Green Hydrogen Market Size (2023-2028):

The Global Green Hydrogen Market size was worth US$ 648.2 million in 2022 and is anticipated to reach US$ 7621.8 million by 2028, registering with a CAGR of 57.6% during the forecast period 2023-2028.

Market Drivers:

The green hydrogen market is growing due to its popularity as an eco-friendly solution for various industries. Many sectors, including manufacturing, transportation, and chemicals, traditionally rely on fossil fuels. Green hydrogen offers a cleaner alternative, serving as a substitute or supplement in processes like steel production, ammonia synthesis, and fuel cell vehicles. This transition to green hydrogen plays a crucial role in decarbonizing these industries, significantly reducing their greenhouse gas emissions and environmental footprint. As companies seek sustainable practices and governments enforce stricter emission regulations, the green hydrogen market continues to flourish as a critical component in achieving decarbonization goals.

The green hydrogen market is driven by energy storage and grid stability. During times of abundant renewable energy production, such as sunny or windy days, surplus energy can be harnessed to generate green hydrogen through electrolysis. This stored green hydrogen is a versatile resource, capable of being reconverted into electricity or used across various applications when energy market demand is at its peak or renewable energy generation is insufficient. As a result, this inherent flexibility helps bolster grid reliability, diminish energy wastage, and enhance the dependability of renewable energy sources, propelling the growth of the green hydrogen market.

Market Restraints:

The green hydrogen market faces significant restraints due to its cost compared to conventional hydrogen made from natural gas. Producing green hydrogen, which relies on renewable energy sources, is currently more expensive. Also, scaling up the production of green hydrogen to meet increasing demand presents a challenge. These substantial costs can be a deterrent for many small businesses to adopt. As a result, it slows down the market growth of green hydrogen and hinders the overall adoption.

Market Recent Developments:

• In 2023, Siemens Energy expanded its green hydrogen production capacity by developing advanced electrolysis systems that use renewable energy sources.
• In 2023, Air Liquide invested in the construction of large-scale green hydrogen production facilities, aiming to meet the rising demand from various sectors, including industry and transportation.
• In 2023, Plug Power made strategic investments to expand its green hydrogen production capacity, focusing on fuel cells and electrolyzers.
• In 2022, McPhy Energy introduced compact electrolyzer solutions for on-site hydrogen production, catering to industries seeking reliable and sustainable hydrogen sources.

GREEN HYDROGEN MARKET REPORT COVERAGE:

Market Segmentation:

Green Hydrogen Market - By Technology:

• Alkaline Electrolyzer
• Polymer Electrolyte Membrane (PEM) Electrolyzer 

Based on technology, alkaline electrolysis holds the largest market share, at 65%, during the forecast period. It involves splitting water into hydrogen and oxygen using an alkaline solution as the electrolyte. This technology is valued for its cost-effectiveness and long history of use in industrial applications, especially in sectors like ammonia production and metal processing. Alkaline electrolyzers are typically employed for large-scale hydrogen production and are known for their efficiency, making them a significant player in the green hydrogen production landscape.

The PEM (Proton Exchange Membrane) electrolysis segment is expected to grow at a CAGR of 24% during the forecast period. It employs a solid polymer electrolyte membrane to facilitate the water-splitting process, generating hydrogen and oxygen. PEM electrolyzers are renowned for their efficiency, rapid response times, and compact design. They are gaining attention for various applications, including hydrogen fuel cell vehicles and distributed hydrogen generation, where quick startups, shutdowns, and operational adjustments are essential. This technology's versatility and responsiveness make it a significant player in the green hydrogen production landscape.

Green Hydrogen Market - By Application:

• Power Generation
• Transport
• Others

Based on Application, the transportation sector holds 42% of the market share during the forecast period. It serves as an eco-friendly fuel for different modes of transport, including fuel cell electric vehicles (FCEVs), hydrogen-powered buses, and trucks. Its adoption in transportation is driven by the imperative to curtail carbon emissions and combat air pollution. FCEVs offer zero-emission mobility, extended driving ranges, and shorter refueling durations, making green hydrogen a compelling choice for a sustainable and environmentally conscious future of transportation.

