Hydrogen Generator Market Summary
The market for hydrogen generators was estimated to be worth USD 749.7 million in 2024 and is expected to increase at a compound annual growth rate (CAGR) of 7.0% from 2025 to 2030, reaching USD 1,120.3 million. Due to growing worldwide worries about climate change and carbon emissions, the market is anticipated to develop as a result of growing awareness of sustainability and the usage of renewable energy.
Key Market Trends & Insights
- Asia Pacific dominated the global hydrogen generator market, with a revenue share of 34.9% in 2024.
- The hydrogen generator market in China held the largest share in 2024.
- By product, the on-site segment held the largest revenue share of 74.8% in 2024.
- By process, the steam reforming segment held the largest revenue share in 2024.
- By application, chemical processing, a crucial segment in the hydrogen generator industry, held the largest revenue share in 2024.
Market Size & Forecast
- 2024 Market SizeUSD 749.7 Million
- 2030 Projected Market SizeUSD 1,120.3 Million
- CAGR (2025-2030)7.0%
- Asia PacificLargest market in 2024
- North AmericanFastest growing market
Governments across countries are expanding their hydrogen generation and export capabilities. For instance, under its National Green Hydrogen Mission, the Government of India aims to make the country a global hub for the production, usage, and export of green hydrogen and its derivatives by 2030. Countries across North America, Asia, Pacific, and Latin America are witnessing a surge in demand for hydrogen generators. Governments worldwide are also implementing supportive policies and incentive programs to promote hydrogen as a viable alternative to fossil fuels, particularly in sectors such as transportation and industrial applications.
Ongoing advancements in hydrogen generation technologies, including steam methane reforming and electrolysis, are enhancing efficiency and reducing production costs. The rising interest in hydrogen fuel cell electric vehicles (FCEVs) is also contributing to market expansion, particularly in regions like North America, where infrastructure development for hydrogen refueling stations is underway. Furthermore, the increasing use of hydrogen in chemical processing and refining applications underscores its versatility and importance in various industries, solidifying its role in the transition to a sustainable energy future.
The market is experiencing significant growth, primarily due to the global shift toward clean and renewable energy sources, spurred by increasing concerns over climate change and the need to reduce carbon emissions. Governments of various countries are implementing supportive policies and incentive programs to promote hydrogen as a sustainable alternative to traditional fossil fuels, particularly in transportation and industrial sectors. For instance, the U.S. Department of Energy's Hydrogen Program Plan guides hydrogen policy in the U.S. The plan emphasizes innovation, commercialization, and market expansion of hydrogen technologies. This includes incentives such as tax benefits, R&D, and public-private partnerships. The rising demand for hydrogen in fuel cells, especially for electric vehicles, is also a key driver, as it offers low emissions and high efficiency.
The market presents numerous growth opportunities driven by the global push for clean energy solutions. As per the International Energy Agency (IEA), since 1975, the demand for hydrogen gas has tripled. Fossil fuels produce the majority of it, making up about 6% of global natural gas use and 2% of global coal consumption. Significant opportunity lies in the increasing focus on achieving net-zero emission targets by 2050, prompting investments in hydrogen technologies across various sectors. The demand for portable hydrogen generators is anticipated to grow rapidly, fueled by a shift toward renewable energy and the need for decentralized energy solutions. In buildings, hydrogen could be blended into existing natural gas networks, with the highest potential in multifamily and commercial buildings, particularly in dense cities, while long-term prospects could include the direct use of hydrogen in hydrogen boilers or fuel cells.
Market Concentration & Characteristics
The design and production of hydrogen generators require significant financial resources and strong technological capabilities. As a result, a small number of major companies, such as Linde, Air Products, Hydrogenics, and Air Liquide, control the majority of the market. This results in a moderately high level of market concentration. Because of the development of new hydrogen storage materials, EPM electrolyzers, and the integration of hydrogen with renewable energy sources, the market is thought to have a slightly high degree of innovation. Businesses are making significant investments in improving the efficiency of current processes and creating new methods for producing hydrogen. For example, Aramco produces and transports blue hydrogen safely using cutting-edge technologies.
