Asia Hydrogen Market Report - 2025

Despite headwinds in the global hydrogen market, Asia's low-carbon hydrogen market continues to grow. China has established itself as a leader in both the regional and global low-carbon hydrogen market, holding the largest volume of active green hydrogen capacity at 254ktpa. Rapid deployment of renewable energy and expanded electrolyzer manufacturing capability are starting to narrow the cost-gap between grey hydrogen and renewable hydrogen in the country.

Over the last year, Asia's low-carbon hydrogen market has matured, with a greater proportion of projects reaching later stages of development. As of year-end 2025, 51% of the region's forecasted 2030 capacity is held in post-feasibility stages of development. Project progression is exemplified by Envision Energy's commissioning of the world's largest installed electrolyzer (500MW) in China in July 2025. The regions holds strong demand potential, rooted in its status as the largest consumer of grey hydrogen globally.

Transport remains the dominant end-use industry for low-carbon hydrogen in Asia, with approximately 2.6mtpa of capacity expected to be allocated to this application, based on current project announcements. In 2025, Asian countries continued to implement government initiatives to support the development of clean technologies for the transportation industry, including China's Ministry of Finance allocating a further $321.5 million for the third subsidy round of the FCEV City Clusters Programme in April 2025.

In the past year, hydrogen policies in Asia have seen significant growth and diversification, with many countries ramping up their efforts to accelerate the development of respective low-carbon hydrogen economies. China, India, Japan, and South Korea have been at the forefront of policy developments, with Japan's Contracts for Difference Scheme (2024) a landmark policy in terms of capital allocated ($20 billion) and length of subsidy provision (15 years).

Key Highlights

• Despite headwinds in the global hydrogen market, Asia's low-carbon hydrogen market continues to grow. China has established itself as a leader in both the regional and global low-carbon hydrogen market, holding the largest volume of active green hydrogen capacity at 254ktpa.
• Asia accounts for 14% of the upcoming global low-carbon hydrogen capacity and is looking to capitalize on the economic opportunities within the hydrogen market by leveraging its regional manufacturing capabilities and its rapid rate of renewable energy installations.
• Over the last year, Asia's low-carbon hydrogen market has matured, with a greater proportion of projects reaching later stages of development. As of year-end 2025, 51% of the region's forecasted 2030 capacity is held in post-feasibility stages of development.
• Transport remains the dominant end-use industry for low-carbon hydrogen in Asia, with approximately 2.6mtpa of capacity expected to be allocated to this application, based on current project announcements.
• The second largest end-use sector for low-carbon hydrogen in Asia is synthetic fuels. China is the key driver of this, with 45 active and upcoming hydrogen projects targeting the industry.

Scope

• A snapshot of the low-carbon hydrogen market
• Major hydrogen developments in Asia in 2025
• Asia's hydrogen market in a global context
• Key regional projects
• Green hydrogen competitiveness drivers in Asia
• Leading countries in Asia for low-carbon hydrogen production
• Key companies and future leaders operating in Asia's hydrogen market
• Asia's low-carbon hydrogen capacity scenarios
• Intended use sectors for Asian hydrogen
• Hydrogen policies, strategies, and funding initiatives related to hydrogen in Asia
• Asian hydrogen deals

Reasons to Buy

• Identify the market trends within the region and key players in hydrogen technologies.
• Develop market insight of current, in development and announced capacity and latest trends of the sector.
• Understand the region's different scenarios for 2030 based on the likeliness of the projects.
• Look at the demand in key application areas for the country.
• Facilitate the understanding on how and where the market is growing as it is rapidly scaling up to position as one of the main topics of the international and national agenda.