The global hydrogen generation market size is anticipated to touch almost $317 billion by the end of this decade and thereby attain a CAGR of 9.3% between 2024 and 2030. It is well to be noted that the factors that are going to underpin the market growth are mainly the construction of energy-saving hydrogen stations, strong demand when it comes to cleaner fuel, and desulfurization when it comes to petroleum products.
Interestingly, a major focus when it comes to distributed power as well as utility projects has gone on to fuel the penetration in the industry. For example, the global electricity demand is most likely to grow by almost 2/3 of the present demand in the forecast period. The stakeholders are anticipated to see major traction happening when it comes to sustainability solutions as far as the power, manufacturing, and transportation are concerned.
In terms of technology, the steam methane reforming segment is likely to grab a major share during the forecast period. The rising demand when it comes to hydrogen generation happens to come on the back of steam methane reforming, which is, by the way, one of the most economical methods in terms for the global hydrogen generation market. There are some other elements, like high conversion efficiency, which have resulted well for the market growth.
On the basis of the application, the ammonia production segment has gone to spearhead the market in 2023 by accounting for more than 20% of the revenue share. This kind of growth is most likely to continue within the focus period due to the demand for ammonia in order to store as well as transport hydrogen. The segment is indeed going to see a major growth due to the trend for renewable hydrogen technologies and ammonia usage as a carbon-free fuel.
With regards to the source, the natural gas segment went on to hold a major share in 2023. It is well to be noted that since the hydrogen production coming from natural gas happens to be the cheapest method when it comes to producing hydrogen, the natural gas source demand will continue to rise in the next half a decade. There is a prominent traction when it comes to steam methane reforming, which is expected to go along well for natural gas.
When it comes to the systems, the merchant generation segment will consistently depict a prominent growth in the forecast period. This is going to be mainly because of the massive natural gas pipeline network across Russia, the US, and Canada. Hydrogen production within a central facility having a natural gas process is most likely to shape the growth of the segment.
It is well to be noted that investors happen to see hydrogen as a very promising strategy in order to adhere to the federal as well as environmental regulations while at the same time keeping up with the demand when it comes to energy.
The trend when it comes to smart commercial as well as residential buildings is going to further drive the hydrogen adoption as far as energy generation is concerned. Some elements like the demand for low carbon as well as sustainable energy solutions along with strong government regulations are most likely to throttle the global hydrogen generation market revenue.