Hydrogen is powering the global energy transition
The hydrogen market represents one of the fastest-growing sectors in the global energy landscape. The global hydrogen generation market size was estimated at USD 186.58 billion in 2024 and is projected to grow at a CAGR of 9.2% from 2025 to 2030. Global hydrogen demand reached more than 97 Mt in 2023 and could reach almost 100 Mt in 2024, demonstrating the substantial scale of current hydrogen consumption across industrial applications.
$199.2bn
Projected size of the global green hydrogen market by 2034
The green hydrogen segment, representing the future of clean energy, shows particularly remarkable growth potential. The global green hydrogen market size was exhibited at USD 8.78 billion in 2024 and is projected to hit around USD 199.22 billion by 2034, with a CAGR of 41.46%.
Hydrogen is not just a clean fuel – it’s a cornerstone of the future global energy system.
Hydrogen can be produced through various methods, each with different environmental and economic implications. Steam methane reforming (SMR) is currently the most common method, accounting for approximately 95% of global production, using natural gas and steam at high temperatures to produce hydrogen in a cost-effective way. Other emerging methods include electrolysis, splitting water into hydrogen and oxygen using electricity, coal gasification and even biological processes using algae or bacteria to produce the gas.
Hydrogen’s diverse applications
Hydrogen’s versatility as both an energy carrier and industrial feedstock creates demand across multiple sectors:
Industrial applications
- Ammonia production for fertilizers
- Oil refining processes for removing sulfur and upgrading heavy crude
- Steel production as a reducing agent, offering potential for decarbonization
- Chemical manufacturing for methanol, hydrogen peroxide, and other compounds
Energy and transportation
- Fuel cell electric vehicles, particularly for heavy-duty trucking and public transport
- Maritime fuel for shipping decarbonisation
- Aviation applications through synthetic fuel production
- Grid-scale energy storage for renewable energy systems
Emerging applications
- Industrial heating to replace natural gas in high-temperature processes
- Synthetic fuel production for hard-to-electrify sectors
- Power generation through hydrogen turbines
- Residential heating systems in select markets