With businesses concentrating on developments to improve hydrogen vehicles and investments in hydrogen technology, M&A activity is expanding significantly. Governments are enforcing stringent laws and policies to encourage the safe use of hydrogen generators because hydrogen is an inflammable gas. The European Union, for example, has set standards for renewable hydrogen, stating that it must reduce greenhouse gas emissions by at least 70% as compared to fossil fuels.
Because other solutions are costly, challenging to operate, and ineffective, there aren't many alternatives to hydrogen generators. Although there are substitutes such as nitrogen generators, zero-air generators, and conventional gas generators, they have various uses and are unable to completely replace hydrogen, particularly in clean energy and laboratory settings.
Hydrogen generators are therefore used in the majority of industries, such as chemical processing, environmental testing, and medicine. Hydrogen is a viable option for the future since it is generally accessible and clean, although producing, storing, and transporting it can be expensive and complicated. The majority of end users still rely on hydrogen generators because there aren't many suitable alternatives, which results in a somewhat high concentration of end users.
Report Coverage & Deliverables
The PDF report & online dashboard will help you understand
- Competitive benchmarking
- Historical data & forecasts
- Company revenue shares
- Regional opportunities
- Latest trends & dynamics
Product Insights
Due to the growing need for sustainable energy solutions and the drive toward decarbonization, the on-site category had the biggest revenue share in 2024 (74.8%). The main focus of this section is on centralized hydrogen production facilities that provide hydrogen to a range of sectors, such as energy production, transportation, and chemical processing. To address the increasing need for clean energy, a number of hydrogen-generating plants are being established globally. A Japanese energy corporation called ENEOS, for example, paid USD 200 million in 2025 to establish a green hydrogen demonstration plant in Brisbane, Australia. Beginning in 2026, the plant is anticipated to generate up to 680 kilos of green hydrogen per day in the form of methylcyclohexane (MCH), which is convenient to transport and store. Working on the project with both Japanese and Australian businesses, ENEOS intends to ship a portion of the manufacturing to Japan. Additionally, governments around the world are putting supportive laws and incentives into place to encourage the use of on-site hydrogen generation systems, especially in industrial settings.
The market for portable hydrogen generators is anticipated to grow at the quickest rate due to rising demand for hydrogen as a portable, clean energy source worldwide. Several businesses are investing in the development of effective hydrogen fuel cells for use in transportation and automobiles. We anticipate that these fuel cells will reduce their carbon footprint and generate cleaner gasoline. Adani Enterprises (India), for example, created the nation's first fuel cell truck that runs on hydrogen. The truck, which has a range of about 200 kilometers and can carry up to 40 tons of cargo, was used at the Gare Pelma III coal block in Chhattisgarh. In a different example, Hitachi Energy demonstrated the feasibility of hydrogen fuel cells in the construction industry by testing its HyFlex generator that uses hydrogen power on a Gothenburg, Sweden, construction site. The generator provided clean power to a battery-powered excavator.
Process Insights
In 2024, the segment with the highest revenue share was steam reforming. This process is commonly used for producing hydrogen since it uses the steam methane reforming (SMR) method to turn methane and steam into hydrogen, carbon monoxide, and carbon dioxide. One of the top oil and gas companies, Shell, converts natural gas into low-carbon hydrogen using its blue hydrogen method. By reducing emissions through the use of established carbon capture technologies, the company supported the shift to cleaner energy while allowing chemical and refining operations to diversify their product offerings. The increasing demand for hydrogen across various applications, along with technological advancements that enhance efficiency and reduce the cost of hydrogen extraction, are key factors driving the expansion of this segment.
The growing focus on green hydrogen production as a clean energy source is anticipated to propel the electrolysis segment's growth throughout the forecast period. This process converts water into hydrogen and oxygen using renewable energy, supporting global sustainability objectives and carbon emission reduction initiatives. Electrolysis technology developments, including alkaline electrolysis and proton exchange membrane (PEM), are driving the market's expansion for effective and reasonably priced hydrogen generation. The need for electrolysis-based hydrogen generators is anticipated to increase as businesses look to move away from fossil fuels, enabling a range of uses in energy storage, transportation, and chemical processing.
