Pink Hydrogen Market Size, Share & Trends Analysis Report By Process (PEM Electrolysis (Polymer Electrolyte Membrane), Alkaline Electrolysis, Solid Oxide Electrolysis), By Form (Liquid, Gas), By End-User (Refinery, Ammonia, CementIndustry, Steel Production, Aviation and Transportation, Others), By Regions (North America, Europe, Asia Pacific, Central & South America, The Middle East & Africa) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Pink Hydrogen Market Size

The Pink Hydrogen Market Size was valued at USD 24.45 Billion in 2024. It is projected to reach from USD 31.68 Billion by 2025 to USD 252.82 Billion by 2033, growing at a CAGR of 29.6% during the forecast period (2025–2033).

Hydrogen, the most abundant element in the universe, accounts for about 75% of its mass. It boasts a high energy density, with just 2.2 pounds of hydrogen gas containing the same amount of energy as one gallon of gasoline.

Its production is similar to green hydrogen, but instead of using renewable electricity, it relies on nuclear energy—an increasingly recognized carbon-free energy source. The revival of advanced nuclear reactors presents a unique opportunity to scale clean H₂ production and diversify the market away from fossil fuel-based methods.

The clean hydrogen market is poised for significant growth by 2030 and beyond, driven by the widespread deployment of low greenhouse gas (GHG) emission energy sources. However, connecting an electrolyzer to the grid assumes the average and marginal emissions of electricity generation, which often exceed those associated with H₂ production from fossil fuels.

The table below shows yearly basis global ammonia production across the 2019-2024 period.

Source: Annual Reports, Investor Presentations & Straits Research Analysis

Market Trends

Growing interest in nuclear energy for H₂ production

The growing interest in nuclear energy for hydrogen production is gaining momentum as the world seeks cleaner energy sources. Pink H₂, produced using nuclear power, offers a low-carbon alternative to traditional H₂ production methods like natural gas reforming. With the global shift towards decarbonization, nuclear energy is being revisited for its ability to provide consistent and carbon-free energy, making it an attractive option for hydrogen production.

This trend is further supported by the development of advanced nuclear technologies, such as small modular reactors (SMRs), which are safer, more efficient, and scalable. These innovations make nuclear-based H₂ increasingly viable, particularly in regions with existing or planned nuclear infrastructure.

According to the International Energy Agency (IEA), in 2022, global demand for pure hydrogen reached 74 million tons, with significant consumption in oil refining, ammonia production, methanol production, and steel manufacturing. This growing demand highlights the potential of pink hydrogen to meet future energy needs.

Market Growth Driver

Supportive government policies and decarbonization goals

Supportive government policies and ambitious decarbonization goals are key drivers of growth in the global pink hydrogen market. As governments worldwide commit to reducing carbon emissions, H₂ is seen as a crucial element in decarbonizing high-emission industries like steel, cement, and transportation. Pink H₂, produced using nuclear energy, is gaining traction due to its ability to provide low-carbon energy.Many governments are promoting nuclear energy as a clean alternative to fossil fuels, with financial incentives, carbon pricing, and direct investments driving sector growth.

• In Europe, for example, France plans to add 13 new-generation nuclear reactors, while the UK targets 24GW of nuclear capacity by 2050, including investments in small modular reactors (SMRs). These efforts align with the global push to meet carbon reduction commitments, especially under the Paris Agreement.The combination of nuclear power and clean H₂ production is positioning it as a vital solution for sustainable energy transition strategies.

Market Restraining Factor

High initial capital costs

Building nuclear reactors, even advanced ones like SMRs demands substantial financial resources, and the costs of constructing, maintaining, and decommissioning nuclear facilities are considerably higher compared to renewable energy projects. Additionally, the costs of nuclear regulatory compliance, waste management, and long-term safety assurance further contribute to the high financial burden.

This makes them less accessible to developing nations or private sectors that may struggle to justify the initial outlay compared to other, more immediate, and cost-effective hydrogen sources like green or blue H₂.

• For instance, without subsidies, the levelized cost of hydrogen(LCOH) for pink hydrogen would range from $2.75-5.29/kg, depending on the size of the H₂ plant (within a range of 20-100MW) and the electrolyzer technology used. The range for green H₂ is $3.47-7.37/kg.

