Hydrogen Generator Market Overview - 2030
The global hydrogen generator market size was valued at $1.2 billion in 2020, and hydrogen generator market forecast to reach $2.2 billion by 2030, growing at a CAGR of 5.8% from 2021 to 2030.
The hydrogen generator market is driven by rise in demand for eco-friendly vehicles, ammonia fertilizers, and advancements in electrolysis technology. Rise in need for chemical raw materials and refinery processes offer opportunities for the growth of the market. However, high costs and complexities of hydrogen energy storage pose significant restraints on the market growth.
Introduction
Hydrogen generator is a machine that produces hydrogen from water and fossil fuels using various processes such as steam reforming and electrolysis. It uses a proton exchange membrane to produce high purity hydrogen gas from water and this technology was first developed by NASA and applied to generate electricity for spacecrafts. Hydrogen generators are now used in several end-use applications such as chemical processing, fuel cells, refining, and petroleum recovery.
Report Key Highlighters:
- The report provides competitive dynamics by evaluating business segments, product portfolios, target market revenue, geographical presence and key strategic developments by prominent manufacturers.
- The hydrogen generator market is fragmented in nature among prominent companies such as Air Liquide Air Products and Chemical Inc., Praxiar technology Inc., Linde AG., Proton On-site Inc., Hy9 Corporation, Hydrogenics Corporation, Epoch Energy Technology Corporation, MVS Engineering Pvt. Ltd., McPhy Energy SA, and Nel Hydrogen.
- The study contains qualitative information such as the market dynamics (drivers, restraints, challenges, and opportunities), key regulation analysis, pricing analysis, and Porter’s Five Force Analysis across North America, Europe, Asia-Pacific, and LAMEA regions.
- Latest trends in global hydrogen generator market such as undergoing R&D activities, public policies, and government initiatives are analyzed across 16 countries in 4 different regions.
- More than 2,500 hydrogen generator-related product literatures, industry releases, annual reports, and other such documents of key industry participants along with authentic industry journals and government websites have been reviewed for generating high-value industry insights for global hydrogen generator market.
Market Dynamics
Rise in awareness among people regarding eco-friendly and zero-emission vehicles led to innovation of hydrogen vehicles. These vehicles are powered by electricity produced from mixing of hydrogen and oxygen (fuel cell). Rise in demand for fuel cells in the automobile industry creating enormous hydrogen generator market opportunities across the globe. Chemical processing is also one of the end use applications, where hydrogen is used extensively to produce various chemical products.
Rise in demand for various ammonia fertilizers across the globe is an important factor for growth of hydrogen in this segment. This increase in demand is expected to have a positive impact on large-scale hydrogen generator devices. Increase in population and need for various chemical raw materials in various industries provide opportunities for growth of the hydrogen generator industry in this sector.
Hydrogen is used in refineries to lower Sulphur content in diesel fuels and produce some by-products where hydrogen is used as a catalyst to form naphtha into higher value octane products. Partial oxidation process is a process in which hydrogen is produced from refining heavy oil, which can reduce pollution of fuels.
Rise in awareness among people regarding greenhouse gases and increase in demand for energy and fossil fuels have driven growth of the electrolysis process-based hydrogen generators. Around 4% of global hydrogen production came from electrolysis in 2020, which is around 8GW. Rapid development in various technologies and electrical efficiency of these hydrogen generators is also one of the important factors for growth of this kind of hydrogen production process.
Hydrogen energy storage is more expensive than fossil fuels due to its higher density as an energy transporter compared to gaseous hydrogen and involves liquefaction. This storage process involves complex mechanical plant, which increases the overall cost of hydrogen storage. This is one of the reasons that restrain the hydrogen generator market growth.
By Product Type
Onsite segment is projected to create abundant $ opportunity till 2030
The global hydrogen generator market is segmented on the basis of product type, process, capacity, application, and region.
By Process
Steam Reforming is projected as the most lucrative segment.
On the basis of product type, the global hydrogen generator market is segmented into onsite and portable. On the basis of process, it is segmented into steam reforming, electrolysis, and others. On the basis of capacity, it is divided into less than 300 W, 300W–1 KW, and more than 1 KW. By application, it includes chemical processing, fuel cells, petroleum recovery, refining, and others.
By Capacity
More than 1 KW is projected as the most lucrative segment.
Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, North America accounts for the largest share of the market, followed by Europe and Asia-Pacific.
By Application
Chemical Processing is projected as the most lucrative segment.
Competitive Landscape
The major companies profiled in this report include Air Liquide Air Products and Chemical Inc., Praxiar technology Inc., Linde AG., Proton On-site Inc., Hy9 Corporation, Hydrogenics Corporation, Epoch Energy Technology Corporation, MVS Engineering Pvt. Ltd., McPhy Energy SA, and Nel Hydrogen.
By Region
North America holds a dominant position in 2020
Recent Developments of the top players:
Air Liquide: It is actively involved in hydrogen technology innovations, and launched the hydrogen-powered river vessel "H2 barge 1" in May 2023. This vessel transports goods between the Netherlands and Belgium, highlighting Air Liquide's commitment to clean hydrogen solutions.
Praxair Technology, Inc.: Praxair offers a comprehensive hydrogen supply system, enhancing productivity and reducing costs for distribution centers. Its hydrogen supply chain supports various industries, emphasizing the efficiency and reliability of hydrogen generators.
