Green Hydrogen Market Poised for Breakthroughs in Clean Energy Transition

Green Hydrogen Market Size and Forecast 2025 to 2034

The global green hydrogen market size accounted for USD 8.78 billion in 2024 and is predicted to increase from USD 12.31 billion in 2025 to approximately USD 199.22 billion by 2034, expanding at a CAGR of 41.46% from 2025 to 2034.

Green Hydrogen Market Key Takeaways

• Asia Pacific region has contributed highest revenue share of over 47.22% in 2024.
• By electrolyzer, the PEM electrolyzer segment has generated revenue share of over 26.38% in 2024. PEM electrolyzers segment is growing at a higher CAGR of 41.72% over the forecast period.
• By source, the wind segment has captured revenue share of over 47.68% in 2024.
• By End User, refining segment has generated the revenue 41.85% in 2024.

How has AI benefited the green hydrogen market?

Artificial Intelligence (AI) serves as a prominent tool in the green hydrogen market by assisting firms in the green hydrogen value chain to make better decisions, reduce waste, and increase energy savings. AI can monitor hydrogen production in real-time, especially for electrolysis. Through the use of smart sensors and AI models, companies can monitor hydrogen production in real-time, which allows them to identify issues fast and fix them early before they become more serious problems. Additionally, AI can be used to predict energy demand and control the timing of when to produce hydrogen based on electricity prices and, if there is any excess capacity, primarily based on renewable energy. In Germany and Japan, for example, various firms are deploying AI to manage large hydrogen plants more effectively and efficiently than before. AI will also be able to assist with transporting and storing hydrogen through possible routes that are evaluated by the cost and safety of each route before even starting the journey. Altogether, the use of AI in the green hydrogen value chain will provide companies with a faster, cheaper, and cleaner process.

• For instance, Siemens Energy has been using AI in the management of hydrogen production and has optimized what improved energy and reduced operating costs of the plant.

Asia Pacific Green Hydrogen Market Size and Growth 2025 to 2034

The Asia Pacific green hydrogen market size was evaluated at USD 4.15 billion in 2024 and is projected to be worth around USD 97.08 billion by 2034, growing at a CAGR of 41.96% from 2025 to 2034.

Based on the region, the Asia-Pacific segment dominated the global green hydrogen market in 2024, in terms of revenue and is estimated to sustain its dominance during the forecast period. China accounts for the largest market share in the Asia-Pacific green hydrogen market. With a 20-million-ton output, China leads the global green hydrogen market, accounting one third of global production.

Asia Pacific dominated the global green hydrogen market with the largest share in 2024. Favourable policies and initiatives by governments in the region are promoting the adoption of clean energy solutions like green hydrogen. Abundance of renewable energy resources such as solar, hydro ad wind is contributing to cost-effective production of green hydrogen through electrolysis. Additionally, growing focus on reducing carbon emissions, advancements in electrolyzer technology, rising investments in renewable energy infrastructure for energy security as well as increased collaborations between local and international companies for deploying large-scale green hydrogen projects is bolstering the region’s market growth. Regional players, like Australia, Japan and South Korea are highly focused on adoption of green hydrogen.

• For instance, in May 2025, India’s Ministry of New and Renewable Energy launched the Green Hydrogen Certification Scheme (GHCI) for certifying green hydrogen production through a transparent and credible framework. The scheme focuses on encouraging domestic production and export of green hydrogen to meet India’s climate and sustainability goals.

China

China is ahead of all countries in the Asia-Pacific green hydrogen market due to significant government encouragement, large companies, and substantial amounts of solar and wind generation. The government of China also has specific aims in place, establishing targets to reduce emissions, and has started to build many green hydrogen plants. China manufactures electrolyzers, which are machines in green hydrogen, are now manufactured cheaper price than any other nation in the world. China intends to explore green hydrogen for transportation, power, and potentially the steel industry. With a significant population and anticipated growth in energy, China has many opportunities to grow and take the lead in using and developing green hydrogen technology and infrastructure worldwide.

