Canada Hydrogen Market Size, Share, and COVID-19 Impact Analysis, By Type (Grey, Blue, Green, and Others), By Application (Ammonia Production, Petroleum Refining, Methanol Production, Transportation, Power Generation, and Others), and Canada Hydrogen Market Insights, Industry Trend, Forecasts to 2035

Canada Hydrogen Market Insights Forecasts to 2035

• The Canada Hydrogen Market Size Was Estimated at USD 663.2 Million in 2024
• The Canada Hydrogen Market Size is Expected to Grow at a CAGR of Around 7.02% from 2025 to 2035
• The Canada Hydrogen Market Size is Expected to Reach USD 1,398.2 Million by 2035

According to a research report published by Spherical Insights & Consulting, the Canada Hydrogen Market size is anticipated to reach USD 1,398.2 Million by 2035, growing at a CAGR of 7.02% from 2025 to 2035. The Canada hydrogen market is driven by increasing demand for clean and renewable energy as the country transitions toward net-zero carbon emissions. Growth is fueled by industrial applications, transportation, power generation, chemical production, and supportive policies promoting hydrogen as a key component of Canada’s sustainable energy strategy.

Market Overview

The Canada hydrogen market essentially entails the production, storage, distribution, and consumption of hydrogen throughout Canada for use in energy, industrial, transportation, and chemical sectors. The market covers gray hydrogen (derived from fossil fuels), blue hydrogen (fossil-based with carbon capture), and green hydrogen (produced by power electrolysis using renewable energy), in line with Canada's decarbonisation ambitions, clean energy plans, and industrial development.

Canada's hydrogen market is emerging as a crucial component of the government's plan to achieve net-zero by the year 2050, driven by increasing demand for clean fuels in the transportation, heavy industry, and power generation sectors. At present, Canada produces approximately 4 million tonnes of hydrogen each year, and there are more than 80 low-carbon hydrogen projects in the pipeline, which is indicative of a potential investment of over CAD 100 billion. The expansion of the market is supported by the country's energy requirements as well as its desire to export, especially through bilateral low-carbon energy agreements with Europe and other parts of the world.

The Canadian government is actively promoting the use of hydrogen through various policies, funding, and incentives. Measures are a USD 49 million commitment to hydrogen liquefier facilities, a USD 337 million H2 Gateway program, tax credits of up to 40% for low-carbon hydrogen projects, and multi-billion-dollar programs such as the Net Zero Accelerator. All these steps facilitate research and development, commercialization, and infrastructure construction and put Canada on the map as a global leader in low-carbon hydrogen production, thus improving energy security, creating jobs, and being a sustainable economic growth driver.

Report Coverage

This research report categorizes the market for the Canada hydrogen market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Canada hydrogen market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Canada hydrogen market.

Driving Factors

The Canada hydrogen market is driven by the net-zero emissions target, ramping up the requirement for low-carbon fuels in the transportation, industry, and power sectors, an abundance of renewable energy resources, and firm government backing and incentives, along with the rising trend of private investment in green and blue hydrogen projects.

Restraining Factors

The Canada hydrogen market is restrained by the high production and infrastructure costs, especially for green hydrogen, limited hydrogen storage and transportation infrastructure, and technological challenges in scaling up electrolysis and carbon capture. The growth of the market is also hampered by energy prices that are constantly fluctuating and the complicated regulatory environment in the different provinces.

Market Segmentation

The Canada hydrogen market share is classified into type and application.

• The grey segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

The Canada hydrogen market is segmented by type into grey, blue, green, and others. Among these, the grey segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The grey segment is growing because it is currently the most cost-effective and widely produced form of hydrogen, generated from natural gas without carbon capture. Its established production infrastructure and lower upfront costs make it the dominant choice for industrial applications, petroleum refining, and chemical production, sustaining strong demand despite the gradual shift toward low-carbon alternatives.

• The petroleum refining segment dominated the market in 2024 and is anticipated to grow at a substantial CAGR during the forecast period.

The Canada hydrogen market is segmented by application into ammonia production, petroleum refining, methanol production, transportation, power generation, and others. Among these, the petroleum refining segment dominated the market in 2024 and is anticipated to grow at a substantial CAGR during the forecast period. The petroleum refining segment is growing because hydrogen is essential for processes such as hydrocracking, desulfurization, and upgrading crude oil, which are critical for producing cleaner fuels. Rising demand for low-sulfur fuels and continued industrial reliance on hydrogen in refineries drive sustained growth in this segment.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Canada hydrogen market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Ballard Power Systems Inc.
• Hydrogenics
• First Hydrogen Corp.
• Air Products Canada Ltd.
• Air Liquide Canada
• Linde plc
• Tidewater Renewables
• HTEC
• Next Hydrogen
• Proton Technologies Inc.
• Enerkem
• Enbridge Inc.
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments:

• In October 2025, HTEC officially opened British Columbis first commercial-scale clean hydrogen electrolyzer facility in Burnaby, producing about 1.8 tonnes of clean hydrogen per day to support hydrogen refueling infrastructure and cut emissions in Canadas hydrogen economy.

• In July 2025, Next Hydrogen Solutions Inc. commissioned Ontario’s largest onsite clean hydrogen refueling station at a major distribution center, producing up to 650 kg/day of green hydrogen to support fuel cell forklifts and advance Canada’s hydrogen infrastructure.

Market Segment

This study forecasts revenue at the France, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Canada hydrogen market based on the below-mentioned segments:

Canada Hydrogen Market, By Type

• Grey
• Blue
• Green
• Others

Canada Hydrogen Market, By Application

• Ammonia Production
• Petroleum Refining
• Methanol Production
• Transportation
• Power Generation
• Others