Green Hydrogen Market Size By Technology (Alkaline Electrolyzer, Polymer Electrolyte Membrane (PEM) Electrolyzer), By Application(Power Generation, Transportation), By Distribution Channel (Pipeline, Cargo) By Geographic Scope And Forecast

Green Hydrogen Market Size And Forecast

Green Hydrogen Market size was valued at USD 650 Million in 2022 and is projected to reach USD 8,412 Million by 2030, growing at a CAGR of 59.8 % from 2023 to 2030.

The Green Hydrogen market has witnessed a tremendous increase in the previous few years due to the increasing demand from the pharmaceutical industry. The Global Green Hydrogen Market report delivers a holistic market evaluation. The report comprehensively analyzes critical segments, restraints, trends, drivers, competitive landscape, and factors that play a significant role in the market.

Global Green Hydrogen Market Definition

Green hydrogen is produced by separating water into hydrogen and oxygen using renewable electricity. This is a very different pathway that corresponds to both grey and blue. It uses renewable energy sources such as wind, solar, or hydroelectric power through electrolysis. Unlike conventional hydrogen production methods, which rely on fossil fuels such as coal or natural gas, Green Hydrogen does not produce greenhouse gas emissions or other harmful pollutants during production.

During electrolysis, an electrical current is passed through water to split it into its constituent elementshydrogen and oxygen. The hydrogen produced can then be used as a clean and sustainable fuel source in various applications, including fuel cells, transportation, and industrial processes. Green Hydrogen has the possibility to play an important role in the transition to a low-carbon economy and help reduce our dependence on fossil fuels.

Global Green Hydrogen Market Overview

Growing demand for clean energy is expected to drive the market for Green Hydrogen Market. The demand for clean energy sources such as hydrogen is growing as the world focuses on decreasing greenhouse gas emissions and transitioning to a low-carbon economy. A global market of around 100 MMT of Green Hydrogen and its derivatives, like Green Ammonia, is anticipated to emerge by 2030. Many countries are likely to rely on imports due to constraints on land and renewable resources required to produce Green Hydrogen domestically. Also, governments worldwide are providing support and subsidies for developing and adopting hydrogen as a clean energy source, which is driving growth in the market.

Moreover, technological advances have made hydrogen production more efficient and cost-effective, making it a more attractive option for a range of industries. The possibility of green hydrogen to plug the intermittency of solar and wind while burning like natural gas and functioning as feedstock in industrial chemical processes has piqued the interest of governments, businesses, and investors. Among increased investment, engineering development, government support, and a skilled workforce, digital technology is one of the necessary levers for accelerating the transition to green hydrogen, the particularly artificial intelligence of things (AIoT) – a combination of artificial intelligence and Internet of things technology that allows the optimization and automation of systems through improved data management and analytics.

Further, Growing use in industrial processes, increased demand for fuel cell vehicles, and growing demand for energy storage are additional factors driving demand for green hydrogen as a fuel source. Green Hydrogen is increasingly being used in various industrial processes, including oil refining, ammonia production, and steelmaking, which is driving growth in the market. It is being seen as a promising option for energy storage. However, Green hydrogen production is currently more expensive than fossil fuel production. This is because renewable energy sources such as solar and wind power are still more costly than fossil fuels.

Also, the current infrastructure for green hydrogen production, transportation, and storage needs improvement. This limits the technology’s scalability, making it difficult for green hydrogen to compete with traditional hydrogen produced from fossil fuels. Also, its production involves complex processes such as electrolysis, which requires advanced technology and specialized equipment. The technical challenges involved in scaling up green hydrogen production are significant. These factors, in turn, restrict the market.

Global Green Hydrogen MarketSegmentation Analysis

The Global Green Hydrogen Market is Segmented on the basis of Technology, Application, Distribution Channel, And Geography.

Green Hydrogen Market, By Technology

• Alkaline Electrolyzer
• Polymer Electrolyte Membrane (PEM) Electrolyzer

Based on Technology, The Green Hydrogen Market is segmented into Alkaline Electrolyzer and Polymer Electrolyte Membrane (PEM) Electrolyzer. The alkaline electrolyzer segment held a significant revenue share of around 65% in 2021 owing to its conventional electrolyzer technology utilized in green hydrogen projects. The alkaline electrolyzer employs a liquid alkaline solution of sodium hydroxide or potassium as its electrolyte. It has higher operating hours than PEM electrolyzers. Yet, alkaline electrolyzers have lower power and current densities with an operating temperature range varying between 100 to 105 degrees Celsius compared to 70-to-90-degree Celsius spans of PEM electrolyzers. Further, alkaline electrolyzes are predicted to notice a growth on account of availability at a lower cost as compared to PEM electrolyzers.

