Green Hydrogen Market

Analysts at GMI Research estimates that the Green Hydrogen Market size was worth USD 4.3 billion in 2022, and forecast to touch USD 59.2 billion in 2030, growing at a significant higher CAGR of 38.8% from 2023-2030.

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Major Green Hydrogen Market Drivers

The green hydrogen market is witnessing rapid growth due to the rise in expansion of renewable energy, increasing need for end-use industries, and growing favorable government policies and initiatives. Increasing awareness of hydrogen as an energy carrier and the rising usage of nuclear and green hydrogen fuels are predicted to propel market growth. The global market for green hydrogen is expanding as more individuals become aware of its benefits such as it is used as an energy carrier, and only reacts with oxygen to produce heat and water. Utilizing hydrogen as fuel leads to zero emissions of greenhouse gases and other pollutants. Hydrogen-derived fuel cell systems exhibit higher effectiveness compared to traditional combustion-based power plants. Based on the U.S. Department of Energy, while conventional power plants function at 33% to 35% effectiveness, hydrogen fuel cell systems can achieve up to 60% efficiency, with even higher potential when applied for cogeneration.

The growing environmental concerns have driven the industry. The global demand for alternative energy sources, both in developed and emerging regions, is a foremost driver for extension of green hydrogen production. The International Energy Agency stated that a 4.76% rise in global carbon emissions, reaching 33 Gt CO2 in 2021 up from 31.5 Gt CO2 in 2020. In the U.S., carbon emissions were estimated to go beyond 4.46 Gt CO2, exhibiting an increase of over 200 Mt CO2 during 2021. In addition, the market for green hydrogen has witnessed growth due to increased usage of nuclear and green hydrogen fuels. The adoption of green hydrogen has risen with the increased use of renewable energy, contributing to efforts to decrease environmental impact. For instance, IRENA reports indicate that nearly 120 metric tones of hydrogen are consumed around the globe. China has used approximately 23.9 metric tonnes, while the U.S., has registered for nearly 11.2 metric tonnes, contributing to the continuous growth of the global green hydrogen market size.

The rise in global greenhouse gas emissions is connected to the widespread utilization of fossil fuel and the process of urbanization. Gases including methane, carbon dioxide, and nitrous oxide are important in enhancing heat temperature and consequent climate change. The past century has seen a one-degree rise in worldwide temperatures, promoting environmentalists, to motivate the widespread adoption of polluting fossil fuels, driving the growth of global green hydrogen market share.

Moreover, green hydrogen energy emits significantly less CO2 compared to grey hydrogen, which constitutes 95% of the market and is produced through steam-reforming natural gas. Green hydrogen can convert green electricity into transportation fuel or serve as feedstock in industrial procedures. This versatile role allows green ammonia, to integrate wind energy into different applications, such as powering container ships. This potential significantly develops the decarbonization potential of renewable energy sources. Renewable and clean hydrogen is derived from sustainable sources that can be converted into heat and electricity to offer applications for residential energy and power supply. This ensures a consistent and sufficient supply of renewable energy, mitigating challenges linked with weather-related power fluctuations.

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Presently, fossil fuels contribute to 96% of hydrogen production, releasing climate-disrupting carbon dioxide. Contrarily, the power-to-gas technique involves electrolyzing water into hydrogen and oxygen. The generated hydrogen can be used, and the by-product oxygen can be recycled or released into the environment. Moreover, hydrogen is the most abundant element on Earth that holds significant potential because it as a fuel, an energy source, and a raw material in different manufacturing industries. Electrolysis technologies are becoming profitable, and fuel-cell systems are already in use. Germany aims to establish a technology-open legal environment for the successful economic marketing of green hydrogen from power-to-gas facilitates on a large scale.

Green hydrogen is in high demand due to its carbon emission reduction capabilities and its capacity to meet growing global energy requirements. Its use is predicted to rise speedily as a long-term energy source. The global green hydrogen market is predicted to grow by rise in awareness of the hydrogen benefits as an energy carrier increases. Environmental concerns and the emphasis on clean energy generation to decrease emissions are propelling the industry growth. Meanwhile, the primary challenges limiting the growth of the green hydrogen market include the initial investment needed for hydrogen infrastructure setup and high maintenance costs. However, the green hydrogen market is estimated to observe increased revenue due to increasing regulations favoring green hydrogen in the energy sector. This growth is further propelled by increasing environmental concerns regarding increased carbon emissions from fossil fuel usage.