Market Opportunity

Technological advancements in nuclear power

The ongoing advancements in nuclear power technologies, especially small modular reactors (SMRs) and Generation IV reactors, present significant growth opportunities for the global market. These innovations provide safer, more cost-effective, and scalable solutions for hydrogen production. Moreover, high-temperature gas-cooled reactors (HTGRs) and molten salt reactors, by generating heat at optimal temperatures, enhance the efficiency of hydrogen generation through water splitting.

Such technological progress reduces production costs and improves overall efficiency, positioning pink H₂ as a competitive alternative to other low-carbon H₂ sources, such as green hydrogen produced from renewable energy.

•  For instance, the Turkish Energy, Nuclear, and Mining Research Institute (TENMAK) is actively working on advancing green H₂ and electrolyzer technology, with plans to scale from a 500 kW electrolyzer in 2023 to 500 MW to 1 GW by 2053.

Regional Insights

Europe: Dominant region with 40.25% market share

Europe is currently the leading region in the global pink hydrogen market, driven by its strong commitment to decarbonization and sustainable energy. The European Union (EU) has set ambitious climate targets, including a net-zero emissions goal by 2050. This has led to substantial investments in clean energy technologies, including nuclear power and H₂ production.

Moreover, pink hydrogen, produced using nuclear energy, aligns well with Europe's strategy to reduce dependence on fossil fuels while ensuring energy security. Many European countries, such as France and the UK, have robust nuclear infrastructure, making it easier to integrate it into their energy mix. 

Asia-Pacific: Rapid growth in China and Japan

Asia-Pacific is the second most rapidly growing region in the pink hydrogen market, driven by increasing energy demand, decarbonization goals, and investments in nuclear energy. Countries like China, Japan, and South Korea are taking significant steps to incorporate H₂ into their energy systems to reduce their dependence on coal and other fossil fuels.

Moreover, Asian governments are launching extensive hydrogen roadmaps. Japan’s Basic Hydrogen Strategy and South Korea’s Hydrogen Economy Roadmap aim to integrate hydrogen into various sectors, including transportation, industrial processes, and power generation.

Countries Insights

• South Korea: South Korea is advancing its first nuclear hydrogen project, set for completion by 2027, involving eight key companies, including Hyundai Engineering & Construction, Samsung C&T, Doosan Energy, and Korea Hydro & Nuclear Power (KHNP).This groundbreaking initiative will receive 29 billion won ($21 million) in government funding from the Ministry of Energy, Trade, and Industry. The project aims to drive the country's hydrogen ambitions using nuclear power as a clean energy source.

• United States: The U.S. Department of Energy (DOE) has allocated $7 billion to launch seven Regional Clean Hydrogen Hubs (H2Hubs) across the country, aiming to scale up the commercial deployment of low-cost, clean H₂. These H2Hubs will help accelerate the production and distribution of H₂, supporting the U.S.'s goal of reducing carbon emissions and fostering a sustainable energy future.

• United Kingdom: The UK government plans to construct eight large nuclear reactors to meet a target of 24GW by 2050. Additionally, it is investing in the development of small modular reactors (SMRs), which are about one-third the size of the larger 1.6GW reactors currently under development. These efforts are part of the country's strategy to achieve its net-zero targets and strengthen its hydrogen production capabilities.

• Japan: Japan is making significant strides in its hydrogen economy, focusing on using nuclear power for hydrogen production. The Japanese government is promoting nuclear hydrogen as part of its clean energy transition, with projects like the "Hydrogen Supply Chain" initiative aimed at producing H₂ from nuclear plants and distributing it across the nation.Japan’s Ministry of Economy, Trade, and Industry (METI) is driving investment in both nuclear energy and hydrogen production technologies.

• France: As the largest producer of nuclear energy in Europe, France is exploring the potential of using its nuclear reactors to produce clean H₂. The French government is investing in a series of pilot projects, including H₂ production from nuclear reactors, with the aim of making the country a leader in low-carbon hydrogen by 2030. This aligns with France's broader energy policy to reduce reliance on fossil fuels and meet its climate targets.

