Green Hydrogen Market Size, Share, Opportunities, And Trends By Technology (Proton Exchange Membrane, Electrolyzer, Alkaline Electrolyzer, Solid Oxide Electrolyzer), By Distribution Channel (Pipeline, Cargo), By Application (Power Generation, Transportation, Industry Energy, Industry Feedstock, Others), And By Geography - Forecasts From 2023 To 2028

The green hydrogen market is expected to grow at a CAGR of 7.51% from US$3.909 billion in 2021 to US$6.487 billion in 2028.

During the projection period, it is expected that the green hydrogen market would grow steadily. Green hydrogen is produced using renewable or low-carbon energy sources. Grey hydrogen, which comes from fossil fuels without carbon capture, has far higher carbon emissions than green hydrogen. Cement and iron manufacturing, two industries that are difficult to electrify, can be decarbonized using green hydrogen. The primary component of synthetic fertilizer, green ammonia, is from green hydrogen which is also being utilized for long-term seasonal energy storage and long-term grid energy storage.

Growth drivers for the green hydrogen market

As more people become aware of hydrogen's potential as an energy source, the green hydrogen industry is expected to grow. The market is expanding as a result of rising environmental concerns, which highlights the importance of producing clean, renewable energy to reduce emissions. Additionally, as nuclear power and green hydrogen are being used more often, the green hydrogen market is growing. The demand for the green hydrogen is anticipated to be driven by the presence of supportive government policies promoting it and the growing environmental concerns around rising carbon emissions from the use of fossil fuels.

Increasing government support

Government around the world plays a key role in developing regulatory and policy frameworks that support the green hydrogen industry and provide it with long-term stability and predictability. Government globally is concentrating on creating targets for renewable energy, setting emission reduction objectives, and putting in place the carbon pricing systems, all of which encourage the demand for green hydrogen. Regulations that encourage the integration of green hydrogen into current energy systems, such as supporting fuel cell technology or mixing it with natural gas in pipelines, are another factor driving green hydrogen market growth.

Rising demand for renewable energy solutions

Renewable energy sources are intermittent and the weather determines how they are produced. Storage of energy becomes essential for balancing the sporadic supply and demand. During times of surplus renewable energy output, green hydrogen is created and stored for later use. It offers a dependable energy storage option and improves grid stability by serving as a feedstock in industrial operations or by being transformed back into power via fuel cells. For converting to renewable energy and lowering carbon emissions, several governments and commercial organizations have established goals. These objectives frequently place a strong emphasis on the creation of green hydrogen as a crucial element of energy transition plans fueling the green hydrogen market growth.

Increasing investments in R&D activities

The performance and longevity of green hydrogen technologies are the primary goals of research and development. Increased hydrogen production rates and lower maintenance costs are being achieved by extending the lifespan and improving the efficiency of electrolyzers. The efficiency and dependability of hydrogen-powered cars and other uses can also be improved by developments in fuel cell technology. Such investments can reduce the price of producing green hydrogen while addressing the green hydrogen market’s main cost limitation. Furthermore, green hydrogen market growth is fueled due to lower production costs, attracting investment and boosting market acceptance.

Advancement in technology

The worldwide green hydrogen industry is noted to have a wide range of development potential due to specific technical breakthroughs in electrolyzers, renewable energy generation, and decarbonization processes. Technological development helps provide the infrastructure needed for the green hydrogen market. This involves the development of hydrogen refueling stations and pipelines, as well as improvements in hydrogen storage and transportation techniques, such as high-pressure or cryogenic storage. There are greater prospects for the mainstream use of green hydrogen as the infrastructure grows.

Increasing use of green hydrogen in the transportation industry

Green hydrogen is widely employed in transportation due to its many environmental benefits, such as lowering air pollution in metropolitan areas and total carbon dioxide emissions to the atmosphere. Green hydrogen is a viable strategy for an energy-efficient and decarbonized system that can replace fossil fuels in the transportation industry. By 2030, the European Union (EU) would have over 5,000 hydrogen fuelling stations with a combined capacity of roughly 2,615,000 tonnes of green hydrogen to serve hydrogen fuel cell automobiles. Through 2023, China has committed to investing more than US$ 217 billion in hydrogen-powered transportation, which is upsurging the green hydrogen market growth.

The European green hydrogen market is anticipated to hold the largest market share

Europe's energy transition to a sustainable environment is the key reason driving the regional green hydrogen market. In the industrial, electrical, and transportation sectors, green hydrogen can replace fossil fuels in a variety of ways. It may replace extremely polluting coking coal as a feedstock for creating steel, and natural gas can take its place in the industry of petroleum refining.

Germany is moving towards totally carbon-free electrical systems, thus the need for green hydrogen is set to rise quickly. The German Ministry and Climate Action predicts the increase in demand for green hydrogen to 90-110 TWh by 2030. Additionally, Iberdrola is already working on several initiatives that will help the decarbonization of heavy industries and transport in Spain and the UK in addition to expanding its value chain. The company plans to create 350 000 tonnes of green hydrogen annually by 2030, and by then it is anticipated to have completed 2, 400 MW worth of projects.

Government Initiatives

• In April 2023, with the formal launch of the National Green Hydrogen Mission under the direction of the Ministry of New and Renewable Energy (MNRE), India is assuming a significant leadership role in this shift. The mission intends to establish India as a global leader in the green hydrogen transition with a total financial investment of INR 19,744 crore ($US2.4 billion) to promote green hydrogen supply and demand.
• In March 2023, In the House of Commons, the Prime Minister and Finance Minister of Canada unveiled the "Made in Canada Plan." The government declared its support for the domestic generation of clean and environmentally friendly green hydrogen with the proposal.
• January 2022, 'The National Green Hydrogen Mission' was suggested by the Indian Union Cabinet to decarbonize the country via the generation of clean energy sources. It is anticipated that the mission will produce at least 5 million metric tonnes of green hydrogen annually.

Market Key Developments

• In April 2023, Sinopec, a state-owned oil and gas company in China, is constructing a pipeline for green hydrogen transportation. From Ulanqab in Inner Mongolia to Beijing, the pipeline will be 400 km long and have a starting annual capacity of 100,000 tonnes.
• January 2023, With the signing of a contract for the delivery of 40 MW electrolyzers, Statkraft, the biggest renewable energy provider in Europe, and Nel will work together to build a solid value chain for the generation of green hydrogen in Norway.
• In September 2022, Siemens set up renewable hydrogen production facility in Germany. It is one of Germany's largest digitally designed green hydrogen-producing facility.

Segmentation:

• By Technology
  • Proton Exchange Membrane Electrolyzer
  • Alkaline Electrolyzer
  • Solid Oxide Electrolyzer
• By Distribution Channel
  • Pipeline
  • Cargo
• By Application
  • Power Generation
  • Transportation
  • Industry Energy
  • Industry Feedstock
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others