India Hydrogen Market: How Fast Is It Growing?

India hydrogen market reached a volume of 7.12 million tonnes in 2024 and is projected to grow to 10.78 million tonnes by 2030, implying a CAGR of 7.35% between 2025 and 2030. Hydrogen is a colorless, odorless, and highly flammable gas that plays a vital role in clean energy and industrial applications. It can generate electricity through fuel cells with water as the only byproduct, making it a promising solution for transportation and power generation. It is also widely used in ammonia production, petroleum refining, chemical manufacturing, and rocket fuel.

India’s goal of achieving net‑zero carbon emissions by 2070 has accelerated the focus on hydrogen development. This push is supported by initiatives such as the National Green Hydrogen Mission, launched in 2023 to scale green hydrogen production and use. Rising investments and technological progress are improving production efficiency and system performance across the value chain, although high production costs and infrastructure gaps remain key challenges for long‑term expansion.

Market Snapshot

• Forecast period: 2026–2030
• Market size (2024): 7.12 million tonnes (by volume)
• Market size (2030): 10.78 million tonnes (by volume)
• CAGR (2025–2030): 7.35%
• Fastest‑growing segment: Membrane cell technology
• Largest regional market: West India

𝐃𝐎𝐖𝐍𝐋𝐎𝐀𝐃 𝐅𝐑𝐄𝐄 𝐒𝐀𝐌𝐏𝐋𝐄 𝐑𝐄𝐏𝐎𝐑𝐓-

What Is Driving India’s Hydrogen Market?

Net‑Zero Emission Targets

India’s net‑zero commitment is a core growth driver because it provides long‑term policy direction and improves investment visibility. It builds demand confidence for green hydrogen across refining, fertilizers, mobility, and heavy industry, turning hydrogen into a defined decarbonization pathway with commercial relevance.

The National Green Hydrogen Mission offers a structured framework for production incentives, pilot projects, R&D, and downstream adoption. The Union Cabinet approved this mission with an outlay of about INR 19,744 crore, targeting at least 5 million metric tonnes per year of green hydrogen by 2030 and about 125 GW of associated renewable energy capacity.

Technological Advancements

Technological advancements are reducing barriers in production efficiency, end‑use applications, and infrastructure readiness, helping hydrogen move from pilots to commercial scale. Improvements in electrolysers, fuel cells, hydrogen storage, dispensing networks, and test facilities are making hydrogen more usable and reliable in real‑world conditions.

In India, future competitiveness depends on domestic engineering capability and local validation of systems. Companies are investing in dedicated hydrogen R&D facilities to accelerate commercialization and reduce dependence on imported know‑how. For example, Tata Motors has set up hydrogen‑focused R&D centres in Pune, including a hydrogen engine test cell and storage/dispensing infrastructure for fuel‑cell and H₂ ICE vehicles.

Key Market Challenges

High Production Costs

High production costs are a major restraint, especially for green hydrogen produced via electrolysis. Green hydrogen must bear the cost of renewable electricity, electrolyser capex, water treatment, compression, storage, transportation, and safety systems, making it more expensive than fossil‑based hydrogen.

This weakens competitiveness in price‑sensitive sectors such as refining, fertilizers, steel, and long‑haul mobility, where users may delay switching without strong policy support or scale benefits. Hydrogen’s low volumetric energy density also increases storage and transport costs, as high‑pressure systems and specialized logistics are required. Some assessments suggest India’s green hydrogen costs may need to fall by about 40% to reach roughly INR 260–310 per kg.

Lack of Skilled Workforce

A shortage of skilled workforce poses another challenge, as hydrogen projects need capabilities in electrolysers, fuel cells, hydrogen handling, process integration, high‑pressure storage, and safety compliance. These skills are not yet available at sufficient scale across the country.

The talent gap can slow execution, raise commissioning risk, and delay the transition from pilot projects to full commercial operations. As India simultaneously expands hydrogen manufacturing, mobility pilots, industrial decarbonization and domestic technology development, various initiatives are competing for the same limited pool of qualified professionals.

Key Market Trends

Growing Adoption of Hydrogen Fuel Cell Vehicles

The rising adoption of hydrogen fuel cell vehicles (FCEVs) is a notable trend. Policymakers and OEMs view fuel cells as a practical way to decarbonize heavy transport without compromising range, payload, or refuelling speed. This is particularly attractive for buses, trucks, and high‑utilization fleets, where battery‑electric options can face long charging times and operational constraints.

Hydrogen offers fast refuelling and high uptime, aligning well with depot‑based, centralized fleet operations. Government‑backed pilots, funding, and regulatory support under the National Green Hydrogen Mission are enabling real‑world testing under Indian conditions. Automakers such as Tata Motors and Hyundai are committing capital and projects to hydrogen mobility, indicating a shift from demonstrations toward ecosystem development.

Segmental Insights

Technology: Why Is SMR Dominant?

By technology, Steam Methane Reforming (SMR) was the dominant hydrogen production route in India in 2024. Its lead is driven by cost‑effectiveness, technological maturity, existing infrastructure, and natural gas availability. SMR remains the most economical option for large‑scale hydrogen production under current conditions.

India’s extensive natural gas network for extraction, transport, and processing supports SMR’s cost advantage. Most existing hydrogen production facilities rely on SMR, creating a strong installed base and operational experience. SMR’s ability to produce hydrogen at scale is critical for refineries and fertilizer plants, where hydrogen is a key feedstock and supply reliability is essential.

