Global hydrogen demand grew almost 3% in 2025 to surpass 100 Mt, concentrated in traditional uses in industry and refining. The impacts of the conflict in the Middle East render the near-term outlook for current hydrogen applications uncertain, particularly for fertiliser production and trade.

Demand for low-emissions hydrogen grew by 20% in 2025, reaching close to 1 Mt. However, sluggish and uncertain policy implementation is failing to address the major barriers to adoption and preventing faster uptake.

New offtake agreements for low-emissions hydrogen reached 1.7 Mtpa in 2025, as in 2024. One-fifth of all new agreements were firm offtakes, concentrated in power generation, industry and refining. Trade-oriented agreements were higher than agreements for domestic use for the first time.

Volumes for low-emissions hydrogen included in procurement tenders grew marginally in 2025, to reach more than 1 Mtpa. More than 0.3 Mtpa have been contracted as of Q1 2026, with progress occurring mostly in refining and fertilisers thanks to supportive policies and regulations in Europe and India.

Refining and industry remain the main sectors in which low-emissions hydrogen adoption is taking place. Based on projects that have at least reached a final investment decision (FID), 2.5 Mt is expected to be produced and consumed in refineries and industrial facilities by 2030.

Fuel cell electric vehicle (FCEV) stock grew 20% in 2025, to almost 130 000, due to truck sales in China and a rebound of car sales in Korea. Policies in these countries are the main driver behind a projected tripling of stock by 2030, with trucks and buses accounting for around 60% and 30% of hydrogen use.

In shipping, uncertainties around the implementation of the International Maritime Organization (IMO) Net-Zero Framework have given a key role to European regulations as a driver for short-term adoption of hydrogen-based fuels, but in most cases, they are insufficient to enable fuel switching.

In aviation, Europe’s mandates remain the only policy driver for adoption, with limited impact on ticket prices expected this decade. However, investment in new production capacity is lagging as firm offtake agreements remain scarce.

In the power sector, progress remains slow and concentrated in Japan and Korea. In Japan, policy support has helped projects to reach investment decisions, whereas changing policy priorities in Korea have led to a more cautious outlook than in previous years.