Market Overview

The Green Hydrogen market is predicted to develop at a compound annual growth rate (CAGR) of 39.3% from 2024 to 2033, when it is projected to reach USD 135.2 billion, based on an average growth pattern. The market is estimated to reach a value of USD 7.82 billion in 2024.

SOURCE: We Market Research

The fast growing green hydrogen market in the energy sector depends on the production and utilization of hydrogen derived from renewable resources. In contrast to conventional hydrogen manufacturing, green hydrogen is created by the use of renewable energy sources like wind, sun, or hydropower. In this process, water is electrolyzed to separate the hydrogen from the oxygen, with the hydrogen serving as a clean, sustainable energy source. The market is expanding as a result of expanding global attempts to decarbonize sectors and achieve carbon neutrality. Because more money is being invested in renewable technology, the Green Hydrogen Market is crucial to creating sustainable energy solutions and reducing climate change.

The market for green hydrogen is being driven by several significant variables. First, the global shift to renewable energy sources and decarbonization is creating an increasing demand for green hydrogen as a sustainable fuel. Government actions and supportive policies, such subsidies and incentives, further boost market growth. The costs and efficiency of manufacturing green hydrogen have increased due to advancements in electrolysis and renewable energy infrastructure, making it more attractive. The industry's awareness of environmental responsibility and corporate commitments to becoming carbon neutral further contribute to the market's growth. When combined, the aforementioned traits create an environment that is conducive to the development and widespread application of green hydrogen technology.

  Market Scope

Green Hydrogen Industry: Dynamics & Restrains

Market Drivers

Renewable Energy Advancements - Innovations in renewable energy are a major factor propelling the growing green hydrogen market. Technological advancements in solar, wind, and hydropower boost electricity generation's efficiency and cost-effectiveness, which is important because energy powers the electrolysis procedures used to produce green hydrogen. Green hydrogen production becomes increasingly cost-competitive with conventional hydrogen as renewable energy becomes more widely available and more reasonably priced. Green hydrogen and renewable energy work together to strengthen the sustainable energy environment and accelerate the shift to a low-carbon future. Green hydrogen's scalability and economic viability are enhanced by the changing landscape of renewable energy options, establishing it as a major actor in the global energy transition.

Growing Demand from Various Industries - Demand from a wide range of sectors looking for sustainable alternatives is driving the growth of the green hydrogen market. Green hydrogen is becoming more widely acknowledged by the transportation, industry, and energy sectors as a clean energy source that is essential to achieving decarbonization targets. This demand is being driven by stricter restrictions and growing environmental consciousness, which is encouraging industries like chemical and refining—which rely significantly on hydrogen—to adopt more environmentally friendly operations. The market is growing as a result of companies adopting green hydrogen for industrial processes and power generation, spurred by a shared desire to lower carbon footprints. The need for green hydrogen is expanding across sectors, making it a crucial component of the global transition to cleaner energy sources.

Market restrains

Infrastructure Development Challenges - One of the most significant barriers to the green hydrogen market's expansion is the state of infrastructural development. Building a complete and functional hydrogen infrastructure, encompassing production, storage, and distribution networks, will need significant financial investments. The lack of common infrastructure and the need for specialized storage and transportation options increase logistical issues and deployment costs. Insufficient infrastructure possesses the capability to deter investors and hinder the growth of green hydrogen projects. In order to get over these challenges, coordinated efforts are required to construct a robust, networked hydrogen infrastructure, which will ensure a seamless integration into the present energy systems and promote the widespread application of green hydrogen in a variety of industries.

We Market Research: Green Hydrogen Dashboard

Our marketing platform offers a comprehensive dashboard that provides clients with valuable insights into market trends over the years. Included below is a sample image of our dashboard, and specific PDF logins will be furnished to grant access to this insightful tool  

Green Hydrogen Segmentation

Market- By Technology Analysis

By Technology, the Green Hydrogen Market is Categories into Alkaline Electrolyzer, Solid Oxide Electrolyzer, Proton Exchange Membrane Electrolyzer. The Alkaline Electrolyzer segment accounts for the largest share of around 41% in 2023.

The main factors driving alkaline electrolysis technology's quick growth and domination in the industry are its benefits over alternative manufacturing techniques. A variety of commonly available and reasonably priced electrolytes are used in alkaline electrolysis.

The following segments are part of an in-depth analysis of the global Green Hydrogen market:

Green Hydrogen Industry: Regional Analysis

Europe Market Forecast

Europe dominate the Green Hydrogen Market with the highest revenue generating market with share of more than 47%. Europe is currently the world's largest market for green hydrogen, due to significant investments being made in this area by countries like Germany, France, and the Netherlands. The production and consumption of green hydrogen are subject to ambitious targets set by the European Union, which is also providing billions of euros in subsidies to support the market's expansion.

Asia Pacific Market Statistics

Asia Pacific is the second-largest market for Green Hydrogen. The Asia Pacific region is predicted to be the fastest growing green hydrogen industry in the future years. Concerns over air pollution are becoming more pressing, and China, Japan, and South Korea are investing in this sector as a way to reduce their dependency on imported fossil fuels. 

North America Market Forecasts

North America is expected to be the fastest-growing market for Green Hydrogen during the forecast period. The green hydrogen industry in North America is expected to grow rapidly in the upcoming years, despite the fact that it is still in its early stages. The commercial sector is growing more interested in investing in the green hydrogen industry as a result of the US's stringent rules governing its production and use.

Key Market Players

The Green Hydrogen Market is dominated by a few large companies, such as

·         PowerCell Sweden AB

·         Green Hydrogen Systems

·         BayoTech

·         Ballard Power Systems

·         Cummins Inc.

·         Siemens Energy

·         Nel ASA

·         Plug Power Inc.

·         Enapter S.r.l.

·         Areva H2Gen

·         HydrogenPro

·         Linde plc

·         ENGIE SA 

·         Kawasaki Heavy Industries, Ltd.

·         Others

Recent Developments:

·         June 2022, A joint venture between Air Liquide S.A. and Siemens Energy has been established in Europe to manufacture series renewable hydrogen electrolyzers at industrial scale. By combining the knowledge and experience of two of the top businesses in the world for electrolysis and hydrogen technology, this Franco-German partnership will facilitate the development of a sustainable hydrogen economy in Europe and support an ecosystem for hydrogen technology across the continent. It is anticipated that production will start in the second half of 2023 and reach a capacity of three gigatons annually by 2025.

·         May 2022, Toyota Motor Europe, Air Liquide S.A., and CaetanoBus have decided to work together on integrated hydrogen solution development. This will involve building out fleets of cars and developing infrastructure to hasten the adoption of hydrogen-powered transportation for both light- and heavy-duty vehicles.