Hydrogen Generation Market to Garner $317.39 Billion by 2030 at CAGR 9.3% - Grand View Research, Inc.

SAN FRANCISCO, April 30, 2025 /PRNewswire/ -- The global hydrogen generation market size is projected to reach USD 317.39 billion by 2030, exhibiting a CAGR of 9.3% between 2024 and 2030, according to a new report by Grand View Research, Inc. Robust demand for cleaner fuel, construction of energy-saving hydrogen stations and desulfurization of petroleum products are poised to underpin the market growth.

An emphasis on distributed power and utility projects has fueled the industry penetration. For instance, global electricity demand is likely to rise by nearly two-thirds of the current demand during the forecast period. Stakeholders are expected to witness traction for sustainability solutions in power manufacturing, generation and transportation.

In terms of technology, the steam methane reforming segment is likely to depict a notable share during the forecast period. The growing demand for hydrogen generation comes on the back of steam methane reforming being the most economical method for hydrogen generation. Some other factors, such as high conversion efficiency, have augured well for the market growth.

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Based on application, the ammonia production segment spearheaded the market in 2023, accounting for over 21% of revenue share. The growth is likely to continue during the forecast period following the demand for ammonia to store and transport hydrogen. The trend for renewable hydrogen technologies and the use of ammonia as a carbon-free fuel will boost the segment growth.

With respect to source, the natural gas segment held the lion's share in 2023. Since hydrogen production from natural gas is the cheapest method of producing hydrogen, demand for the natural gas source will continue to rise over the next half a decade. Notable traction for steam methane reforming is expected to bode well for natural gas.

In terms of systems, the merchant generation segment will continue to depict a notable growth during the forecast period, mainly attributed to a massive natural gas pipeline network in the U.S., Russia and Canada. Hydrogen production at a central facility with a natural gas process is likely to reshape the segment growth.

Investors see hydrogen as a promising strategy to adhere to federal and environmental regulations while keeping up with the demand for energy. The trend for smart residential and commercial buildings will further drive the adoption of hydrogen for energy generation. Some factors, such as demand for low-carbon and sustainable energy solutions and robust government regulations, are poised to boost the hydrogen generation market revenue.

Read full market research report on Hydrogen Generation Market with TOC - Hydrogen Generation Market Size, Share & Trends Analysis Report By System (Merchant, Captive), By Technology (Steam Methane Reforming, Coal Gasification), By Application, By Source, By Region, And Segment Forecasts, 2024 - 2030

Hydrogen Generation Market Report Highlights:

• Coal gasification contributed 34.0% revenue share in 2023. The growth will continue during the forecast period as the U.S. has exhibited robust demand for coal gasification in hydrogen production and power generation. The trend is likely to reduce the U.S. dependency on imported petroleum products.
• The ammonia production segment led the market with a revenue share of over 21.0% in 2023. The demand for carbon-free fuel will underpin the segment growth.
• Asia Pacific contributed a lion's share of over 35.14% in 2023, and it will continue to exhibit a similar trend during the forecast period. The growth is largely attributed to the prevalence of an increasing number of refineries in emerging economies such as China and India. Moreover, Australia and Japan have prioritized greener and cleaner technologies for hydrogen generation.
• Organic and inorganic growth strategies will shape the global hydrogen generation industry. To illustrate, in 2019, Linde Plc announced that it had started a new gas production facility that supplies carbon dioxide, methane, and hydrogen to Evonik Industries.

Hydrogen Generation Market Segmentation

Grand View Research has segmented the hydrogen generation market based on technology, application, system, source, and region: 

Hydrogen Generation Market - Technology Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)

• Steam Methane Reforming
• Coal Gasification
• Others

Hydrogen Generation Market - Application Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)

• Methanol production
• Ammonia Production
• Petroleum Refining
• Transportation
• Power Generation
• Others

Hydrogen Generation Market - System Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)

• Captive
• Merchant

Hydrogen Generation Market - Source Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)

• Natural Gas
• Coal
• Biomass
• Water

Hydrogen Generation Market - Regional Outlook (Volume, Million Metric Tons; Revenue, USD Billion, 2018 - 2030)

• North America
• U.S.
• Canada
• Mexico
• Europe
• Germany
• Russia
• U.K.
• France
• Spain
• Italy
• Asia Pacific
• China
• India
• Japan
• South Korea
• Australia
• Central & South America
• Brazil
• Colombia
• Paraguay
• Middle East & Africa
• Saudi Arabia
• U.A.E
• South Africa
• Egypt

List of Key Players in the Hydrogen Generation Market

• Air Liquide International S.A
• Air Products and Chemicals, Inc
• Hydrogenics Corporation
• INOX Air Products Ltd.
• Iwatani Corporation
• Linde Plc
• Matheson Tri-Gas, Inc.
• Messer
• SOL Group
• Tokyo Gas Chemicals Co., Ltd.

Check out more related studies published by Grand View Research:

• Colombia Hydrogen Generation Market - The Colombia hydrogen generation market size is expected to reach USD 766.97 million by 2030, registering a CAGR of 9.8% from 2025 to 2030, according to a new report by Grand View Research, Inc. The growth can be attributed to the rising demand for cleaner fuel and increasing governmental regulations for the desulphurization of petroleum products.
• U.S. Hydrogen Generation Market - The U.S. hydrogen generation market size is estimated to reach USD 35.82 billion by 2030 and is expected to grow at a CAGR of 8.7% from 2024 to 2030, according to a new report by Grand View Research, Inc. With rising government regulations towards sustainable energy sources, the investments in smart 'energy-saving' residential and commercial buildings have also increased providing an impetus growth in the adoption of hydrogen for energy generation.
• Energy Storage As A Service Market - The global energy storage as a service market size is expected to reach USD 3.35 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 11.0% from 2025 to 2030. The global market is predominantly driven by the rising energy consumption and increasing demand for power management in the industrial and residential sectors.
• Voluntary Carbon Credit Market - The global voluntary carbon credit market size is anticipated to reach USD 24.00 billion by 2030 and is anticipated to expand at a CAGR of 34.6% during the forecast period, according to a new report by Grand View Research, Inc. The voluntary carbon credit market (VCM) refers to the trading of carbon credits on a voluntary basis outside of any legal or regulatory requirements.

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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.

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