Electrolysis Merchant Hydrogen Generation Market, By Application (Petroleum Refinery, Chemical, Metal, and Others), By Country, and By Region - Industry Analysis, Market Size, Market Share & Forecast from 2025-2032
REPORT HIGHLIGHT
The global Electrolysis Merchant Hydrogen Generation Market was valued at USD 2,584 million in 2024, expanding at a CAGR of 8.50% from 2025 to 2032.
The electrolysis merchant hydrogen generation market focuses on the production and distribution of hydrogen using electrolysis technology for commercial applications. This process utilizes electricity—often from renewable sources—to split water into hydrogen and oxygen, making it a key enabler of sustainable energy solutions. As industries increasingly shift toward decarbonization, electrolysis-based hydrogen offers a clean alternative to fossil fuels, supporting the global transition to a low-carbon economy. This market serves diverse sectors, including transportation, chemicals, and power generation. In transportation, hydrogen is used as a fuel for fuel cell electric vehicles (FCEVs), reducing carbon emissions. The chemical industry relies on hydrogen for ammonia and methanol production, while the power sector uses hydrogen for energy storage and grid balancing. Government initiatives and policies supporting green hydrogen production, coupled with advancements in electrolyzer technology, are accelerating market growth. Companies are investing in scaling up electrolysis capacity to meet rising demand, driving innovation and cost reductions. As infrastructure expands and renewable energy integration improves, the electrolysis merchant hydrogen generation market is poised for significant expansion, positioning hydrogen as a cornerstone of the clean energy transition.
Electrolysis Merchant Hydrogen Generation Market- Market Dynamics
Ø Increasing Demand for Hydrogen In The Industrial Sector Propelling The Growth Of The Market
The growing demand for hydrogen in the industrial sector is a key driver of the electrolysis merchant hydrogen generation market. The industrial sector, which encompasses businesses involved in production, transportation, and manufacturing, is a major consumer of hydrogen. This versatile element plays a crucial role in various industrial applications, including the production of ammonia, methanol, and refining processes such as hydrocracking, which converts heavy petroleum fractions into gasoline and diesel. As industries increasingly prioritize cleaner energy sources, electrolysis-based hydrogen is gaining traction as a sustainable alternative to fossil fuel-derived hydrogen. The shift toward green hydrogen is further supported by government policies and incentives aimed at reducing carbon emissions. For example, in May 2024, the International Energy Agency (IEA) reported that global hydrogen consumption reached 95 million tons in 2022, reflecting a nearly 3% increase from the previous year. While Europe experienced a decline due to high natural gas prices affecting industrial operations, overall demand remains strong. This rising industrial reliance on hydrogen is accelerating the adoption of electrolysis-based hydrogen production, positioning the market for significant growth as industries seek cleaner and more sustainable energy solutions.
Electrolysis Merchant Hydrogen Generation Market- Segmentation Analysis:
The Global Electrolysis Merchant Hydrogen Generation Market is divided into segments: Application and Region.
The market is segmented into four segments according to Application: Petroleum Refinery, Chemical, Metal, and Others. The petroleum refinery segment dominates the electrolysis merchant hydrogen generation market due to the high demand for hydrogen in refining processes. Hydrogen is essential in hydrocracking and hydrotreating, where it removes impurities and enhances the purity of petroleum products. As the industry shifts toward cleaner energy and lower carbon emissions, the adoption of green hydrogen produced through electrolysis is rising. This transition strengthens the segment’s market leadership, as refineries increasingly integrate sustainable hydrogen solutions to meet regulatory requirements and environmental goals.
Electrolysis Merchant Hydrogen Generation Market- Geographical Insights
The electrolysis merchant hydrogen generation market is geographically distributed across North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa, with each region contributing to market growth based on industrial demand and government policies. In 2024, Asia Pacific held the highest revenue share, with China leading the market due to its vast network of refineries and strong hydrogen demand. India also plays a significant role, as its refining sector continues to expand. Additionally, countries such as Japan and Australia are investing in greener hydrogen production technologies, supporting the region\'s transition toward clean energy. Hydrogen producers in Asia Pacific are further targeting emerging markets like Vietnam, Indonesia, and South Africa to expand their reach and boost revenue. North America’s electrolysis hydrogen market has been expanding for several years, driven by increasing applications across various industries. Methanol and ammonia production are among the fastest-growing sectors, with the United States and Canada experiencing significant growth in the past five years. Government initiatives supporting clean hydrogen, coupled with advancements in electrolyzer technology, are further propelling market growth in the region. As hydrogen adoption rises globally, strategic investments and policy support will continue shaping the market’s regional landscape.