• Europe green hydrogen market size was accounted for USD 2,065.24 million in 2024 and it is growing at a CAGR of 38.30%.
• U.S. green hydrogen market size was reached at USD 1,311.90 million in 2024 and it is growing at a CAGR of 39.34%.
• France green hydrogen market was valued at USD 584.05 million in 2024 and it is growing at a CAGR of 38.44%.
• Germany green hydrogen market size was estimated at USD 629.90 million in 2024 and it is growing at a CAGR of 38.56%.
• China green hydrogen market size was valued at USD 1,352.46 million in 2024 and it is growing at a CAGR of 42.34%.

On the other hand, the Europe segment also held the notable share in market. The hydrogen is the primary source of energy in Europe. The European Green Deal aims to reduce greenhouse gas emissions while also preparing Europe’s economy for a climate-neutral future.

Europe

Europe is the region experiencing the fastest growth in the green hydrogen market. This is due to strict climate laws and frustration with oil and gas producers from abroad, as well as green energy goals. The European Union would like to be climate-neutral by 2050, and green hydrogen is a big part of that. There are so many countries across Europe building hydrogen plants, and some are going to use wind and solar energy to build clean fuels. The European government is also providing funding to support companies that will proceed with developing the future of hydrogen technology. Clean fuels are being demanded in sectors like steel, transport, and chemicals, creating upticks in demand for hydrogen. There is a demand for green hydrogen, converting it from an idea to a commodity. Europe sees green hydrogen as its ticket to a clean energy future and regional independence from oil and gas producers abroad.

Germany

Germany is the leader in the European green hydrogen market due to successfully combining realistic energy targets, government investment, and leading technology. Germany has focused on developing large-scale hydrogen projects using wind and solar generation. Germany is also globally connected through imports of green hydrogen through cooperative development partners. The German government invests heavily to fund the development of hydrogen plants and the innovation of new uses for clean fuel. Germany has developed large-scale users of hydrogen in the transportation and steel industry to decrease emissions, and the region’s level of investment in research and development, and diversification of construction partnerships have successfully escalated their capabilities into high levels of success.

Green Hydrogen Market Growth Factors

Green hydrogen is hydrogen produced entirely from renewable sources. Green hydrogen emits much less CO2 than grey hydrogen, which is made by steam reforming natural gas and accounts for 95% of the market.

The green electricity or power can be converted into a transportation fuel or used as a feedstock in industrial operations using green hydrogen as a link between them. Green hydrogen and derived fuels, such as green ammonia, will allow market players to integrate wind energy into a container ship’s fuel tank. As a result, hydrogen has the potential to considerably increase the decarbonization potential of renewable energy sources.

Hydrogen produced from renewable sources can be transformed into heat or electricity and used in a variety of ways for residential energy and electricity supply. As a result, in the case of weather-related power fluctuations, renewable energies will always be available in sufficient amount.

At the moment, fossil fuels account for 96% of hydrogen production. The traditional mode of production emits climate-disrupting carbon dioxide into the atmosphere. On the other hand, water is electrolyzed into hydrogen and oxygen in the power-to-gas technique.While the hydrogen is being used, the by-product oxygen can be reused or released into the environment.

Hydrogen is the most abundant element on the planet and offers tremendous promise for innovation. It can be used as a fuel or source of energy, as well as raw material in manufacturing industry. Electrolysis technologies are on the verge of becoming profitable, and fuel-cell systems are already in use. However, in fact for hydrogen from power-to-gas facilities to be successfully marketed economically, Germany has set to build a technology-open legal environment for the use of green hydrogen on a large scale.

Due to its ability to cut carbon emissions, green hydrogen has been in great demand in recent years. It also helps meet the world’s rising needs. Because it is a long-term energy source, its use is projected to rise. The global green hydrogen market is predicted to develop as people become more aware of the benefits of using hydrogen as an energy carrier. Furthermore, the industry is being driven by an increase in environmental concerns, emphasizing the need for clean energy generation to reduce emissions.

