Global Green Hydrogen Market Size, Share, and COVID-19 Impact Analysis, By Technology (Proton Exchange Membrane (PEM) Electrolysis, Alkaline Electrolysis, Solid Oxide Electrolysis & Anion Exchange Membrane (AEM) Electrolysis), By Application (Offshore & Onshore), By End-Use (Power & Energy, Transportation, Chemical, Industrial, Manufacturing & Others) and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa) Analysis and Forecast 2022-2028

KEY MARKET INSIGHTS

The global Green Hydrogen Market was valued at USD 1.2 billion in 2021. The market is projected to grow USD 9.8 Bn in 2028, at a CAGR of 51.6%. Green hydrogen is one of the types of hydrogen produced from water using electrolysis. Green hydrogen can be manufactured by several processes such as biogas reforming, water-gas-shift reaction, and hydrogen separation. Hydrogen is non-toxic to the environment, and it may be stored and transformed into energy or heat as needed.

Green hydrogen is an important part of the energy equation, and hydrogen is a fundamental renewable energy resource. Because it is produced using solar energy, it is one of the most important circular carbon economy (CCE) ideas. In contrast to carbon-based energy found in natural gas and other fossil fuels, it is produced using renewable energy sources.

The demand for green hydrogen is surging in recent years owing to the ability to reduce CO2 emissions. Also, helps meet the growing demand for electricity around the world. Consumer awareness regarding the benefits of hydrogen as an energy carrier is propelling the growth of the global green hydrogen market. Furthermore, rising environmental concerns are driving market growth and emphasizing the necessity for renewable/clean energy generation to reduce emissions.

Furthermore, the green hydrogen market is growing due to the increased usage of nuclear and green hydrogen fuels. For instance, in March 2022, Toyota launched its hydrogen-based Fuel Cell Electric Vehicle (FCEV), Toyota Mirai in India to make a huge shift from fossil fuel and an initiative to conserve the environment.

COVID-19 ANALYSIS

The impact of Covid-19 had a stagnant impact on the global green hydrogen market. Many European and Asian governments have announced new projects and feasibility studies including various technologies. The main effect of COVID-19 on the green hydrogen market was that it caused delays in projects since raw material supplies were affected owing to lockdowns. Green hydrogen has finally reached the pre-commercialization stage and is poised to play a critical role in global decarbonization.

LATEST TREND

Growing Number of Green Hydrogen Development Projects

An increasing number of green hydrogen innovations is driving the growth of the global green hydrogen market. Several initiatives are advancing the understanding of manufacturing hydrogen and other forms are mainly used to clean fuel to power during the forecast period. For instance, Air Products is focusing on the development of a green hydrogen production plant that is capable of producing 650 tons of green hydrogen fuel every day. Spain has recently made significant investments in hydrogen production. They announced a 10-year investment of $10.5 billion in Green Hydrogen technology, with the goal of using hydrogen to enable their trucking and shipping industries to achieve zero-emission outputs. Because they now manufacture a big amount of hydrogen from fossil fuels, Spain is investing in green hydrogen. Siemens Energy is constructing a 1 MW hydrogen generation system for a Beijing fueling station, which will be the country's first megawatt-scale green hydrogen plant.

DRIVING FACTORS

Rising Demand for Decarbonizing Around the World

Shifting to zero-emission goals is the primary initiative witnessed by consumers. Manufacturing, energy, and transportation sectors are increasingly turning to hydrogen to minimize their carbon footprints as a result of increased government requirements and investor pressure to decarbonize. Vehicles that use hydrogen directly in fuel cells or internal combustion engines are being developed by the mobility sector. Hydrogen-powered forklifts have previously been created and are in use in a number of industries in Europe, Asia, and North America. By 2030, the countries want to more than double the number of hydrogen-powered vehicles.

Increasing Usage of Green Hydrogen Among Different Applications

For balancing the periodic of reusable resources, many industries, including oil and gas, utility, steel, and fertilizers, are turning to green hydrogen. Furthermore, this type of hydrogen is being used on a large scale as a carbon-free energy source in the industrial, chemical, and transportation sectors. Aside from these industrial applications, the ability to store green hydrogen in existing gas pipes to power domestic appliances would result in a gradual growth in household demand for green hydrogen. It turns renewable energy into a carrier like ammonia, which can then be utilized in a fuel cell to power anything that runs on electricity, like electric vehicles and electronic devices. Green hydrogen's numerous and cost-effective applications are propelling global revenue growth.

RESTRAINTS

High Manufacturing Cost in Generating Green Hydrogen

The initial cost of producing green hydrogen is quite high, and the absence of infrastructure to transport and store it adds to the difficulty. The fixed cost of constructing the plant is only half the battle; transporting green hydrogen presents additional economic and safety concerns. Green hydrogen is almost 2times more expensive than grey hydrogen on average. The expense of application technology is increased. Although stored hydrogen can be utilized to create power, it is used at a lower rate than other storage systems due to its low round-trip productivity. Furthermore, storing hydrogen energy is a highly expensive operation when compared to other fossil fuels.

SEGMENTATION

The global Green Hydrogen Market is segmented by Technology (Proton Exchange Membrane (PEM) Electrolysis, Alkaline Electrolysis, Solid Oxide Electrolysis & Anion Exchange Membrane (AEM) Electrolysis), by Application (Offshore & Onshore), by End-Use (Power & Energy, Transportation, Chemical, Industrial, Manufacturing & Others) and Region. Based on the technology, the market is categorized into Proton Exchange Membrane (PEM) Electrolysis, Alkaline Electrolysis, Solid Oxide Electrolysis & Anion Exchange Membrane (AEM) Electrolysis. Based on application, the market is categorized into Offshore & Onshore. Based on End-Use, the market is categorized into Power & Energy, Transportation, Chemical, Industrial, Manufacturing & Others. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa.