Application Insights
Chemical processing, a critical sector of the hydrogen generator industry, held the biggest revenue share in 2024. Hydrogen is essential to the Haber-Bosch process, which produces ammonia, which is mostly used to make fertilizers and to make chemicals, polymers, and explosives. Electrolysis produces green hydrogen, which is particularly helpful in reducing carbon emissions from chemical reactions. Therefore, the widespread usage of hydrogen in the production of numerous chemical goods is what drives the demand for hydrogen generators in this market.
Due to the growing demand for hydrogen in refining operations, the refinery segment is anticipated to develop at the quickest CAGR throughout the projection period. Desulfurization, which lowers the sulfur content of gasoline and diesel to help comply with strict environmental standards, requires hydrogen. Stricter sulfur content rules and increased demand for diesel fuel domestically and internationally have increased the need for hydrogen in refineries. With the continued shift to cleaner fuels and the expanding global energy demand, it is anticipated that this growing need will greatly propel the use of hydrogen generators within the market.
Regional Insights
Due to rising demand for sustainable energy solutions and developments in hydrogen generation technologies, the North American hydrogen generator market is anticipated to grow at the quickest rate over the forecast period. The increasing demand for hydrogen in fuel cell electric vehicles (FCEVs) and industrial applications like chemical processing and refining makes this one of the major regions in the global market for hydrogen generation. With government programs supporting hydrogen as a clean fuel, major businesses like Air Products and Chemicals, Inc., and Air Liquide are essential to the market's expansion. For example, according to the 2020 Hydrogen Strategy, the Canadian government wants to lead the world in hydrogen by 2050, with a focus on green hydrogen from renewable sources, especially in British Columbia and Québec.
U.S. Hydrogen Generator Market Trends
The U.S. market for hydrogen generators is expected to grow with the increasing demand for clean energy and advancements in hydrogen production technologies. Hydrogen is essential for various applications, including fuel-cell electric vehicles, chemical processing, and refining. Government initiatives, which aim to promote hydrogen as a sustainable fuel source and invest in infrastructure such as hydrogen refueling stations, influence the market. For instance, the State of California's Advanced Clean Cars Program offers assistance for establishing publicly accessible hydrogen vehicle fueling stations throughout California to promote a consumer market for zero-emission fuel cell vehicles. Major players, including Air Products and Air Liquide, are actively engaged in developing techniques to enhance hydrogen production efficiency. The U.S. market is well-positioned for continued expansion and innovation, as industries seek to reduce carbon emissions and transition to cleaner energy solutions.
Europe Hydrogen Generators Market Trends
The hydrogen generator market in Europe is experiencing growth, driven by a strong commitment to green hydrogen initiatives and sustainability goals. European countries are investing heavily in hydrogen production technologies, particularly electrolysis, to reduce the consumption of fossil fuels and achieve carbon neutrality. Governments are supporting projects, such as the EU's hydrogen accelerator strategy, with an aim to enhance renewable hydrogen production and infrastructure.
Over the forecast period, we expect the Germany hydrogen generator market to grow. As a pioneer in sustainable technologies, Germany aims to increase its domestic hydrogen production capacity, focusing on electrolysis powered by renewable energy sources. For instance, in January 2022, the German Federal Ministry of Education and Research announced funding of USD 835.64 million for three key hydrogen projects in the country. These projects conduct research in the areas of offshore hydrogen production (H2-Mare), technologies for hydrogen transport (TransHyDE), and the serial development of electrolyzers (H2-Giga). The country's strategies include developing hydrogen infrastructure and collaborating with neighboring countries to harness their renewable resources. With a strong motivation to reduce the use of fossil fuels, Germany is set to play a pivotal role in the European hydrogen landscape and position itself as a key player in the transition toward a low-carbon economy.
The hydrogen generator market in France is rapidly evolving, driven by the country's strong commitment to sustainable energy solutions and the transition to green hydrogen. With a focus on reducing carbon emissions and achieving carbon neutrality, the government is investing heavily in hydrogen production technologies and the use of green hydrogen. For instance, the French government allocated USD 2.15 billion specifically for the development of green hydrogen projects under the "France 2030" investment plan.
Asia Pacific Hydrogen Generator Market Trends
Asia Pacific dominated the global hydrogen generator market, with a revenue share of 34.9% in 2024. Factors such as surging electricity demand and supportive local governments' policies are accelerating market expansion. Major economies are investing heavily in hydrogen production technologies, particularly electrolysis, to reduce reliance on fossil fuels and achieve carbon neutrality. The market expansion is driven by the region's commitment to decarbonizing industries such as steel, chemicals, and transportation. Countries such as China, India, and Australia are investing heavily in hydrogen technologies to support this transition.
The hydrogen generator market in China held the largest share in 2024, owing to strong government support and significant investments in hydrogen production technologies. The country aims to enhance its hydrogen economy through ambitious targets and policies that promote the use of hydrogen in various industrial applications, including oil refining and ammonia production. Recent developments include the launch of the world's largest green hydrogen plant by Sinopec, highlighting China's commitment to decarbonization.
Over the forecast period, we expect the Japan hydrogen generator market to grow. Japan has set ambitious targets for hydrogen production, focusing on electrolysis powered by renewable energy to reduce reliance on fossil fuels. Major initiatives, such as the establishment of hydrogen supply chains and investments in infrastructure, are underway to support the growth of hydrogen technologies. Companies including Toshiba and Air Liquide are leading innovations in hydrogen production and storage solutions. Other companies are also investing heavily in hydrogen-powered automotive and transportation sectors. For instance, East Japan Railway Company (JR East), in collaboration with Toyota Motor Corporation and Hitachi Ltd., developed Japan's first hydrogen-powered hybrid train, named "Hybari." This initiative is a part of JR East's strategy to achieve net-zero carbon dioxide emissions by 2050.
Central & South America Hydrogen Generator Market Trends
Key countries such as Brazil and Chile are investing in hydrogen projects to enhance energy security and reduce carbon emissions. Upcoming initiatives include various green hydrogen plants and collaborations with international firms to develop infrastructure. As countries in the region seek to diversify their energy portfolios and meet global sustainability goals, the market is expected to grow, positioning Central and South America as a noteworthy region in the global hydrogen landscape.
Middle East & Africa Hydrogen Generator Market Trends
The hydrogen generator market in the Middle East and Africa is rapidly developing, driven by abundant renewable energy resources and governments’ support for green hydrogen initiatives. Countries including Saudi Arabia, Egypt, and Morocco are investing in large-scale hydrogen projects, leveraging their solar and wind potential to produce hydrogen through electrolysis. For instance, in March 2025, a Moroccan government committee approved green hydrogen projects worth USD 32.5 billion to focus on the production of ammonia, steel, and industrial fuel. Strategic partnerships with international firms are further enhancing infrastructure development, positioning the region as a key player in the global hydrogen economy. The focus on decarbonizing industries and transportation is further expected to favor market growth, making the Middle East and Africa a significant hub for sustainable hydrogen production and innovation.
Key Hydrogen Generator Company Insights
Some of the key players in the global hydrogen generator industry include Air Liquide, Air Products and Chemicals Inc., Linde AG, Praxair Inc., Proton On-Site, Hydrogenics Corporation, Nel Hydrogen, McPhy Energy, and Plug Power. These companies are actively involved in developing innovative hydrogen production technologies, such as proton exchange membrane (PEM) and alkaline electrolyzers, to enhance efficiency and reduce costs. They are also significantly expanding their global footprint through strategic partnerships, mergers and acquisitions, and investments in hydrogen infrastructure projects.
Key Hydrogen Generator Companies
The following are the leading companies in the hydrogen generator market. These companies collectively hold the largest market share and dictate industry trends.
