The green hydrogen industry is experiencing rapid growth, driven by global efforts to reduce carbon emissions and advancements in electrolysis and renewables. Government support through policies and investments is also boosting growth. Its versatility and scalability make green hydrogen a key player in the transition to sustainable energy. The market is even being propelled by its increasing use in fuel cell electric vehicles (FCEVs) and high-energy-intensive industries like steel and ammonia production, further driving demand and market expansion.
The green hydrogen market size is projected to grow from USD 1.1 Billion in 2023 to USD 30.6 Billion by 2030, at a CAGR of 61.1% during the forecasted period. The market is propelled by several factors, including the declining cost of renewable energy production from various sources, advancements in electrolysis technologies, and the increasing demand from the power industry and fuel cell electric vehicles. The number of countries committing to achieve net-zero emissions has been steadily increasing. These commitments mark a significant milestone in the advancement of green hydrogen.
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The following table lists the zero emission targets for some major economies by years.
| Country | 100% |
| United States | 2050 |
| Germany | 2045 |
| Japan | 2050 |
| China | 2060 |
| Saudi Arabia | 2060 |
| Italy | 2050 |
| Canada | 2050 |
| South Korea | 2050 |
Source: Energy & Climate Intelligence Unit
Based on renewable source, the solar energy segment is accounted for the second largest segment, in therms of value, with its ability to provide low-cost, clean energy making it an option for hydrogen production. Solar energy can be used to power electrolysis, the process of splitting water into hydrogen and oxygen, to produce green hydrogen. Solar energy can be easily scaled up or down to meet demand, making it a flexible option for hydrogen production and the resource is abundant, with the potential to provide more energy. Key projects and initiatives include the Saudi Arabia plans to build a USD 8.4 billion green hydrogen plant powered by 4 GW of solar and wind energy to produce up to 600 tonnes of green hydrogen in the form of liquid ammonia per day by 2026. India aims to achieve a green hydrogen production capacity of at least 5 million metric tonnes per year by 2030, alongside the addition of approximately 125 gigawatts of renewable energy capacity.
Based on technology, the alkaline electrolysis segment accounted for the largest growing segment, driven by its cost-effectiveness, efficiency, and versatility. This method employs alkaline electrolyzers to split water into hydrogen and oxygen using electricity, often sourced from renewables. It stands out for its high efficiency in converting electricity to hydrogen, making it ideal for large-scale applications. By integrating with renewable energy sources like solar and wind, alkaline electrolysis enables the production of green hydrogen. The technology’s growth is fueled by rising demand across industries, including transportation and power generation.
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Based on region, Asia Pacific is the second largest market for green hydrogen, in terms of value, with strong government policies and private sector investments driving the growth of green hydrogen initiatives. Countries such as Australia, India, Japan, New Zealand, China, Korea, and Singapore have developed national hydrogen strategies, while companies like Linde plc, Sembcorp Industries, and Sinopec are investing in green hydrogen projects. The region is home to several key green hydrogen projects, including the Australian Renewable Energy Hub, the Asian Renewable Energy Hub in Singapore, and the Inner Mongolia Erdos Wind-Solar Green Hydrogen Project in China. The Asia Pacific may capture almost 55% of the global green hydrogen market in 2030, driven by demand in China, India, and Indonesia.
Recent Developments in Green Hydrogen Market Industry
- In June 2022, Siemens Energy and Air Liquide S.A. had signed a joint venture to manufacture industrial-scale large quantities renewable hydrogen electrolyzers. This collaboration aims to facilitate the development of a sustainable hydrogen economy in Europe. The joint venture will promote the growth of a European ecosystem for hydrogen technology and electrolysis. Projected capacity of three gigatons per year by 2025.
- In May 2022, Air Liquide S.A., Toyota Motor, and CaetarioBus have announced a collaboration to advance integrated hydrogen solutions. They will focus on the deployment of hydrogen-powered vehicle fleets, aiming to accelerate the adoption of hydrogen mobility for both light- and heavy-duty vehicles and infrastructure development.
- In April 2022, WPD and Lhyfe have signed a collaboration to produce renewable green hydrogen on a large scale at the Storgrundet offshore wind farm in the Soderhamn municipality of Sweden.
Green Hydrogen Market Industry FAQS
- What are the factors influencing the growth of the green hydrogen market?
Global efforts to reduce carbon emissions, technological advancements, government support, and increasing use in fuel cell electric vehicles (FCEVs) and power industries to drive green hydrogen has driven the market.
- Which is the fastest-growing region-level market for green hydrogen?
Europe is the fastest-growing green hydrogen market due to the presence of major green hydrogen manufacturers.
- What are the challenges in the green hydrogen market?
Challenges in the green hydrogen market is high initial investments.
- Which energy based green hydrogen holds the largest market share?
Wind energy based green hydrogen, in terms of value and volume hold the largest share due to lower energy cost.
- Who are the major manufacturers?
Major manufacturers in the green hydrogen market include Siemens Energy AG (Germany), Linde (Ireland), Toshiba Energy Systems & Solutions Corporation (Japan), and Air Liquide (France).
- What are the major end use industry for green hydrogen?
Chemical, power, mobility, grid injection, and industrial are the major end-use industries of market green hydrogen.
- What is the biggest restraint in the green hydrogen market?
The biggest restraint is high cost of green hydrogen.
