Green Hydrogen Market Overview

The Green Hydrogen is anticipated to grow significantly from 2025 to 2035, driven by the increasing demand for clean energy and the transition toward net-zero emissions. By 2025, the market is projected to reach a value of around USD 8.75 Billion. Looking ahead to 2035, it is expected to expand further to about USD 138.85 Billion. This represents an annual growth rate of 39.5% over the ten-year period.

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.

Green Hydrogen Market Drivers and Opportunities

Government Policies & Climate Commitments is anticipated to lift the Green Hydrogen market during the forecast period

​The number of countries pledging to achieve net-zero emissions in the coming decades continues to grow. However, current government pledges fall short of what is required to bring global energy-related carbon dioxide emissions to net zero by 2050. Achieving this goal necessitates a comprehensive transformation of energy systems, with green hydrogen playing a crucial role. In 2021, the U.S. rejoined the Paris Agreement, setting a goal to reduce net greenhouse gas emissions by 50%-52% by 2030 and aiming for net-zero emissions by 2050. This commitment includes significant investments in clean energy technologies, including green hydrogen. Governments are implementing various policy measures to foster green hydrogen development. For instance, The U.S. Inflation Reduction Act allocates $369 billion for climate initiatives, including tax credits for clean hydrogen production. These incentives aim to make green hydrogen more cost-competitive and attract private investments. The European Union's Hydrogen Strategy outlines a phased approach to integrate green hydrogen into the energy system, targeting large-scale deployment between 2030 and 2050. This strategy aims to decarbonize various sectors and reduce reliance on fossil fuels. Initiatives like the Green Hydrogen Catapult, launched by the United Nations and industry partners, aim to reduce green hydrogen costs below $2 per kilogram by 2026 through collaborative efforts. Such global partnerships are essential for scaling production and driving down costs. Thus, government policies and net-zero targets are instrumental in driving the global green hydrogen market.

Growing Demand for Green Ammonia and Green Methanol is a vital driver for influencing the growth of the global Green Hydrogen market

​The escalating demand for green ammonia and green methanol is significantly propelling the growth of the global green hydrogen market. Green methanol, produced from renewable sources or captured carbon dioxide, is another key driver for the green hydrogen market. It has a wide range of applications, including as a fuel for transportation, a feedstock for chemicals, and a hydrogen carrier. The growing concerns about climate change and the need to reduce greenhouse gas emissions are driving the demand for green methanol as a cleaner alternative to conventional fuels. Green methanol, derived from hydrogen, is gaining traction in the marine and chemical industries. Industries such as maritime shipping and chemical manufacturing are adopting green ammonia and green methanol to reduce carbon emissions. Green methanol, for instance, serves as a sustainable fuel in maritime transport, aiding in the decarbonization of this sector. Green hydrogen is a key feedstock for green ammonia, which is used in fertilizers and as a shipping fuel. Green ammonia is emerging as a viable medium for energy storage and transportation, leveraging existing infrastructure. This facilitates the integration of renewable energy sources into the grid, thereby enhancing energy security. Green ammonia, produced using renewable energy sources like wind and solar, is a promising alternative to conventional ammonia, which is primarily used in fertilizers. The rising global population and increasing food demand are driving the need for fertilizers, thereby creating a huge market for green ammonia. Additionally, green ammonia is being explored as a potential fuel for power generation and shipping, further expanding its market. Governments and organizations worldwide are investing heavily in green hydrogen infrastructure. For example, Spain's Enagas plans to invest over 4 billion euros by 2030, primarily in hydrogen infrastructure, to support the production of green ammonia and methanol.