- Air Liquide (L’AIR LIQUIDE S.A.)
- Air Products and Chemicals
- Epoch Energy Technology Corporation
- LNI Swissgas
- Hydroenergy
- Linde
- McPhy Energy S.A.
- Nel ASA
- Parker Hannifin Corp
- Peak Scientific Instruments
Recent Developments
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In March 2025, Samsung Engineering & Architecture (E&A) acquired a 9.1% stake in Norwegian hydrogen company Nel ASA for approximately USD 33 million. This strategic partnership aims to enhance collaboration in hydrogen plant projects.
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In June 2024, Caterpillar Inc. announced the addition of Cat CG260 gas generator sets to its range of commercially available power solutions that can operate on hydrogen fuel. These generator sets are now accessible through global Cat dealers and are designed to run on gas containing up to 25% hydrogen per volume. In addition to the new models, Caterpillar provides retrofit kits for existing CG260 generator sets, enabling them to use the same hydrogen capabilities.
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In April 2024, Panasonic's Electric Works Company announced its plan to introduce a new generator that uses pure hydrogen fuel cells in Europe, Australia, and China in October 2024. This innovative technology generates electricity through a chemical process that combines high-purity hydrogen with oxygen from the air.
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In March 2025, Aramco completed the acquisition of a 50% equity interest in the Jubail-based Blue Hydrogen Industrial Gases Company (BHIG). The agreement aimed to provide the Jubail Industrial City area with hydrogen, including lower-carbon hydrogen, at scale.
Hydrogen Generator Market Report Scope
|
Report Attribute |
Details |
|
Market size value in 2025 |
USD 800.8 million |
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Revenue forecast in 2030 |
USD 1,120.3 million |
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Growth Rate |
CAGR of 7.0% from 2025 to 2030 |
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Base year for estimation |
2024 |
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Historical data |
2018–2023 |
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Forecast period |
2025–2030 |
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Quantitative units |
The report presents the revenue in USD million and the compound annual growth rate (CAGR) from 2025 to 2030. |
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Report coverage |
The report covers the revenue forecast, competitive landscape, growth factors, and trends. |
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Segments covered |
The coverage includes product, process, application, and region. |
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Regional scope |
North America, Asia Pacific, Europe, Latin America, the Middle East, and Africa. |
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Country scope |
U.S., Canada, Mexico, Germany, UK, France, Italy, Spain, China, India, Japan, Brazil, Argentina, Saudi Arabia, and South Africa. UAE. |
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Key companies profiled |
Air Liquide (L’AIR LIQUIDE S.A.); Air Products and Chemicals; Epoch Energy Technology Corporation; LNI Swissgas; Idroenergy; Linde; McPhy Energy S.A.; Nel ASA; Parker Hannifin Corp; Peak Scientific Instruments |
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Customization scope |
We offer free report customization, equivalent to 8 analyst working days, with every purchase. You can include or modify the scope of the country, region, and segment. |
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Pricing and purchase options |
Avail yourself of customized purchase options to meet your exact research needs. Explore purchase options |
Global Hydrogen Generator Market Report Segmentation
This report forecasts revenue growth at global, regional, and country levels and analyzes the latest industry trends in each sub-segment from 2018 to 2030. For this study, MIR has segmented the global Hydrogen Generator market report based on product, process, application, and region
Product Outlook (Revenue, USD Million, 2018-2030)
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On-site
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Portable
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Process Outlook (Revenue, USD Million, 2018-2030)
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Steam Reforming
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Electrolysis
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Others
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Application Outlook (Revenue, USD Million, 2018-2030)
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Chemical Processing
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Petroleum Recovery
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Fuel Cells
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Refinery
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Others
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Regional Outlook (Revenue, USD Million, 2018-2030)
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North America
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U.S.
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Canada
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Mexico
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Europe
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Germany
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UK
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Italy
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Spain
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France
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Asia Pacific
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China
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India
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Japan
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Central & South America
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Brazil
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Argentina
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Middle East & Africa
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Saudi Arabia
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South Africa
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UAE
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