Grey Hydrogen Market Size

Grey Hydrogen Market size is expected to reach USD 192 Billion by the end of 2036, growing at a CAGR of 3% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of grey hydrogen was over USD 135 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.