Electrolysis Merchant Hydrogen Generation Market- Competitive Landscape:
The Electrolysis Merchant Hydrogen Generation Market is increasingly competitive as demand for clean hydrogen continues to rise. Leading companies such as H2B2, ITM Power, McPhy Energy, and Nel Hydrogen focus on advancing electrolysis technologies to improve efficiency and scalability. Many players are developing solutions based on alkaline and proton exchange membrane (PEM) electrolysis to meet the growing need for low-carbon hydrogen across industries. Additionally, strategic collaborations between technology providers and energy companies are becoming more common, aiming to strengthen hydrogen infrastructure and accelerate deployment. Governments worldwide are implementing policies and incentives to support green hydrogen, further driving market expansion. For instance, in July 2023, Air Products and Chemicals, Inc. signed an agreement with Edmonton International Airport to supply hydrogen and technology for Alberta’s first hydrogen fuel cell passenger vehicle fleet. This initiative reflects the growing role of hydrogen in the transportation sector and highlights the market’s focus on sustainability-driven innovations. As global sustainability initiatives gain traction, competition in this sector is expected to intensify, fostering continuous advancements in electrolysis technologies. This dynamic environment will create new opportunities for market players to enhance production efficiency, reduce costs, and expand hydrogen applications across various industries.
Recent Developments:
v In April 2024, ITM Power partnered with Hygen Energy to serve as the preferred supplier of PEM electrolyzers for hydrogen projects across the UK and Europe. The collaboration will deploy 50 MW of Neptune Plug and Play electrolyzers in phase one, with an additional 150 MW of modular units planned for phase two, pending investment decisions. Supported by UK government funding programs like HAR2, the initiative aims to accelerate large-scale hydrogen production and infrastructure expansion.
v In July 2024, EWE awarded Siemens Energy a contract to supply a 280 MW electrolysis system for a green hydrogen plant in Germany. Scheduled to begin operations in 2027, the facility will produce up to 26,000 tonnes of green hydrogen annually to support local industries. This project marks a major step in expanding Germany’s hydrogen production and advancing its clean energy goals.
v In March 2022, Air Products and Chemicals, Inc. announced plans to build and operate a green liquid hydrogen production facility in Casa Grande, Arizona. Designed as a zero-carbon facility, it aims to supply clean hydrogen to various industries. The plant was set to enter the market by 2023, reinforcing Air Products\' commitment to sustainable hydrogen production and the transition to cleaner energy sources.
SCOPE OF THE REPORT
This report\'s scope includes the following important market segments:
GLOBAL ELECTROLYSIS MERCHANT HYDROGEN GENERATION MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
Ø Air Liquide
Ø H2B2
Ø ITM Power
Ø McPhy Energy
Ø Nel Hydrogen
Ø Siemens Energy
Ø Plug Power
Ø Sunfire
Ø Thyssenkrupp
Ø Cummins
Ø Verdagy
Ø Others
GLOBAL ELECTROLYSIS MERCHANT HYDROGEN GENERATION MARKET, BY APPLICATION- MARKET ANALYSIS, 2019 - 2032
Ø Petroleum Refinery
Ø Chemical
Ø Metal
Ø Others
GLOBAL ELECTROLYSIS MERCHANT HYDROGEN GENERATION MARKET, BY REGION- MARKET ANALYSIS, 2019 - 2032
Ø North America
o The U.S.
o Canada
Ø Europe
o Germany
o France
o Italy
o Spain
o United Kingdom
o Russia
o Netherlands
o Sweden
o Poland
o Rest of Europe
Ø Asia Pacific
o India
o China
o South Korea
o Japan
o Australia
o Thailand
o Indonesia
o Philippines
o Rest of APAC
Ø Latin America
o Brazil
o Mexico
o Argentina
o Colombia
o Rest of LATAM
Ø The Middle East and Africa
o Saudi Arabia
o United Arab Emirates
o Israel
o Turkey
o Algeria
o Egypt
o Rest of MEA
TABLE OF CONTENT
1. Electrolysis Merchant Hydrogen Generation Market Overview
1.1. Study Scope
1.2. Market Estimation Years
2. Executive Summary
2.1. Market Snippet
2.1.1. Electrolysis Merchant Hydrogen Generation Market Snippet by Application
2.1.2. Electrolysis Merchant Hydrogen Generation Market Snippet by Country
2.1.3. Electrolysis Merchant Hydrogen Generation Market Snippet by Region
2.2. Competitive Insights
3. Electrolysis Merchant Hydrogen Generation Key Market Trends
3.1. Electrolysis Merchant Hydrogen Generation Market Drivers
3.1.1. Impact Analysis of Market Drivers
3.2. Electrolysis Merchant Hydrogen Generation Market Restraints
3.2.1. Impact Analysis of Market Restraints
3.3. Electrolysis Merchant Hydrogen Generation Market Opportunities
3.4. Electrolysis Merchant Hydrogen Generation Market Future Trends
4. Electrolysis Merchant Hydrogen Generation Industry Study
4.1. PEST Analysis
4.2. Porter’s Five Forces Analysis
4.3. Growth Prospect Mapping
4.4. Regulatory Framework Analysis
5. Electrolysis Merchant Hydrogen Generation Market: Impact of Escalating Geopolitical Tensions
5.1. Impact of COVID-19 Pandemic
5.2. Impact of Russia-Ukraine War
5.3. Impact of Middle East Conflicts
6. Electrolysis Merchant Hydrogen Generation Market Landscape
6.1. Electrolysis Merchant Hydrogen Generation Market Share Analysis, 2024
6.2. Breakdown Data, by Key Manufacturer
6.2.1. Established Players’ Analysis
6.2.2. Emerging Players’ Analysis
7. Electrolysis Merchant Hydrogen Generation Market – By Application
7.1. Overview
7.1.1. Segment Share Analysis, By Application, 2024 & 2032 (%)
7.1.2. Petroleum Refinery
7.1.3. Chemical
7.1.4. Metal
7.1.5. Others
8. Electrolysis Merchant Hydrogen Generation Market– By Geography
8.1. Introduction
8.1.1. Segment Share Analysis, By Geography, 2024 & 2032 (%)
8.2. North America
8.2.1. Overview
8.2.2. Electrolysis Merchant Hydrogen Generation Key Manufacturers in North America
8.2.3. North America Market Size and Forecast, By Country, 2019 - 2032 (US$ Million)
8.2.4. North America Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.2.5. U.S.
8.2.5.1. Overview
8.2.5.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.2.5.3. U.S. Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.2.6. Canada
8.2.6.1. Overview
8.2.6.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.2.6.3. Canada Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.3. Europe
8.3.1. Overview
8.3.2. Electrolysis Merchant Hydrogen Generation Key Manufacturers in Europe
8.3.3. Europe Market Size and Forecast, By Country, 2019 - 2032 (US$ Million)
8.3.4. Europe Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.3.5. Germany
8.3.5.1. Overview
8.3.5.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.3.5.3. Germany Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.3.6. Italy
8.3.6.1. Overview
8.3.6.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.3.6.3. Italy Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.3.7. United Kingdom
8.3.7.1. Overview
8.3.7.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.3.7.3. United Kingdom Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.3.8. France
8.3.8.1. Overview
8.3.8.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.3.8.3. France Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.3.9. Russia
8.3.9.1. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.3.9.2. Russia Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.3.10. Netherlands
8.3.10.1. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.3.10.2. Netherlands Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.3.11. Sweden
8.3.11.1. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.3.11.2. Sweden Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.3.12. Poland
8.3.12.1. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.3.12.2. Poland Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.3.13. Rest of Europe
8.3.13.1. Overview
8.3.13.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.3.13.3. Rest of the Europe Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.4. Asia Pacific (APAC)
8.4.1. Overview
8.4.2. Electrolysis Merchant Hydrogen Generation Key Manufacturers in Asia Pacific
8.4.3. Asia Pacific Market Size and Forecast, By Country, 2019 - 2032 (US$ Million)