Green Hydrogen Market, By Application

• Power Generation
• Transportation
• Others

Based on the Application, The Green Hydrogen Market is divided into Power Generation, Transportation, and Others. The transport segment held the largest revenue share of nearly 41% in 2021. Hydrogen can be utilized in fuel cells or internal combustion engines in transportation. Owing to its energy efficiency, a hydrogen fuel cell is around two to three times more efficient than an internal combustion engine fueled by gasoline. Though, burning hydrogen in internal combustion engines results in nitrogen oxide emissions and is comparatively less efficient than being used in fuel cells. In 2020, major European automotive companies such as Daimler, CNH, DAF, MAN, Ford, Scania, and Volvo declared plans to switch their truck fleets to hydrogen power by 2040. Also, Airbus is planning hydrogen-powered aircraft and is preparing to run commercial flights by 2035.

Green Hydrogen Market, By Distribution Channel

• Pipeline
• Cargo

Based on the Distribution Channel, The Green Hydrogen Market is divided into Pipeline and Cargo. The pipeline segment held a nearly 62% revenue stake of the Green Hydrogen Market in 2021. Green hydrogen can be transported as a liquid in thermally insulated containers, a gas in high-pressure containers, processed as methanol or ammonia, or in a chemical carrier medium. However, a pipeline is the most economically feasible method to transport large volumes over long distances. In September 2020, German pipeline operators Nowega, Gascade, and Siemens Energy released a white paper jointly exploring the practical aspects of converting natural gas pipelines for future hydrogen transportation.

Green Hydrogen Market, By Geography

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Based on Geography, The Green Hydrogen Market is classified into North America, Asia Pacific, Europe, Latin America, and the Middle East, and Africa based on the regional analysis. During the projection period, the Europe region is expected to hold a significant stake in the Global Green Hydrogen Market due to the massive investments made by the European economies, seeking an energy transition into a clean hydrogen-based economy in the coming years.

For instance, the U.K. government reported a $ 14.8 billion investment plan in August 2019 for a scheme that is anticipated to utilize 4 GW of offshore wind for green hydrogen production by 2030. Also, the North American region is expected to achieve a significant CAGR over the forecast period, with the United States and Canada improving the green hydrogen industry due to the enactment of clean energy policies. In the U.S., California holds the majority demand share, with the growth propelled by fierce de-carbonization targets such as phasing out of gas or diesel-powered public transports like buses by 2040.

Key Players

The “Global Green Hydrogen Market” study report will provide valuable insight with an emphasis on the global market including some of the major players such as Siemens Energy AG, Linde plc, Air Liquide S.A., Plug Power Inc., Nel ASA, ITM Power plc, Hydrogenics Corporation, McPhy Energy S.A., ENGIE SA, Toshiba Energy Systems & Solutions Corporation, Ballard Power Systems Inc., Cummins Inc., Doosan Corporation, Enapter AG, and Green Hydrogen Systems A/S.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• In April 2020, Siemens Gas and Power and Uniper SE reported a joint deal on implementing projects that produce and use green hydrogen from renewable energy sources.
• In March 2022, Siemens Energy and Air Liquide jointly announced plans to develop a green hydrogen production facility in France. The facility will have a capacity of 30 MW and will be powered by renewable energy sources.

Ace Matrix Analysis

The Ace Matrix provided in the report would help to understand how the major key players involved in this industry are performing as we provide a ranking for these companies based on various factors such as service features & innovations, scalability, innovation of services, industry coverage, industry reach, and growth roadmap. Based on these factors, we rank the companies into four categories as Active, Cutting Edge, Emerging, and Innovators.

Market Attractiveness

The image of market attractiveness provided would further help to get information about the region that is majorly leading in The Green Hydrogen Market. We cover the major impacting factors that are responsible for driving the industry growth in the given region.

Porter’s Five Forces

The image provided would further help to get information about Porter’s five forces framework providing a blueprint for understanding the behavior of competitors and a player’s strategic positioning in the respective industry. The porter’s five forces model can be used to assess the competitive landscape in Global Green Hydrogen Market gauge the attractiveness of a certain sector, and assess investment possibilities.

Report Scope

Top Trending Reports

Research Methodology of Market Research