Petroleum Refinery Merchant Hydrogen Generation Market By Generation Process (Steam Methane Reforming, Autothermal Reforming, Partial Oxidation, Electrolysis), By Application (Hydrocracking, Hydrotreating, Desulfurization, Upgrading of Heavy Oils), By End-User Industry (Oil & Gas, Petrochemicals, Automotive, Aviation, Energy & Power), By Distribution Channel (Direct Sales, Distributors, Industrial Sales, Wholesale), and By Region; Global Insights & Forecast (2023 – 2030)

As per Intent Market Research, the Petroleum Refinery Merchant Hydrogen Generation Market was valued at USD 10.5 Billion in 2024-e and will surpass USD 15.8 Billion by 2030; growing at a CAGR of 7.0% during 2025-2030.

The petroleum refinery merchant hydrogen generation market plays a pivotal role in enabling cleaner and more efficient fuel processing. This market primarily focuses on providing hydrogen as a critical input for refining operations, including hydrocracking, hydrotreating, and desulfurization. Hydrogen is increasingly sought after to meet stringent environmental regulations and enhance the quality of refined products. The market is characterized by technological advancements and a shift toward sustainable production methods, catering to the growing demand across various regions and industries.

Steam Methane Reforming (SMR) Segment Is Largest Owing to Cost-Effectiveness

Steam Methane Reforming (SMR) dominates the generation process segment, accounting for the largest share due to its cost efficiency and scalability. SMR is the most established method for producing hydrogen, offering high yield by reforming methane with steam to extract hydrogen. Its widespread adoption in refineries is supported by advancements in carbon capture technologies to mitigate emissions.

The reliability and established infrastructure for SMR make it the preferred choice for refineries globally. Despite the growing interest in green hydrogen, SMR continues to thrive owing to its ability to meet large-scale hydrogen demands. Investments in blue hydrogen, which combines SMR with carbon capture, further solidify its position in this market.

Hydrotreating Segment Is Fastest Growing Owing to Cleaner Fuel Demand

Hydrotreating is experiencing rapid growth due to its critical role in producing ultra-low sulfur fuels (ULSF) and meeting stringent environmental regulations. This process uses hydrogen to remove impurities such as sulfur, nitrogen, and metals from petroleum products, ensuring compliance with emission standards.

The growth of the hydrotreating segment is driven by increasing global demand for cleaner fuels and diesel. Governments worldwide are enforcing regulations to reduce sulfur emissions, thereby boosting the adoption of hydrotreating technologies. This trend is particularly prominent in Asia-Pacific, where rapid industrialization and urbanization are fueling the demand for ULSF.

Petrochemicals Segment Is Largest Owing to Expanding Downstream Applications

The petrochemicals segment holds the largest share in the end-user industry category, driven by hydrogen's indispensable role in producing olefins, aromatics, and other petrochemical derivatives. As a feedstock, hydrogen is vital in processes like steam cracking and catalytic reforming.

The petrochemical industry’s expansion, especially in emerging economies, has bolstered the demand for merchant hydrogen. Rising consumption of plastics, synthetic rubbers, and chemicals further supports this growth. The strategic integration of hydrogen generation with petrochemical plants ensures cost-efficiency and uninterrupted supply, reinforcing its dominance in this segment.

Direct Sales Segment Is Largest Owing to Refinery Partnerships

Direct sales lead the distribution channel segment, attributed to long-term partnerships between hydrogen producers and refineries. This channel ensures a reliable and consistent supply of hydrogen tailored to refinery requirements, fostering operational efficiency.

The dominance of direct sales is also due to its cost-effectiveness and ability to meet customized demands for hydrogen purity and volume. As refineries increasingly rely on merchant hydrogen providers, direct sales remain the preferred distribution method, supported by strategic contracts and technology collaborations.

Asia-Pacific Is Fastest Growing Owing to Refinery Expansion

Asia-Pacific emerges as the fastest-growing region in the petroleum refinery merchant hydrogen generation market, driven by significant investments in refining capacity and energy infrastructure. Rapid urbanization and industrialization in countries like China, India, and Southeast Asian nations are fueling demand for refined petroleum products and clean fuels.

The region’s focus on reducing sulfur emissions and meeting global environmental standards has spurred the adoption of hydrogen in refining operations. Government initiatives to promote cleaner energy solutions and collaborations with international hydrogen producers further accelerate market growth in Asia-Pacific.

Competitive Landscape and Leading Companies

The competitive landscape of the petroleum refinery merchant hydrogen generation market is characterized by the presence of established players and continuous technological innovation. Key companies such as Air Products, Linde plc, and Air Liquide dominate the market with their extensive hydrogen production and distribution networks.

These companies focus on partnerships, acquisitions, and investments in green and blue hydrogen projects to maintain a competitive edge. Emerging players are also leveraging advancements in electrolysis and other sustainable technologies to penetrate the market. As the industry transitions toward decarbonization, competition is intensifying, fostering innovation and driving the market forward.

Recent Developments:

• Air Products entered a $1 billion agreement to supply merchant hydrogen to a major Asian refinery, enhancing its global footprint.
• Linde announced the commissioning of a new green hydrogen production facility in Germany, emphasizing its sustainability focus.
• Sinopec unveiled plans to expand its hydrogen generation and distribution network across China, targeting refinery modernization.
• Shell partnered with Iwatani Corporation to establish hydrogen refueling stations across Japan, bolstering merchant hydrogen utilization.
• TotalEnergies invested in a new blue hydrogen production plant in the Middle East, aiming to support cleaner refinery operations.

List of Leading Companies:

• Air Products and Chemicals, Inc.
• Linde plc
• Air Liquide
• Praxair, Inc.
• Shell Hydrogen
• ExxonMobil Corporation
• BP PLC
• Chevron Corporation
• Sinopec Limited
• TotalEnergies SE
• Mitsubishi Chemical Corporation
• Iwatani Corporation
• Messer Group GmbH
• Uniper SE
• Chiyoda Corporation

Report Scope: