Comprehensive Snapshot of Hydrogen Market Report Including Regional and Country Analysis in Brief.
Industry: Chemicals and Materials
Published Date: April-2025
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 160
Report ID: PMRREP4146
The global Hydrogen market size is anticipated to rise from US$ 276.8 Bn in 2025 to US$ 438.6 Bn by 2032. It is projected to witness a CAGR of 6.8% from 2025 to 2032. The demand for hydrogen demand has been significant in recent years, largely driven by increased government initiatives aimed at building hydrogen-based economies.
Several countries heavily invest in hydrogen infrastructure, recognizing its potential as a clean and sustainable energy source. Governments across Europe, Asia Pacific, and North America are rolling out policy frameworks, subsidies, and pilot projects to support hydrogen production, storage, and distribution. This shift is a part of broader strategies to reduce carbon emissions and transition toward low-emission energy solutions. As industries and transportation sectors seek cleaner fuel alternatives, hydrogen is emerging as a key component due to its versatility and environmental benefits.
Key Industry Highlights
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Global Market Attribute |
Key Insights |
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Hydrogen Market Size (2025E) |
US$ 276.8 Bn |
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Market Value Forecast (2032F) |
US$ 438.6 Bn |
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Projected Growth (CAGR 2025 to 2032) |
6.8% |
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Historical Market Growth (CAGR 2019 to 2024) |
5.7% |
Hydrogen is emerging as a versatile energy carrier across multiple sectors, accelerating its demand globally. Traditionally used in refining and ammonia production hydrogen is now expanding into steel manufacturing, transportation, power generation, and residential heating. This industrial versatility is a key growth driver.
In the steel industry, hydrogen is replacing carbon-intensive coal in Direct Reduced Iron (DRI) processes. For example, Thyssenkrupp and ArcelorMittal are piloting green hydrogen-based steel plants aimed at reducing up to 95% CO? emissions from traditional methods. Similarly, fertilizer manufacturers such as Yara are transitioning to green ammonia, using hydrogen produced from renewable sources.
In the transport sector, hydrogen is gaining momentum as a clean fuel for Fuel Cell Electric Vehicles (FCEVs), especially for heavy-duty trucks, buses, and trains. According to the IEA, global FCEV stock is expected to surpass 15 million vehicles by 2040. Companies like Toyota (Mirai) and Hyundai (XCIENT trucks) are leading this shift.
Hydrogen is a synthetic energy carrier, i.e. it stores energy produced through other methods. One common method of producing hydrogen is through alkaline electrolysis, where electrical energy is converted into hydrogen. However, this is not the only stage where energy is consumed. Additional energy is required to compress, liquefy, transport, transfer or store hydrogen after its production. In an ideal scenario, the energy used to produce hydrogen would equal the energy it contains, but this is rarely the case. Whether hydrogen is generated from electricity or through chemical reforming of hydrocarbons, energy transformations are involved.
During these processes, electrical or chemical energy is converted into chemical energy stored in hydrogen. Unfortunately, no energy conversion process is 100% efficient resulting in inevitable energy losses. These losses reduce the overall energy efficiency of hydrogen production, posing a key challenge for the widespread adoption of hydrogen as a clean energy source.
Governments around the world are increasingly expected to support hydrogen programs in the coming years as part of their strategies to achieve net-zero carbon emissions. Crafting the most effective green hydrogen strategy remains complex due to the wide range of decarbonization options available across different applications and industries. As innovation and technology evolve, the cost-effectiveness and benefits of these alternatives are likely to change. Consequently, countries are exploring technologies that align best with their national needs while being cautious not to adopt less efficient or outdated decarbonization routes.
Key players such as Air Liquide, Linde plc, Hexagon Purus, and Worthington Industries are leading the development of advanced hydrogen storage solutions. For example, Hexagon Purus has supplied high-pressure hydrogen storage tanks for commercial vehicles in Europe and North America, while Linde continues to invest in large-scale hydrogen infrastructure projects to support clean energy distribution.
Greenhouse gases trap heat from the Earth’s surface, which leads to global warming. These gases have been increasing due to industrial activity and the use of fossil fuels. To fight this, the U.S. Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) introduced the Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule. This rule updates vehicle emission and fuel efficiency standards from 2021 to 2026, aiming for an average of 202 grams of CO2 per mile and 40.4 miles per gallon by 2026.
Globally, CO2 emissions rose in nearly every region in 2021. For example, Brazil and India witnessed a spike of over 10%, while the U.S. and the EU witnessed about 7% more emissions. China’s emissions went up by 5%, and Japan saw a smaller rise. In the U.S., over 900 million tonnes of CO2 came from electricity and heat generation. The world’s growing energy needs, mostly met by fossil fuels, have led to a 46% rise in global emissions.
The mobility segment is projected to experience fast-growth during the forecast period. This momentum is fueled by increasing investments in hydrogen fuel cell technologies, which are seen as a sustainable alternative to conventional fossil fuels. Governments across the globe are actively promoting hydrogen-powered mobility solutions through subsidies, grants, and regulatory support, as part of broader initiatives to reduce carbon emissions and combat climate change.
Hydrogen fuel cell vehicles (FCEVs) offer long driving ranges, quick refueling times, and zero tailpipe emissions, making them an ideal option for passenger cars, buses, and commercial trucks. The growing demand for clean public transport and sustainable logistics is further amplifying the adoption of hydrogen-powered mobility.
Grey hydrogen is projected to maintain a dominant share in the global hydrogen market over the forecast period, primarily due to its cost-effective production methods and well-established infrastructure. Grey hydrogen is produced through steam methane reforming (SMR) of natural gas, a technology that is mature, commercially viable, and widely used across the globe. This method accounts for over 95% of global hydrogen production today, according to the International Energy Agency (IEA).
The economic advantage lies in the low cost and high-availability of natural gas, particularly in regions such as North America, the Middle East, and parts of Asia Pacific, where natural gas is abundant and accessible. For instance, in the U.S., grey hydrogen production can cost as low as US$ 1–1.50/kg, significantly lower than green hydrogen, which ranges from US$ 4–6/kg due to expensive electrolysis and renewable electricity.
North America is anticipated to emerge as the largest hydrogen market during the forecast period, driven by several key factors. One of the primary contributors is the growing deployment of hydrogen fuel cells across transportation, industrial, and power generation sectors. The region is also witnessing a rising emphasis on clean energy adoption, prompted by stringent environmental regulations and efforts to reduce carbon emissions.
Government policies are playing a crucial role in shaping the hydrogen ecosystem. The United States and Canada are actively developing national hydrogen strategies and funding clean energy initiatives. In March 2023, the Biden-Harris Administration announced a major push to accelerate clean hydrogen development by allocating US$ 750 million through the U.S. Department of Energy (DOE). This funding supports research, development, and demonstration projects aimed at significantly reducing the cost of producing clean hydrogen, thereby making it more commercially viable.
The European hydrogen market is rapidly expanding, fueled by aggressive decarbonization targets, large-scale renewable energy projects, and supportive regulatory frameworks such as the European Hydrogen Strategy. The region is committed to becoming climate-neutral by 2050, and hydrogen is seen as a key enabler of this transition.
Key countries such as Germany, France, the Netherlands, and the UK are investing heavily in green hydrogen production and infrastructure. The EU aims to install 40 GW of electrolyzer capacity by 2030, with an additional 40 GW from neighboring regions for import. Germany alone has allocated over US$ 10 billion toward national hydrogen strategy.
The Asia Pacific hydrogen market is set for robust expansion, driven by increasing energy demand, a shift toward cleaner fuels, and major government initiatives promoting hydrogen as a key pillar of decarbonization. Countries such as Japan, China, South Korea, and Australia are at the forefront of hydrogen innovation and deployment, leveraging both green and blue hydrogen technologies to meet climate goals and reduce reliance on fossil fuels.
India has announced the creation of a green hydrogen hub up to 2030, and hydrogen production costs will be minimized to steam methane reforming hydrogen production cost between US$ 1.90 to 2.45 with the help of renewable energy hydrogen production methods and in the current situation India has approximately 6 MMTPA hydrogen demand which will turn in to 13+ MMTPA under projected timeline. The Indian fertilizer industry is dependent upon the grey Hydrogen method (Methane reforming), Green Hydrogen will be achieved by the National Hydrogen Mission technological redemption.
The global hydrogen market is highly competitive, driven by the rapid push for clean energy solutions and the transition toward a hydrogen-based economy. Several key players are actively expanding their market share through technological innovation, strategic collaborations, and international partnerships. Leading companies such as Air Liquide, Linde plc, and Plug Power dominate the global hydrogen space with robust infrastructure, vast production capabilities, and diversified portfolios. These firms are heavily focused on green and blue hydrogen production, electrolyze technology, and fueling infrastructure to support decarbonization in transport, industry, and power generation.
Meanwhile, regional and emerging players such as Nel ASA, ITM Power, and Sunfire GmbH are driving competition by offering cutting-edge electrolyze technologies, modular systems, and cost-effective hydrogen solutions. Innovation in storage, transport, and fuel cell integration is further intensifying the competitive landscape. In addition, stringent global emission regulations and carbon neutrality goals are pushing companies to adopt low-carbon hydrogen production technologies.
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Report Attribute |
Details |
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Historical Data/Actuals |
2019 - 2024 |
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Forecast Period |
2025 - 2032 |
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Market Analysis Units |
Value: US$ Bn/Mn, Volume: As applicable |
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Geographical Coverage |
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Segmental Coverage |
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Competitive Analysis |
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Report Highlights |
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Customization and Pricing |
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The market is set to reach US$ 276.8 Bn in 2025.
Government initiatives & policy support, and growing demand across industries are the major growth drivers.
The industry is estimated to rise at a CAGR of 6.8% through 2032.
Expansion of green hydrogen production, and hydrogen use in hard-to-decarbonize sectors are the key market opportunities.
Linde plc, Air Products and Chemicals, Inc., Air Liquide, Chevron Corporation, Saudi Arabian Oil Co. are a few leading players.
