Market Overview

The South Korea hydrogen generation market reached a size of USD 3,287.6 million in 2024 and is projected to grow to USD 4,782.6 million by 2033. The market is expected to expand at a CAGR of 4.25% during the forecast period of 2025 to 2033. Growth is fueled by government initiatives promoting hydrogen as a core energy strategy, rising demand for clean and sustainable energy sources, rapid advancements and innovation in water electrolysis technology, and increasing strategic collaborations and partnerships. For more details, visit the South Korea Hydrogen Generation Market (https://www.imarcgroup.com/report/ko/south-korea-hydrogen-generation-market.

Study Assumption Years

• Base Year: Not provided in source

• Historical Year/Period: Not provided in source

• Forecast Year/Period: Not provided in source

South Korea Hydrogen Generation Market Key Takeaways

• Current Market Size: USD 3,287.6 million in 2024

• CAGR: 4.25%

• Forecast Period: 2025-2033

• Government initiatives encouraging hydrogen as an energy strategy are a primary market growth driver.

• Demand is increasing due to efforts to reduce dependence on imported fossil fuels and enhance environmental sustainability.

• The automotive industry's rapid shift to hydrogen fuel cell vehicles (FCVs) supports market demand.

• South Korea aims to deploy at least 35 hydrogen buses by 2019, scaling to 2,000 by 2022 and 41,000 by 2040 as part of its hydrogen economy roadmap.

• Major industrial hubs like Seoul Capital Region and Yeongnam are central to hydrogen infrastructure development.

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Market Growth Factors

The South Korea hydrogen generation market is propelled by various government initiatives strongly supporting hydrogen as a core element of the national energy strategy. These initiatives aim to reduce the country’s heavy reliance on fossil fuel imports and promote environmental sustainability through clean energy alternatives. In 2021, the government spent over USD 720 million on hydrogen projects, reflecting the commitment to infrastructure and technology investments. This policy environment substantially enhances market growth prospects.

Increasing demand for clean and sustainable energy sources further drives the market. Domestic needs for reducing greenhouse gas emissions and transitioning to a low-carbon economy are intensifying. The growth is supported by the expanding adoption of hydrogen fuel cell vehicles in the transportation sector, which is a significant user of hydrogen energy, contributing to ample demand and investment opportunities.

Technological progress, particularly in water electrolysis, has accelerated innovation and efficiency gains in hydrogen production. This progress, combined with strategic partnerships and collaborations across industries, facilitates market expansion. Despite challenges such as high production costs and limited hydrogen refueling stations, ongoing research and development aim to reduce costs and improve hydrogen storage and fuel cell technologies, promising enhanced market dynamics ahead.

Market Segmentation

#### By Technology

• Coal Gasification: Converts coal into synthesis gas comprising hydrogen, carbon monoxide, carbon dioxide, and methane by reacting coal with oxygen and steam at high temperature and pressure.

• Steam Methane Reforming: The most common hydrogen production method, where methane reacts with steam at 700–1,000°C in the presence of catalysts to yield hydrogen.

• Others: Not provided in source.

#### By System Type

• Merchant: Commercial hydrogen systems produce hydrogen in bulk for sale to various industrial users, fuel cell vehicle operators, and others through the open market.

• Captive: Hydrogen systems designed for production and use within a single facility or enterprise, typically consumed on-site or within a closed network such as refineries or large manufacturing operations.

#### By Application

• Methanol Production: Hydrogen serves as a key feedstock for methanol, used as a solvent, antifreeze, chemical intermediate, and fuel.

• Ammonia Production: One of the largest industrial uses of hydrogen; ammonia is produced by combining hydrogen with nitrogen via the Haber-Bosch process.

• Oil Refinery: Hydrogen is used in hydrocracking and desulfurization to break down larger hydrocarbons into more valuable products and remove sulfur.

• Transportation: Hydrogen fuel cells power vehicles such as cars, buses, and trucks, converting hydrogen to electricity with water as the sole byproduct.

• Power Generation: Not provided in source.

• Others: Not provided in source.

#### By Region

• Seoul Capital Area

• Yeongnam (Southeastern Region)

• Honam (Southwestern Region)

• Hoseo (Central Region)

• Others

• 

Regional Insights

The dominant region in the South Korea hydrogen generation market is the Seoul Capital Area, which leads in government policy implementation for hydrogen infrastructure such as refueling stations and hydrogen buses. This region also hosts numerous research institutions and companies focusing on advanced hydrogen technologies and applications. Yeongnam is noted for integrating hydrogen production into industrial processes in petrochemicals and steel industries, while Honam explores renewable energy-sourced hydrogen production due to its favorable climate.

Recent Developments & News

In June 2024, Nikko Clean Energy and the Industrial Gas Group signed a contract to build and operate approximately 24 liquid-based hydrogen (LH2) fuel stations across South Korea. In May 2024, Hyundai Construction developed the country’s first hydrogen manufacturing plant using water electrolysis, supported by government sustainability initiatives. Also in May 2024, the Ministry of Trade, Industry and Energy (MOTIE) opened a clean hydrogen power bidding market to supply and purchase energy derived from clean hydrogen or ammonia. These developments signify active industry progression and governmental support.

Key Players

• Nikko Clean Energy

• Industrial Gas Group

• Hyundai Construction

Customization Note

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