Industrial Hydrogen Market By Source (Natural Gas, Electrolysis, Coal Gasification, Other), By End-User Industry (Oil & Gas, Chemicals, Refining, Food & Beverages, Metal Production), By Application (Hydrogenation, Refining, Fuel Cells, Power Generation, Industrial Heating); Global Insights & Forecast (2024 - 2030)

As per Intent Market Research, the Industrial Hydrogen Market was valued at USD 153.1 Billion in 2024-e and will surpass USD 278.0 Billion by 2030; growing at a CAGR of 10.5% during 2025 - 2030.

The industrial hydrogen market plays a pivotal role in various industries, serving as a critical feedstock and energy source for applications such as refining, chemicals production, and energy generation. Hydrogen is primarily used in the production of ammonia for fertilizers, refining processes, and as a clean fuel for hydrogenation reactions. The rise in global demand for cleaner and more sustainable energy solutions is boosting the adoption of hydrogen, especially green hydrogen produced through electrolysis. The increasing focus on reducing carbon emissions in industrial processes and transitioning to sustainable energy sources is also spurring growth in the hydrogen market. Innovations in hydrogen production technologies and growing government support for green energy initiatives are anticipated to further accelerate the market's development.

The industrial hydrogen market is largely driven by diverse sources, with natural gas-based production (steam methane reforming) being the dominant method. However, there is a growing emphasis on the adoption of green hydrogen produced from renewable energy sources through electrolysis. This shift is driven by the need to reduce dependence on fossil fuels and decrease the environmental footprint of hydrogen production. The market's potential is significant across sectors, including oil and gas, chemicals, refining, food and beverages, and metal production, all of which rely heavily on hydrogen in various forms for energy and feedstock.

Electrolysis (Green Hydrogen) Grows Rapidly as a Sustainable Source

Electrolysis, particularly green hydrogen production, is the fastest-growing source in the industrial hydrogen market, driven by the increasing demand for sustainable and environmentally friendly hydrogen production methods. Unlike traditional methods such as steam methane reforming (SMR) that rely on fossil fuels, green hydrogen is produced using renewable energy sources like wind, solar, or hydropower. This process, known as water electrolysis, splits water into hydrogen and oxygen without emitting carbon dioxide, making it a crucial part of the energy transition toward decarbonization.

The rising awareness of climate change, along with stricter environmental regulations and the push for net-zero emissions, is propelling the shift towards green hydrogen. Countries and industries are increasingly focusing on this clean energy source, which is expected to play a key role in achieving sustainability goals. Significant investments in electrolyzer technology and renewable energy infrastructure are enhancing the scalability and cost-effectiveness of green hydrogen production, further boosting its adoption in the industrial sector.

Oil & Gas Industry Drives Industrial Hydrogen Demand

The oil and gas industry remains the largest end-user of industrial hydrogen, as hydrogen plays a crucial role in refining, hydrogenation, and hydrocracking processes. It is used extensively to produce cleaner fuels, reduce sulfur content in gasoline and diesel, and enhance oil refining processes. The refining industry’s heavy reliance on hydrogen to upgrade the quality of petroleum products makes it a dominant consumer of industrial hydrogen.

As global energy demand continues to increase, the oil and gas industry’s need for hydrogen to meet stricter fuel quality standards and to support refining processes remains significant. Furthermore, with the growing trend of decarbonization in the oil and gas sector, there is a rising interest in using hydrogen as a cleaner alternative for industrial heating and as a power source for fuel cells. This trend is expected to continue as the oil and gas industry seeks to reduce its carbon footprint and embrace sustainable practices.

Asia-Pacific to Lead Industrial Hydrogen Market Growth

The Asia-Pacific region is expected to be the fastest-growing market for industrial hydrogen, driven by rapid industrialization, increasing energy demands, and government support for clean energy solutions. Countries like China, India, and Japan are making significant investments in hydrogen technologies, particularly green hydrogen, as part of their efforts to achieve net-zero emissions and reduce reliance on fossil fuels. China, in particular, is leading the charge in the development of green hydrogen projects, with large-scale electrolyzer installations and renewable energy infrastructure being put in place.

Asia-Pacific’s large manufacturing base, especially in industries such as refining, chemicals, and food processing, also contributes significantly to the demand for industrial hydrogen. The region’s growing focus on environmental sustainability and the adoption of green hydrogen technologies will further boost the market's expansion. As governments continue to promote clean energy policies and support the development of hydrogen infrastructure, the industrial hydrogen market in Asia-Pacific is poised for substantial growth in the coming years.

Competitive Landscape and Key Companies

The industrial hydrogen market is competitive and features a range of key players involved in the production, distribution, and supply of hydrogen. Leading companies include Air Liquide, Linde, Air Products and Chemicals, Inc., and Messer Group, which dominate the market through their extensive global presence and well-established infrastructure. These companies offer hydrogen production technologies such as steam methane reforming (SMR), electrolysis, and coal gasification, along with specialized services in hydrogen distribution and storage.

The market is also witnessing a rise in collaboration and partnerships between hydrogen producers, governments, and industries to drive the development of hydrogen infrastructure and to scale up green hydrogen production. Companies are increasingly focusing on technological innovations to improve production efficiency, reduce costs, and make hydrogen more accessible for industrial applications. As the demand for clean and sustainable hydrogen increases, competition is expected to intensify, with companies striving to provide advanced hydrogen solutions for a wide range of industrial applications.

Recent Developments:

• Air Liquide announced the launch of a new green hydrogen production facility in December 2024, aimed at supporting the energy transition.
• Linde Group completed a partnership with a major refinery to supply industrial hydrogen for its hydrogenation and refining processes in November 2024.
• Air Products and Chemicals, Inc. introduced an innovative hydrogen storage and distribution technology for large-scale industrial use in October 2024.
• Hydrogenics (Cummins Inc.) secured a contract for a hydrogen fuel cell project for an industrial heating application in September 2024.
• Shell Hydrogen expanded its network of hydrogen refueling stations across Europe to support the growing hydrogen vehicle market in August 2024.

List of Leading Companies:

• Air Liquide
• Linde Group
• Air Products and Chemicals, Inc.
• The Hydrogen Company
• Praxair Technology, Inc.
• Hydrogenics (Cummins Inc.)
• Shell Hydrogen
• Messer Group
• ITM Power
• Toshiba Energy Systems & Solutions Corporation
• Ballard Power Systems
• Nel ASA
• Plug Power
• McPhy Energy
• Siemens Energy

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