Technological Advancements in Electrolysis is poised to create significant opportunities in the global Green Hydrogen market

​Technological advancements in electrolysis are poised to significantly enhance the global green hydrogen market during the forecast period. Electrolysis, the process of splitting water into hydrogen and oxygen using electricity, is central to green hydrogen production, especially when powered by renewable energy sources. Innovations in this domain are making green hydrogen more economically viable and scalable. ​ Researchers at the University of Wollongong have developed an ultra-efficient electrolyzer achieving a 95% efficiency rate, significantly reducing energy losses compared to traditional electrolyzers that waste about 25% of renewable energy used. Continuous improvements in electrolyzer technology are driving down production costs, making green hydrogen more competitive with traditional fossil fuels. Companies are investing in large-scale electrolyzer projects to meet the growing demand for green hydrogen. Governments worldwide are implementing favorable policies, incentives, and regulatory frameworks to promote green hydrogen, further boosting market growth. The decreasing costs of renewable energy sources, such as wind and solar, complement the advancements in electrolysis, facilitating more sustainable and cost-effective green hydrogen production. Sectors like heavy industry and transportation are increasingly adopting green hydrogen as a clean energy alternative, driving demand and encouraging technological innovations in electrolysis.

Green Hydrogen Market Scope

Green Hydrogen Market Report Segmentation Analysis

The Global Green Hydrogen Market industry analysis is segmented into by Technology, by Source, by Distribution Channel, by Application, and by Region.

The Alkaline Electrolyzer segment is anticipated to hold the highest share of the global Green Hydrogen market during the projected timeframe.

On the basis of Technology, the market is bifurcated into Proton Exchange Membrane Electrolyzer, Alkaline Electrolyzer, Solid Oxide Electrolyzer and Others. In 2024, Alkaline Electrolyzer held the largest market share of 65%, due to their established technology and lower capital costs. They are widely utilized in large-scale industrial applications because of their durability and suitability for continuous operation. Continuous improvements in electrolyzer technologies, particularly PEM and alkaline electrolyzers, are increasing their efficiency and reducing costs, making green hydrogen production more viable and positively influencing market dynamics.

The solar energy dominated the market in 2024 and is predicted to grow at the highest CAGR over the forecast period.

In terms of Source, the Green Hydrogen market is segmented into Solar Energy, Wind Energy and Others. Solar energy is anticipated to hold the highest share in the global green hydrogen market. The rapid decline in solar photovoltaic (PV) technology costs has made solar energy more economically viable for hydrogen production. This cost reduction enhances the attractiveness of solar-powered electrolysis. Regions with abundant sunlight, such as parts of the Middle East, Australia, and North Africa, are leveraging their solar potential to establish large-scale green hydrogen projects.

The Pipeline segment is predicted to grow at the highest CAGR over the forecast period.

On the basis of Distribution Channel, the Green Hydrogen market is classified into Pipeline and Cargo. In 2024, pipeline distribution accounted for approximately 63% of the green hydrogen market's revenue share. Regions with existing natural gas pipelines can adapt them for hydrogen transport, reducing the need for new infrastructure investments. Transporting hydrogen via pipelines is generally more cost-effective over short to medium distances compared to cargo transport. Pipelines facilitate a steady and reliable supply of hydrogen, essential for industries requiring consistent feedstock.

The Power Generation segment is expected to dominate the market during the forecast period.

Based on Application, the Green Hydrogen market is segmented into Power Generation, Transportation and Others. Power generation stands as the dominant application for green hydrogen, accounting for a substantial portion of the market share. This prominence is attributed to the increasing integration of green hydrogen into energy systems to enhance grid stability and storage capabilities. Green hydrogen serves as an energy storage medium, allowing excess renewable energy to be stored and utilized during periods of high demand or low production. Governments and organizations are increasingly adopting green hydrogen to reduce carbon emissions in the power sector, aligning with global climate goals.

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

Green Hydrogen Market Share Analysis by Region

Europe is projected to hold the largest share of the global Green Hydrogen market over the forecast period.

Europe green hydrogen market accounted for a largest revenue share of around 48% in 2024, driven by robust policy frameworks and substantial investments. The European Union's commitment to achieving climate neutrality by 2050 has resulted in ambitious hydrogen strategies, including plans to install 40 GW of electrolyzers by 2030. Companies like Spain's Moeve (formerly Cepsa) have shifted focus towards low-carbon energy solutions, investing in green hydrogen projects to align with regional decarbonization goals. Asia Pacific region is rapidly emerging in the green hydrogen sector, with countries like Japan, South Korea, and Australia at the forefront. Japan's strategic roadmap aims to establish a hydrogen-based society, while Australia leverages its renewable energy resources to develop large-scale green hydrogen projects targeting both domestic use and exports. In India, the Uttar Pradesh Green Hydrogen Policy 2024 promotes investments in green hydrogen production, aiming to make the state a hub for green hydrogen and ammonia. The United States is enhancing its focus on green hydrogen, with government policies and corporate investments playing pivotal roles. The 45V tax credit, offering up to $3 per kilogram of hydrogen produced, has been instrumental in attracting investments from major corporations such as Airbus, Dow, and General Motors. This incentive aims to bolster U.S. leadership in the hydrogen market by supporting the transition to clean energy.

Green Hydrogen Market Competition Landscape Analysis

the global green hydrogen market is poised for significant growth, with key players investing heavily in technology and infrastructure. These companies are actively engaged in research and development, strategic partnerships, and large-scale project implementations to enhance their market positions. ​

Global Green Hydrogen Market Recent Developments News:

Air Liquide and TotalEnergies Investment: In February 2025, Air Liquide and TotalEnergies announced a joint investment exceeding €1 billion to develop two large-scale low-carbon hydrogen production plants in the Netherlands. The first project involves a 200 MW electrolyser in Rotterdam, scheduled to begin operations by the end of 2027, powered by TotalEnergies' offshore wind farms. Additionally, they have established a joint venture to build a 250 MW electrolyser in Zeeland province. These projects aim to reduce CO₂ emissions by up to 450,000 metric tons annually from TotalEnergies' refineries in Belgium and the Netherlands.

Hysata Collaborates with POSCO to Enhance Green Hydrogen Technology: In December 2024, Australian green hydrogen producer Hysata entered into joint development agreements with South Korean steelmaker POSCO and its subsidiary POSCO Eco & Challenge. This partnership aims to advance electrolyser technology for green hydrogen production, combining technical expertise to develop materials and systems that enhance efficiency.

Moeve (formerly Cepsa) Reports Significant Profit Turnaround: In December 2024, Spanish energy company Moeve shifted its focus towards low-carbon energy solutions, including green hydrogen, biocombustibles, and electric mobility. The company reported net profits of €92 million for 2024, a significant turnaround from a €233 million loss in 2023, attributed to growth in its energy and chemicals divisions.

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

·         Air Liquide

·         Air Products Inc.

·         Bloom Energy

·         Cummins Inc.

·         Engie

·         H&R Groups

·         Linde plc.

