Hydrogen Generation Market Analysis

Systems Segment Analysis

The captive is expected to lead the hydrogen generation market with a share of 69.5% during the forecast duration. The subtype involves the production of hydrogen on-site for direct consumption by eliminating reliance on external transportation and distribution infrastructure. In May 2024, GAIL (India) Limited announced that it had inaugurated its first 10 MW green hydrogen plant at the Vijaipur facility in Madhya Pradesh, which is aligned with India’s National Green Hydrogen Mission. The PEM electrolyzer-based plant produces 4.3 tons per day of high-purity (99.999%) hydrogen using renewable electricity. It also stated that initially, the hydrogen is used captively on-site as fuel alongside natural gas for existing industrial processes, eliminating reliance on external hydrogen supply and distribution infrastructure, hence denoting a wider segment scope.

Application Segment Analysis

By the conclusion of 2035, the industrial segment will grow at a considerable rate in the hydrogen generation market. The growth of the segment is highly attributable to hydrogen’s prominent role in ammonia synthesis, refining, and petrochemical feedstocks. As of the November 2025 data from Bharat Petroleum Corporation Limited, its Bina Refinery has demonstrated strong industrial adoption of hydrogen through the commissioning of a 5 MW green hydrogen plant, producing 2.15 tonnes per day of high-purity hydrogen using renewable energy. It also notes that the hydrogen is used directly within refinery operations, supporting refining and petrochemical processes by reducing dependence on fossil-based hydrogen and cutting around 9,000 metric tonnes of CO₂ on a yearly basis. Hence, this initiative highlights hydrogen’s expanding role as a critical industrial feedstock in refining and petrochemicals, reinforcing growth prospects for the industrial segment of the hydrogen generation industry in the years ahead.

Technology Segment Analysis

In the technology segment, the steam methane reforming will grow with a significant share in the hydrogen generation market over the forecasted years. The growth of the segment is highly attributable since the natural gas reforming delivers most commercial hydrogen to reduce emissions. In August 2025, NEXTCHEM (MAIRE Group) announced that it was awarded a contract in the U.S. to deploy its NX eBlue electric steam methane reforming technology for the production of 15,000 Nm³/h of low-carbon hydrogen. This project represents the first commercial application of electric SMR by combining renewable electricity, advanced reforming, and integrated carbon capture to significantly reduce CO₂ emissions. Thus, the initiative highlights the continued importance of natural gas reforming technologies in large-scale hydrogen generation.

Our in-depth analysis of the hydrogen generation market includes the following segments: