Grey Hydrogen Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global market value of the gray hydrogen market was valued at USD 132.8 billion in 2022, and a CAGR of 12.3% is expected during the forecast period. Grey hydrogen is produced from the combustion of coal. Increasing demand to produce hydrogen in the cheapest and most efficient way is driving growth in the market significantly. Grey hydrogen is generated from fossil fuels. During the production of gray hydrogen, no carbon emissions are captured, so increasing demand for hydrogen to increase the economy of a country is driving growth in the market significantly.

Increasing demand for hydrogen as a feedstock in many industrial and metallurgical processes is driving growth in the market. Increasing demand for gray hydrogen in transportation is driving growth in the market significantly. Increasing demand for refineries, methanol production, and ammonia production is driving growth in the gray hydrogen market significantly.

Growth Drivers

Increasing growth in the number of electric vehicles, which require hydrogen as fuel, is driving growth in the market significantly. Increasing demand for gray hydrogen from the building and construction industries, automobiles, and electric vehicles is driving growth in the market significantly. Increasing demand for energy and industrial applications are driving growth in the market. Increasing industrialization all over the world is driving growth in the market significantly. Increasing demand for gray hydrogen in ammonia production is driving growth in the market significantly. The rise in demand for hydrogen in the transportation sector is driving growth in the market.

Grey hydrogen is also required in several metallurgical processes to obtain metals. There is increasing interest in transitioning towards low carbon emissions. But gray hydrogen remains important in various industries. Advancements in carbon capture and storage technologies enhance the environmental profile of gray hydrogen, making it more attractive as a transitional fuel. Government policies and regulations, such as emission regulation or incentives for hydrogen use, influence demand for gray hydrogen.

These policies often shape market dynamics and drive adoption. Existing infrastructure for gray hydrogen production and distribution is well established. Making it easier for industries to continue using gray hydrogen rather than switching to the alternatives. Grey hydrogen is often cheaper to produce than green hydrogen due to the maturity of technology. Grey hydrogen serves as a transitional fuel until green hydrogen infrastructure is more widespread, which drives the demand.

Segmentation

By Source

·         Natural Gas

·         Coal

·         Others

By Production Method

·         Steam Reformation

·         Gasification

·         Others

By Application

·         Ammonia Production

·         Methanol Production

·         Refineries

·         Chemical Production

·         Others

Regional Outlook

·         Asia Pacific

·         North America

·         Latin America

·         Europe

·         Middle East and Africa

Grey Hydrogen Market by Type Segmentation

On the basis of type, Natural Gas is the leading feedstock by a significant feedstock by a fair margin. Coal is less common in comparison to natural gas. Increasing growth in the number of electric vehicles, which require hydrogen as fuel, is driving growth in the market significantly. Increasing demand for gray hydrogen from the building and construction industries, automobiles, and electric vehicles is driving growth in the market significantly. Increasing demand for energy and industrial applications are fueling the market growth.

Increasing industrialization all over the world is driving growth in the market significantly. Increasing demand for gray hydrogen in ammonia production is driving growth in the market significantly. The rise in demand for hydrogen in the transportation sector is driving growth in the market. Grey hydrogen is also required in several metallurgical processes to obtain metals. There is increasing interest in transitioning towards low carbon emissions. But gray hydrogen remains important in various industries. Advancements in carbon capture and storage technologies enhance the environmental profile of gray hydrogen, making it more attractive as a transitional fuel.

Grey Hydrogen Market by Application Segmentation

On the basis of the application, the gray hydrogen market is segmented into ammonia production, methanol production, refineries, chemical production, and others. Ammonia production is the leading segment in the market and is expected to dominate the market during the forecast period. Increasing demand for ammonia all over the world, which is produced by Haber’s process industrially, is driving growth in the market significantly. Increasing industrialization and a rising rate of urbanization are driving significant growth in the market.

Increasing demand for gray hydrogen from refineries is driving growth in the market. Grey hydrogen is extensively used in oil refining processes, particularly for hydrocracking and hydrotreating operations. It helps in removing impurities and upgrading crude oil into high-quality products like gasoline and diesel. Industries such as ammonia production, which is one of the largest consumers of hydrogen globally, are driving the demand in the gray hydrogen market. It also plays a crucial role in the production of methanol, which is used as a chemical feedstock and in various industrial applications.

Regional Outlook

On the basis of the regions, the gray hydrogen market is segmented into 5 types: Asia Pacific, North America, Latin America, Europe, and the Middle East and Africa. Asia Pacific is the leading segment due to increasing urbanization, rising disposable income in the region, and a rapidly growing population. The number of electric vehicles is increasing, and the demand for fuel is increasing. China, Japan, India, South Korea, and Taiwan are witnessing significant growth in the market. North America and Europe are also witnessing significant growth due to the presence of the United States of America, the United Kingdom, Germany, France, Italy, Spain, and France.

Increasing demand for energy is driving growth in the market significantly. The Middle East, Africa, and Latin America are witnessing significant growth due to increasing demand for energy and increasing industrialization during the forecast period. Countries like Saudi Arabia, the United Arab Emirates, South Africa, and Egypt are witnessing growth in the market. The presence of key players in Asia Pacific, North America, the Middle East, and Africa is driving significant growth in the market.

Countries in Europe are continuously aiming to reduce carbon emissions, leading to policies favoring green hydrogen over gray hydrogen; however, gray hydrogen still plays a significant role in industrial processes due to existing infrastructure. The United States and Canada are major producers of gray hydrogen. Increasing demand for gray hydrogen in the steel industry is driving growth in the market significantly. It is also used in power generation through hydrogen combustion in turbines or fuel cells, although this application is less common compared to industrial uses.

Key Players

·         Linde Plc

·         Air Liquide

·         China National Petroleum Corporation

·         Exxon Mobil Corporation

·         Messer Group GmbH

·         Reliance Industries

·         Indian Oil Corporation Ltd.

·         Other Players