Grey Hydrogen Market Size

Grey Hydrogen Market size was over USD 151.07 billion in 2024 and is expected to exceed USD 227.52 billion by the end of 2037, growing at over 3.2% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of grey hydrogen is evaluated at USD 154.94 billion. Grey Hydrogen’s role as a transitional solution in the broader hydrogen economy is one of the primary drivers for the market’s growth. Grey hydrogen, derived from fossil fuels like natural gas or coal, serves as a bridge between conventional fuels and cleaner alternatives. In the Net Zero Emissions by 2050 scenario, novel uses in heavy industries and long-distance transport account for one-third of worldwide hydrogen demand by 2030, compared to less than 0.1% in the former case.  Its widespread use stems from established infrastructure and cost-effectiveness, meeting immediate industrial demands for hydrogen. As nations and industries aim for carbon neutrality and sustainable energy solutions, grey hydrogen acts as a stepping stone, allowing for a smoother transition.

Additionally, advancements in technologies like carbon capture and utilization (CCU) enhance its environmental credentials, making it more attractive as a solution. The transitional role positions grey hydrogen as a crucial growth driver by supporting the initial stages of hydrogen adoption until cleaner technologies mature and become more widespread.