Grey Hydrogen Market to Reach $174.9 Bn by 2032 on Rising Energy Needs

Grey Hydrogen Market grows as industries seek cost-effective hydrogen solutions amid rising energy demand and limited low-carbon alternatives.

WILMINGTON, DE, UNITED STATES, November 26, 2025 /EINPresswire.com/ -- According to a new report published Grey Hydrogen Market Size, Share, Competitive Landscape and Trend Analysis Report, by Source (Natural Gas, Coal, Others), by Production Method (Steam Reformation, Gasification, Others), by Application (Ammonia Production, Methanol Production, Refineries, Chemical Production, Others): Global Opportunity Analysis and Industry Forecast, 2022 - 2032, The global grey hydrogen market was valued at $131.8 billion in 2022 and is projected to reach $174.9 billion by 2032, growing at a CAGR of 2.9% from 2023 to 2032.

The grey hydrogen market represents a major segment of the global hydrogen industry, produced primarily from natural gas through steam methane reforming (SMR). Despite being carbon-intensive, grey hydrogen continues to dominate due to its cost-effectiveness, established infrastructure, and widespread use across industrial sectors such as refining, chemicals, and fertilizers.

As global energy consumption rises, grey hydrogen remains a preferred option for industries aiming to meet immediate hydrogen needs without significant capital investment. While the shift toward low-carbon hydrogen is accelerating, grey hydrogen’s economic advantages and existing production capacity keep it firmly positioned in the near-term energy landscape.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗣𝗗𝗙 𝗕𝗿𝗼𝗰𝗵𝘂𝗿𝗲: https://www.alliedmarketresearch.com/request-sample/A74587

𝐌𝐚𝐫𝐤𝐞𝐭 𝐃𝐲𝐧𝐚𝐦𝐢𝐜𝐬
Cost competitiveness is one of the strongest drivers of the grey hydrogen market. Its production involves mature technologies and readily available feedstock, enabling large-scale output at relatively low cost compared to green or blue hydrogen.

Another key factor is its extensive industrial use, particularly in ammonia production, metal refining, and petrochemical processes. These sectors depend heavily on hydrogen as a feedstock, ensuring continuous demand for grey hydrogen.

However, increasing environmental concerns and global carbon reduction policies pose challenges for market growth. Governments and industries are gradually transitioning toward cleaner hydrogen technologies to meet decarbonization goals.

Technological advancements in carbon capture and storage (CCS) are influencing the grey hydrogen market, pushing producers to consider upgrading facilities to reduce emissions or transition toward blue hydrogen pathways.

Additionally, rising energy prices and natural gas supply fluctuations can impact production economics, making market expansion sensitive to geopolitical and supply-chain uncertainties.

𝗖𝗼𝗻𝗻𝗲𝗰𝘁 𝘁𝗼 𝗔𝗻𝗮𝗹𝘆𝘀𝘁: https://www.alliedmarketresearch.com/connect-to-analyst/A74587

𝗦𝗲𝗴𝗺𝗲𝗻𝘁 𝗢𝘃𝗲𝗿𝘃𝗶𝗲𝘄
The grey hydrogen market is segmented based on production method, end-user, and distribution. Steam methane reforming remains the dominant production method due to its efficiency and scalability. Key end-use industries include refining, chemicals, power generation, and metallurgy, where hydrogen plays a critical role in operational processes. Distribution is largely through pipelines and on-site production, driven by industrial proximity and cost efficiency.

Depending on the production method, the grey hydrogen market is segmented into steam reformation, gasification, and others. Steam reformation accounted for the largest market share in 2022 and is expected to retain its lead throughout the forecast period. Although SMR generates significant carbon emissions—around 9–12 kg of CO₂ per kilogram of hydrogen produced as per the IEA—technological advancements in reactor design, catalysts, and heat recovery systems have improved its efficiency, helping lower both costs and environmental impact.

By application, the market is categorized into ammonia production, methanol production, refineries, chemical production, and others. Refineries held the largest share in 2022, followed by ammonia production. The ammonia segment is projected to record the fastest growth during the forecast period, supported by the increasing use of hydrogen across industries such as metallurgy, chemicals, glass, and food & beverages, which in turn strengthens demand for ammonia and methanol production.

𝗥𝗲𝗴𝗶𝗼𝗻𝗮𝗹 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀
Regionally, the grey hydrogen market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific dominated the market in 2022 and is expected to register the highest CAGR in the coming years due to a strong pipeline of grey hydrogen projects underway in China, Japan, Australia, and India.

𝗙𝗼𝗿 𝗣𝘂𝗿𝗰𝗵𝗮𝘀𝗲 𝗜𝗻𝗾𝘂𝗶𝗿𝘆: https://www.alliedmarketresearch.com/purchase-enquiry/A74587

𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀
The major players operating in the grey hydrogen industry are Linde plc, Air Liquide, Orsted A/S, Iberdrola SA, Air Products & Chemicals, Inc., Indian Oil Corporation Ltd., Reliance Industries, China National Petroleum Corporation, Exxon Mobil Corporation, and Messer Group GmbH.

𝗞𝗲𝘆 𝗙𝗶𝗻𝗱𝗶𝗻𝗴𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗦𝘁𝘂𝗱𝘆
• By source, natural gas is projected to grow at the highest CAGR of approximately 3.1%, in terms of during the grey hydrogen market forecast period.
• By the production method, the steam reformation segment dominated the grey hydrogen market share by over 50% in 2021.
• By application, the ammonia production segment is projected to grow at the highest CAGR of approximately 3.2%, in terms of during the grey hydrogen market forecast period.
• By region, Asia-Pacific dominated the grey hydrogen market and is expected to grow at a CAGR of 3.1% during the forecast period.

𝗧𝗿𝗲𝗻𝗱𝗶𝗻𝗴 𝗥𝗲𝗽𝗼𝗿𝘁𝘀 𝗶𝗻 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆
Hydrogen Storage Market
https://www.alliedmarketresearch.com/hydrogen-storage-market-A122780

Solar Hydrogen Panel Market
https://www.alliedmarketresearch.com/solar-hydrogen-panel-market-A74861

Green Hydrogen Market
https://www.alliedmarketresearch.com/green-hydrogen-market-A11310

Clean Hydrogen Market
https://www.alliedmarketresearch.com/clean-hydrogen-market-A53698

Blue Hydrogen Market
https://www.alliedmarketresearch.com/blue-hydrogen-market-A16007

Brown Hydrogen Market
https://www.alliedmarketresearch.com/brown-hydrogen-market-A14367

David Correa
Allied Market Research
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