Global Green Hydrogen Market Size By Technology (Proton Exchange Membrane (PEM) Electrolysis, Alkaline Electrolysis, Solid Oxide Electrolysis, and Anion Exchange Membrane (AEM) Electrolysis), Application (Offshore, and Onshore), End-Use (Power & Energy, Transportation, Chemical, Industrial, Manufacturing & Others), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 - 2030
Market Perspective
The global Green Hydrogen Market was worth around USD 2.74 billion in 2022 and is anticipated to grow to around USD 75.97 billion by 2030, progressing at a robust CAGR of around 51.64% between 2023 and 2030.
The green hydrogen market is experiencing a significant surge in interest and investment, driven by the growing global focus on decarbonization and the transition to renewable energy sources. Green hydrogen, produced through the electrolysis of water using renewable energy, holds immense potential as a clean and sustainable fuel that can address various energy and environmental challenges. One key driver of the market's growth is the increasing adoption of green hydrogen as a replacement for fossil fuels in various sectors, including transportation, industry, and power generation. As countries and corporations commit to reducing their carbon footprint, green hydrogen is emerging as a viable solution to decarbonize these sectors, offering zero-emission alternatives to traditional fuels. Moreover, governments around the world are actively supporting the development of the green hydrogen industry through favorable policies and incentives. These initiatives include grants, subsidies, and tax breaks, aimed at accelerating the deployment of green hydrogen infrastructure and boosting demand. This support is further bolstered by collaborations between public and private entities, fostering innovation and investment in green hydrogen technologies.
The market landscape is witnessing a surge in partnerships and collaborations between various stakeholders, including energy companies, technology providers, and research institutions. These alliances aim to drive advancements in green hydrogen production, storage, and distribution, thereby improving the overall efficiency and cost-effectiveness of the technology. However, challenges remain in scaling up green hydrogen production and reducing its costs to make it economically competitive with conventional energy sources. Investing in research and development, optimizing electrolysis technologies, and expanding renewable energy capacities are crucial to overcoming these barriers.
Key Insights
- Based on technology, the proton exchange membrane (PEM) electrolysis segment held the dominating position in 2022
- Based on application, the offshore segment acquired the largest market share in 2022
- Based on end-use, the transportation segment is anticipated to dominate and grow with the highest CAGR over the forecast period
- On the basis of region, Europe accounted for the largest market share in 2022
Increasing Emphasis on Decarbonization to Propel Product Demand
Consumers and industries are increasingly embracing the shift toward zero-emission goals, driven by government regulations and investor pressure to decarbonize. This transition is particularly evident in the manufacturing, energy, and transportation sectors, where hydrogen is increasingly being utilized to reduce carbon footprints.
In the mobility sector, there is a growing focus on developing vehicles that directly use hydrogen in fuel cells or internal combustion engines. This move aims to provide a cleaner alternative to traditional fossil fuel-powered vehicles. Notably, hydrogen-powered forklifts have already been successfully developed and implemented in various industries across Europe, Asia, and North America, showcasing the practicality and potential of hydrogen as a fuel source. To further accelerate the adoption of hydrogen-powered vehicles, countries worldwide have set ambitious targets. By 2030, these countries aim to more than double the current number of hydrogen-powered vehicles on the roads. This commitment reflects the growing recognition of hydrogen as a crucial component in achieving sustainable transportation and reducing greenhouse gas emissions.
This shift toward hydrogen in the transportation sector is not only driven by environmental concerns but also supported by substantial research and development efforts. The development of advanced hydrogen fuel cell technologies, infrastructure expansion, and the establishment of hydrogen refueling stations are key initiatives being undertaken to enable the widespread adoption of hydrogen-powered vehicles.
High Capital Costs Associated with Infrastructure to Pose Significant Challenges
The production of green hydrogen poses significant challenges due to high initial costs and the lack of infrastructure for transportation and storage. While constructing the plant incurs substantial fixed costs, the economic and safety concerns associated with transporting green hydrogen further complicate the process.
In terms of cost, green hydrogen is on average nearly twice as expensive as grey hydrogen. This price disparity is primarily due to the additional expenses associated with producing hydrogen from renewable energy sources. The application of green hydrogen technology also adds to the overall expense, making it a less cost-effective option compared to other alternatives. Despite its potential as a power source, the low round-trip productivity of stored hydrogen limits its utilization compared to other storage systems. This can lead to the loss of a significant amount of stored hydrogen during the conversion process, reducing its overall efficiency as an energy storage solution. Moreover, storing hydrogen energy is a costly endeavor, especially when compared to traditional fossil fuels. The infrastructure required for hydrogen storage and the associated safety measures contribute to these high costs.
challenges related to cost, infrastructure, and storage highlight the barriers that need to be overcome for green hydrogen to become a more viable and widespread energy solution. However, ongoing research and development efforts, along with advancements in technology and infrastructure, are expected to address these challenges and contribute to the future growth and affordability of green hydrogen as a sustainable energy source.
Recent Development
May 2023 (Acquisition) - NTT Anode Energy Corporation and JERA Co., Inc. reached an agreement with Pattern Energy Group LP, a renewable energy company based in the United States, to jointly acquire Green Power Investment Corporation and other renewable energy businesses in Japan currently under the ownership of Pattern Energy. The completion of the transaction is slated for the end of 2023, pending the fulfillment of all necessary procedures.
June 2022 (Merger) - Fabrum Solutions, a prominent engineering innovator, merged with AFCryo, a renowned global leader in cryocooler and liquefier technology. The merged entity was to operate under the name Fabrum. Additionally, the company appointed Dr. Ojas Mahapatra as its Chief Executive Officer. These changes in corporate identity and leadership came after a period of rapid growth for Fabrum, driven by the increasing demand for its mission-critical technology solutions in various industries worldwide, including the emerging sector of green hydrogen systems.
Segmentation Analysis
Based on technology, the market is further categorized into proton exchange membrane (PEM) electrolysis, alkaline electrolysis, solid oxide electrolysis, and anion exchange membrane (AEM) electrolysis. PEM electrolysis accounted for the largest share in 2022 and is anticipated to continue between 2023 and 2030. The dominance of the PEM electrolysis segment is attributed to its versatility, ability to respond quickly to fluctuations, and cost advantages over alkaline electrolysis. The deployment of large-scale PEM electrolyzer systems, such as the one by Cummins, showcases the potential of this technology in driving the adoption of green hydrogen.
Based on application, the market is bifurcated into offshore & onshore. The offshore sub-segment accounted for the highest revenue in 2022 due to its ability to leverage abundant offshore wind resources to generate electricity for green hydrogen production. Initiatives like Neptune Energy's offshore project highlight the growing importance of offshore hydrogen production in the transition to a sustainable and decarbonized energy future.
Based on end-use, the market is further segmented into power & energy, transportation, chemical, industrial, manufacturing, and others. The transportation sector dominated the demand and, in turn, revenues in 2022 owing to the increasing demand for FCEVs and the environmental benefits associated with the use of green hydrogen. The IEA highlights the potential for significant growth in the adoption of green hydrogen in the transportation sector, paving the way for a cleaner and more sustainable future of transportation.
Europe to Dominate Owing to the Presence of Robust Framework
The green hydrogen market in Europe is anticipated to dominate in 2023 due to significant investments in green hydrogen developments and the presence of major automotive manufacturers. The implementation of robust policies by the EU Commission relating to decarbonization and the aim of lowering the dependency on conventional energy sources is among the major factors attracting investments. Additionally, these manufacturers are actively shifting towards the concept of internal combustion (IC) engines and manufacturing lightweight and fuel-efficient engines. Europe's commitment to renewable energy policies further strengthens its position in the market. For instance, the commitment can be seen through the efforts of BMW and Audi. These companies are not only building hydrogen fuel-cell passenger vehicle prototypes but also integrating them into their existing fleets of battery-powered cars. This demonstrates their dedication to exploring various clean transportation options.
Asia-Pacific to Experience Fastest Growth Due to Rapid Industrialization
The Asia-Pacific region is estimated to witness the highest compound annual growth rate (CAGR) through the forecast period. This can be attributed to the region's growing capabilities in developing infrastructures for storing green hydrogen. In 2022, a survey revealed that Korea and Japan are at the forefront of green hydrogen investments among Asian countries. Toyota and Hyundai, both industrial powerhouses in these countries, are pioneering hydrogen fuel cell technology as a viable clean transportation alternative.
Competitive Landscape
The global green hydrogen market is fragmented with key players such as Air Products and Chemicals, Inc., ENGIE, Air Liquide, Linde plc, Siemens Energy, Nel ASA, Plug Power Inc., ITM Power PLC, Green Hydrogen Systems, and PowerCell Sweden AB. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.
The global Green Hydrogen Market is segmented as follows:
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.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Middle East & Africa
- GCC
- South Africa
- North America
- Rest of Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Global Green Hydrogen Market Size By
- March-2024
- 140
- Global
- energy-and-power
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