Green Hydrogen Market Size, Share, By Technology (Proton Exchange Membrane Electrolyzer, Alkaline Electrolyzer, and Solid Oxide Electrolyzer), By Application (Power Generation, Transport, and Others), and By End-Use Industry (Medical, Chemical, Petrochemicals, Glass, and Others) and By Region - Trends, Analysis and Forecast till 2034

Report Code: PMI489722 | Publish Date: February 2024 | No. of Pages: 182

Green Hydrogen Market Overview

Green Hydrogen Market Size was valued at USD 1.5 billion in 2024 and is expected to grow at a CAGR of 42.10% to reach USD 51.7 billion by 2034

Green hydrogen is produced through the electrolysis of water with renewable energy. Other industries that use green hydrogen include natural gas production, transportation and heating, and green ammonia production. Hydrogen is the lightest element on earth. Compared to other fuels, green hydrogen represents a much better source of energy with several uses in industries other than energy for the production of steel, petrochemical products, and fine chemicals. Water gets electrolysis with renewable energy sources to produce something known as green hydrogen. Through the process of electrolyzing, electric current separates water into hydrogen and oxygen with grey hydrogen, much like natural gas. In comparison with grey, which is produced by steam improvement of natural gas and enjoys the lion's share of the hydrogen market, green hydrogen emits much fewer carbon emissions.

The growing demand for green hydrogen, coupled with the technological advancement process in electrolysis, will foster growth in the global green hydrogen market. The raison d'être for the low utilization of green hydrogen has been the expensive cost of its production. Even still, the hydrogen market is expected to grow as some forecasts have the price of making hydrogen plummeting from 6$/kg in 2015 to approximately 2$/kg by 2025. Green hydrogen can be used to make green ammonia and also to be blended into the existing natural gas pipelines.

Green hydrogen is produced by the process of water electrolysis with renewable energy. Green hydrogen is used in the natural gas industry, transportation, heating, and production of green ammonia. Hydrogen is the lightest element on earth. Compared to other fuels, green hydrogen is of more utility as a source of energy and has several industrial applications, such as in the production of steel, petrochemical products, and fine chemicals. Water is electrolyzed using renewable sources of energy to produce green hydrogen.

The electrolyze process separates the water into hydrogen and oxygen with the help of an electric current and is powered by grey hydrogen produced from fossil fuels—in effect, much like natural gas. In comparison with grey hydrogen—created by the steam-improvement of natural gas, accounting for the bulk of the hydrogen market—green hydrogen emits much fewer carbon emissions. Also, the rising demand for green hydrogen, along with technological development in electrolysis technology, will further fuel growth in the global green hydrogen market. The significant reason for the low consumption of green hydrogen is its high cost of manufacturing. Even so, the hydrogen market is expected to grow, as practiced by some forecasts where the cost of hydrogen production fell from $6/kg back in 2015 to roughly $2/kg by next year. Green hydrogen can be used for green ammonia production besides blending into the existing natural gas pipelines.

Green Hydrogen Market Dynamics

Key Drivers of Target Market:

Environmental Concerns and Decarbonization Goals

  • Green hydrogen will be a clean and sustainable carrier of energy, quite literally with zero tailpipe emission, and one of the most essential tools in this fight against climate change and meeting net-zero emission targets.
  • Hence, governments around the world are framing ambitious goals of de-carbonization and considerably intensifying investments in green hydrogen technologies. The regulatory bodies are framing stricter regulations to limit greenhouse gas emissions from different industries. Green hydrogen can help companies comply with regulations and meet sustainability commitments.

Renewable Energy Growth and Lowering its Cost:

  • Renewable energy sources, like solar and wind power, are increasingly being transmitted into the system. This will feed the demand for clean storage solutions. That is where the production of green hydrogen will help in the long-term storage of surplus renewable energy with the aid of renewables.
  • Over recent years, renewable technologies such as photovoltaic cells, solar panels, and wind turbines have gotten cheaper. The cost cuts encourage green hydrogen production for economic reasons.

Restrains:

High Production Cost:

  • The electrolysis process in green hydrogen production is still quite expensive. The costs of electrolyzers, one of the critical inputs, remain high and are pegged to factors such as expensive materials used, for example, platinum for PEM electrolyzers, which produces dearly priced machines, and a limited manufacturing scale.
  • Green hydrogen production relies on sources of clean electricity, such as solar or wind power. This intermittency of renewables, however, can result in inefficiency and permit higher costs in the electrolysis process. Green hydrogen is to be produced cheaply; therefore, renewable energy has to be allied with IT reliable storage solutions.

