Grey Hydrogen Market By Production Method (Steam Methane Reforming, Partial Oxidation, Autothermal Reforming), By End-User Industry (Chemical Industry, Oil Refining, Metal Production, Power Generation), By Application (Hydrogenation, Refining, Power Generation, Ammonia Production, Methanol Production), and By Region; Global Insights & Forecast (2023 – 2030)

As per Intent Market Research, the Grey Hydrogen Market was valued at USD 136.7 Billion in 2024-e and will surpass USD 171.0 Billion by 2030; growing at a CAGR of 3.8% during 2025-2030.

The grey hydrogen market has emerged as a critical component of various industrial processes, playing a vital role in sectors like chemical production, oil refining, and power generation. Grey hydrogen is primarily produced through methods such as Steam Methane Reforming (SMR), Partial Oxidation (POX), and Autothermal Reforming (ATR). Despite the environmental concerns surrounding the carbon dioxide emissions associated with its production, grey hydrogen remains a dominant and cost-effective solution due to its established production infrastructure. The market continues to expand as industrial sectors demand an increasing supply of hydrogen for diverse applications. However, as the focus shifts towards sustainability, the market is also exploring avenues for integrating carbon capture and storage (CCS) to mitigate environmental impact.

Steam Methane Reforming (SMR) Is Largest Production Method Owing to Widespread Adoption

Steam Methane Reforming (SMR) is the largest and most widely used method for grey hydrogen production, accounting for the majority of the market share. This method involves reacting methane with steam at high temperatures to produce hydrogen and carbon monoxide, followed by the water-gas shift reaction to convert carbon monoxide into carbon dioxide and hydrogen. SMR is widely preferred due to its well-established technology, relatively low cost, and ability to scale for large production volumes. The abundance of natural gas, particularly in regions like North America, makes it an economically viable option for hydrogen production.

In industries like ammonia production, refining, and chemical manufacturing, SMR remains a key process for hydrogen supply. While SMR is less environmentally friendly compared to green hydrogen alternatives, the high efficiency and cost-effectiveness of this method continue to drive its dominance. As the market moves towards cleaner hydrogen production technologies, advancements in carbon capture and storage (CCS) are being integrated into SMR facilities to reduce CO2 emissions, ensuring the method remains relevant in the hydrogen production mix.

Chemical Industry Is Largest End-User Industry Due to High Demand for Hydrogen

The chemical industry is the largest end-user of grey hydrogen, driven by its critical role in producing ammonia, methanol, and other chemicals. Hydrogen is essential in various chemical processes such as hydrogenation, ammonia synthesis, and refining. The production of ammonia for fertilizers is one of the key drivers of hydrogen demand in the chemical sector. Additionally, the rising demand for methanol in the production of plastics, solvents, and other chemicals further boosts the need for hydrogen.

As global agricultural practices continue to expand and industrial activities increase, the chemical industry’s hydrogen consumption is expected to grow. Hydrogen’s versatility in improving chemical processes, such as the reduction of sulfur in fuels and the production of hydrogenated oils, underpins its importance. The continued growth of the chemical industry, especially in emerging markets like Asia-Pacific, will drive the demand for grey hydrogen in the coming years.

Hydrogenation Is Fastest Growing Application Due to Expanding Demand for Refined Products

Hydrogenation is the fastest growing application of grey hydrogen, driven by its key role in refining, food production, and the development of renewable fuels. Hydrogenation is primarily used to add hydrogen to unsaturated hydrocarbons, converting them into saturated compounds. In the food industry, hydrogenation is used to produce hydrogenated oils and fats, such as margarine. In the oil and gas industry, hydrogenation is essential for upgrading low-quality crude oil into higher-value refined products by removing impurities such as sulfur.

As consumer demand for refined products, including hydrogenated oils, clean fuels, and synthetic chemicals, continues to increase, the hydrogenation application of grey hydrogen is expected to experience substantial growth. Moreover, the continued push towards renewable energy sources and biofuels is expected to accelerate the demand for hydrogenation, particularly in the production of renewable diesel and biofuels.

Asia-Pacific Is Fastest Growing Region Due to Industrialization and Energy Demand

The Asia-Pacific region is the fastest growing market for grey hydrogen, fueled by rapid industrialization, increasing energy consumption, and significant investments in hydrogen infrastructure. Countries such as China, India, and Japan are leading the charge in hydrogen adoption, with large-scale hydrogen projects underway in various industrial sectors. The chemical industry in Asia-Pacific is a major consumer of grey hydrogen, particularly in ammonia production and refining, where the demand for hydrogen is surging in line with population growth and urbanization.

In addition, the region’s push for energy security and sustainability is fostering the adoption of cleaner hydrogen production methods, even within grey hydrogen markets. With China being one of the largest producers and consumers of hydrogen globally, the region is expected to continue leading the market in both production and consumption. The growing energy demands of industrial sectors, coupled with the region’s evolving hydrogen infrastructure, make Asia-Pacific the fastest growing region in the global grey hydrogen market.

Leading Companies and Competitive Landscape

The grey hydrogen market is highly competitive, with several key players leading the charge in production, technology development, and market expansion. Major companies in the grey hydrogen market include Air Products and Chemicals, Inc., Linde plc, BP Plc, ExxonMobil Corporation, and Shell Global. These companies dominate the production landscape due to their established hydrogen infrastructure, technological expertise, and strong relationships with industrial customers.

The competitive landscape is characterized by large investments in hydrogen production technologies, such as Steam Methane Reforming (SMR) and carbon capture and storage (CCS). These leading players are actively involved in forming strategic partnerships, joint ventures, and mergers to expand their reach and improve the sustainability of their hydrogen production processes. As the market evolves, companies are exploring alternative hydrogen production methods, such as blue and green hydrogen, to meet the growing demand for cleaner energy solutions. The ongoing innovation in hydrogen technology and the expansion of hydrogen infrastructure will continue to shape the competitive dynamics of the grey hydrogen market.

Recent Developments:

• Air Products and Chemicals, Inc. announced a major expansion of its grey hydrogen production capacity in North America to meet growing industrial demand.
• BP Plc and Equinor ASA have formed a strategic partnership to develop grey hydrogen production projects in the North Sea region, focusing on reducing production costs and scaling up hydrogen output.
• Shell Global unveiled a new investment into advanced steam methane reforming technologies to increase the efficiency of its grey hydrogen production while lowering operational costs.
• ExxonMobil Corporation revealed its new carbon capture and storage (CCS) technology for grey hydrogen production, aiming to reduce carbon emissions from hydrogen production facilities.

List of Leading Companies:

• Air Products and Chemicals, Inc.
• Linde plc
• Shell Global
• BP Plc
• ExxonMobil Corporation
• Equinor ASA
• TotalEnergies SE
• Honeywell UOP
• Siemens Energy AG
• Thyssenkrupp Industrial Solutions AG
• Haldor Topsoe A/S
• JGC Corporation
• McDermott International
• Tata Steel Limited
• SABIC (Saudi Basic Industries Corporation)

Report Scope: