China Hydrogen Generation Market Research Report, 2030

The hydrogen generation market in China plays a pivotal role in the country’s ambitious goal to achieve carbon neutrality by 2060. As the world's largest energy consumer and a major industrial hub, China faces significant energy demands that are increasingly being met by sustainable alternatives, such as hydrogen. The government's commitment to decarbonization is central to this transition, as highlighted by the National Hydrogen Development Strategy and numerous regional policies promoting hydrogen adoption. While China has traditionally relied on coal and natural gas for hydrogen production, there is a notable shift towards greener methods such as electrolysis powered by renewable energy sources. This transition is a response to growing environmental concerns, with hydrogen being integrated across key sectors including transportation, power generation, and industrial manufacturing. As industries seek to reduce their carbon footprints, hydrogen’s potential to serve as a cleaner fuel source has made it a focal point of China's energy strategy. The demand for hydrogen is also expanding in emerging industries, such as semiconductor manufacturing and renewable energy storage, positioning the market as highly dynamic and diverse. The rapid evolution of the hydrogen sector is supported by significant government investments, collaborations between state-owned enterprises like Sinopec and PetroChina, and growing participation in international hydrogen projects. Through these efforts, China is aiming to become a global leader in the hydrogen economy, capitalizing on its vast industrial base and significant renewable energy potential. According to the research report, " China hydrogen generation Market Research Report, 2030," published by Actual Market Research, the China hydrogen generation market is anticipated to grow at more than 6.87% CAGR from 2025 to 2030. This growth is propelled by several key factors, including strong governmental support, rising demand from diverse industrial applications, and the global push for green energy solutions. A primary driver of this expansion is China’s focus on enhancing hydrogen production efficiency and the growing integration of hydrogen into its industrial ecosystem. One of the key trends influencing market development is the advancement of hydrogen storage and transportation technologies, which are making it easier to move hydrogen from production sites to end-users. Additionally, the adoption of hydrogen fuel cell vehicles, especially in urban centers, is gaining momentum, helping to reduce air pollution and lower greenhouse gas emissions. State-owned enterprises like Sinopec and PetroChina are making significant investments in hydrogen infrastructure, driving innovation and capacity expansion. Moreover, China’s Belt and Road Initiative is enabling cross-border hydrogen projects, allowing the country to strengthen its position within the global hydrogen value chain. There are also emerging opportunities in integrating hydrogen into urban infrastructure, particularly for hydrogen-powered public transportation and decentralized energy grids. However, challenges persist in terms of high production costs and the need for more advanced infrastructure, which could slow the pace of hydrogen adoption. Despite these challenges, the market is poised for growth due to the combined efforts of the government, industry stakeholders, and international collaborations.

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The Chinese hydrogen generation market is segmented primarily by hydrogen type, which includes pure hydrogen and mixed gases. Pure hydrogen dominates the market, as it is critical for high-purity industrial processes, such as hydrogen fuel cell applications, and plays a crucial role in sectors like chemical manufacturing. For instance, pure hydrogen is extensively used in methanol and ammonia production, both of which are essential chemicals for the manufacturing of fertilizers and plastics. The purity of hydrogen is critical in these applications as it ensures high-quality outputs, making it a dominant force in China’s hydrogen market. In contrast, mixed gases are also used in less stringent industrial settings, where high-purity hydrogen is not necessary. While pure hydrogen leads in terms of demand, mixed gases hold a significant share due to their use in a variety of industrial applications. Among these, the petroleum refining sector consumes a large amount of hydrogen, using it for hydrocracking and desulfurization processes that help improve fuel quality and meet environmental regulations. Furthermore, the transportation sector is emerging as a major consumer of hydrogen, particularly with the growing interest in hydrogen-powered vehicles, including buses, trucks, and trains. As hydrogen technology matures and infrastructure improves, it is expected that the transportation sector will become an increasingly important part of China’s hydrogen market. The integration of hydrogen into power generation, steel production, semiconductor manufacturing, and photovoltaic systems further amplifies its demand, showcasing the versatility of hydrogen in supporting China’s diverse industrial ecosystem. China’s hydrogen production technologies are diverse, with steam methane reforming (SMR), coal gasification, and emerging methods like electrolysis playing central roles in meeting the country’s hydrogen demand. Steam methane reforming (SMR) remains the most widely used technology for hydrogen production in China. It is cost-efficient, relatively simple, and highly scalable, making it a dominant method in the country’s hydrogen production landscape. However, the environmental impact of SMR, which releases significant amounts of carbon dioxide, is a concern. To address this issue, China has been increasing its focus on cleaner methods, such as electrolysis, which produces hydrogen by splitting water into hydrogen and oxygen using electricity. The government’s emphasis on decarbonization has accelerated investment in renewable-powered electrolysis technologies, which can generate green hydrogen using clean energy sources like solar and wind. Additionally, coal gasification remains a significant technology for hydrogen production in China, leveraging the country’s abundant coal reserves. However, the environmental concerns associated with coal gasification, including the release of CO2, have prompted the government to explore more sustainable alternatives. Along with electrolysis, oil refining and auto-thermal reformation technologies are being developed to further diversify hydrogen production methods. The Chinese government and private companies are actively investing in research and development to improve the efficiency and reduce the environmental footprint of hydrogen production technologies. This focus on innovation aligns with China’s long-term goal of reducing emissions and transitioning to a more sustainable energy system. The hydrogen generation market in China is segmented into two main system types: captive hydrogen production systems and merchant hydrogen production systems. Captive systems, which are used by specific industries such as petrochemicals, fertilizers, and refining, dominate the market due to their ability to ensure a reliable and uninterrupted hydrogen supply. These systems are typically integrated into the industrial processes of large manufacturers, making them highly efficient and cost-effective. On the other hand, merchant hydrogen production systems are growing in significance, particularly with advancements in hydrogen storage and transportation technologies. Merchant systems allow for the distribution of hydrogen to multiple end-users across different sectors, which helps expand the overall market for hydrogen in China. In terms of energy sources, natural gas and coal remain the primary contributors to hydrogen production in China. Natural gas is particularly important for SMR-based production, while coal is a key feedstock for coal gasification processes. However, renewable energy sources such as solar and wind are gaining traction as China focuses on developing green hydrogen. Electrolysis powered by renewable energy is being increasingly integrated into the production mix, in line with China’s green energy goals. Other sources, including oil, continue to play a secondary role in the energy mix, but their contribution is expected to decrease as renewable energy sources take a more prominent position in hydrogen production. The diversification of energy sources for hydrogen production ensures that China can reduce its reliance on fossil fuels while advancing toward a more sustainable energy future. Conclusion The hydrogen generation market in China is strategically positioned to play a transformative role in the country’s energy transition. Government policies, technological advancements, and increased investment from both domestic and international stakeholders are creating a dynamic environment for hydrogen development. As China strives to achieve its carbon neutrality goals, hydrogen is expected to play an increasingly prominent role in the country's industrial and energy sectors. The market’s continued growth is supported by its integration into diverse applications, including transportation, power generation, and manufacturing. Although challenges such as high production costs and infrastructure development persist, the market’s growth trajectory remains strong. China’s focus on reducing emissions and fostering green hydrogen production technologies ensures that hydrogen will be a cornerstone of its sustainable energy strategy. As the global demand for hydrogen continues to rise, China is well-positioned to lead the way in the development and deployment of hydrogen technologies, further cementing its role as a key player in the global hydrogen economy.

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Nikita Jabrela

Business Development Manager

Considered in this report • Historic Year: 2019 • Base year: 2024 • Estimated year: 2025 • Forecast year: 2030 Aspects covered in this report • Hydrogen Generation Market with its value and forecast along with its segments • Region & country wise Hydrogen Generation market analysis • Application wise Hydrogen Generation distribution • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Applications • Methanol Production • Ammonia Production • Petroleum Refinery • Transportation • Power Generation • Others (Steel+Iron+commercial uses+semiconductors, LEDs, displays, photovoltaic segments, and other electronics etc)

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By Technology • SMR =steam methane reforming • Coal gasification • Others (Electrolysis, oil/refining or auto-thermal reformation ) By Energy Source • N.GAS • COAL • Others (oil, Renewable Energy, etc.) The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to chemical industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.