependence on fossil fuels. The European Commission also sanctioned a EUR 220 million initiative to promote clean hydrogen generation in Spain. Technological improvements, including enhanced electrolysis techniques and hydrogen incorporation into transportation and industrial sectors, influence the market.

Market Dynamic Decarbonisation of industrial sectors drives market growth

The impetus to decarbonise industrial sectors is a major catalyst for the hydrogen-generating business. Industries, including steel manufacturing, chemical production, and refining, are investigating hydrogen as a sustainable substitute for conventional fossil fuels. Hydrogen serves as both a feedstock and an energy source, facilitating significant reductions in carbon emissions across these industries. Utilising green hydrogen in steel manufacturing via direct reduction methods can conserve over 2 tons of CO2 per tonne of steel, providing a greater decrease in emissions compared to alternative applications of green hydrogen. Moreover, hydrogen's significance in synthesising ammonia and methanol underscores its critical role in industrial applications.

As enterprises strive to comply with rigorous environmental standards and sustainability objectives, the demand for hydrogen as a decarbonisation mechanism is anticipated to increase, propelling expansion in the hydrogen generation market.

Diversification across multiple sectors creates tremendous opportunities

The transportation sector offers a substantial opportunity for the hydrogen-generating business. Hydrogen fuel cells provide a clean alternative for powering vehicles, particularly in heavy-duty and long-haul transportation, where battery electric vehicles may encounter constraints. In Europe, fuel cell buses are anticipated to rise from 370 in 2023 to over 1,200 by 2025, bolstered by multiple funding initiatives.

• For instance, Ballard Power Systems announced orders for 70 hydrogen fuel cell engines from Wrightbus, with delivery anticipated in April 2024 and buses projected to start operation in 2025 throughout the UK and Germany.
• Similarly, Airbus initiated a groundbreaking experiment in the aviation sector to showcase small-scale liquid hydrogen aircraft ground operations at three European airports, facilitating hydrogen-powered flight. Swiss aviation pioneer Bertrand Piccard is developing "Climate Impulse," a project designed to circumnavigate the globe in a two-seater aircraft within nine days, utilising green hydrogen fuel, with test flights scheduled imminently.

The proliferation of hydrogen applications across several industries aids in achieving emission reduction objectives and stimulates demand for hydrogen generation, establishing a positive feedback loop that fosters market expansion.

Regional Insights

The Asia-Pacific region dominates the global hydrogen generating market , possessing a 42.58% share in 2024. This leadership arises from purposeful national initiatives, robust governmental backing, and substantial expenditures in hydrogen technology. China has declared its objective to generate 100,000–200,000 tonnes of renewable hydrogen annually by 2025 and is allocating over $5 billion towards hydrogen infrastructure in key areas. Incorporating hydrogen in public transportation, industry, and residential sectors underscores the Asia-Pacific region's role as a centre for demand and innovation within the hydrogen economy.

Key Highlights

• The global hydrogen generation market size was valued at USD 172.5 billion in 2024 and is projected to grow from USD 181.4 billion in 2025 to USD 272.4 billion by 2033, exhibiting a CAGR of 5.1% during the forecast period (2025–2033).
• By Technology, the market is segmented into Steam Methane Reforming (SMR), coal gasification, electrolysis, and others (e.g., biomass gasification)​. Steam Methane Reforming (SMR) leads the market share.
• By Source, the market is segmented into grey hydrogen, blue hydrogen, and green hydrogen​. Grey Hydrogen dominates the market.
• By Application, the market is segmented into Chemical Processing, Petroleum Refinery, Transportation, Power Generation, and Others​. Chemical Processing holds the largest share.
• Based on region, the global hydrogen generation market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. Asia-Pacific dominates the global market.

Competitive Players

Air Liquide

Air Products and Chemicals Inc.

Linde plc

Messer Group Gmbh

ITM Power

NEL ASA

Plug Power Inc.

Ballard Power Systems

Cummins Inc.

Siemens Energy

McPhy Energy S.A.

FuelCell Energy

Recent Developments

• In February 2025, Air Liquide and TotalEnergies announced a joint investment of over €1 billion to develop two large-scale, low-carbon hydrogen production plants in the Netherlands, aiming to significantly reduce CO2 emissions in the industrial sector. ​
• In April 2025, Project HySpeed, a consortium of UK businesses, launched a £6.5 billion initiative to boost green hydrogen production, aiming to build one gigawatt of hydrogen capacity by 2030 and create approximately 24,300 jobs.

Segmentation

By Technology:

Steam Methane Reforming (SMR)

Coal Gasification

Electrolysis

Others (e.g., biomass gasification)​

By Source:

Grey Hydrogen

Blue Hydrogen

Green Hydrogen​

By Application:

Chemical Processing

Petroleum Refinery

Transportation

Power Generation

Others​

By Region:

North America

Europe

Asia-Pacific

Latin America

The Middle East and Africa

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