Application: Why Is Refining Leading?

By application, petroleum refining was the leading segment in 2024. Hydrogen is essential for hydrocracking and desulfurization, which remove sulfur from crude oil and produce cleaner fuels that meet environmental and fuel‑quality standards. These processes are well established, using mature technologies such as hydrocracking and hydrodesulfurization.

In 2023, Indian Oil Corporation (IOC) announced plans to install green hydrogen plants at all its refineries by 2047 as part of a large green transition initiative toward net‑zero emissions. A significant share of hydrogen produced in India goes to refineries, making them the largest single consumer. Projects such as Bharat Petroleum’s planned 12 MMTPA refinery are expected to sustain high hydrogen demand in the refining sector.

Regional Insights

Why Is West India the Largest Market?

Regionally, West India emerged as the dominant hydrogen market in 2024. States like Gujarat and Maharashtra host some of India’s largest and most advanced refineries, including complexes owned by Reliance Industries and Indian Oil Corporation, which are major hydrogen consumers. The region also has sizeable petrochemical complexes that use hydrogen in various industrial processes.

West India benefits from a developed industrial ecosystem with facilities for hydrogen production, storage, and transportation. Access to ports such as Kandla supports both import of raw materials and potential export of hydrogen‑based products. State policies in Maharashtra and Gujarat actively promote green hydrogen and renewable investments, including large‑scale MoUs for hydrogen projects, reinforcing the region’s leadership.

Recent Developments

• AM Green – Port of Rotterdam (May 2025): An MoU was signed to build a green energy supply chain between India and Northwestern Europe via Rotterdam, targeting exports of up to 1 million tonnes per year of green fuels, including hydrogen‑based products.
• Toyota Kirloskar – Ohmium (June 2025): The partners agreed to co‑develop green hydrogen‑based integrated power solutions, initially focusing on microgrids using Toyota fuel‑cell modules and Ohmium’s PEM electrolyser technology.
• Adani New Industries (June 2025): Commissioned India’s first off‑grid 5 MW green hydrogen pilot plant in Kutch, Gujarat, powered entirely by solar energy and battery storage to demonstrate a fully renewable, self‑sustaining model.
• Bharat Petroleum – Bina Refinery (April 2025): Commissioned a 5 MW green hydrogen plant expected to produce over 780 tonnes per year of green hydrogen for refinery operations, marking a significant step in decarbonizing industrial hydrogen demand.

Key Market Players

• Reliance Industries Limited
• Gujarat Alkalies and Chemicals Limited
• Indian Oil Corporation Limited
• INOX‑Air Products Inc.
• DCW Limited
• Larsen & Toubro Limited
• Grasim Industries Limited
• Bhuruka Gases Limited
• Air Liquide India
• Tata Chemicals Limited

Benefits of the India Hydrogen Market

• Supports India’s net‑zero emission goals by decarbonizing hard‑to‑abate sectors such as refining, steel, and heavy transport.
• Reduces dependence on fossil fuels and imported hydrocarbons by substituting green hydrogen and its derivatives.
• Promotes industrial decarbonization across chemicals, fertilizers, metals, and process industries.
• Encourages renewable energy integration by creating large, flexible offtake for solar and wind power.
• Creates export opportunities for green fuels, including green hydrogen, ammonia, and methanol.
• Improves energy security and sustainability by diversifying India’s energy mix with low‑carbon molecules.
• Supports development of clean transportation, especially in heavy‑duty and fleet applications via fuel‑cell vehicles.
• Drives innovation in fuel‑cell and electrolyser technologies, strengthening domestic manufacturing capability.
• Generates employment in clean‑energy sectors, from manufacturing to operations and maintenance.
• Strengthens India’s global clean‑energy positioning as a potential hub for green hydrogen production and exports.

𝐃𝐎𝐖𝐍𝐋𝐎𝐀𝐃 𝐅𝐑𝐄𝐄 𝐒𝐀𝐌𝐏𝐋𝐄 𝐑𝐄𝐏𝐎𝐑𝐓-

Frequently Asked Questions (FAQs)

What is driving the growth of the India hydrogen market?

The market is primarily driven by net‑zero emission targets, strong government initiatives such as the National Green Hydrogen Mission, expansion of renewable energy, sustained refinery and fertilizer demand, and rising investments in green hydrogen projects.

Which region dominates the India hydrogen market?

West India dominates the market due to its strong refinery infrastructure, high industrial activity, large petrochemical presence, and significant hydrogen‑related investments, particularly in Gujarat and Maharashtra.

What are the major applications of hydrogen in India?

Hydrogen is widely used in petroleum refining, fertilizer manufacturing, chemical processing, and steel production, and it is gaining importance in transportation and power generation through fuel cells and blended energy systems.

What are the key challenges in the market?

Major challenges include high production costs, limited infrastructure for storage and transport, storage and handling complexity, safety concerns, and a shortage of skilled workforce across hydrogen technologies.

What is the future of green hydrogen in India?

Green hydrogen is expected to see strong growth due to supportive policies, expanding renewable capacity, export opportunities, and rising demand for industrial decarbonization solutions. India aims to become a global hub for producing, using, and exporting green hydrogen and its derivatives by 2030.

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