Grey Hydrogen Market Size

Grey Hydrogen Market Future Prospects

The global grey hydrogen market size in 2024 is USD 134.5 billion, and it is expected to advance at a CAGR of 1.9% during 2025–2032, to reach USD 156.5 billion by 2032.

Grey hydrogen is produced from natural gas through steam–methane reforming (SMR), without any carbon capture. SMR, the cheapest technique to produce H₂, removes carbon from methane, though it produces copious quantities of carbon dioxide. However, despite the environmental problems it causes, grey is the leading hydrogen variant in terms of consumption. The easy availability of natural gas is a key reason grey hydrogen is produced in high volumes.

As a feedstock, it is mainly used in petroleum refineries, chemical plants, and fertilizer factories for processes such as hydrogenation and desulfurization. With the growth in the rate of industrialization, particularly in emerging economies, industrial facilities remain the dominant consumer of hydrogen. In industries, the most-common application of this feedstock is the synthesis of ammonia, a key source of nourishment for plants.

Additionally, the market is driven by the growing need for cleaner fuels for cars and aircraft. The burgeoning space exploration sector is another key reason for market growth as H₂ serves as a main fuel for rockets. As per the World Economic Forum, by 2035, the global space economy will value USD 1.8 trillion.