Green Hydrogen Market - Global Market Share, Trends, Analysis and Forecast, 2023-2032

The global Green Hydrogen market was estimated to be US$ 1.80 Billion in 2022 and is expected to reach US$ 21.70 Billion by 2032 at a CAGR of 28.3%.

Green hydrogen refers to hydrogen gas produced through the process of electrolysis using renewable energy sources, such as wind or solar power. Unlike conventional hydrogen production methods, which typically rely on fossil fuels and release carbon dioxide emissions, green hydrogen is produced using a carbon-free process.

The electrolysis process involves using an electrical current to split water molecules (H2O) into hydrogen (H2) and oxygen (O2). This electrical energy is derived from renewable sources, ensuring that the hydrogen produced is environmentally friendly and does not contribute to greenhouse gas emissions.

Green Hydrogen Market Growth Drivers

Increasing focus on decarbonization is driving the market growth

The global green hydrogen market is being driven by several key factors.

First, there is a growing focus on decarbonization and reducing greenhouse gas emissions worldwide. Governments, organizations, and industries are prioritizing efforts to transition to low-carbon solutions, and green hydrogen plays a vital role in achieving these goals.

Secondly, there is a rising demand for renewable energy sources. With the need to address climate change and the increasing energy demand, renewable energy such as wind, solar, and hydropower has gained prominence. This growing renewable energy capacity provides an opportunity to produce green hydrogen through electrolysis.

Lastly, the adoption of hydrogen fuel cells in transportation is on the rise. Hydrogen fuel cells offer zero-emission transportation solutions, and they are being embraced as an alternative to combustion engines. Furthermore, hydrogen fuel cells are finding applications in public transportation systems, such as buses and trains, contributing to emission reduction efforts and improved air quality in urban areas.

In summary, the global green hydrogen market is driven by the increasing focus on decarbonization, the growing demand for renewable energy, and the rising adoption of hydrogen fuel cells in transportation. These factors collectively contribute to the development and expansion of the green hydrogen industry, enabling the transition to a more sustainable and low-carbon future.

End-use Industry Segmentation of Global Green Hydrogen Market

Power generation segment is the largest segment in the green hydrogen market

Based on end-use industry the power generation segment is the largest segments in the green hydrogen market. The power generation segment's prominence can be attributed to several factors. Firstly, the transition towards renewable energy sources and the need for clean electricity generation have led to increased interest in using green hydrogen as a storage and backup solution.

Hydrogen can be stored and converted back into electricity through fuel cells, providing a flexible and dispatchable power generation option. Secondly, the power generation sector has significant energy demand, and integrating green hydrogen can help decarbonize this sector by replacing fossil fuels. As countries strive to meet climate targets and reduce greenhouse gas emissions, green hydrogen offers a viable solution for greening power generation and reducing reliance on fossil fuels.

Lastly, the power generation industry has a well-established infrastructure and grid connections, making it relatively easier to integrate green hydrogen into existing systems.

The flexibility of using hydrogen as an energy carrier allows for the utilization of excess renewable energy during periods of high generation, thereby optimizing renewable energy resources and grid stability. However, it's important to note that the growth and significance of each segment can vary across different regions and markets.

Factors such as government incentives, technological advancements, and industry demand can influence the relative size and importance of each segment in the global green hydrogen market.

Regional Trends of the Global Green Hydrogen Market

Geographically, the global green hydrogen market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and South America.

Following are some of the major trends in these regions –

North America: North America has been witnessing significant developments in the green hydrogen market. The region has a strong focus on decarbonization and reducing greenhouse gas emissions, which has led to the implementation of supportive policies and initiatives.

The United States, in particular, has been driving the market growth with various projects and investments. States like California have ambitious renewable energy targets and are actively promoting the use of green hydrogen in transportation and power generation.

Europe: In Europe, there is a robust push for green hydrogen as part of the continent's commitment to climate neutrality. The European Union's Green Deal and hydrogen strategies emphasize the importance of green hydrogen in decarbonizing various sectors.

Europe benefits from a well-established renewable energy infrastructure, advanced electrolyzer technology, and a strong commitment to interconnectivity and cross-border trade of green hydrogen.

