Green Hydrogen Market By Technology (Alkaline Electrolysis, PEM Electrolysis), By Application (Power Generation, Transport, Others), By Renewable Source (Solar Energy, Wind Energy, Others (hydropower, geothermal, and hybrid of solar & wind)), By End-Use (Power, Medical, Chemical, Petrochemical, Mobility, Grid Injection, Others), By Geography, Size, Share, Global Growth, Forecast 2020-2030

Industry Report and Statistics (Facts & Figures) - Capex Opex Calculation, Cost Optimization, Production Feasibility, Production Cost, Investment Opportunities and Forecast to 2050

The global green hydrogen market will witness a robust CAGR of 55.1%, valued at $1.45 billion in 2021, expected to appreciate and reach $75.72 billion by 2030, confirms Strategic Market Research. Europe had the highest share of the worldwide green hydrogen market, with more than 57%. Green hydrogen is a hydrogen gas produced using renewable energy or low-carbon power. Green hydrogen emits substantially less carbon dioxide than grey hydrogen. It is generated by steam reforming natural gas and accounts for most of the hydrogen market. According to the FCH JU (Fuel Cells and Hydrogen Joint Undertaking), green hydrogen has a carbon footprint of less than 36.4 g CO2equ/MJLHV, while grey hydrogen has a carbon footprint higher than the specified amount.

In 1671, Robert Boyle discovered hydrogen gas after observing the reaction between iron filings and dilute acids. In 1789, Jan Rudolph Deiman and Adriaan Paets van Troostwijk performed the first electrolysis of water using a Leyden jar. In 1800, William Nicholson and Sir Anthony Carlisle successfully decomposed water into hydrogen and oxygen gases. In 1869, Zénobe Gramme invented the Gramme machine, which made hydrogen extraction from water inexpensive. In 1923, steam reforming was first performed to commercially manufacture hydrogen. In 1990, the first solar-powered hydrogen production plant Solar-Wasserstoff-Bayern became operational. Since then, hydrogen extraction has found cheaper methods while saving the environment. Green hydrogen can help decarbonize sectors like transportation and shipping, where it can be utilized as a fuel, and in industries like chemicals and steel, it can be utilized as both raw material and fuel. It might be used to store renewable energy and replace fossil fuels in power generation. Furthermore, green hydrogen can be used in gas turbines to regulate power supply and demand changes in conjunction with ammonia.

 

 

Key Industry Drivers - Increasing Awareness of Green Hydrogen, Sustainability & Environmental Concerns

• The growing awareness of green hydrogen drives the market due to its environmental benefits, alignment with the global energy transition, technological advancements, policy support, and industry collaboration. Green hydrogen production uses electrolysis to split water molecules into hydrogen and oxygen, producing zero greenhouse gas emissions. This clean and sustainable method of hydrogen production is crucial for decarbonizing sectors like transportation, industry, and power generation. The global energy landscape is transforming into a more sustainable and decentralized system, with green hydrogen playing a vital role in this transition. Governments and international organizations are recognizing the potential of green hydrogen and implementing supportive policies to accelerate its adoption. This fosters collaboration among various industries, research institutions, and stakeholders, contributing to knowledge sharing, technological advancements, green hydrogen production, and scaling up utilization. In conclusion, the growing awareness of green hydrogen drives market growth and accelerates the transition to a low-carbon economy. 

 

• Sustainability and environmental concerns drive the green hydrogen market, offering significant advantages over traditional hydrogen production methods. Green hydrogen production uses renewable energy sources like solar or wind power to electrolyze water and separate hydrogen and oxygen, reducing carbon emissions & contributing to global efforts to combat climate change. This emission-free approach improves air quality, particularly in sectors like transportation, where hydrogen fuel cells can power vehicles. Green hydrogen also enables the storage of excess renewable energy, ensuring grid stability and reducing the curtailment of renewable resources. Governments and regulatory bodies are increasingly implementing environmental policies & regulations to address climate change and environmental challenges, leading to supportive rules and incentives for green hydrogen production and infrastructure development. Corporate sustainability initiatives also contribute to the market as companies adopt sustainability strategies and commit to reducing their environmental impact. The growing focus on sustainability & environmental responsibility drives market growth and innovation in the green hydrogen market, subject to considerable investments in R&D.

