Grey Hydrogen Market Set to Double by 2033 Amid Refining Demand
London, Friday, 28 November 2025.
In 2025, grey hydrogen sees a boom from petroleum refining needs. Despite environmental concerns, its use highlights industry shifts towards sustainable practices, doubling market value by 2033.
The Driving Forces Behind Grey Hydrogen’s Growth
In 2025, the grey hydrogen market is experiencing a significant boost, primarily due to its demand in petroleum refining. The refining process relies on grey hydrogen for tasks such as hydrocracking and desulfurization, which are essential for producing cleaner fuels. This demand is a key driver of the market’s projected growth from USD 327.70 billion in 2025 to over USD 661.22 billion by 2033, representing a compound annual growth rate (CAGR) of approximately 9.26% [1]. Despite its environmental drawbacks, grey hydrogen remains appealing due to its cost-effectiveness and established infrastructure [2].
Technological Innovations and Regional Leaders
Emerging technologies like methane pyrolysis are anticipated to revolutionize grey hydrogen production, offering a lower carbon alternative while maintaining efficiency [1]. The Asia Pacific region, with its rapid industrialization and substantial investments in energy infrastructure, leads the market. North America also shows steady growth, driven by the chemical and petroleum industries [1]. Companies like Air Liquide and ExxonMobil are key players, constantly innovating and expanding operations to keep up with the rising demand [1].
Challenges and Opportunities
While the grey hydrogen market is thriving, it faces challenges from environmental concerns and global carbon reduction policies. There is a notable push towards cleaner hydrogen technologies, with advancements in carbon capture and storage (CCS) influencing market dynamics [2]. Rising energy prices and fluctuations in natural gas supply pose additional challenges, making the market susceptible to geopolitical and supply-chain uncertainties [2]. However, the potential for growth remains robust as industries continue to seek cost-effective hydrogen solutions [2].
The Path Forward
Looking ahead, the grey hydrogen market’s expansion is poised to continue, driven by the increasing need for sustainable energy solutions. As industries globally strive for lower carbon footprints, grey hydrogen offers a practical, albeit temporary, solution. This trend underscores a broader shift within the energy sector towards more sustainable practices, setting the stage for future innovations and a gradual transition to greener alternatives [1][3].