The power generation sector holds the second biggest segment, and it is expected to generate a revenue of 180 million during the forecast period. Through electrolysis, surplus renewable electricity, like solar and wind power, is converted into green hydrogen. This stored hydrogen can be deployed during peak energy demand or when renewables are not generating Power. Green hydrogen enhances grid stability, bolsters the reliability of renewable sources, and substantially reduces greenhouse gas emissions in the energy industry. It stands as a pivotal solution for a more sustainable and resilient energy landscape.

Green Hydrogen Market - By End-User:

• Petrochemical
• Food and Beverages
• Medical
• Chemical   Glass
• Others

Based on End-User, the petrochemical industry holds the largest revenue of 105 million during the forecast period; it encompasses refining and chemical production and has long relied on hydrogen, often produced from fossil fuels. The emergence of green hydrogen, generated using renewable energy sources, offers a sustainable alternative. Hydrogen is vital in various petrochemical processes, such as hydrocracking and hydrotreating. Shifting to green hydrogen in this sector is pivotal for curtailing carbon emissions and advancing sustainability objectives, aligning with the industry's transition towards cleaner and more eco-friendly practices.

The food and beverage industry is estimated to showcase a notable CAGR during the forecast period, including the hydrogenation of edible oils and fats, generating hydrogenated water, and serving as a reducing agent in food processing. The increasing demand for green hydrogen in this sector reflects a commitment to environmentally friendly and sustainable production methods. By transitioning to green hydrogen, the food and beverage industry aligns with eco-conscious practices, promoting cleaner and greener processes while meeting the needs of consumers who value sustainability and responsible production.

Green Hydrogen Market - By Region:

• North America
• Europe
• Asia-pacific
• Middle East and Africa
• Latin America

Europe holds the largest market share at 55%, with a CAGR of 8% during the forecast period, demonstrating a firm dedication to carbon neutrality and advancing green hydrogen production. The European Union's ambitious Green Deal and Hydrogen Strategy underscore the significance of green hydrogen in the region's decarbonization endeavours. Nations like Germany, Spain, and the Netherlands are making substantial investments in green hydrogen projects and infrastructure, positioning Europe as a frontrunner in the global green hydrogen market.

North America leads the second biggest market with a revenue of 123 million during the forecast period, with a strong emphasis on clean energy and sustainability, and is heavily investing in green hydrogen production. Supportive government policies, technological advancements, and a rising demand for renewable energy sources have established North America as a frontrunner in the green hydrogen sector. The region's dedication to reducing carbon emissions and championing hydrogen as a clean energy solution is propelling substantial growth in this industry.

The Asia-Pacific region is expected to grow fastest during the forecast period due to the rise in industrialization and urbanization, and the demand for clean energy is propelling the need for green hydrogen. Governments in the region are increasingly acknowledging hydrogen's potential as a clean energy source and are introducing favourable policies and incentives. 

Latin America, and Middle East & Africa are predicted to grow with a healthy CAGR during the forecast period. 

Impact of COVID-19 on the Green Hydrogen Market:

The COVID-19 pandemic had a significant impact on the Green Hydrogen Market. Initially, the global economic slowdown and uncertainty led to delays in renewable energy projects, which are critical for green hydrogen production. Investment in green hydrogen infrastructure faced challenges as governments and industries shifted their priorities toward healthcare and economic recovery. However, the pandemic also underscored the importance of clean energy and sustainability. As countries reevaluated their environmental commitments, green hydrogen gained prominence as a key solution for decarbonizing various sectors, such as transportation and industry. As economies began to recover, governments and industries announced ambitious green hydrogen plans and investments to stimulate growth in the sector. Overall, the Green Hydrogen Market is expected to rebound and experience significant growth. As economies recover and the global commitment to reducing greenhouse gas emissions strengthens, green hydrogen production and applications are poised to expand. The market's future is promising, with advancements in electrolysis technology, renewable energy integration, and a growing emphasis on sustainable energy solutions.

Market Key Players:

1. Siemens Energy
2. Air Liquide
3. Hydrogenics
4. McPhy Energy
5. Nel ASA
6. ITM Power
7. Ballard Power Systems
8. Plumgrid
9. Sinopec
10. ENGIE