 

Restraints - High Costs in Setting Up and Maintenance

• The high costs of setting up and maintaining the hydrogen infrastructure force the companies to look for alternative renewable energy sources. The initial investment required for establishing hydrogen infrastructure and prohibitive maintenance costs is the key challenges hindering the growth of the green hydrogen industry.

 

Opportunities - New Applications, Market Expansion

• The advent of new users and applications for hydrogen could open new vistas of opportunities for the global green hydrogen market industry. Green hydrogen can now be used in electric cars, nuclear power, sustainable energy, airships, Energy storage, water generator, Transport and mobility, electrification, ammonia and fertilizers, petroleum products, and the steel industry. According to the International Energy Agency, about 26,000 passenger cars, 6000 buses, 3000 medium-duty trucks, 49 light commercial vehicles, and 14 heavy-duty trucks used hydrogen fuel cells in 2020. The fuel economy of hydrogen fuel cell cars is double that of petrol-powered cars.

 

• The expansion and penetration into newer markets could foster the growth of the global industry. For example, establishing the US and the Indian green hydrogen market, respectively, could improve the hydrogen economy and drive the overall growth of the hydrogen industry and green hydrogen market. According to the US Department of Energy, 6500 hydrogen fuel cell cars are currently on the road. These cars are manufactured by three companies, Toyota (Toyota Mirai), Honda (Honda Clarity), and Hyundai (Hyundai Nexo).

 

 

Market Analysis Of Different Segments Covered in the Report

Based on Technology

• Alkaline Electrolysis

• PEM Electrolysis

 

Based on Application

• Power Generation

• Transport

• Others

 

Based on Renewable Source

• Solar Energy

• Wind Energy

• Others (hydropower, geothermal, and hybrid of solar & wind)

 

Based on End-Use

• Power

• Medical

• Chemical

• Petrochemical

• Mobility

• Grid Injection

• Others

 

Regional Coverage Analysis
North America

• United States of America

• Canada

 

Europe

• Germany

• United Kingdom

• Rest of Europe

 

Asia-Pacific

• Australia

• Japan

• China

• India

• Rest of Asia-Pacific

 

LAMEA

• Brazil

• United Arab Emirates

• South Africa

• Rest of LAMEA

 

 

Segments Analysis & Insights

Based on the Technology, the green hydrogen market is categorized into Alkaline Electrolysis & PEM Electrolysis. Alkaline Electrolysis dominates the green hydrogen market with a revenue share of 68%. Alkaline electrolysis is crucial in the green hydrogen market due to its efficiency, reliability, and cost-effectiveness. These electrolyzers use an alkaline solution as the electrolyte, resulting in high electrical efficiency ranging from 60% to 80%. They are known for their long-term reliability and durability, operating at moderate temperatures & pressures. Alkaline electrolyzers are economically viable for large-scale hydrogen production due to their low capital costs and abundant materials. They are also scalable, ideal for high-capacity installations and integrating hydrogen into industries & utilities.

PEM electrolysis shows the fastest growth in the green hydrogen market, with a CAGR of 26.12%. PEM electrolysis is experiencing rapid growth in the green hydrogen market due to its high efficiency, fast startup and shutdown times, compact design, high-purity hydrogen production, safety, flexibility, synergy with PEM fuel cells, and government support. These factors make PEM electrolysis an attractive option for applications where electricity costs are a significant concern.

 

The power-generating segment had a dominant market share, generating $186.0 million in 2020. Green hydrogen power is generated by splitting water into hydrogen and oxygen using an electrolyzer fueled by renewable energy sources such as wind, tidal, geothermal, and solar energy. Thus, green hydrogen power is recognized as a clean energy source capable of achieving net-zero carbon emissions. The declining costs for the production of green hydrogen also contribute to the segment’s growth. According to a study, the production costs of green hydrogen worldwide are currently USD 3.7/kg, and it is expected to fall to USD 1/kg by 2035 and USD 0.75/kg by 2050. The net costs of green hydrogen are expected to decrease by 95% by 2050.

