Malaysia Hydrogen Market Size, Share, By Type (Green Hydrogen, Blue Hydrogen, And Grey Hydrogen), By Application (Food & Beverages, Chemicals, Pharmaceuticals, Ammonia, Transportation, And Others), And Malaysia Hydrogen Market Insights, Industry Trend, Forecasts to 2035.

Malaysia Hydrogen Market Insights Forecasts to 2035

• Malaysia Hydrogen Market Size 2024: USD 384.5 Mn
• Malaysia Hydrogen Market Size 2035:  USD 878.2 Mn
• Malaysia Hydrogen Market CAGR 2024: 7.8%
• Malaysia Hydrogen Market Segments: Type and Application

The Malaysia Hydrogen Market Size is a national system of producing, distributing, and using hydrogen, including low-carbon forms like blue hydrogen generated from natural gas combined with carbon capture and green hydrogen produced by using renewable energy sources to create electricity through electrolysis. The hydrogen market includes technologies for producing hydrogen, infrastructure for storing and transporting hydrogen, and applications for using hydrogen. The hydrogen market encompasses all of these, as well as the establishment of domestic supply chains and export routes to rapidly growing asia-pacific countries.

The hydrogen in Malaysia are backed by government support, including the Hydrogen Economy and Technology Roadmap (HETR), officially launched by Malaysia’s Ministry of Science, Technology and Innovation (MOSTI) to support the national low-carbon agenda under the National Energy Policy. Malaysia’s target to produce 2 million tonnes of hydrogen annually by 2030, with plans to scale up to 16 million tonnes per year by 2050 under an “Emission Driven Scenario.” This target reflects national ambitions to decarbonise critical sectors and capture a share of the growing global hydrogen economy, which is projected to be worth tens of billions of US dollars by mid-century.

As technology advances, Malaysia’s hydrogen providers are now using existing natural gas facilities with carbon capture and storing CO2 emissions, using blue hydrogen technologies assists in reducing carbon emissions from natural gas to meet future sustainability goals. At the same time, green hydrogen production from renewable sources, like solar and hydropower, will promote the advancement of hydrogen production technologies. The ongoing proof of success for hydrogen adoption as an alternative energy source in Malaysia is due in large part to increased efficiencies in the electrolysis process, pilot projects in transportation and industry, and supportive hydrogen infrastructures being developed.

Market Dynamics of the Malaysia Hydrogen Market:

The Malaysia Hydrogen Market Size is driven by the country’s ambitious climate and energy transition goals, widespread industrial demand for hydrogen in chemicals, steel, and refining, strong policies and funding, supportive environment that attracts investment and innovation, reducing costs through economies of scale, and technological advancements in Malaysia.

The Malaysia Hydrogen Market Size is restrained by the high cost of hydrogen production, infrastructure gaps in storage, transport and refuelling systems, regulatory uncertainty, and technical challenges related to hydrogen storage and transport.

The future of Malaysia Hydrogen Market is bright and promising, with versatile opportunities emerging from the demand to become major exporter of low-carbon hydrogen and hydrogen derivatives like ammonia to important Asian markets, with the expansion of its domestic renewable energy capacity supporting low-cost green hydrogen production, and increased FDI and partnerships in hydrogen technologies and infrastructure. Additionally, building capacity and collaborating on research will create long-term opportunities for growth in the hydrogen value chain.

Market Segmentation

The Malaysia Hydrogen Market share is classified into type and application.

By Type:

The Malaysia Hydrogen Market Size is divided by type into green hydrogen, blue hydrogen and grey hydrogen. Among these, the green hydrogen segment held the largest revenue market share in 2024 and is predicted to grow at a remarkable CAGR during the forecast period. Expansion of renewable-based hydrogen production, long term planning and investment, heavy industrial demand, and strong government strategy for green hydrogen all contribute to the green hydrogen segment's largest share and higher spending on hydrogen when compared to other type.

By Application:

The Malaysia Hydrogen Market is divided by application into food & beverages, chemicals, pharmaceuticals, ammonia, transportation, and others. Among these, the ammonia segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. The ammonia segment dominates because of high existing demand for fertilizer production, efficient carrier for exporting hydrogen, and strategic government initiatives aimed at developing a low-carbon energy economy.

Competitive Analysis:

The report offers the appropriate analysis of the key organisations/companies involved within the Malaysia 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 elaborative 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.

Top Key Companies in Malaysia Hydrogen Market:

• PETRONAS
• SEDC Energy
• Sarawak Energy Berhad
• Tenaga Nasional Berhad
• YTL Power International Asia Sdn Bhd
• Malakoff Corporation Berhad
• PETGAS
• MISC Berhad
• Sarawak Metro
• Dialog Group Berhad
• H2 Energy Sdn Bhd
• Shell Malaysia
• Malaysian Marine & Heavy Engineering
• Others

Recent Developments in Malaysia Hydrogen Market:

In July 2025, TNB, PETRONAS and Terengganu Inc launched a major Green Hydrogen Hub in Terengganu, which includes a hybrid hydro-floating solar project at the Kenyir dan to produce green hydrogen for domestic use and export.

In June 2024, the Sarawak government launched Southeast Asia’s first electrolyser assembly-distribution facility at Demak Laut Industrial Park, with plans to ramp up production to 500 MW annually within five years.

Key Target Audience

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

Market Segment

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

Malaysia Hydrogen Market, By Type

• Green Hydrogen
• Blue Hydrogen
• Grey Hydrogen

Malaysia Hydrogen Market, By Application

• Food & Beverages
• Pharmaceuticals
• Chemical
• Ammonia
• Transportation
• Others