Moreover, the green hydrogen business is growing as the usage of nuclear and green hydrogen fuels increases. However, the initial investment required to set up hydrogen infrastructure, as well as prohibitive maintenance costs, are the principal issues limiting the growth of the green hydrogen market.

Due to the rise in rules and laws favoring green hydrogen in the energy sector, the green hydrogen market will see a boost in revenue. This is in addition to growing environmental worries over increased carbon emissions from the use of fossil fuels. Moreover, the growing number of hydrogen integration projects will expand the global market’s footprint. Furthermore, the ability to conveniently store green hydrogen and use it at a later period of time will propel the market growth for green hydrogen during the forecast period.

The green hydrogen is used widely in wind farms. The onshore and offshore wind farms are common. In comparison to onshore facilities, offshore plants have consistent output throughout the year. Wind energy costs have dropped by 50% since few decades. This factor has boosted the acceptance of wind power as a source of green hydrogen. The offshore and onshore wind farms are now used to generate electricity for green hydrogen production.

The mobility end use industry has the greatest proportion of the green hydrogen market in terms of value. This is due to the fact that hydrogen has three times the energy per unit as fossil fuels. The mobility industry had no viable alternatives to fossil fuels before the commercialization of fuel cell-based engines. However, fuel cell electric vehicles offer a long-term solution. For the automotive sector, green hydrogen is a realistic and practical option. Green hydrogen-powered vehicles are ideal for variety of purposes.

Market Scope

Market Dynamics

Drivers

Growing government support

Governments play a crucial role in creating supportive policy frameworks and regulations that provide long-term stability and predictability for the green hydrogen market. Governments across the globe are focused on setting up renewable energy targets, establishing emission reduction goals, and implementing carbon pricing mechanisms, all of which incentivize the demand for green hydrogen. Additionally, regulations that promote the integration of green hydrogen into existing energy systems, such as blending it with natural gas in pipelines or supporting fuel cell technology, this element drives market growth.

• In January 2022, the Indian Union Cabinet proposed ‘The National Green Hydrogen Mission’ while intending the objective of decarbonizing the nation with the production of clean energy sources. The government’s strategy aims to make the nation a global leader in the production of green hydrogen. The mission is projected to develop at least 5 million metric tons of green hydrogen per annum.
• In March 2023, the Canadian Prime Minister and Minister of Finance introduced ‘Made in Canada Plan’ in the House of Commons. This plan through Budget23, for year 2023 revolves around the clean energy investment. With the plan, the government stated it supports the production of clean and green hydrogen in the country.

Rising demand for renewable energy solutions

Renewable energy sources are intermittent in nature, their generation is all dependent on weather conditions. Energy storage becomes crucial for balancing the intermittent supply and demand. Green hydrogen can be produced during periods of excess renewable energy generation and stored for later use. It can be converted back to electricity through fuel cells or used as a feedstock in industrial processes, providing a reliable energy storage solution and contributing to grid stability. Many governments, private organizations and regions have set targets along with a few regulatory policies for transitioning to renewable energy and reducing carbon emissions. These goals often include a focus on the production of green hydrogen as a key component of energy transition strategies. The increasing demand for renewable energy to achieve these targets naturally drives the demand for green hydrogen as a clean energy carrier.

For instance, the European Union has aimed to produce approximately 10 million tons of renewable hydrogen, ammonia and other clean fuel components by 2030. The commission aims to improve the hydrogen infrastructure with this strategy.

Restraint

High cost of production

The primary cost driver in green hydrogen production is electrolyzers, which are used to split water molecules. Electrolyzer technology is still relatively new and not yet at a mature stage of development. As a result, the current generation of electrolyzers is expensive, and the economies of scale have not been fully realized. To establish a robust green hydrogen market, significant infrastructure investments are required. This includes building electrolysis facilities, hydrogen storage and transportation infrastructure, and retrofitting existing pipelines or establishing new ones. These upfront infrastructure costs further contribute to the high production costs. Thus, the cost of production hinders the market expansion by acting as a major restraint for the market’s growth.

