By Product Hydrogen Market Report 2026

By Product Hydrogen Market Overview

• By Product Hydrogen market size has reached to $59.13 billion in 2025 • Expected to grow to $86.79 billion in 2030 at a compound annual growth rate (CAGR) of 8% • Growth Driver: The Growing Renewable Energy Penetration Driving The Growth Of The Market Due To Expanding Clean Power Capacity And Energy Security Initiatives • Market Trend: Advancements In Waste Stream Purification Accelerate By-Product Hydrogen Utilization • Asia-Pacific was the largest region and fastest growing region.

What Is Covered Under By Product Hydrogen Market?

By product hydrogen refers to hydrogen that is generated unintentionally as a secondary output of industrial processes such as chlor-alkali production, petroleum refining, steel manufacturing, and chemical synthesis. Its primary purpose is to serve as a cost-effective and low-carbon hydrogen source for applications such as fuel production, power generation, refining processes, and chemical manufacturing. The main hydrogen typs of by product hydrogen are gray hydrogen, blue hydrogen, Green Hydrogen, turquoise hydrogen, and pink hydrogen. Gray hydrogen refers to hydrogen produced from fossil fuels without capturing the resulting carbon emissions. These solutions are created through different production pathways, including fossil fuel based production, carbon capture integrated production, renewable energy based electrolysis, and nuclear energy based electrolysis, and are used across various applications, such as energy and power generation, industrial feedstock, transportation and mobility, chemical processing, and steel manufacturing. They serve multiple end-use industries, including chemical industry, petroleum refining, metal processing, electronics, food processing, and other end-use industries.

What Is The By Product Hydrogen Market Growth Forecast?

The by product hydrogen market size is expected to see strong growth in the next few years. It will grow to $86.79 billion in 2030 at a compound annual growth rate (CAGR) of 8.0%. The growth in the forecast period can be attributed to increasing adoption of hydrogen in mobility and power generation, expansion of hydrogen blending in gas networks, rising investments in hydrogen infrastructure, growing focus on circular industrial energy use, increasing regulatory support for low-carbon hydrogen. Major trends in the forecast period include increasing utilization of industrial by product hydrogen streams, rising integration of hydrogen recovery systems, growing demand for low-carbon hydrogen supply, expansion of hydrogen purification and compression infrastructure, enhanced focus on hydrogen storage and distribution.

What Is The Driver Of The By Product Hydrogen Market?

The growing renewable energy penetration is expected to propel the growth of the by-product hydrogen market going forward. Renewable energy penetration refers to the increasing share of electricity generated from renewable sources such as solar, wind, and hydropower in the total energy mix. The rise in renewable energy deployment is being driven by government policies and energy security concerns, as countries seek to reduce dependence on fossil fuel imports following geopolitical disruptions. Expanding renewable electricity capacity creates surplus low-cost power that enables cost-effective production of hydrogen through electrolysis. For instance, in January 2024, according to the U.S. Energy Information Administration, a US-based federal agency responsible for collecting and analyzing energy information, planned solar initiatives are expected to boost the electric power sector's solar capacity by 38%, rising from 95 gigawatts (GW) at the close of 2023 to 131 GW by the end of 2024. Therefore, growing renewable energy penetration is driving the growth of the by-product hydrogen market.

Key Players In The Global By Product Hydrogen Market

Major companies operating in the by product hydrogen market are thyssenkrupp AG, Siemens Energy AG, Cummins Inc, Linde plc, Enbridge Inc, Mitsubishi Heavy Industries Ltd., Fluor Corporation, Air Products and Chemicals Inc, McDermott International Ltd, KBR Inc, ITM Power Plc, Technip Energies N.V., Topsoe A/S, Black & Veatch Holding Company, Hexagon Composites ASA, Jacobs Engineering Group Inc., Hatch Ltd, Mott MacDonald Group Ltd, Plug Power Inc, Nel ASA, and Ballard Power Systems Inc.

Global By Product Hydrogen Market Trends and Insights

Major companies operating in the by-product hydrogen market are focusing on developing advanced waste stream purification technologies to convert industrial off-gases into high-purity hydrogen, improving resource efficiency, and supporting decentralized hydrogen supply. Waste stream purification technologies involve treating industrial waste gases or liquids to eliminate impurities and extract usable materials, enhance resource utilization, and support the reuse of recovered outputs. For instance, in July 2025, Independence Hydrogen, a US-based by-product hydrogen producer, secured a strategic investment from Sumitomo Corporation to expand decentralized hydrogen production and distribution projects. The company utilizes a proprietary purification process that upgrades industrial by-product gas streams into fuel-cell-grade hydrogen, which is then compressed and distributed, highlighting the growing market trend toward transforming waste streams into valuable clean hydrogen supplies and accelerating broader hydrogen deployment initiatives.

What Are Latest Mergers And Acquisitions In The By Product Hydrogen Market?

In March 2025, Saudi Aramco, a Saudi Arabia-based integrated energy and chemicals company, acquired Blue Hydrogen Industrial Gases Company (BHIG) for an undisclosed amount. With this acquisition, Aramco aims to expand its lower-carbon hydrogen portfolio and accelerate the development of a hydrogen network in Saudi Arabia’s Eastern Province to supply both domestic and regional markets with hydrogen, including lower-carbon variants, thereby strengthening its position in the evolving hydrogen economy and supporting its broader new energies strategy. Blue Hydrogen Industrial Gases Company is a Saudi Arabia-based industrial gases company that focuses on the production of hydrogen, particularly lower-carbon “blue hydrogen” derived from natural gas with carbon capture and storage integration.

What Defines the By Product Hydrogen Market?

The by product hydrogen market consists of sales of hydrogen-rich synthesis gas, hydrogen blends, compressed hydrogen cylinders, and liquid hydrogen. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the By Product Hydrogen Market Report 2026?

The by product hydrogen market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the by product hydrogen industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.