The global clean hydrogen market size was valued at USD 1.41 billion in 2021 and is expected to surpass around USD 5.95 billion by 2030, growing at a significant CAGR of 17.36% during the forecast period 2022 to 2030.
The clean hydrogen market is expected to achieve the net zero goal as it helps in. The usage of this hydrogen is known to be clean as it is free from any pollutants and any emissions that pollute the environment. There is varied number of ways for the production of hydrogen. Depending upon the way the hydrogen gas is produced, it could either be blue, green or Gray. Clean hydrogen can be manufactured in three different ways with the use of fuels which could be more carbon intensive and the outcome is gray hydrogen and a lower carbon intense pathway is able to provide blue or green hydrogen.
Green hydrogen is obtained by the water electrolysis method. The Asia Pacific region has a great rate of carbon dioxide emission into the environment. The increase in the demand for fuel cell vehicles shall help in order to curb these emissions in various regions like Asia Pacific, North America and Europe. Clean hydrogen is expected to have the greatest application in transport services as they are used to charge the FCV vehicles.
The clean hydrogen market is expected to grow during the forecast as there is an increased awareness regarding the carbon emissions and the alternatives for the same. In many nations across the globe due to industrialization and modernization, the emission of the greenhouse gases has increased. This tremendous increase of the greenhouse gases globally has affected the environment a lot. Carbon dioxide, Nitrous oxide, Methane or other greenhouse gases are responsible for raising the global temperature. The nations which have the highest greenhouse gases emission are United States, China, Russia and European Union. Hydrogen gas will have many applications in various processes like power generation, building, industry, transportation. As it is a clean alternative the fossil fuel used in these could be replaced by hydrogen gas. Thus, it is expected that there should be a tremendous growth in the use of clean hydrogen in all of these industries.
Clean hydrogen is expected to provide zero emission of carbon dioxide into the environment, thereby helping in reducing the global temperature. Many European countries have decided to be carbon free by the year 2050 as there is a raise in the global temperature. Clean hydrogen will be a great alternative for fossil fuels, gas as well as oil. There's an increase in the cost competitiveness in clean hydrogen market and the extensive area of usage of this hydrogen, along with the benefits that it offers there is expected to be a great growth during the forecast period. Various government policies are supporting the growth of clean hydrogen market.
Report Scope of the Clean Hydrogen Market
|Market Size by 2030||USD 5.95 Billion|
|Growth Rate from 2022 to 2030||
CAGR of 17.36%
|Europe Market Share in 2021||57%|
|Alkaline Electrolyzer Segment Market Share in 2021||59%|
|Forecast Period||2022 to 2030|
|Segments Covered||Technology, End User, Geography|
|Companies Mentioned||Air Products Inc, Clean Hydrogen System, Cummins Inc, Toshiba Energy System & Solution Corporation, Nel ASA, SGH2 Energy, SunGreenH2, Lindeplc, Air Liquide, Engie|
On the basis of the technology, the alkaline electrolyzer method is expected to have a greater market share 59% in 2021 as this is one of the easiest hydrogen production method which helps in producing 99.9% pure gas during the process. The alkaline electrolyzer technique is growing faster due to it involves low price for production as compared to the other electrolyzers. The technique makes use of nickel coated stainless steel and also zirconium dioxide based diaphragms that are extremely robust. The alkaline electrolyzer is projected to hit over USD 1,278.50 million by 2027.
Moving to all the benefits provided by the alkaline electrolyser method the market for this technique is expected to have a larger share during the forecast. The PEM Electrolyzer segment is also expected to have a good share as it is very important for changing the power inputs in a very responsible manner. The various components of the electrolyzer are current collectors, flow channels and membrane electrode assembly.
End User Insights
The clean hydrogen market has applications in many ways, or it has many end users like the industrial the power generation or the transport. The transport sector is expected to have the largest share during the forecast period and it is expected to grow well. The transport sector had about 46% share till the year 2021. In few selected countries there are companies that are selling hydrogen cars. So there's an increase in the use of hydrogen in transport. Many other nations are also opting for hydrogen cars in their countries. As the demand for these hydrogen vehicles will grow in other countries, the transport sector will see a great increase with share.
Europe accounted the largest revenue share of around 57% in 2021. As many developed as well as developing nations are aiming for net zero emissions and decarbonizing their economies. The clean hydrogen market is expected to grow. In order to achieve the net zero target by the year 2050, many stringent policies are applied by nations across the world. The manufacturing of clean hydrogen has provided a great opportunity in order to curb these emissions and bring down the global temperature. Many nations are trying to adopt clean hydrogen in various industries. There is extensive research and development in this field in order to provide cost effective services. In order to have stringent frameworks and policies that are environment friendly, there is a great contribution from countries like UK, Norway, France, Italy and Spain. In the year 2020, the European market had the largest share in the global clean hydrogen market and accounted for 82.50% in 2021. There's a speedy growth in the European region owing to the adoption of clean hydrogen market. An infrastructure that will provide about 100 megawatts of clean hydrogen is already built in Europe by the year 2024. The European Union has announced a hydrogen strategy which shall help in installing a 6 GW renewable hydrogen electrolyzer in the European region. The European clean hydrogen market is expected to hit around USD 1,245.22 million by 2027.
The APAC clean hydrogen market is expected to drive growth at a CAGR of 14.5% during 2022 to 2030. Australia's high total industry has a broad support by the government. There are abundant resources that are fueling the growth of the Australian hydrogen industry. In order to centralise the infrastructure and market expertise, it is expected that there shall be a domestic growth in Australia which would have regional hydrogen hubs. By fostering the relationships with the global community with the help of policies, regulations and reviews of various technologies, the federal and the state governments of Australia are setting a foundation for Australia to become a major hydrogen exporter.
Key Market Developments
Key Market Players
Segments covered in the report
By End User
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