By end-use, the mobility industry dominated the global green hydrogen market

Green hydrogen is in high demand in the mobility industry, especially for practical applications in fuel cell vehicles. These vehicles using hydrogen as fuel it emits only water steam, making hydrogen a clean and environmentally friendly fuel for cars that are free from pollutants and greenhouse gases and contribute to climate change. Hydrogen charging stations resemble traditional filing stations, and unlike battery-powered electric cars that demand charging through a plug, hydrogen vehicles can refuel quickly and offer an efficient procedure. The hydrogen economy holds promising prospects and could be a significant player in the energy transition. With high energy efficiency, zero local pollutants, and the potential to significantly decrease greenhouse gas emissions, hydrogen offers valuable contributions to a cleaner future.

Power industry is predicted to be the fastest-growing end-user in the global green hydrogen market

The power industry is predicted to witness steady growth in the forecast period. In the power industry, projects include supplying electricity to the grid by using gas turbines or fuel cells. While renewable energy is gradually replacing conventional fossil fuel-derived power plants around the globe, but the major challenge faced by them is effectively responding to variabilities in load conditions. Moreover, green hydrogen serves as a sustainable solution for storing excess energy generated by sources like solar and wind, which can be later utilized as required. Its application in gas turbines aids in managing load fluctuations effectively. Green hydrogen either in its direct form or as ammonia, proves to be valuable in addressing the high-power demands of energy-intensive industries like steel, industrial heating, heavy mobility, and refining.

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Europe dominated the largest revenue share in the global market by region

Europe dominated the green hydrogen market due to the presence of giant market players and the rise in research and development spending. For instance, in 2019, the government of the U.K. announced an investment plan of USD 14.8 billion in a project that is predicted to utilize 4 GW of offshore wind to produce green hydrogen by 2030. In addition, the market players in Europe’s green hydrogen market are majorly focusing on different technological innovations to broadly commercialize the creation of green hydrogen and decrease the cost of renewable-powered electrolysis.

Top Market Players

Various notable players operating in the market include Air Liquide, Air Products Inc., Bloom Energy, Cummins Inc., Engie, Linde plc., Nel ASA, Siemens Energy, Toshiba Energy Systems & Solutions Corporation, Uniper SE among others.

Key Developments:

• • In 2022, Air Liquide and Siemens Energy joined hands to produce a series of industrial-scale renewable hydrogen electrolyzers across Europe.
  • In 2022, Air Liquide, Toyota Motor Europe, and CaetanoBus signed MoU to develop solutions for integrated hydrogen.
  • In 2022, Lhyfe and wpd announced a collaboration to produce renewable green hydrogen on a large scale in connected with the Storgrundent offshore wind farm.
  • In 2021, GAIL (India) Ltd has announced to build India’s largest green hydrogen plant to supplement its natural gas business with carbon-free fuel. The plant will be capable of producing 10MW capacity of hydrogen.
  • In 2021, the US Department of Energy has announced USD 20 million in technology that will produce clean hydrogen energy from nuclear power. It will allow clean hydrogen to serve as a source for zero-carbon electricity and represent a significant economic product for nuclear plants beyond electricity.

Segments Covered in the Report:

The Global Green Hydrogen Market has been segmented on the basis of Technology and Renewable Source. Based on the Technology, the market is segmented into Alkaline Electrolysis, PEM Electrolysis. Based on the Renewable Source, the market is segmented into Wind Energy, Solar Energy, Others

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Market Segmentation

Global Green Hydrogen Market by Technology

• • Alkaline Electrolysis
  • PEM Electrolysis

Global Green Hydrogen Market by Renewable source

• • Wind Energy
  • Solar Energy
  • Others

Global Green Hydrogen Market by Region

• • North America Green Hydrogen Market (Option 1: As a part of the free 25% customization)

    • By Technology
    • By Renewable source
    • US Market All-Up
    • Canada Market All-Up

  • Europe Green Hydrogen Market (Option 2: As a part of the free 25% customization)

    • By Technology
    • By Renewable source
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Green Hydrogen Market (Option 3: As a part of the free 25% customization)

    • By Technology
    • By Renewable source
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Green Hydrogen Market (Option 4: As a part of the free 25% customization)

    • By Technology
    • By Renewable source
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating in the Green Hydrogen market (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Air Liquide
  • Air Products Inc.
  • Bloom Energy
  • Cummins Inc.
  • Engie
  • Linde plc.
  • Nel ASA
  • Siemens Energy
  • Toshiba Energy Systems & Solutions Corporation
  • Uniper SE