 

The petrochemical segment dominated the global market share with revenue of around USD 104.5 million in 2020. No tailpipe emissions other than water are emitted from a hydrogen fuel cell vehicle, contributing to carbon neutrality. The potential for fast development in the petrochemical sector is expected to increase demand for green hydrogen in the petrochemical segment, leading to market growth. According to a study, cars that run on petrol emit 200 g CO2/km, those that run on diesel emit 120 g CO2/km, and those that run on CNG emit nearly 111 g CO2/km, while hydrogen fuel cell vehicles emit nearly zero CO2/km.

 

The European Union dominates the green hydrogen market with a revenue share of 57%, growing with a CAGR of 39.45%, poised to reach $43.16 billion by 2030. The European Union (EU) has become dominant in the green hydrogen market due to its ambitious renewable energy and decarbonization goals, supportive policies, and strategic investments. The EU has set ambitious targets under the European Green Deal & the Renewable Energy Directive, aiming to achieve a 32% share of renewable energy in final energy consumption by 2030 and become climate-neutral by 2050. The EU has established a robust policy framework, including the EU Hydrogen Strategy, which sets a roadmap for scaling up green hydrogen production, infrastructure, and demand. The EU has committed substantial public & private investments, such as the EU Recovery & Resilience Facility and the European Investment Bank. The EU is also actively engaging in international collaborations, such as the European Clean Hydrogen Alliance, which brings together industry, governments, and stakeholders to foster cooperation & accelerate the market uptake of clean hydrogen. The EU aims to produce 10 million metric tonnes of renewable hydrogen and other clean fuels by 2030. New businesses and significant investments in technologically advanced green hydrogen projects proliferate the green hydrogen market in the EU, driving the operating cost close to ZERO in the coming years.

 

Green Hydrogen Market Report Coverage

Report Attribute	Details
Forecast Period	2020 - 2030
The market size value in 2021	USD 1.45 billion
The revenue forecast in 2030	USD 75.72 billion
Growth rate	CAGR of approximately 55.1%
The base year for estimation	2021
Historical data	2017 – 2020
Unit	USD Billion, CAGR (2021 – 2030)
Segmentation	By Technology, By Application, By End-Use, and By Region
By Technology	Alkaline Electrolysis, PEM Electrolysis
By Application	Power Generation, Transport, Others
By End-Use	Food and Beverages, Medical, Chemical, Petrochemical, Glass, Others
By Region	Asia Pacific, North America, Europe, LAMEA
Country Scope	United States of America, Germany, United Kingdom, Canada, Australia, Japan, China, India, Brazil, South Africa, United Arab Emirates
Company Usability Profiles	Air Liquide, Linde, Uniper SE, Air Products and Chemicals, Inc., Siemens, Engie, Hydrogenics, Toshiba Energy Systems and Solutions Corp., Nel ASA

 

Green Hydrogen Market Competitive Landscape Analysis

The major competitors of the global market are focusing on technological breakthroughs and innovations to reduce the cost of renewable-powered electrolysis and commercialize green hydrogen generation. Furthermore, these companies are launching several strategic measures like mergers & acquisitions to strengthen their market position. The major competitors in the green hydrogen global market are:

• Linde Air Liquide

• Linde

• Air Products and Chemicals, Inc.

• Siemens

• Uniper SE

• Engie

• Nel ASA

• Toshiba Energy Systems and Solutions Corp.

• Hydrogenics

 

 

Recent Developments

• On June 2023, A MoU was signed between the Netherlands and Namibia to establish a partnership for developing green hydrogen infrastructure. The objective is to launch a comprehensive vertically-integrated green hydrogen initiative in sub-Saharan Africa. The MoU seeks to enhance collaboration between the two nations, foster the growth of the hydrogen economy in Namibia, and establish a new export trade association with the Netherlands and Northern Western Europe. The government of Namibia intends to exercise its right to acquire a 24% equity stake in the Hyphen project. The SDG Namibia One fund aims to generate capital from both domestic institutional investors and global investors to advance green hydrogen projects and infrastructure in Namibia.