·         Nel ASA

·         Siemens Energy

·         Toshiba Energy Systems & Solutions Corporation

·         Uniper SE

·         Others                                                                                       

1.      Global Green Hydrogen Market Introduction and Market Overview

1.1.    Objectives of the Study

1.2.    Global Green Hydrogen Market Scope and Market Estimation

1.2.1. Global Green Hydrogen Overall Market Size (US$ Bn), Market CAGR (%), Market forecast (2025 - 2035)

1.2.2. Global Green Hydrogen Market Revenue Share (%) and Growth Rate (Y-o-Y) from 2021 - 2035

1.3.    Market Segmentation

1.3.1. Technology of Global Green Hydrogen Market

1.3.2. Source of Global Green Hydrogen Market

1.3.3. Distribution Channel of Global Green Hydrogen Market

1.3.4. Application of Global Green Hydrogen Market

1.3.5. Region of Global Green Hydrogen Market

2.      Executive Summary

2.1.    Demand Side Trends

2.2.    Key Market Trends

2.3.    Market Demand (US$ Bn) Analysis 2021 – 2024 and Forecast, 2025 – 2035

2.4.    Demand and Opportunity Assessment

2.5.    Demand Supply Scenario

2.6.    Market Dynamics

2.6.1. Drivers

2.6.2. Limitations

2.6.3. Opportunities

2.6.4. Impact Analysis of Drivers and Restraints

2.7.    Pricing Trends Analysis

2.8.    Overview of Technology Developments

2.9.    Porter’s Five Forces Analysis

2.9.1. Bargaining Power of Suppliers

2.9.2. Bargaining Power of Buyers

2.9.3. Threat of Substitutes

2.9.4. Threat of New Entrants

2.9.5. Competitive Rivalry

2.10.  PEST Analysis

2.10.1.   Political Factors

2.10.2.   Economic Factors

2.10.3.   Social Factors

2.10.4.   Technology Factors

2.11.  Value Chain / Ecosystem Analysis

2.12.  Key Regulation

3.      Global Green Hydrogen Market Estimates & Historical Trend Analysis (2021 - 2024)

4.      Global Green Hydrogen Market Estimates & Forecast Trend Analysis, by Technology

4.1.    Global Green Hydrogen Market Revenue (US$ Bn) Estimates and Forecasts, by Technology, 2021 - 2035

4.1.1. Proton Exchange Membrane Electrolyzer

4.1.2. Alkaline Electrolyzer

4.1.3. Solid Oxide Electrolyzer

4.1.4. Others

5.      Global Green Hydrogen Market Estimates & Forecast Trend Analysis, by Source

5.1.    Global Green Hydrogen Market Revenue (US$ Bn) Estimates and Forecasts, by Source, 2021 - 2035

5.1.1. Solar Energy

5.1.2. Wind Energy

5.1.3. Others

6.      Global Green Hydrogen Market Estimates & Forecast Trend Analysis, by Distribution Channel

6.1.    Global Green Hydrogen Market Revenue (US$ Bn) Estimates and Forecasts, by Distribution Channel, 2021 - 2035

6.1.1. Pipeline

6.1.2. Cargo

7.      Global Green Hydrogen Market Estimates & Forecast Trend Analysis, by Application

7.1.    Global Green Hydrogen Market Revenue (US$ Bn) Estimates and Forecasts, by Application, 2021 - 2035

7.1.1.Power Generation

7.1.2.Transportation

7.1.3.Others

8.      Global Green Hydrogen Market Estimates & Forecast Trend Analysis, by Region

8.1.    Global Green Hydrogen Market Revenue (US$ Bn) Estimates and Forecasts, by Region, 2021 - 2035

8.1.1. North America

8.1.2. Eastern Europe

8.1.3. Western Europe

8.1.4. Asia Pacific

8.1.5. Middle East & Africa

8.1.6. Latin America

9.      North America Green Hydrogen Market: Estimates & Forecast Trend Analysis

9.1.    North America Green Hydrogen Market Assessments & Key Findings

9.1.1. North America Green Hydrogen Market Introduction

9.1.2. North America Green Hydrogen Market Size Estimates and Forecast (US$ Billion) (2021 - 2035)

9.1.2.1.   By Technology

9.1.2.2.   By Source

9.1.2.3.   By Distribution Channel

9.1.2.4.   By Application

9.1.2.5.   By Country

9.1.2.5.1.     The U.S.

9.1.2.5.2.     Canada

9.1.2.5.3.     Mexico

10.  Western Europe Green Hydrogen Market: Estimates & Forecast Trend Analysis

10.1.  Western Europe Green Hydrogen Market Assessments & Key Findings

10.1.1.   Western Europe Green Hydrogen Market Introduction

10.1.2.   Western Europe Green Hydrogen Market Size Estimates and Forecast (US$ Billion) (2021 - 2035)

10.1.2.1.    By Technology

10.1.2.2.    By Source

10.1.2.3.    By Distribution Channel

10.1.2.4.    By Application

10.1.2.5.    By Country

10.1.2.5.1.  Germany

10.1.2.5.2.  Italy

10.1.2.5.3.  U.K.

10.1.2.5.4.  France

10.1.2.5.5.  Spain

10.1.2.5.6.  Benelux

10.1.2.5.7.  Nordics

10.1.2.5.8. Rest of W. Europe

11.  Eastern Europe Green Hydrogen Market: Estimates & Forecast Trend Analysis

11.1.  Eastern Europe Green Hydrogen Market Assessments & Key Findings

11.1.1.   Eastern Europe Green Hydrogen Market Introduction

11.1.2.   Eastern Europe Green Hydrogen Market Size Estimates and Forecast (US$ Billion) (2021 - 2035)

11.1.2.1.    By Technology

11.1.2.2.    By Source

11.1.2.3.    By Distribution Channel

11.1.2.4.    By Application

11.1.2.5.    By Country

11.1.2.5.1.  Russia

11.1.2.5.2.  Hungary

11.1.2.5.3.  Poland

11.1.2.5.4.  Balkan & Baltics

11.1.2.5.5. Rest of E. Europe

12.  Asia Pacific Green Hydrogen Market: Estimates & Forecast Trend Analysis

12.1.  Asia Pacific Market Assessments & Key Findings

12.1.1.   Asia Pacific Green Hydrogen Market Introduction

12.1.2.   Asia Pacific Green Hydrogen Market Size Estimates and Forecast (US$ Billion) (2021 - 2035)

12.1.2.1.    By Technology

12.1.2.2.    By Source

12.1.2.3.    By Distribution Channel

12.1.2.4.    By Application

12.1.2.5.    By Country

12.1.2.5.1. China

12.1.2.5.2. Japan

12.1.2.5.3. India

12.1.2.5.4. Australia & New Zealand

12.1.2.5.5. South Korea

12.1.2.5.6. ASEAN

12.1.2.5.7. Rest of Asia Pacific

13.  Middle East & Africa Green Hydrogen Market: Estimates & Forecast Trend Analysis

13.1.  Middle East & Africa Market Assessments & Key Findings

13.1.1.   Middle East & Africa Green Hydrogen Market Introduction

13.1.2.   Middle East & Africa Green Hydrogen Market Size Estimates and Forecast (US$ Billion) (2021 - 2035)

13.1.2.1.    By Technology

13.1.2.2.    By Source

13.1.2.3.    By Distribution Channel

13.1.2.4.    By Application

13.1.2.5.    By Country

13.1.2.5.1. UAE

13.1.2.5.2. Saudi Arabia

13.1.2.5.3. Turkey

13.1.2.5.4. South Africa

13.1.2.5.5. Rest of MEA

14.  Latin America Green Hydrogen Market: Estimates & Forecast Trend Analysis

14.1.  Latin America Market Assessments & Key Findings

14.1.1.   Latin America Green Hydrogen Market Introduction

14.1.2.   Latin America Green Hydrogen Market Size Estimates and Forecast (US$ Billion) (2021 - 2035)

14.1.2.1.    By Technology

14.1.2.2.    By Source

14.1.2.3.    By Distribution Channel

14.1.2.4.    By Application

14.1.2.5.    By Country

14.1.2.5.1. Brazil

14.1.2.5.2. Argentina

14.1.2.5.3. Colombia

14.1.2.5.4. Rest of LATAM

15.  Country Wise Market: Introduction

16.  Competition Landscape

16.1.  Global Green Hydrogen Market Product Mapping

16.2.  Global Green Hydrogen Market Concentration Analysis, by Leading Players / Innovators / Emerging Players / New Entrants

16.3.  Global Green Hydrogen Market Tier Structure Analysis

16.4.  Global Green Hydrogen Market Concentration & Company Market Shares (%) Analysis, 2023

17.  Company Profiles

17.1.      Air Liquide

17.1.1.   Company Overview & Key Stats

17.1.2.   Financial Performance & KPIs

17.1.3.   Product Portfolio

17.1.4.   SWOT Analysis

17.1.5.   Business Strategy & Recent Developments

* Similar details would be provided for all the players mentioned below 

17.2.      Air Products Inc.

17.3.      Bloom Energy

17.4.      Cummins Inc.

17.5.      Engie

17.6.      H&R Groups

17.7.      Linde plc.

17.8.      Nel ASA

17.9.      Siemens Energy

17.10.  Toshiba Energy Systems & Solutions Corporation

17.11.  Uniper SE

17.12.  Others

18.  Research Methodology

18.1.  External Transportations / Databases

18.2.  Internal Proprietary Database

18.3.  Primary Research

18.4.  Secondary Research

18.5.  Assumptions

18.6.  Limitations

18.7.  Report FAQs

19.  Research Findings & Conclusion