Limitations with infrastructure

Hydrogen has low energy density, and it is challenging to transport and store it efficiently. Dedicated pipelines for hydrogen are limited, and retrofitting existing natural gas pipelines can be costly and complex. Lack of infrastructure for bulk transportation, such as shipping and trucking, adds to the challenges of distributing green hydrogen to end-users. Green hydrogen requires specialized storage facilities to prevent leaks and ensure safety. Existing storage infrastructure for hydrogen is limited, and developing adequate storage solutions for large-scale green hydrogen production and utilization remains a challenge. Moreover, refueling hydrogen stations, building the overall planned infrastructure and transportation limitations hamper the market’s expansion by acting as a restraint for the market’s growth.

Opportunity

Rising investments in research and development activities

Research and development efforts aim to focus on boosting the performance and durability of green hydrogen technologies. Improving the efficiency and lifespan of electrolyzers can contribute to higher hydrogen production rates and reduced maintenance costs. Similarly, advancements in fuel cell technology can enhance the efficiency and reliability of hydrogen-powered vehicles and other applications. While addressing the major cost constraint of the market, such investments can drive down the costs associated with green hydrogen production. As research progresses, scientists and engineers can identify ways to optimize processes, improve efficiency, and reduce the need for expensive materials. Lower production costs make green hydrogen more competitive with fossil fuels, attracting investment and increasing market adoption.

Technological advancements

Specific technological advancements in electrolyzers, renewable energy production and decarbonization processes are observed to open a plethora of growth opportunities for the global green hydrogen market. Technological advancements contribute to the development of infrastructure required for the green hydrogen market. This includes advancements in hydrogen storage and transportation methods, such as high-pressure or cryogenic storage, as well as the establishment of hydrogen refueling stations and pipelines. As the infrastructure expands, it creates more opportunities for the widespread adoption of green hydrogen. 

Challenge

Lack of awareness in underdeveloped areas

Underdeveloped areas often have limited infrastructure, including energy grids and transportation networks. This lack of infrastructure makes it difficult to establish and distribute green hydrogen projects effectively. Without the necessary infrastructure, it becomes challenging to create local production and consumption centers for green hydrogen. Many underdeveloped areas face economic challenges, including poverty and limited financial resources. Investing in green hydrogen projects often requires significant capital and technical expertise, which may be difficult to obtain in these regions. The lack of financial resources and expertise makes it challenging to initiate and sustain green hydrogen initiatives. Thus, the lack of awareness in underdeveloped areas is observed to pose a challenge for the growth of green hydrogen market.

Electrolyzer Insights

The PEM segment led the green hydrogen market with 26.38% share in 2024. PEM electrolyzers produce high-purity hydrogen at a faster rate compared to other technologies, making them ideal for green hydrogen production. Their compact design allows for easier integration into renewable energy systems and scalability, catering to varying energy demands. PEM electrolyzers can quickly adjust to fluctuations in renewable energy sources, such as solar and wind, ensuring stable hydrogen production.

On the other hand, the solid oxide electrolyzer segment is expected to grow at rapid pace during the forecast period. Solid oxide electrolysis uses electrolytes that are easily replicated or interchangeable and have a low corrosive effect on both electrodes. The long life of an electrolyzer is influenced by this factor. Due to the difficulty of hydrogen ions diffusing into an electrolyte solution, alkaline electrolysis tends to create green hydrogen.

Global Green Hydrogen Market, By Electrolyzer Type, 2022-2024 (USD Million)

Source Insights

The solar renewable energy sector dominates the green hydrogen space because it is an abundant resource in many parts of the world and is very beneficial when there is an abundance of sunlight. Countries such as India, Australia, and a few regions of Africa have established solar PV and solar thermal energy that can be used to run the electrolyzers that make hydrogen. Since hydrogen is converted from solar energy, solar also represents continuous and intermittent renewable power throughout the day hours which is an excellent way to reduce carbon emissions and associated costs. The large-scale projects being deployed in deserts around the world, components for hydrogen, also make intensive hydrogen solar power projects far more attractive in terms of the project.

