The global grey hydrogen market revenue was around US$ 135.6 billion in 2023 and is estimated to reach US$ 175.4 billion by 2032, growing at a compound annual growth rate (CAGR) of 2.9% during the forecast period from 2024 to 2032.
Coal combustion and natural gas reformation results in the production of grey hydrogen. Nearly 94% of the hydrogen needed is met by grey hydrogen, with blue and green hydrogen following. It is the most affordable method of creating hydrogen. However, it contributes significantly to carbon emissions and environmental pollution because it releases about 11 kg of CO2 for every 1 kg of hydrogen produced. It is produced using fossil fuels like methane and natural gas. Methane leakage during production is estimated to be 1.5%, and no carbon emissions are captured.
Factors Influencing Market Growth
- The grey hydrogen product's possible uses in iron and steel, building heating and cooling, aviation, shipping, chemicals, and hydrogen-based fuels increase the demand for grey hydrogen in these industries, thus expanding the market.
- Technological advancements in gray hydrogen production, like improved SMR processes or the development of new production methods, are increasing the demand for gray hydrogen, thus driving market growth.
- It is anticipated that the world's energy consumption will keep rising, especially in developing nations. An established and trustworthy energy source that can assist in supplying this demand is gray hydrogen. This will increase the demand for gray hydrogen in developing nations, thus propelling market growth.
- Environmental concerns, cost, infrastructure, competition from other hydrogen sources, and safety concerns may hinder market growth.
Impact of COVID-19
COVID-19 negatively impacted the market. This results from the temporary shuttering of companies that manufacture feminine care products during the lockdown. Worldwide, there were difficulties with both the production and the sale of hydrogen, particularly during the early stages of COVID-19. Sales on e-commerce websites brought in money, which helped the grey hydrogen industry recover despite its losses.
Regional Insights
Asia Pacific is expected to grow at the highest pace. The demand for hydrogen fuel cells is fueled by the region's high usage of electric vehicles. China is the biggest producer and consumer of hydrogen, dominating the global market. Every year, China uses about 24 million tons of hydrogen. Grey hydrogen is in greater demand due to its use in building and construction, manufacturing facilities, cars, and electric vehicles. As part of its goal to become the first "hydrogen society" in history by implementing fuel in all sectors of the economy, Japan was the first nation to develop a national hydrogen strategy in 2017. By 2030, hydrogen is expected to supply 10% of South Korea's cities, counties, and towns' energy needs; by 2040, that percentage will rise to 30%.
Leading Competitors
- Exxon Mobil Corporation
- Air Liquide
- Reliance Industries Ltd - (RIL) India
- Indian Oil Corporation Limited
- Orsted A/S
- Iberdrola S.A.
- China National Petroleum Corporation
- Messer Group
- Air Products & Chemicals Inc.
- Linde plc
- Other Prominent Players
Segmentation Analysis
The global grey hydrogen market segmentation focuses on the source, production method, application, and region.
Segmentation based on Source
- Natural Gas
- Coal
- Others

Segmentation based on Production Method
- Steam Reformation
- Gasification
- Others

Segmentation based on Application
- Ammonia Production
- Methanol Production
- Refineries
- Chemical Production
- Others

Segmentation based on Region

- North America
- The U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Singapore
- Rest Of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa