Hydrogen Generation Industry
The global hydrogen generation market was valued at USD 170.14 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 9.3% from 2024 to 2030. This growth is driven by the increasing demand for cleaner fuel alternatives and stricter government regulations aimed at the desulfurization of petroleum products. Hydrogen, as an efficient energy carrier, is expected to play a crucial role in expanding its market presence into new sectors. Furthermore, global electricity demand is predicted to rise by nearly two-thirds over the forecast period, which is likely to further support the industry's growth. The growing emphasis on distributed power and utility-related projects is also anticipated to boost the hydrogen generation market.
The U.S. stands out as one of the early adopters of clean energy solutions, particularly in key sectors like power generation, manufacturing, and transportation. In line with this, the U.S. Department of Energy (DOE) and the Department of Transportation (DOT) launched a Hydrogen Posture Plan in December 2006. This initiative was designed to enhance research and development (R&D) efforts and to validate technologies that could be used to establish a hydrogen infrastructure.
The plan was part of the broader National Hydrogen Energy Vision and Roadmap, which set clear objectives for the U.S. government to support the growth of hydrogen infrastructure across the country. One of the primary goals is the development of cost-effective and energy-efficient hydrogen stations. These initiatives and policies are expected to significantly drive the demand for hydrogen generation in the U.S., contributing to the broader market expansion globally.
Gather more insights about the market drivers, restrains and growth of the Hydrogen Generation Market
Technology Insights
Technology Type Classification:
- The global hydrogen generation market is categorized into three primary technology types: steam methane reforming, coal gasification, and others.
Steam Methane Reforming Segment:
- Steam methane reforming is a mature and advanced technology in hydrogen generation.
- It is considered the most economical method for producing hydrogen, driving its widespread adoption.
- The growing global demand for hydrogen generation is a key factor fueling the growth of steam methane reformer technology.
- This process offers operational benefits, including high conversion efficiency, further supporting its dominance in the market.
- The steam methane reforming segment is expected to maintain its leadership position during the forecast period.
Coal Gasification Segment:
- Coal gasification held a revenue share of over 34.0% in 2023.
- This technology, which utilizes coal as a raw material to produce hydrogen, has been practiced for nearly two centuries and is regarded as a well-established method in hydrogen generation.
- The United States has a substantial domestic coal resource, and the use of coal to generate hydrogen for the transportation sector is expected to help reduce the country’s reliance on imported petroleum products.
Others Segment (Electrolysis and Pyrolysis):
- Technologies in the "others" category include electrolysis, pyrolysis, and electrolyzers.
- Over the past decade, there has been a notable rise in electrolysis installations, which focus on producing hydrogen from water.
- Proton exchange membrane (PEM) technology, which emits only oxygen as a byproduct without carbon emissions, has been gaining significant market share within electrolysis.
- While most electrolysis projects are currently located in Europe, new projects have been announced in regions such as Australia, China, and the United States.
Order a free sample PDF of the Hydrogen Generation Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
Contact:
Sherry James
Corporate Sales Specialist, USA
Grand View Research, Inc.
Phone: 1-415-349-0058
Toll Free: 1-888-202-9519
Email: sales@grandviewresearch.com