Opportunities:

New Applications and Market Growth:

  • Green hydrogen represents one of the most promising fuels for fuel cell electric vehicles because it has benefits of zero tailpipe emissions, fast refueling times, and longer range compared with battery electric vehicles, especially in long-haul applications. Growth of the FCEV market will drive demand for green hydrogen.
  • Green hydrogen could serve as a clean feedstock in various industries such as chemicals, steelmaking, and glassmaking to help them achieve lower emissions. This thus cortical presents a huge opportunity to grow the target market size of green hydrogen into new end-use sectors.
  • Green hydrogen can be used in the manufacture of synthetic fuels such as ammonia or sustainable jet fuel; these would help further decarbonize those sectors where electrification may not be possible, hence growing the market potential.

Green Hydrogen Market Segmentation

The market is segmented based on Technology, Application, End-Use Industry, and Region.

Technology Insights:

  • Proton Exchange Membrane Electrolyzer: PEM technology is the most developed for electrolysis and is already available commercially. This technology operates at lower temperatures—about 80°C—and is characterized by fast start-up times and high efficiency. It will be more appropriate for applications where there is a need to have prompt responses in the case of changes in energy sources, such as integration with renewable energies.
  • Alkaline Electrolyzer: This is a mature technology with a simple design and a long life, with lower capital costs compared to PEM electrolyzers. Generally, alkaline electrolyzers operate at higher temperatures, typically 100°C, and usually have lower efficiency compared to PEM systems. They allow for higher tolerance toward impurities in the feedwater and might handle the duty more appropriately where access to high-purity water is limited.
  • Solid Oxide Electrolyzer: Technology for SOE is still under development, although it looks very promising due to high potential efficiency and the possibility of waste heat usage—operating temperatures are high. Due to their higher operating temperature, SOE electrolyzers could potentially achieve higher electrical efficiency than both PEM and alkaline technologies.

Application Insights:

  • Power Generation: Green hydrogen can be used for power generation in stationary fuel cells or blending with natural gas in existing power plants to decarbonize the power sector, enabling grid balancing or energy storage.
  • Transport: Green hydrogen is an emergent fuel for EVs, particularly in the case of long-haul applications where battery electric vehicles may be constrained by both range and recharge times. Hydrogen fuel cell vehicles offer zero tailpipe emissions with potential quick refueling times like gasoline vehicles.
  • Others: The applications of green hydrogen could be diverse and reach beyond the production of power and fuels for transport. These include industrial feedstock in the chemical and petrochemical industry for clean production of chemicals and fuels; feedstock for synthetic natural gas production which can be stored and transported in existing natural gas infrastructure; heating applications in industrial processes and buildings.

End-Use Industry Insights:

  • Medical: Green hydrogen can be used in the medical field to power machinery medically with hydrogen fuel cells. Especially in off-grid or isolated areas. For example, portable hydrogen fuel cells can power medical equipment in an ambulance or a disaster relief setting. Green hydrogen also opens possibilities for research in fields such as hydrogen therapy. Which at the moment is under investigation for its potential applications in a wide range of medical disorders.
  • Chemical: As already mentioned, green hydrogen has huge potential for becoming one of the forthcoming clean feedstocks for the chemical industry to obtain chemicals and fertilizers. One major example is ammonia production, in which green hydrogen is going to substitute fossil fuel to produce ammonia without emitting GHG. Ammonia is one of the important elements for many fertilizers; therefore, with green hydrogen-based ammonia, it is possible to contribute to a more sustainable food production system.
  • Petrochemicals: Green hydrogen will be used in the petrochemical industry to create low-carbon fuels and chemicals, reducing dependence on fossil fuels. For example, green hydrogen can be utilized to produce sustainable aviation fuel or bioplastics. This might be applied to the decarbonization of transport and manufacturing.
  • Glass: Green hydrogen will also work well within the glass industry as a cleaner fuel source in glass-melting furnaces. This will replace natural gas and help reduce the emission of greenhouse gases for this industry. High temperatures that are obtained while melting glass make green hydrogen quite suitable for replacing clean energy.
  • Others: Some other industries that green hydrogen can power are as follows: Green hydrogen in steel manufacturing green hydrogen can reduce iron ore while producing steel instead of coal, hence reducing CO2 emissions. Green hydrogen will thus contribute to greening the steel industry. In Electronics Manufacturing high-purity hydrogen is used in some electronics manufacturing processes; green hydrogen can provide a clean and sustainable source for this requirement. Green hydrogen enables one to achieve metals from ores more sustainably compared to the traditional methods that require a supply of fossil fuel to obtain metals.