8.4.4. Asia Pacific Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.4.5. India
8.4.5.1. Overview
8.4.5.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.4.5.3. India Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.4.6. China
8.4.6.1. Overview
8.4.6.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.4.6.3. China Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.4.7. Japan
8.4.7.1. Overview
8.4.7.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.4.7.3. Japan Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.4.8. South Korea
8.4.8.1. Overview
8.4.8.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.4.8.3. South Korea Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.4.9. Australia
8.4.9.1. Overview
8.4.9.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.4.9.3. Australia Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.4.10. Thailand
8.4.10.1. Overview
8.4.10.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.4.10.3. Thailand Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.4.11. Indonesia
8.4.11.1. Overview
8.4.11.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.4.11.3. Indonesia Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.4.12. Philippines
8.4.12.1. Overview
8.4.12.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.4.12.3. Philippines Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.4.13. Rest of APAC
8.4.13.1. Overview
8.4.13.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.4.13.3. Rest of APAC Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.5. Latin America
8.5.1. Overview
8.5.2. Electrolysis Merchant Hydrogen Generation Key Manufacturers in Latin America
8.5.3. Latin America Market Size and Forecast, By Country, 2019 - 2032 (US$ Million)
8.5.4. Latin America Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.5.5. Brazil
8.5.5.1. Overview
8.5.5.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.5.5.3. Brazil Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.5.6. Mexico
8.5.6.1. Overview
8.5.6.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.5.6.3. Mexico Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.5.7. Argentina
8.5.7.1. Overview
8.5.7.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.5.7.3. Argentina Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.5.8. Colombia
8.5.8.1. Overview
8.5.8.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.5.8.3. Colombia Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.5.9. Rest of LATAM
8.5.9.1. Overview
8.5.9.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.5.9.3. Rest of LATAM Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.6. Middle East and Africa
8.6.1. Overview
8.6.2. Electrolysis Merchant Hydrogen Generation Key Manufacturers in Middle East and Africa
8.6.3. Middle East and Africa Market Size and Forecast, By Country, 2019 - 2032 (US$ Million)
8.6.4. Middle East and Africa Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.6.5. Saudi Arabia
8.6.5.1. Overview
8.6.5.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.6.5.3. Saudi Arabia Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.6.6. United Arab Emirates
8.6.6.1. Overview
8.6.6.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.6.6.3. United Arab Emirates Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.6.7. Israel
8.6.7.1. Overview
8.6.7.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.6.7.3. Israel Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.6.8. Turkey
8.6.8.1. Overview
8.6.8.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.6.8.3. Turkey Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.6.9. Algeria
8.6.9.1. Overview
8.6.9.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.6.9.3. Algeria Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.6.10. Egypt
8.6.10.1. Overview
8.6.10.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.6.10.3. Egypt Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
8.6.11. Rest of MEA
8.6.11.1. Overview
8.6.11.2. Market Analysis, Forecast, and Y-O-Y Growth Rate, 2019 - 2032, (US$ Million)
8.6.11.3. Rest of MEA Market Size and Forecast, By Application, 2019 - 2032 (US$ Million)
9. Key Vendor Analysis- Electrolysis Merchant Hydrogen Generation Industry
9.1. Competitive Dashboard
9.1.1. Competitive Benchmarking
9.1.2. Competitive Positioning
9.2. Company Profiles
9.2.1. Air Liquide
9.2.2. H2B2
9.2.3. ITM Power
9.2.4. McPhy Energy
9.2.5. Nel Hydrogen
9.2.6. Siemens Energy
9.2.7. Plug Power
9.2.8. Sunfire
9.2.9. Thyssenkrupp
9.2.10. Cummins
9.2.11. Verdagy
9.2.12. Others
10. 360 Degree Analyst View
11. Appendix
11.1. Research Methodology
11.2. References
11.3. Abbreviations
11.4. Disclaimer
11.5. Contact Us