By Technology

Based on technology, it is categorized into Proton Exchange Membrane (PEM) Electrolysis, Alkaline Electrolysis, Solid Oxide Electrolysis & Anion Exchange Membrane (AEM) Electrolysis. The Proton Exchange Membrane (PEM) Electrolysis segment dominated the global green hydrogen market share owing to the most used type among population because of its versatility and methods to use.

PEM electrolysis offers the advantage of being able to respond fast to the fluctuations that are common in renewable energy generation. Because the equipment is low-maintenance and supplies high-quality gas, this technology is frequently employed for distributed systems. They are more capable of dealing with the intermittent nature of electricity from wind or solar than alkaline water electrolysis, and they have a substantially smaller footprint.

PEM electrolyzes are less expensive in comparison to alkaline electrolyzes. It also has a faster response time, resulting in faster heat-up and cool-down. For instance, Cummins has provided a 20-megawatt PEM electrolyzer system to generate green hydrogen, making it the largest in operation in the world.

By Application

Based on application, it is categorized into offshore & onshore. The offshore segment dominated the global green hydrogen market share owing to the high generation of electricity as compared to onshore wind capacity and this expansion could be a crucial factor in establishing a green hydrogen economy. Offshore wind capacity is likely to surpass demand in parts of Europe soon, and the resulting power can be used to produce clean, green hydrogen. For instance, in July 2021, Neptune Energy has launched the world’s first offshore green hydrogen project on an operational oil or gas platform, using a facility in the Dutch North Sea. The focus of the company is to convert seawater into demineralized water.

By End-Use

Based on End-Use, it is categorized into power & energy, transportation, chemical, industrial, manufacturing & others. The transportation segment dominated the global green hydrogen market share owing to the huge development in transportation in turn increasing demand for Fuel Cell Electric Vehicles (FCEVs) across the world. The use of green hydrogen in the transportation industry reduces pollution in the environment, enabling the success of Green Globe Projects. For instance, in 2019, according to the article of IEA stating there will be huge expansion in usage of green hydrogen across transport through fleets, freight and corridors which will power passengers and goods along popular routes can make fuel-cell vehicles more competitive.

REGIONAL INSIGHTS

The green hydrogen market is categorized into North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa. Europe region is expected to dominate the market share owing to the heavy investments in green hydrogen developments and the presence of major automotive manufacturers which are focusing on shifting the concept of IC engines along with manufacturing lightweight and fuel-efficient engines. Furthermore, the region is implementing more renewable energy policies.

For instance, BMW and Audi are building hydrogen fuel-cell passenger vehicle prototypes alongside their fleets of battery cars. However, Asia Pacific is expected to account highest CAGR across the forecast period due to the growing capabilities for the development of infrastructures for storing green hydrogen. For instance, according to a survey in 2020, Korea and Japan are leading the way among Asian countries in investing in green hydrogen projects. Both countries, particularly its industrial behemoths such as Toyota and Hyundai, are pioneering hydrogen fuel cell technology as one of several potential clean transportation options.

INDUSTRY PLAYERS

• Air Products Inc.
• Ballard Power Systems
• ENGIE
• Green Hydrogen
• Cummins Inc.
• Linde Plc
• Nel ASA
• Nikola Corporation
• HORIBA
• PLUG POWER INC.
• Siemens AB
• Solena Group
• TOSHIBA CORPORATION
• Enapter S.r.l.
• Loop Energy Inc.
• Tianjin Mainland Hydrogen Equipment Co. Ltd.
• Others

KEY INDUSTRY DEVELOPMENTS:

February 2022- Ballard Power Systems has announced to sign a Memorandum of Understanding (MOU) with Adani for the commercialization of fuel cells in various mobility and industrial applications in India.

December 2021- Toshiba Energy Systems & Solutions Corporation has made a technical alliance agreement with Shandong Energy Group for pure hydrogen fuel cell system to provide the manufacturing and testing technology due to the environmental policy in China.

November 2021- Siemens Energy Ventures has made a partnership with GeoPura for the development of the green hydrogen economy by offering off-grid, temporary and back-up energy-as-a-service using green hydrogen.

February 2021- Siemens Energy and Air Liquide have agreed to collaborate on PEM (Proton Exchange Membrane) electrolysis technology through a Memorandum of Understanding. The primary focus behind this is to concentrate on co-creation of large industrial-scale hydrogen projects, laying the groundwork for mass electrolyzer manufacturing and R&D activities to co-develop next-generation electrolyzer technologies. Acciona developed and managed infrastructure and renewable sources, has developed GreenH2chain, a blockchain-based platform that allows customers to visualize the complete green hydrogen value chain in real-time. Nel ASA has launched MC250 and MC500 containerized large-scale PEM electrolysers to expand their product line for the huge production with the lower cost occurred.

July 2020- Air Products, ACWA Power, and the NEOM are into joint venture megaproject to offer carbon-free green hydrogen in Saudi Arabia to worldwide markets.

September 2019- Cummins has acquired Hydrogenics for the development of fuel cell capabilities across a range of commercial markets.

SEGMENTATION

By Technology

• Proton Exchange Membrane (PEM) Electrolysis
• Alkaline Electrolysis
• Solid Oxide Electrolysis
• Anion Exchange Membrane (AEM) Electrolysis

By Application

• Offshore
• Onshore

By End-Use

• Power & Energy
• Transportation
• Chemical
• Industrial
• Manufacturing
• Others

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy
• Asia-Pacific- China, Japan, India
• Latin America- Brazil, Argentina, Colombia
• The Middle East and Africa- United Arab Emirates, Saudi Arabia