Asia-Pacific: The Asia-Pacific region is witnessing rapid growth in the green hydrogen market. Japan, with its Hydrogen Society Roadmap, is aiming to become a global leader in hydrogen technology. South Korea has set ambitious goals for hydrogen utilization and is focusing on green hydrogen production through renewable energy sources. Australia, with its vast renewable energy potential, is positioning itself as a major exporter of green hydrogen, particularly to Asian markets.

The Middle East and Africa: The Middle East and Africa region holds great potential for green hydrogen due to its abundant renewable energy resources, such as solar and wind. These countries have favorable conditions for large-scale renewable energy projects and have initiated partnerships and investments to develop green hydrogen infrastructure and export capabilities.

South America: In South America, countries like Chile are making progress in the green hydrogen space. The country has ambitious plans for green hydrogen production and export, leveraging its favorable renewable energy resources and strong commitment to sustainability.

Key players and market strategies:

Companies operating in the global green hydrogen market have been implementing various growth strategies to capitalize on the market opportunities and drive their expansion.

Here are some major growth strategies adopted by these companies, along with relevant industry examples:

Strategic Partnerships and Collaborations: Companies are forming partnerships and collaborations to leverage each other's expertise and resources in the green hydrogen market. For instance, Siemens Energy and Siemens Gamesa Renewable Energy have formed a strategic partnership to develop integrated solutions for the production, storage, and use of green hydrogen.

Expansion of Production Capacity: Companies are investing in expanding their green hydrogen production capacity to meet the increasing demand. For example, Nel ASA, a leading electrolyzer manufacturer, announced plans to expand its production capacity to 2 GW per year by 2023 to meet the growing demand for electrolyzers.

Research and Development (R&D): Companies are focusing on research and development activities to advance green hydrogen technologies and improve efficiency. Ceres Power, a UK-based company, invests heavily in R&D to develop solid oxide electrolysis technology for efficient and cost-effective hydrogen production.

Mergers and Acquisitions: Companies are engaging in mergers and acquisitions to enhance their market presence and gain access to new technologies and markets. Air Liquide, a global industrial gas company, acquired Hydrogenics Corporation, a hydrogen fuel cell manufacturer, to strengthen its position in the green hydrogen and fuel cell markets.

Investment in Infrastructure: Companies are investing in the development of green hydrogen infrastructure, such as hydrogen refueling stations and pipeline networks. Everfuel, a Danish green hydrogen company, is investing in building a network of hydrogen refueling stations across Europe to support the growing demand for hydrogen fuel cell vehicles.

Geographic Expansion: Companies are expanding their presence in different regions to tap into emerging green hydrogen markets. For example, Enapter, a German electrolyzer manufacturer, expanded its operations to Thailand to meet the increasing demand for green hydrogen in Southeast Asia.

ACWA Power (Saudi Arabia), Air Liquide (France), Air Products and Chemicals, Inc. (United States), Ballard Power Systems Inc. (Canada), Ceres Power Holdings plc (United Kingdom), Enapter AG (Germany), ENGIE (France), Everfuel A/S (Denmark), FuelCell Energy, Inc. (United States), Hydrogenics Corporation (Canada), ITM Power plc (United Kingdom), Linde plc (Ireland/United Kingdom), Nel ASA (Norway), Siemens Energy AG (Germany), Thyssenkrupp AG (Germany) and many more.

Global Green Hydrogen Market Segmentation:

Based on Production Process:

• Electrolysis
• Biomass Gasification
• Others

Based on End-Use Industry:

• Chemicals
• Transportation
• Power Generation
• Others

Based on Scale:

• Large-Scale Projects
• Small-Scale/On-Site Production
• Others

Based on Feedstock:

• Wind
• Solar
• Biomass
• Others

Based on Region

• North America
  • United States
  • Canada
  • Rest of North America
• Europe
  • Germany
  • United Kingdom
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  
  • Japan
  • India
  • China
  • Australia
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  •  UAE
  • Saudi Arabia
  • South Africa
  • Rest of the Middle East & Africa
• South America
  • Brazil
  • Rest of South America