The global hydrogen generation market size was valued at USD 186.58 billion in 2024 and is projected to reach USD value 317.39 by 2030, growing at a CAGR of 9.2% from 2025 to 2030. This growth outlook is supported by rising demand for cleaner fuel alternatives and the increasing implementation of governmental regulations aimed at the desulphurization of petroleum products. These regulatory measures are encouraging industries to adopt hydrogen-based processes that reduce emissions and improve environmental performance.

Hydrogen functions as a highly efficient energy carrier, and this characteristic is expected to play a major role in enabling its deeper penetration into emerging application areas and new markets. Additionally, global electricity demand is projected to increase significantly, reaching nearly two-thirds above current levels over the forecast period. This rapid rise in energy needs, combined with the growing focus on distributed power generation and utility-scale projects, is anticipated to strengthen the industry’s expansion over the coming years.

The U.S. is considered one of the early adopters of clean energy technologies across major sectors, including power generation, manufacturing, and transportation. In line with its long-term clean energy goals, the U.S. Department of Energy (DOE) and the Department of Transportation (DOT) introduced a Hydrogen Posture Plan in December 2006. The purpose of this plan was to boost research and development efforts and validate technologies that can support the establishment of a reliable hydrogen infrastructure within the country.

Furthermore, the Hydrogen Posture Plan outlined specific deliverables set by the Federal government to facilitate the systematic development of hydrogen-related infrastructure. The plan was aligned with the broader National Hydrogen Energy Vision and Roadmap, ensuring coordinated progress toward national clean energy objectives. Key priorities under this initiative include the development and construction of cost-effective and energy-efficient hydrogen fueling stations across the U.S. All these strategies and government-backed efforts are expected to substantially drive the demand for hydrogen generation in the country.

Key Market Trends & Insights:

• Asia Pacific hydrogen generation industry dominated globally in 2024 and accounted for the largest revenue share of over 35.34%.

This strong regional leadership is attributed to rapid industrial growth, rising energy demand, and large-scale adoption of hydrogen-based technologies across major economies. Countries in the region are investing heavily in clean energy initiatives, supported by favorable government policies and expanding manufacturing and refining sectors, which collectively contribute to its substantial market share.

• China led the Asia Pacific regional market in 2024, in terms of revenue.

China’s dominance is driven by its extensive industrial base, significant hydrogen production capacity, and strategic initiatives aimed at reducing carbon emissions. The country’s focus on large hydrogen pilot projects, expansion of coal-to-hydrogen facilities, and growing investments in renewable hydrogen production further reinforce its leadership position within the region.

• Based on systems, the captive generation segment accounted for a notable revenue share of about 64.47% in 2024.

This high share reflects the widespread use of captive hydrogen generation systems by industries that require a consistent, on-site supply for processes such as refining, chemical manufacturing, and metal processing. Captive systems offer cost advantages, operational reliability, and improved efficiency, which continue to make them a preferred choice for industrial users.

• By application, the ammonia production segment led the market with the largest revenue share of above 23.56% in 2024.

Ammonia production remains one of the most significant consumers of hydrogen globally, particularly for fertilizer manufacturing. The established demand from the agriculture sector, coupled with increasing interest in green ammonia as a clean fuel and energy carrier, supports the segment’s leading position.

• By technology, the coal gasification segment holds a revenue share of more than 29.0% in 2024.

The strong presence of coal gasification is largely due to its extensive use in regions with abundant coal reserves, especially in countries like China. The technology remains a widely adopted method for large-scale hydrogen production, supported by mature infrastructure and continued investment in improving its efficiency and reducing emissions.

Order a free sample PDF of the Hydrogen Generation Market Intelligence Study, published by Grand View Research.

Market Size & Forecast:

• 2024 Market Size: USD 186.58 Billion

• 2030 Projected Market Size: USD 317.39 Billion

• CAGR (2025-2030): 9.2%

• Asia Pacific: Largest market in 2024

Key Companies & Market Share Insights:

The hydrogen generation industry is highly competitive, with key participants actively engaged in research and development as well as continuous technological innovation. These ongoing efforts by vendors have become essential for companies aiming to strengthen their market presence and maintain performance in a rapidly evolving industry. Advancements in production technologies, improved efficiency, and the development of cleaner hydrogen solutions are central to gaining a competitive edge.

For instance, Matheson Tri-Gas, Inc. acquired the Linde HyCO business, which specializes in producing hydrogen, carbon monoxide, and syngas. This acquisition is expected to significantly enhance Matheson’s operational capabilities, broaden its product offerings, and enable it to better serve industries such as petrochemicals and refining, where hydrogen plays a critical role in numerous processes. The integration of these assets also positions the company to meet increasing demand more effectively.

In another notable development, Air Liquide announced its plan to manufacture and market renewable liquid hydrogen for the U.S. West Coast mobility market. As part of this initiative, a large-scale project is expected to produce 30 tons of liquid hydrogen per day using advanced biogas technology. This move aligns with the growing push for low-carbon transportation solutions, and it highlights the company’s commitment to supporting the clean mobility ecosystem. Such initiatives are likely to contribute to the overall expansion of the hydrogen generation sector.

Key Players

• 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.

Explore Horizon Databook – The world's most expansive market intelligence platform developed by Grand View Research.

Conclusion:

The hydrogen generation market is poised for robust growth, driven by rising demand for cleaner fuels and stricter regulations on petroleum desulphurization. Hydrogen’s role as a versatile energy carrier is expected to open up new applications, especially in power generation. Continued investments in distributed power projects and industrial infrastructure will further support this growth. The industry is also being shaped by strong regional momentum, technological innovation, and a shift toward more sustainable production methods.