Petroleum Refining Hydrogen Generation

Global Petroleum Refining Hydrogen Generation Market to Reach US$84.9 Billion by 2030

The global market for Petroleum Refining Hydrogen Generation estimated at US$60.0 Billion in the year 2024, is expected to reach US$84.9 Billion by 2030, growing at a CAGR of 6.0% over the analysis period 2024-2030. Captive Delivery Mode, one of the segments analyzed in the report, is expected to record a 6.8% CAGR and reach US$61.5 Billion by the end of the analysis period. Growth in the Merchant Delivery Mode segment is estimated at 4.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$16.3 Billion While China is Forecast to Grow at 9.5% CAGR

The Petroleum Refining Hydrogen Generation market in the U.S. is estimated at US$16.3 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$17.4 Billion by the year 2030 trailing a CAGR of 9.5% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 2.9% and 5.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.9% CAGR.

Global Petroleum Refining Hydrogen Generation Market - Key Trends & Drivers Summarized

Why Is Hydrogen Critical to Petroleum Refining Operations?

Hydrogen plays an essential role in modern petroleum refining, serving as a key input for hydrotreating and hydrocracking processes. These units are vital for removing sulfur, nitrogen, and other contaminants from fuel streams to meet clean fuel regulations. Hydrogen is also used to improve fuel yields and quality by converting heavy hydrocarbons into lighter, more valuable fractions. As refining moves toward processing heavier and sourer crude oils, reliance on hydrogen continues to rise.

Refiners primarily produce hydrogen on-site through steam methane reforming, partial oxidation, or autothermal reforming. These technologies enable continuous, large-scale production using natural gas or refinery by-products. Integration of hydrogen generation units within refineries ensures process efficiency, operational continuity, and cost control. Facilities with high hydroprocessing capacity are typically the most significant consumers of hydrogen, particularly in regions with stringent fuel emission standards.

How Are Technology Choices and Energy Efficiency Goals Shaping Production Trends?

Steam methane reforming (SMR) remains the most widely used technology for hydrogen generation due to its reliability and scalability. However, it is also associated with high carbon dioxide emissions, prompting refiners to explore cleaner alternatives. Efforts are underway to retrofit existing SMR units with carbon capture systems to reduce emissions without disrupting operations. In parallel, interest in autothermal reforming and advanced membrane-based purification systems is growing for their potential energy savings and footprint advantages.

Refineries are increasingly focused on improving hydrogen yield, optimizing heat integration, and minimizing hydrogen losses across processing units. On-site purification systems such as pressure swing adsorption (PSA) and membrane separation are now standard in most hydrogen production trains. These systems help refiners maintain consistent hydrogen purity and pressure levels, which are crucial for catalytic performance in hydrotreaters and hydrocrackers.

Where Is Demand Rising and Which Refinery Configurations Are Driving It?

Hydrogen demand is rising across complex and deep-conversion refineries that operate multiple hydrotreating and hydrocracking units. Facilities processing heavy, high-sulfur crudes are particularly dependent on hydrogen to meet low-sulfur fuel specifications. Upgrading older refineries and adding secondary processing capacity are increasing hydrogen requirements in Asia-Pacific, Latin America, and parts of the Middle East.

Tighter environmental regulations in the US and Europe continue to support investment in hydrogen generation systems. Refineries operating under fuel sulfur limits for diesel and gasoline require stable and high-purity hydrogen supply. Integrated refinery-petrochemical complexes are also influencing demand, as hydrogen is needed for aromatics production and specialty feedstock upgrading. Regional hydrogen strategies and refinery modernization programs are further contributing to long-term demand growth.

Growth in the Petroleum Refining Hydrogen Generation market is driven by several factors…

Growth in the petroleum refining hydrogen generation market is driven by increasing hydroprocessing capacity across refineries, processing of heavier crude grades, and enforcement of ultra-low sulfur fuel regulations. Expansion of hydrotreating and hydrocracking units to meet clean fuel mandates continues to raise hydrogen requirements, particularly in high-throughput and export-oriented refineries.

Technology upgrades in SMR units, integration of carbon capture systems, and deployment of on-site purification technologies are supporting more efficient and compliant hydrogen production. Demand is further influenced by refinery-petrochemical integration, regional fuel quality mandates, and rising hydrogen purity needs in secondary processing units. Refinery investments in Asia-Pacific, Middle East, and North America are sustaining capital deployment in hydrogen production infrastructure to meet both current refining needs and future emissions reduction goals.

SCOPE OF STUDY:

The report analyzes the Petroleum Refining Hydrogen Generation market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Delivery Mode (Captive Delivery Mode, Merchant Delivery Mode); Process (Steam Methane Reforming Process, Electrolysis Process, Partial Oxidation Process, Auto-Thermal Reforming Process, Biomass Gasification Process)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 37 Featured) -

• Air Liquide
• Air Products and Chemicals
• Axens
• BayoTech
• Bloom Energy
• Chevron Corporation
• China Petroleum & Chemical Corporation (Sinopec)
• Cummins Inc.
• Gazprom
• General Electric (GE)
• Haldor Topsoe
• Honeywell UOP
• Hydrogenics (Cummins Subsidiary)
• INOX Air Products
• Johnson Matthey
• Linde plc
• McPhy Energy
• Mitsubishi Power
• Shell plc
• Technip Energies

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