 

• On June 2023, Hydrogen Oman signed significant agreements with international consortiums to develop two green hydrogen projects in Al Wusta, totaling $10 billion. The projects will produce 250,000 mt of green hydrogen, equivalent to 6.5 GW of renewable energy capacity. The first agreement was duly signed with the POSCO-ENGIE consortium, with a production capacity of 200,000-220,000 tonnes per annum of green hydrogen. Other consortium partners include Samsung Engineering, Thai petroleum company PTTEP, and Korean utilities EWP and KOSPO. The second agreement was duly signed with the Hyport Duqm consortium, consisting of DEME and OQ, with the first phase aiming to produce 50,000 tonnes of green hydrogen and ammonia per year for export.

 

• On June 2023, India is expected to produce 55 million tonnes of green hydrogen by 2050, according to a report by Deloitte. However, the country will remain a marginal importer in the coming decade due to slower demand uptake. Europe, China, and India can produce significant amounts of hydrogen but will likely rely on imports during the transition. The interplay between demand and supply for hydrogen is stark in India, as it assumes accelerated decarbonization of its industrial and transportation sectors using hydrogen. The global clean hydrogen market capacity can grow to 170 million tonnes in 2030 and 600 million tonnes in 2050 to achieve climate neutrality by 2050.

 

• On June 2023, Mitsubishi Corporation (MC) formed Eneco Diamond Hydrogen B.V. to advance European green hydrogen & renewable energy initiatives. Eneco Diamond Hydrogen is a joint venture between MC and its subsidiary N.V. Eneco, a Rotterdam-based integrated energy company. The EU has set annual goals for producing and importing 10 million tons of green hydrogen by 2030. Eneco Diamond Hydrogen leverages Eneco's expertise in the renewable energy sector and MC's extensive network in industries like oil refining, chemicals, steel, and marine transport. MC's midterm corporate strategy prioritizes energy transformations focusing on delivering zero-carbon solutions for global decarbonization. Eneco Diamond Hydrogen aims to drive hydrogen initiatives in various regions worldwide and contribute to decarbonization efforts.

 

• On June 2023, dynaCERT Inc. and Cipher Neutron Inc. signed an MOU to produce innovative AEM Green Electrolysers for Technomak Process Systems FZC. The Memorandum of Understanding (MOU) seeks to facilitate the energy transition toward achieving a net-zero imperative by utilizing AEM Green Electrolysers 100% free of PFAS and 100% free of PGM. Technomak, a prominent provider of on-shore and off-shore wind power and turbine technologies, intends to focus on its current clientele to substitute grey hydrogen with Green Hydrogen free of GHG emissions. With Technomak's considerable expertise in the oil and gas sector, introducing Cipher Neutron's AEM Green Electrolysers into the industry is expected to proceed seamlessly.

 

• On June 2023, Jordan is set to unveil a new strategy for green hydrogen projects as part of its renewable energy vision, aiming to reduce reliance on conventional energy sources. Assistant secretary general Hassan Al-Hayari stated that Jordan seeks to turn the country into a regional centre for green energy exports due to the high feasibility of renewable energy projects. The new strategy will be approved by the government & announced in the third quarter of this year. Recently, Jordan has experienced a substantial increase in its solar & wind energy production, reaching a capacity of 2.6 GW. This accounts for approximately 27 % of the country's energy mix. The renewable energy vision is regularly revised to ensure that the country reaches its 50% renewable energy target.

 

• On June 2023, Portugal's REN is adapting its high-pressure natural gas grid to carry up to 10% of green hydrogen as early this year. The government plans to hold its first auction in the second half of this year for the rights to sell green hydrogen, produced using renewable energy, for injection into national gas grids. The sale could kickstart Europe's hydrogen market as European countries turn to it to tackle carbon emissions and improve energy security. REN is working on adapting instruments to measure the quality of transported green hydrogen and is expected to obtain official certification for transporting up to 10% of green hydrogen in 2023. Portugal is expected to become a significant producer and exporter of green hydrogen, with plans to install plants with double or triple the 2.5 GW capacity forecast by 2030.