Mexico Hydrogen Market Report and Forecast 2024-2032

Mexico Hydrogen Market Size

The Mexico hydrogen market reached around 799.26 KMT in 2023. The market is projected to grow at a CAGR of 3.8% between 2024 and 2032, reaching almost 1118.06 KMT by 2032.

Mexico Hydrogen Market Outlook

• 15 green hydrogen projects worth $20 billion are currently under development in Mexico, which can deliver an output of 7GW.

• As per the Mexican Association of Green Hydrogen (AMH2), green hydrogen can create nearly 3.2 million jobs in the country.

• In July 2023, Germany-based Hy2gen announced its plans to establish a 200MW ammonia manufacturing plant in Campeche, that utilises hydrogen as a raw material.

Mexico Hydrogen Market Growth

Mexico has the potential to become one of the leading green hydrogen producers in the world. This is because it receives a high amount of solar irradiation (nearly 8.04KWh per metre square), and wind speeds (of up to 12m/s blow) in its southern region.

Mexico is attracting huge foreign direct investments from other countries, including $10 billion in funding from the Copenhagen Infrastructure Partners, to decarbonise the shipping and marine sector. Such investments are expected to promote Mexico’s export potential to its neighbouring countries such as the USA, which is facing a shortage of clean energy in key sectors like transportation.

Green hydrogen production is expected to become a critical driver for the growth of the domestic heavy-duty transportation sector. It is expected that internal combustion engine vehicles powered with hydrogen can gain significant popularity among Mexican commercial fleet operators. This is because the 50% increase in operating costs would be easily offset by the decreased requirement for capital expenditure on purchasing new trucks and training staff.

The Guanajuato state in Mexico is receiving substantial investment from Spain’s Dhamma, which seeks to produce 13,000 tons of hydrogen annually from nearly 120MW of solar energy. This is further expected to propel the market growth in the forecast period.

Mexico Hydrogen Industry Segmentation

Mexico Hydrogen Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Sector

• Generation Type
  • Gray Hydrogen
  • Blue Hydrogen
  • Green Hydrogen
• Storage
  • Physical
  • Material Based
• Transportation
  • Long Distance
  • Short Distance

Market Breakup by Application

• Energy

• Mobility

• Chemical and Refinery

• Others

Market Breakup by Region

• Baja California

• Northern Mexico

• The Bajio

• Central Mexico

• Pacific Coast

• Yucatan Peninsula

Mexico Hydrogen Market Share

Based on region, the market is divided into Baja California, Northern Mexico, The Bajio, Central Mexico, Pacific Coast, and Yucatan Peninsula. Over the forecast period, the Bajio is expected to emerge as a key region for hydrogen production, as increasing foreign direct investment propels the establishment of new facilities.

Leading Companies in the Mexico Hydrogen Market

Major players in the market are expected to boost their capabilities for storing, generating, and transporting green hydrogen safely and effectively.

• Shell Plc

• Linde Plc

• Air Liquide S.A.

• Others

Key Highlights of the Report