Regional Insights

  • North America: Strong public policies to support the production and use of clean energy, an existing infrastructure for natural gas later lending itself to hydrogen, and lastly, a nascent market development for that type of FCEV. Continuation of policy, further reductions in the cost of green hydrogen production, and a growing hydrogen refueling infrastructure for transport.
  • Asia Pacific: This is a high-growth economy region with increasing energy demand and huge investments in renewable energy projects, besides major firms in hydrogen technology; this makes the region most suitable for the green hydrogen market. Beyond that, its large size and rapid industrialization strengthen the potential market size even further because demand is expected to be on top in industries like transport, refining, and the production of chemicals. However, opportunities remain open to developing hydrogen exports in any case.
  • Europe: Stringent environmental legislation that generates demand for clean energy solutions, strong R&D in hydrogen technology, and established leadership in wind energy. Rising demand for green hydrogen in industrial uses of green hydrogen, such as steel and chemicals production, the development of hydrogen pipelines for transporting hydrogen, and potential hydrogen exports.
  • Latin America: Market offers numerous opportunities for renewable energy sources and growing climate awareness, while government initiatives for clean energy solutions set up the perfect scenario for developing a green hydrogen economy. It would optimally utilize already existing renewable resources and bring diversity into energy production.
  • Middle East and Africa: Abundant natural gas resources that could be useful to make blue hydrogen as a stepping stone to green hydrogen, and the possibility of developing an export sector in green hydrogen due to proximity to key markets. Economic diversification beyond fossil fuel production, attracting investments in renewable energies and projects on green hydrogen. The green hydrogen can also be used for clean power generation and desalination in water-scarce regions.

Green Hydrogen Market Report Scope:

Attribute

Details

Market Size 2024

USD 1.5 billion 

Projected Market Size 2034

USD 51.7 billion

CAGR Growth Rate

42.10%

Base year for estimation

2023

Forecast period

2024 – 2034

Market representation

Revenue in USD Billion & CAGR from 2024 to 2034

Market Segmentation

By Technology - Proton Exchange Membrane Electrolyzer, Alkaline Electrolyzer, and Solid Oxide Electrolyzer.

By Application - Power Generation, Transport, and Others.

By End-Use Industry - Medical, Chemical, Petrochemicals, Glass, and Others

Regional scope

North America - U.S., Canada

Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe

Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific

Latin America - Brazil, Mexico, Argentina, Rest of Latin America

Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For this study segmented the target market report based on Technology, Application, End-Use Industry, and Region.

By Technology:

  • Proton Exchange Membrane Electrolyzer
  • Alkaline Electrolyzer
  • Solid Oxide Electrolyzer

By Application:

  • Power Generation
  • Transport
  • Others

By End-Use Industry:

  • Medical
  • Chemical
  • Petrochemicals
  • Glass
  • Others

By Region:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East & Africa

Green Hydrogen Market Key Players

The key players operating the Green Hydrogen Market include Siemens Energy AG, Linde, Toshiba Energy Systems & Solutions Corporation, Air Liquide, Nel ASA, Air Products and Chemicals, Inc., H&R Olwerke Schindler GmbH, Wind to Gas Energy GmbH & Co. KG, Guangdong Nation-Synergy Hydrogen Power Technologies Co., Ltd.

Green Hydrogen Market Key Issues Addressed

  • In June 2024, Renewco Power (Renewco), headquartered in the United Kingdom, and INDHO, a pioneering green hydrogen developer based in Ciudad Real, central Spain, announced the launch of Indhyco, an innovative new development platform primarily focused on green hydrogen projects in Spain. Indhyco will build green hydrogen projects with a focus on industrial consumption, utilizing efficient hydrogen production close to the point of consumption and renewable electricity generation. 
  • In February 2024, Hero Future Energies plans to start new green hydrogen projects in the next months. Hero Future Energies (HFE), a renewable energy producer and part of the Hero Group, is looking into green hydrogen project potential in India. Green hydrogen is a key topic of interest for us.

