Global Hydrogen Generation Market Set to Surge to $226 Billion by 2030 Amid Growing Demand for Clean Energy
The global hydrogen generation market is poised for remarkable growth, expected to expand from an estimated USD 157.81 billion in 2025 to USD 226.37 billion by 2030, reflecting a robust compound annual growth rate (CAGR) of 7.5% during the forecast period. This surge is driven by escalating global efforts to reduce carbon emissions, transition towards cleaner energy sources, and strengthened government policies supporting hydrogen as a vital component of the sustainable energy future.
Hydrogen: The Cornerstone of the Clean Energy Transition
Hydrogen, recognised as a key enabler in the global shift towards net-zero emissions, is gaining increasing traction worldwide. While grey hydrogen—produced from natural gas—is currently dominant due to its cost-effectiveness and established infrastructure, green hydrogen generated via electrolysis using renewable energy is rapidly emerging as the zero-emission solution of choice. Investments in green hydrogen technology are accelerating, supported by international climate targets and national hydrogen strategies.
Market Drivers and Applications
The petroleum refinery sector is projected to remain a dominant end-user, accounting for significant hydrogen consumption. Hydrogen is essential in refining processes such as hydrocracking and desulphurisation, which are critical to producing cleaner fuels and meeting increasingly stringent environmental regulations globally. The demand for ultra-low sulphur diesel and other cleaner petroleum products is fuelling higher hydrogen utilisation in refineries, reinforcing the market’s growth.
Technologically, electrolysis is expected to register the fastest growth during the forecast period. The ability to produce green hydrogen from renewable electricity, such as solar and wind, aligns perfectly with ambitious decarbonisation goals worldwide. Government incentives, subsidies, and strategic investments—particularly in Europe and the Asia-Pacific region—are driving widespread adoption of electrolysis technology at scale.
Regional Insights: Europe Leading the Charge
Europe is forecast to be the second-fastest growing region in the hydrogen generation market, propelled by the European Union’s Green Deal and robust policy frameworks aimed at reducing emissions and boosting clean energy innovation. The continent’s expanding renewable capacity, commitment to decarbonising heavy industry and transport, alongside cross-border hydrogen infrastructure projects, reinforce its leadership position in developing a sustainable hydrogen economy.
Key Industry Players
Prominent companies shaping the hydrogen generation landscape include Linde plc (Ireland), Air Liquide (France), Saudi Arabian Oil Co. (Saudi Arabia), Air Products and Chemicals, Inc. (USA), Shell plc (UK), ENGIE (France), Chevron Corporation (USA), Orsted A/S (Denmark), and Messer SE & Co. KGaA (Germany). These organisations are advancing through strategic partnerships, investments, acquisitions, and expansions to capitalise on the growing hydrogen economy.
About Linde PLC and Air Liquide
Linde PLC, the world’s largest industrial gas company by revenue, provides hydrogen and engineering solutions globally across key markets such as healthcare, petroleum refining, manufacturing, and aerospace. Air Liquide, a leading French multinational, is expanding its renewable hydrogen production through electrolysis and biomethane reforming technologies, operating thousands of plants across more than 75 countries.