Wind energy plays a prominent role and is the fastest growing segment in the green hydrogen market due to the alignment of producing wind resources in windy places such as Europe and the coastal regions of water bodies. The wind turbines are also always working night and day, unlike solar. This represents a more stable hydrogen electrolyzer production. The Germany and UK governments have also advocated for wind-to-hydrogen projects to help reduce burdensome emissions developed from heavy industries.

Global Green Hydrogen Market, By Source, 2022-2024 (USD Million)

End User Insights

The ammonia segment dominated the green hydrogen market in 2024 because it can be chemically converted into fertilizers and easily stored and transported. It is also a clean-burning fuel, making it useful as a shipping fuel and a low-carbon fuel to power plants. Since many countries already have infrastructure for ammonia use, switching to ammonia produced from green hydrogen is much easier and quicker.

The iron and steel industry is anticipated to experience the fastest rate of growth in the green hydrogen market because this industry is interested in reducing carbon emissions. In the steel production process, hydrogen can replace steel, making it more environmentally friendly. In Europe, there is a demand for cleaner steel to meet the climate targets, which translates into the growth of new green hydrogen-based steel plants.

Global Green Hydrogen Market, By End User, 2022-2024 (USD Million)

Key Companies & Market Share Insights

In the green hydrogen market, there is fierce rivalry to reduce manufacturing costs, develop innovative process technology, expand, and enhance the usage of green hydrogen in end use sectors. The key market players are attempting to grow their market shares by employing various techniques in response to such possibilities in the sector.

Green Hydrogen Market Companies

• NEL ASA
• ITM Power
• ENGIE
• SEIMENS
• Air Products Inc.
• Messer Group GMBH
• Plug Power Inc.
• Cummins Inc.
• Air LIQUIDE
• LINDE

Recent Developments

• In August 2025, Statkraft secured a lease for a piece of land in Shetland next to the abandoned Scatsta Airport to build its 400 MW green hydrogen-to-ammonia plant, Shetland Hydrogen Project 2. The project was going to use excess wind energy from local wind farms that are yet to be built and convert it into ammonia for use as marine fuel and fertiliser. [Source: https://www.hydrogeninsight.com]
• In August 2025, OQ Gas Networks signed a term sheet with Belgium's Fluxys to co-develop hydrogen transportation at agreed sites across Oman. They planned to repurpose natural gas pipelines and build 300 – 400 km of new hydrogen lines by 2030 through OQ Gas Networks, with Fluxys holding a minority operational stake. This was intended to support Oman's green hydrogen development and Net Zero goals.
  [Source: https://www.pipeline-journal.net]
• In August 2025, India inaugurated its first Make-in-India 1 MW green hydrogen plant at Deendayal Port, Kandla. This facility was established in four months, with a locally manufactured electrolyser, and was also entirely designed and built by locally sourced engineering teams. The facility was built for initial use to power port bus fleets and port street lighting systems, but the state planned and started to develop the project to 10 MW and facilitate the powering of full port operations. [Source: https://www.newsonair.gov.in]
• In August 2025, Copenhagen Infrastructure Partners bought a 70% share in the first 100 MW phase of H2Apex's green hydrogen facility in Lubmin, Germany. CIP had committed €15 million pre-final investment decision, and total EU IPCEI funding amounted to €167 million. Construction was planned to begin in 2026 and commissioning by 2028, and would aim to supply up to 10,000 tonnes per annum. [Source: https://www.h2-view.com]
• In August 2025, Four Zeros Energy partnered with Vergia AS to develop and finance a portfolio of green hydrogen projects throughout the UK. The first of its initiatives, the 20 MW St Austell project in Cornwall, had been selected as a shortlist product under the UK HAR2 allocation round, with production to supply the regional mining operations and carbon reductions by 2028. [Source: https://www.renews.biz] 

Segments Covered in the Report

By Electrolyzer

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

By Source

• Solar Energy
• Wind Energy
• Others (hydropower, geothermal, and hybrid of solar & wind)

By End User

• Refining
• Ammonia
• Methanol
• Iron & Steel
• Others

By Geography

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
• Rest of the World