Hydrogen market is estimated to be valued at USD 173.46 Bn in 2025 and is expected to reach USD 278.54 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 7% from 2025 to 2032.
The global hydrogen market is witnessing significant growth, driven by rising demand for clean energy and decarbonization across key industries such as transportation, power generation, and manufacturing. Green hydrogen, produced using renewable energy, is emerging as a major trend due to increasing sustainability commitments and supportive government policies worldwide.
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Among the production source segment, the Natural Gas sub-segment held a dominant position in the market and accounted for 52% share in the global hydrogen market in 2025. This was driven by the widespread availability of natural gas, established production infrastructure, and cost-effectiveness compared to other hydrogen production methods.
For instance, in July 2025, Japanese firms Toyota, Mitsubishi Gas Chemical, and Eneos agreed to buy a combined 22% share of Gold Hydrogen — a total investment of A$14.5 million (US$9.54 million) — as the Australian firm continued its exploration for natural H₂ in South Australia.
Refineries segment held a dominant position in the market in 2025. This is owing to the extensive use of hydrogen in refining processes such as hydrocracking and desulfurization to produce cleaner fuels, driven by stringent environmental regulations and the global shift toward low-sulfur fuels.
For instance, in July 2025, L&T Energy GreenTech Ltd announced that it would set up India’s largest green hydrogen plant at Indian Oil Corporation Ltd’s (IOCL) Panipat Refinery in Haryana.
Merchant segment held a dominant position in the market in 2025. This is owing to the increasing demand for hydrogen from industrial users such as refineries, chemical producers, and power generation facilities, as well as the growing number of large-scale hydrogen production plants supplying hydrogen to multiple end users through pipelines and bulk deliveries.
For instance, in June 2025, ITM Power unveiled Hydropulse GmbH, a wholly owned subsidiary based in Berlin, Germany. Hydropulse built, owned, and operated decentralized green hydrogen production plants using ITM’s modular NEPTUNE technology, focusing on serving industrial customers under long-term offtake agreements
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Europe region held a dominant position with 37% of market share in 2025. Europe has set itself a goal of decarbonizing its economy by 2050. Hydrogen is likely to play an important role in achieving net zero carbon emission. The European commission has set its hydrogen strategy which includes the addition of 40 gigawatts of electrolyser by 2030 to meet its hydrogen demand.
For instance, in September 2025, Germany’s Federal Ministry for Economic Affairs and the Federal Ministry of Research unveiled a second international funding call to support renewable hydrogen and derivative projects in non-European countries.
Asia Pacific is considered as the fastest growing region in the global market during the forecast period. This is due to rapid industrialization, increasing investments in renewable energy infrastructure, supportive government policies promoting hydrogen adoption, and growing demand for clean energy solutions in countries like China, Japan, and South Korea.
For instance, in May 2025, Linde LienHwa Industrial Gases, Taiwan's largest bulk industrial gas provider, activated the nation’s first demonstration hydrogen refueling station.
The U.S. is likely to hold dominating position in the global hydrogen market in 2025. The growth is attributed to substantial federal and state-level investments in hydrogen infrastructure, supportive policies and incentives for clean energy adoption, advancements in green and blue hydrogen technologies, and increasing integration of hydrogen in transportation, industrial, and power generation sectors.
For instance, in August 2024, Mitsubishi Heavy Industries and Chevron prepared to produce hydrogen in the U.S. using renewable energy, with commercial power generation using the fuel scheduled to start in mid-2025.
China is likely to hold dominating position in the global hydrogen market in 2025. This is due to rapid industrial growth, significant investments in hydrogen infrastructure, supportive government policies, and increasing adoption of hydrogen in transportation, power generation, and industrial applications.
For instance, in July 2025, a Shanghai-based company commissioned a green hydrogen and ammonia production facility in Chifeng, China. Developed by Envision Energy, the plant was claimed to be the world’s largest and most advanced green hydrogen and ammonia production facility.
The global hydrogen market is experiencing robust growth, driven by increasing demand for clean energy solutions and decarbonization initiatives across industries. Green hydrogen, produced from renewable sources, is emerging as a key focus, alongside blue hydrogen derived from natural gas with carbon capture.
Europe is positioned as a dominating region, spearheading investments in hydrogen infrastructure, supportive regulatory frameworks, and ambitious renewable energy targets, particularly in countries like Germany, the Netherlands, and France.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 173.46 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 7% | 2032 Value Projection: | USD 278.54 Bn |
| Geographies covered: |
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| Companies covered: |
Linde AG, Air Products & Chemicals, Inc., Praxair, Inc., Air Liquide SA, and Airgas Inc |
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Increasing desulfurization is driving demand for hydrogen in refineries due to stringent fuel emission norms. For instance, fuel emission norms have become stricter due to global environmental concerns. In order to adhere to norms such as EURO 5 and 6, crude oil refineries around the globe are reducing sulfur content in end products, which in turn is driving demand for hydrogen.
The growing production of methanol is augmenting the hydrogen market growth. Hydrogen is largely used in the production of methanol, and methanol is widely used as a raw material in the production of various chemicals such as formaldehyde, methanol-to-olefins (MTO), Methyl Tertiary-Butyl Ether (MTBE), and petrol blending.
The growing use of hydrogen as a fuel in rockets, as hydrogen is a highly flammable fuel, is projected to bring profitable opportunities in the hydrogen market. Hydrogen is highly powerful for machines such as spaceships. Moreover, it is also an environment friendly and ideal choice of fuel when compared to other fuel sources.
Researchers around the globe are focusing on developing an efficient storage system for the storage of hydrogen at low pressure without the need for compression. The volume-to-weight ratio of hydrogen is high which demands high volume capacity for the storage system. This is expected to provide potential market opportunities over the forecast period.
*Definition: Hydrogen is a chemical compound that is widely used across various industries. Majorly, it is used in the production of semiconductors, ammonia, carbon steel, methanol for polymer, and special metals. Moreover, it is also used in the electronic industry as a reducing agent and carrier gas. Furthermore, it is also used in refineries in the processing of intermediate oil products.
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About Author
Sakshi Suryawanshi is a Research Consultant with 6 years of extensive experience in market research and consulting. She is proficient in market estimation, competitive analysis, and patent analysis. Sakshi excels in identifying market trends and evaluating competitive landscapes to provide actionable insights that drive strategic decision-making. Her expertise helps businesses navigate complex market dynamics and achieve their objectives effectively.
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