Green Hydrogen Market Company Profile

  • Siemens Energy AG*
    • Company Overview
    • Product Portfolio
    • Key Highlights
    • Financial Performance
    • Business Strategies
  • Linde
  • Toshiba Energy Systems & Solutions Corporation
  • Air Liquide
  • Nel ASA
  • Air Products and Chemicals, Inc.
  • H&R Olwerke Schindler GmbH
  • Wind to Gas Energy GmbH & Co. KG
  • Guangdong Nation-Synergy Hydrogen Power Technologies Co., Ltd.

“*” marked represents similar segmentation in other categories in the respective section.

Green Hydrogen Market Table of Contents

Research Objective and Assumption

  • Research Objectives
  • Assumptions
  • Abbreviations

Market Preview

  • Report Description
    • Market Definition and Scope
  • Executive Summary
    • Market Snippet, By Technology
    • Market Snippet, By Application
    • Market Snippet, By End-Use Industry
    • Market Snippet, By Region
  • Opportunity Map Analysis

Market Dynamics, Regulations, and Trends Analysis

  • Market Dynamics
    • Drivers
    • Restraints
    • Market Opportunities
  • Market Trends
  • Product Launch
  • Merger and Acquisitions
  • Impact Analysis
  • PEST Analysis
  • Porter’s Analysis

Market Segmentation, Technology, Forecast Period up to 10 Years, (US$ Bn)

  • Overview
    • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Segment Trends
  • Proton Exchange Membrane Electrolyzer
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Alkaline Electrolyzer
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
    • Segment Trends
  • Solid Oxide Electrolyzer
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
    • Segment Trends

Market Segmentation, Application, Forecast Period up to 10 Years, (US$ Bn)

  • Overview
    • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Segment Trends
  • Power Generation
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Transport
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Others
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, End-Use Industry, Forecast Period up to 10 Years, (US$ Bn)

  • Overview
    • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Segment Trends
  • Medical
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Chemical
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Petrochemicals
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Glass
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Others
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Region, Forecast Period up to 10 Years, (US$ Bn)

  • Overview
    • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Regional Trends
  • North America
    • Market Size and Forecast (US$ Bn), By Technology, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Application, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By End-Use Industry, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
      • U.S
      • Canada
  • Asia Pacific
    • Market Size and Forecast (US$ Bn), By Technology, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Application, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By End-Use Industry, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
      • India
      • Japan
      • South Korea
      • China
      • Rest of Asia Pacific
  • Europe
    • Market Size and Forecast (US$ Bn), By Technology, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Application, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By End-Use Industry, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
      • UK
      • Germany
      • France
      • Russia
      • Italy
      • Rest of Europe
  • Latin America
    • Market Size and Forecast (US$ Bn), By Technology, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Application, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By End-Use Industry, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
      • Brazil
      • Mexico
      • Rest of Latin America
  • Middle East and Africa
    • Market Size and Forecast (US$ Bn), By Technology, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Application, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By End-Use Industry, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
      • GCC
      • Israel
      • South Africa
      • Rest of Middle East and Afric

Competitive Landscape

  • Heat Map Analysis
  • Company Profiles
  • Siemens Energy AG
  • Linde
  • Toshiba Energy Systems & Solutions Corporation
  • Air Liquide
  • Nel ASA
  • Air Products and Chemicals, Inc.
  • H&R Olwerke Schindler GmbH
  • Wind to Gas Energy GmbH & Co. KG
  • Guangdong Nation-Synergy Hydrogen Power Technologies Co., Ltd.

The Last Word

  • Future Impact
  • About Us
  • Contact

FAQs

Green Hydrogen Market Size was valued at US$ 1.5 billion in 2024 and is expected to grow at a CAGR of 42.10% to reach US$ 51.7 billion by 2034

Green Hydrogen Market is segmented into Technology, Application, End-Use Industry, and Region.

Factors driving the market include the environmental concerns and decarbonization goals, renewable energy growth and lowering its cost.

The Green Hydrogen Market's restraints include the high production cost.

The Green Hydrogen Market is segmented by region into North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. North America is expected to dominate the Market.

The key players operating the Green Hydrogen Market include Siemens Energy AG, Linde, Toshiba Energy Systems & Solutions Corporation, Air Liquide, Nel ASA, Air Products and Chemicals, Inc., H&R Olwerke Schindler GmbH, Wind to Gas Energy GmbH & Co. KG, Guangdong Nation-Synergy Hydrogen Power Technologies Co., Ltd.