Linde AG: Linde is focused on innovating the hydrogen value chain, with investments in technologies such as electrolysis, compression, and liquefaction. It aims to accelerate the transition to greener hydrogen forms through infrastructure advancements.
Air Products: It provides onsite hydrogen generators, specifically the PRISM hydrogen generators. These are steam methane reformers designed to minimize operating costs while maximizing efficiency.
Hydrogenics Corporation: Acquired by Cummins in 2019, Hydrogenics continues to develop advanced hydrogen generation technologies, particularly through electrolysis, to support fuel cell applications.
Global Trends and Developments in the Hydrogen Industry
Clean Hydrogen Demand:
The demand for clean hydrogen is expected to increase significantly, reaching 125 to 585 million tons per annum (Mtpa) by 2050.
Key Applications:
- Initial focus on industries such as fertilizer production and refining.
- Growth of green hydrogen is expected in applications for mobility (e.g., fuel cell electric vehicles) and industrial heating by 2040.
Infrastructure and Technology:
- Development of necessary infrastructure, including refueling stations and hydrogen pipelines, has a positive impact on the hydrogen generators market.
- Technological advancements in fuel cells and hydrogen production methods are crucial for the hydrogen generator market growth.
Top Countries in Hydrogen Development
China:
- Largest producer and consumer of hydrogen, using approximately 23.9 million metric tons in 2020.
- Focus on expanding hydrogen production capacity and integration into the energy mix.
U.S.:
- Significant consumer of 11.3 million metric tons of hydrogen in 2020.
- Supportive policies, such as the Inflation Reduction Act, expected to enhance hydrogen production and usage.
Germany:
- A leader in hydrogen innovation with numerous projects aimed at increasing production.
- Expected to have 101 hydrogen production projects by 2033.
Australia:
- Projected to lead globally with the highest number of hydrogen production projects (106 projects) by 2033.
- Utilizing abundant renewable energy resources for green hydrogen production.
Japan and South Korea:
- Focused on hydrogen for electricity generation and industrial applications.
- Investing in hydrogen infrastructure and technology development.
Key findings of the study
- Region-wise, the Asia-Pacific hydrogen generator market is projected to grow at the highest CAGR of around 7.2%, in terms of revenue, during the forecast period.
- By product type, the onsite segment accounted for the largest market share in 2020.
- By capacity, the more than 1KW segment accounted for the largest market share in 2020.
- By application, the processing segment accounted for the largest market share in 2020.
- By process, the steam reforming segment accounted for the largest market share in 2020.
Key Benefits for Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the hydrogen generator market analysis from 2022 to 2032 to identify the prevailing hydrogen generator market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the hydrogen generator market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global hydrogen generator market trends, key players, market segments, application areas, and market growth strategies.
Hydrogen Generator Market Report Highlights
| Aspects | Details |
 By Product type |
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 By Process |
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 By Capacity |
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 By Application |
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 By Region |
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 Key Market Players | MVS Engineering Pvt. Ltd., Air-liquide, Hy9 Corporation, Praxair technology Inc., NEL Hydrogen, Epoch Energy Technology Corporation, Cummins Inc., Air products and chemicals Inc., Linde AG., McPhy Energy SA, Proton on-site Inc. |
Analyst Review
The global hydrogen generator market is expected to gain high traction during the forecast period, owing to government regulations over restricting use of greenhouse gas emission products.
Low cost of traditional power generators and high initial investment costs of hydrogen generator are expected to hamper growth of the hydrogen generator market during the upcoming years. However, rapidly increasing electricity demand, government policies toward use of green energy, and development of various eco-friendly hydrogen production technologies are some of the key factors expected to drive demand for the hydrogen generator market during the forecast period. In addition, investments of government bodies and various policies to innovate various products based on hydrogen fuel cells as an energy source and to create synthetic fuels using hydrogen, nitrogen, and carbon as raw materials have also created opportunities for growth of hydrogen generator market.
The outbreak of the novel coronavirus gave new insights to various countries over the environment and need for their own power supply without depending on imports of fossil fuels from other countries. This has led to popularization of hydrogen fuel cells in various developing and developed countries due to their renewability and ecofriendly nature.
Moreover, companies are inheriting partnership and acquisition strategies to support growth of the hydrogen generator market. Presently, the chemical processing segment holds the largest market share in the global hydrogen generator market.
Onsite segment accounted for largest hydrogen generator market share.
Major applications of hydrogen generators include chemical processing, fuel cells, petroleum recovery, refining etc.
To get latest version of hydrogen generator market report can be obtained on demand from the website.
Companies are inheriting partnership and acquisition strategies to support the growth of the hydrogen generators market throughout the forecast period.
Asia Pacific significantly China and India will provide more business opportunities for hydrogen generators market in coming years
The top ten market players are selected based on two key attributes - competitive strength and market positioning
Government regulations over the greenhouse gas emissions and desulfurization, increasing demand for energy storage and hydrogen powered electric vehicles are the key factors driving the growth of hydrogen generator market
Air Liquide Air Products and Chemical Inc., Praxiar technology Inc., Linde AG., Proton On-site Inc., Hy9 Corporation, Hydrogenics Corporation, Epoch Energy Technology Corporation, MVS Engineering Pvt. Ltd., McPhy Energy SA, and Nel Hydrogen.
Development of various eco-friendly hydrogen production technologies is a key trend expected to create increased growth opportunities throughout the forecast period.
The expected market value of hydrogen generators by 2030 is US$ 2.2 billion
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