Segmentation Analysis

By Process

PEM Electrolysis Segment Dominated the Market with the Largest Market Revenue.PEM electrolysis is expected to dominate the global pink hydrogen market due to its superior adaptability to fluctuating energy loads, particularly in hybrid energy systems combining nuclear and renewable sources. Its ability to produce H₂ at higher densities and its compact, scalable design are driving its adoption in industrial settings where operational flexibility and efficient space utilization are critical.

Moreover, ongoing advancements in PEM technology are improving cost-efficiency, which is likely to make this process more competitive over time, solidifying its position as the preferred method for pink H₂ production in the future.

By Form

Gas Segment Dominated the Market with the Largest Market Share.Gaseous hydrogen is expected to dominate the global market due to its cost-effectiveness and ease of integration into existing hydrogen infrastructure. It requires less complex storage and handling systems compared to liquid hydrogen, making it suitable for large-scale industrial applications and on-site H₂ production where short-distance transport is needed.

Moreover, many industries already have the infrastructure in place to use gaseous hydrogen, reducing the need for additional investments. These factors contribute to gaseous hydrogen’s continued dominance, particularly in regions where H₂ is generated and consumed locally or within industrial hubs.

By End-User

Steel Production Segment Accounted for the Largest Market Revenue.Steel production is expected to dominate the pink hydrogen market as the industry faces increasing pressure to decarbonize. Traditional steel-making processes rely heavily on coal, making the sector one of the largest industrial emitters of carbon dioxide. Pink hydrogen, used in processes like direct reduction of iron (DRI), offers a pathway to significantly reduce these emissions without compromising production output.

Governments and industry players are collaborating to integrate low-carbon H₂ into steel production as part of broader sustainability initiatives, making steel one of the most promising sectors for pink H₂ adoption in the near future.

Company Market Share

The global pink hydrogen market is experiencing significant growth, driven by the increasing demand for clean energy solutions across various industries. Companies are actively investing in advanced technologies to enhance production efficiency and reduce costs, thereby making pink H₂ more accessible for end-user applications such as transportation, industrial processes, and power generation.

Linde PLC: An Emerging Player in the Pink Hydrogen Market

Linde plc is a leading global industrial gases and engineering company, with 2023 sales reaching USD 33 billion. Headquartered in the United Kingdom and domiciled in Ireland since 2018, Linde operates in over 100 countries, providing high-quality solutions, technologies, and services across various industries, including chemicals, energy, food and beverages, electronics, healthcare, manufacturing, metals, and mining.

The company is committed to making the world more productive by helping customers become more successful and contributing to sustainability and decarbonization efforts. Linde's product portfolio includes essential gases like oxygen, nitrogen, argon, carbon dioxide, hydrogen, and helium, as well as specialty gases.

Recent Developments:

• In January2022, A Swedish nuclear power plant owned by Uniper and Fortum will sell pink hydrogen to industrial gas giant Linde in the first-ever commercial deal for nuclear-derived H2.

Analyst Opinion

As per our analysts, the global pink hydrogen market is set for significant growth, driven by the increasing demand for clean energy solutions to achieve decarbonization targets.Analysts highlight that pink H₂ offers a unique opportunity to reduce greenhouse gas emissions, particularly in sectors such as transportation, industrial processes, and power generation. The market is witnessing heightened interest from companies investing in advanced electrolysis technologies and forming strategic partnerships to boost production capabilities.

Additionally, supportive government policies and financial incentives are playing a vital role in encouraging the adoption of pink hydrogen, creating a favorable environment for long-term growth. As industries shift toward cleaner energy alternatives, pink hydrogen is emerging as a crucial component of global energy transition strategies.

Recent Developments

• October 2023 - Constellation Energy successfully completed a pioneering project to produce "pink hydrogen" at its Nine Mile Point Nuclear Plant in New York. This milestone marks the first instance of a nuclear plant in the United States generating its own H₂, leveraging nuclear power to split water molecules through electrolysis. The project, supported by the U.S. Department of Energy (DOE), is part of a broader effort to explore hydrogen's role in reducing carbon emissions and enhancing energy storage solutions.