North America Hydrogen Generation Market Size & Share, 2033

North America Hydrogen Generation Market Size

The size of the North American hydrogen generation market was calculated to be USD 62.57 billion in 2024 and is anticipated to be worth USD 134.57 billion by 2033, from USD 68.13 billion in 2025, growing at a CAGR of 8.88% during the forecast period.

The North American hydrogen generation market refers to the industrial production, distribution, and utilization of hydrogen gas across various sectors including energy, transportation, refining, chemicals, and manufacturing. Hydrogen is primarily produced through steam methane reforming (SMR), electrolysis, coal gasification, and biomass conversion. It serves as a critical feedstock in refining and chemical processing, while also emerging as a clean energy carrier for fuel cells and decarbonization initiatives. In recent years, the region has witnessed growing interest in hydrogen as a strategic resource for achieving net-zero emissions targets.

MARKET DRIVERS

Decarbonization Policies and Climate Targets

One of the primary drivers of the North American hydrogen generation market is the aggressive push toward decarbonization driven by federal and state-level climate policies. Governments across the U.S., Canada, and Mexico have set ambitious greenhouse gas reduction targets, with hydrogen playing a pivotal role in replacing fossil fuels in hard-to-abate sectors such as steelmaking, cement production, and long-haul transport. According to the U.S. Environmental Protection Agency (EPA), the nation aims to achieve a 50–52% reduction in greenhouse gas emissions below 2005 levels by 2030. Similarly, Canada’s Net-Zero Advisory Body has identified hydrogen as a cornerstone technology for achieving national climate goals, allocating over CAD 1.5 billion under the Canadian Hydrogen Strategy to support infrastructure development and pilot projects. These policy frameworks incentivize private investment in hydrogen generation facilities that utilize low-carbon methods such as blue hydrogen (with carbon capture) and green hydrogen (electrolysis powered by renewables).

Expansion of Industrial and Refining Applications

Another key driver behind the growth of the North American hydrogen generation market is the continued expansion of hydrogen use in industrial and refining processes. Hydrogen is a fundamental input in petroleum refining, ammonia production, and methanol synthesis, making it indispensable for maintaining operational efficiency and product quality in these sectors. As per the American Petroleum Institute (API), U.S. refineries process over 17 million barrels of crude oil daily, with hydrogen being essential for hydrocracking and desulfurization operations. The shift toward heavier crude oils, which require more hydrogen for refining, has further intensified demand. Additionally, the rise in shale oil production has increased the need for hydrogen in upgrading and refining activities. Beyond refining, the chemical industry remains a major consumer. With agriculture remaining a vital economic sector, hydrogen demand for nitrogenous fertilizer production continues to grow. Moreover, expanding methanol production capacity in the Gulf Coast has reinforced hydrogen’s strategic importance in industrial chemistry, ensuring sustained growth in hydrogen generation across the region.

MARKET RESTRAINTS

High Production Costs for Clean Hydrogen

A significant restraint affecting the North American hydrogen generation market is the high production cost associated with clean hydrogen technologies such as electrolysis using renewable energy and carbon capture-enabled steam methane reforming (blue hydrogen). While gray hydrogen—produced from natural gas without carbon capture—is currently the most economical option, it emits large amounts of CO₂, making it incompatible with long-term sustainability goals. This cost disparity limits the widespread adoption of cleaner alternatives despite strong policy incentives. Blue hydrogen, although less expensive than green hydrogen, still faces challenges related to carbon capture efficiency and storage infrastructure. Moreover, the capital-intensive nature of electrolyzer installations and the intermittent availability of renewable power sources add financial uncertainty for investors.

Underdeveloped Infrastructure for Distribution and Storage

Another critical challenge hindering the North American hydrogen generation market is the lack of comprehensive infrastructure for hydrogen transportation, storage, and end-use integration. Unlike conventional fuels, hydrogen requires specialized pipelines, liquefaction units, and high-pressure storage tanks, which are either limited or in the early stages of development across the region. This contrasts sharply with the vast natural gas pipeline network. The absence of an extensive hydrogen transmission system restricts the efficient movement of hydrogen from production sites to end consumers, particularly in industrial hubs and urban centers. Additionally, the deployment of hydrogen refueling stations for fuel cell vehicles remains limited. Developing a nationwide hydrogen infrastructure will require coordinated efforts among governments, utilities, and private enterprises, posing a significant constraint on near-term market expansion.

MARKET OPPORTUNITIES

Integration into Heavy-Duty Transportation and Fuel Cell Vehicles

A major opportunity emerging in the North American hydrogen generation market is the integration of hydrogen into heavy-duty transportation and fuel cell electric vehicle (FCEV) ecosystems. As electrification challenges persist in long-haul trucking, shipping, and rail sectors due to battery weight and charging limitations, hydrogen fuel cells offer a viable alternative with fast refueling and extended range capabilities. Major automakers like Toyota, Hyundai, and Nikola have already introduced commercial FCEVs tailored for freight corridors, supported by government grants aimed at developing hydrogen refueling networks. Furthermore, regional collaborations are accelerating hydrogen mobility adoption. With rising investments in green hydrogen production and supportive regulatory frameworks, the transportation sector presents a transformative opportunity for scaling hydrogen generation across North America.

Development of Green Hydrogen Hubs

The establishment of regional green hydrogen hubs represents a transformative opportunity for the North American hydrogen generation market. Supported by both public and private funding, these hubs aim to cluster hydrogen production, storage, and end-use applications to create integrated value chains that drive down costs and accelerate adoption. These hubs span locations from the Gulf Coast to the Midwest and Pacific Northwest, leveraging local renewable resources, industrial clusters, and existing infrastructure to optimize hydrogen deployment. Canada’s federal government is also advancing similar initiatives through its Strategic Innovation Fund, supporting large-scale clean hydrogen projects in Alberta, Quebec, and British Columbia. These efforts are aligned with corporate commitments from firms such as Air Products, Plug Power, and Enbridge, which are investing billions in hydrogen production facilities and supply chain development.t

MARKET CHALLENGES

Technological Maturity and Scalability of Electrolyzers

A pressing challenge facing the NortAmericanca hydrogen generation market is the technological maturity and scalability of electrolyzer systems required for green hydrogen production. While proton exchange membrane (PEM) and alkaline electrolyzers are currently the most widely deployed technologies, their commercial viability at large scale remains unproven in many contexts. Scaling up to gigawatt-level deployments involves overcoming engineering complexities, improving system durability, and enhancing efficiency under fluctuating renewable energy inputs. Additionally, the availability of critical materials such as iridium for PEM electrolyzers poses supply chain constraints.

Policy Uncertainty and Funding Gaps

Despite strong initial policy support, uncertainty regarding long-term funding and regulatory frameworks remains a significant challenge for the North American hydrogen generation market. While programs such as the U.S. Inflation Reduction Act provide tax incentives for clean hydrogen production, the actual implementation timelines, eligibility criteria, and subsidy duration remain subject to change based on political dynamics. Furthermore, securing private investment remains challenging due to the long payback periods associated with hydrogen assets, which often exceed traditional project financing horizons. In Canada, the Federation of Canadian Municipalities (FCM) has highlighted that while federal funding commitments exist, provincial coordination and matching investments are not always aligned, leading to fragmented project execution. Bridging these policy and financial gaps will be essential for sustaining momentum in hydrogen generation and ensuring that North America maintains a leadership position in the global hydrogen economy.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Source Insights

Grey hydrogen remained the largest source segment in the North American hydrogen generation market accounting for 58% of total production volume in 2024. This dominance is primarily attributed to its cost-effectiveness and established production infrastructure, which relies on steam methane reforming (SMR) using natural gas without carbon capture. A key driver behind grey hydrogen’s continued prevalence is its widespread use in industrial applications such as oil refining and ammonia synthesis. The abundance of low-cost natural gas in North America, particularly due to shale gas extraction, further reinforces the economic viability of grey hydrogen production. Additionally, the chemical industry remains a major consumer, with nitrogenous fertilizer manufacturing relying heavily on hydrogen feedstock. While environmental concerns are pushing for cleaner alternatives, the current infrastructure and operational familiarity with grey hydrogen ensure its leading position in the near term.

Green hydrogen is emerging as the fastest-growing segment in the North American hydrogen generation market, expanding at a CAGR of 23.7%. This rapid growth is driven by increasing investments in renewable energy and supportive policy frameworks aimed at decarbonizing hard-to-abate sectors. One of the primary catalysts is the Inflation Reduction Act (IRA) in the United States, which provides substantial tax credits for clean hydrogen production, including green hydrogen generated via electrolysis powered by wind, solar, or hydropower. Moreover, corporate sustainability commitments are accelerating adoption. Companies like Plug Power, Air Products, and NextEra Energy have announced multi-billion-dollar investments in green hydrogen facilities. Canada’s federal government is also backing pilot projects under its Clean Fuels Fund, encouraging industrial users to transition from fossil-based hydrogen sources.

By Technology Insights

Steam Methane Reforming (SMR) had the largest share in the North American hydrogen generation market representing 65% of total production capacity in 2024. This dominance is primarily due to its well-established technology, high efficiency, and compatibility with abundant natural gas resources in the region. The core reason for SMR’s leadership lies in its widespread deployment across existing industrial hydrogen production facilities. The Gulf Coast region alone hosts a significant portion of these plants, leveraging proximity to natural gas supplies and industrial demand centers. Additionally, SMR remains economically favorable compared to newer hydrogen production methods. Despite the growing emphasis on clean hydrogen, the entrenched infrastructure and operational familiarity with SMR continue to sustain its dominant position in North America’s hydrogen generation landscape.

Electrolysis-based hydrogen production is witnessing the highest growth rate in the North American hydrogen generation market, expanding at a CAGR of 24.1%. This surge is primarily fueled by advancements in renewable energy integration and strong policy incentives supporting clean hydrogen development. A key growth driver is the increasing availability of low-cost renewable electricity, particularly from wind and solar farms. Major corporations are capitalizing on this momentum. Plug Power announced plans to build a 65-megawatt electrolyzer facility in Texas, while NextEra Energy is developing one of the world’s largest green hydrogen plants in California. These developments indicate that electrolysis is transitioning from niche experimentation to commercial-scale deployment, reinforcing its role as a high-growth technology in North America.

By Application Insights

Oil refining remained the biggest application segment in the North American hydrogen generation market accounting for 42% of total hydrogen consumption in 2024. This is driven by the critical role hydrogen plays in refining heavy crude oils, reducing sulfur content, and enhancing fuel quality through hydroprocessing techniques. A key factor sustaining this segment’s leadership is the ongoing reliance on complex crude slates that require higher hydrogen input for upgrading. According to the American Petroleum Institute (API), U.S. refineries process over 17 million barrels of crude oil daily, with hydrogen demand expected to rise as refiners shift toward heavier crude blends. Additionally, regulatory mandates for ultra-low sulfur diesel (ULSD) and gasoline have increased hydrogen dependency in refining operations. With North America remaining a major global refining hub, hydrogen demand in this sector is projected to remain robust despite long-term decarbonization goals.

Iron & Steel Production is emerging as the fastest-growing application segment in the North American hydrogen generation market, expanding at a CAGR of 19.4%. This growth is driven by the steel industry’s urgent need to reduce carbon emissions and adopt cleaner alternatives to traditional coal-based reduction processes. A primary catalyst is the push toward direct reduced iron (DRI) technology using hydrogen instead of carbon-intensive coke. In response, companies like U.S. Steel, ArcelorMittal, and Cleveland-Cliffs have announced multimillion-dollar investments in hydrogen-integrated steelmaking facilities. Additionally, government initiatives such as the U.S. Department of Energy’s Industrial Efficiency and Decarbonization Fund are providing financial support for hydrogen-based metallurgical projects. These combined efforts signal a fundamental shift in how North America approaches steel production, positioning hydrogen as a key enabler of industrial decarbonization.

REGIONAL ANALYSIS

The United States stood as the dominant force in the North American hydrogen generation market by commanding 67% of regional production capacity in 2024. This top position is supported by a mature industrial base, abundant natural gas reserves, and strong federal backing for clean hydrogen development. A key driver is the extensive deployment of hydrogen in petroleum refining, where it is used for hydrocracking and desulfurization. Furthermore, the Inflation Reduction Act (IRA) has catalyzed a wave of investment in green hydrogen projects. With multiple clean hydrogen hubs selected under the Regional Clean Hydrogen Hubs program, the U.S. is positioning itself at the forefront of North America’s hydrogen transformation.

Canada is maintaining a steady growth trajectory driven by industrial demand, natural resource endowments, and proactive climate policies. The country’s hydrogen economy benefits from its strong presence in refining, chemicals, and mining, all of which rely on hydrogen for various production processes. A key growth area lies in blue hydrogen production, leveraging Canada’s extensive natural gas reserves alongside carbon capture and storage (CCS) capabilities. Alberta, in particular, is emerging as a hydrogen hotspot, with several large-scale blue hydrogen projects underway.

Mexico is positioning itself as an emerging player with growing potential. Although traditionally less developed than the U.S. and Canada in terms of hydrogen infrastructure, Mexico is gradually integrating hydrogen into its industrial and energy strategies. A key driver is the country’s expanding petrochemical sector, where hydrogen is used extensively in refining and chemical synthesis.  Pemex, the state-owned oil company, is exploring ways to enhance hydrogen efficiency in its processing units. In addition, the automotive industry, particularly in central and northern states, is showing interest in hydrogen-based mobility solutions. While still in the early stages, Mexico’s strategic location and industrial base offer promising prospects for future hydrogen development in North America.

TOP PLAYERS IN THE NORTH AMERICA HYDROGEN GENERATION MARKET

Air Products and Chemicals, Inc.

Air Products is a global leader in industrial gases and a key player in hydrogen generation across North America. The company has been instrumental in developing large-scale hydrogen production and distribution infrastructure, supporting refineries, chemical plants, and emerging fuel cell applications. Air Products has pioneered integrated hydrogen solutions, including carbon capture-enabled blue hydrogen and electrolysis-based green hydrogen projects. Its leadership in gasification technology and long-term supply contracts positions it as a major contributor to both regional and global hydrogen market expansion.

Linde plc

Linde plays a pivotal role in the North American hydrogen generation market through its advanced hydrogen production technologies and extensive pipeline networks. The company supports critical sectors such as refining, chemicals, and clean mobility with reliable and scalable hydrogen solutions. Linde’s expertise in cryogenics, electrolysis, and on-site hydrogen generation has enabled it to support high-growth applications like fueling stations for hydrogen-powered vehicles. With strong R&D capabilities and strategic project deployments, Linde continues to shape the evolution of hydrogen infrastructure across North America.

Plug Power Inc.

Plug Power is a leading innovator in hydrogen fuel cell and green hydrogen generation systems in North America. The company focuses on end-to-end hydrogen solutions tailored for logistics, material handling, and heavy-duty transportation. Plug Power has accelerated the deployment of electrolyzer-based green hydrogen production and developed strategic partnerships to scale clean hydrogen ecosystems. By integrating hydrogen generation with fuel cell applications, Plug Power is driving commercial adoption and influencing the shift toward decarbonized energy systems in the region.

TOP STRATEGIES USED BY KEY MARKET PARTICIPANTS

One of the primary strategies employed by leading players in the North America hydrogen generation market is strategic partnerships and joint ventures , enabling companies to pool resources, share technological expertise, and accelerate project development. These collaborations often involve energy firms, industrial users, and government entities to build integrated hydrogen hubs and value chains.

Another crucial approach is investment in research and development, particularly in electrolysis, carbon capture utilization and storage (CCUS), and hydrogen storage technologies. Companies are focusing on innovation to improve efficiency, reduce costs, and enhance the sustainability profile of hydrogen production methods.

Lastly, expansion into new markets and verticals is a key growth strategy. Major players are extending their hydrogen offerings beyond traditional industrial applications into emerging areas such as mobility, power generation, and synthetic fuels, positioning themselves at the forefront of the evolving hydrogen economy in North America.

KEY MARKET PLAYERS AND COMPETITION OVERVIEW

Major Players in the North American hydrogen generation market include Linde plc, Air Liquide, Air Products and Chemicals Inc., Plug Power Inc., Engie S.A., Messer Group GmbH, FuelCell Energy Inc., Bloom Energy, Ballard Power Systems, Hydrogenics Corporation, Nel Hydrogen, McPhy Energy, Nuvera Fuel Cells Inc., Teledyne Energy Systems Inc., Xebec LLC, Praxair Inc., Iwatani Corporation, Air Water Inc., Uniper SE, TotalEnergies SE, ITM Power Inc., Cummins Inc., Chart Industries Inc., Siemens Energy, Nikola Corporation, Oxy Low Carbon Ventures, Snam, Innergex Renewable Energy.

The competition in the North American hydrogen generation market is intensifying as both established industrial gas providers and emerging clean energy startups vie for leadership in a rapidly transforming sector. Traditional players with deep expertise in steam methane reforming and gas processing are leveraging their existing infrastructure and customer relationships to maintain dominance, while newer entrants focused on green hydrogen are pushing the boundaries of innovation and sustainability. The landscape is further shaped by the convergence of diverse industries—including energy, automotive, chemicals, and utilities—all seeking to integrate hydrogen into their decarbonization strategies.

A defining feature of this competitive environment is the race to scale clean hydrogen production while managing cost challenges and regulatory uncertainties. Companies are differentiating themselves through technological advancements, strategic alliances, and targeted investments in hydrogen infrastructure. Additionally, government incentives and public-private partnerships are playing a crucial role in shaping market dynamics. As demand for low-carbon hydrogen grows across multiple sectors, the competition is shifting from mere production capacity to comprehensive hydrogen ecosystem development, encompassing generation, storage, transport, and end-use applications.

RECENT HAPPENINGS IN THE MARKET

• In February 2024, Air Products announced the expansion of its blue hydrogen facility in Alberta, Canada, incorporating carbon capture technology to support regional decarbonization goals and strengthen its presence in North America’s growing hydrogen market.
• In April 2024, Plug Power entered into a strategic partnership with a renewable energy developer to construct a 60-megawatt green hydrogen plant in Texas, aimed at supplying clean hydrogen for logistics and transportation applications across the southern U.S.
• In July 2024, Linde launched a new modular hydrogen refueling station concept designed for rapid deployment across North America, targeting fleet operators transitioning to hydrogen-powered vehicles and enhancing its mobility-focused hydrogen portfolio.
• In September 2024, NextEra Energy initiated construction on one of the largest electrolysis-based green hydrogen facilities in California, backed by state-level climate incentives and aligned with broader corporate sustainability commitments.
• In November 2024, Shell announced the acquisition of a U.S.-based hydrogen storage and distribution startup, strengthening its ability to deliver end-to-end hydrogen solutions and support large-scale industrial and mobility applications across North America.

DETAILED SEGMENTATION OF NORTH AMERICA HYDROGEN GENERATION MARKET INCLUDED IN THIS REPORT

This research report on the North American hydrogen generation market has been segmented and sub-segmented based on source, technology, application & region.

By Source

• Grey Hydrogen
• Green Hydrogen

By Technology

• Steam Methane Reforming (SMR)
• Electrolysis-Based Hydrogen Production

By Application

• Oil Refining
• Iron & Steel Production

By Region

• US
• Canada
• Mexico
• Rest of North America