Rising Demand and Investment: Hydrogen Generation Market Trends and Forecast
Key Ideas
- The hydrogen generation market is projected to grow from $153.42 billion in 2024 to $166.5 billion in 2025, with a CAGR of 8.5% driven by factors like hydrogen as a clean fuel and government incentives.
- In the forecast period, the market is expected to reach $229.72 billion in 2029 at a CAGR of 8.4%, emphasizing hydrogen infrastructure investments, cost reduction in electrolysis, and green hydrogen projects.
- Major trends include technological innovations, policy support, integration with renewable energy, and the rise of blue hydrogen, showcasing a positive outlook for the industry.
- The industrial sector's increasing demand for hydrogen, as reported by the International Energy Agency, and advancements in green hydrogen production technologies contribute to market growth.
The hydrogen generation market is experiencing significant growth, with the market size expected to reach $166.5 billion in 2025 and expand further to $229.72 billion by 2029, at compound annual growth rates of 8.5% and 8.4%, respectively. This growth is attributed to various factors such as industrial hydrogen demand, clean fuel initiatives, government incentives, and the global energy transition. The report highlights the market's historic and forecast growth by geography, emphasizing Asia Pacific as the largest region in 2024. The forecast period also anticipates Asia Pacific to be the fastest-growing region.
Key companies profiled in the market report include Air Liquide SA, Air Products Inc., Iwatani Corporation, McPhy Energy SA, and Messer Group GmbH. The report covers market characteristics, segmentation, competitive landscape, and key trends like technological innovations, policy support, and the increasing interest in blue hydrogen and its role as an energy carrier.
The industrial sector's inclination towards hydrogen usage is expected to drive market expansion, with projections indicating substantial growth. Advancements in green hydrogen production technologies and the integration of hydrogen in heavy industries are notable trends in the market. Moreover, the expansion of oil and gas pipelines is set to boost market growth further.
The market report offers comprehensive coverage of various aspects including market types, sources, generation modes, technologies, applications, and key countries. With a focus on the forecast period from 2025 to 2029, the report outlines the market's estimated value, compound annual growth rates, regional breakdowns, and key attributes. Overall, the report presents a positive outlook for the hydrogen generation market, highlighting growth opportunities driven by increasing demand and investments in green technologies.