Green Hydrogen Market Value To Expands USD 6.07 Bn In 2023

The global green hydrogen market value is expanding at USD 6.07 billion in 2023 and is expected to touch around USD 331.98 billion by 2032, growing at a noteworthy CAGR of 54.98% from 2023 to 2032.

The majority of hydrogen is created through the steam reforming of coal and natural gas, which accounts for the lion's share of the hydrogen market. Water is electrolyzed to create green hydrogen. The expansion of government regulations aimed at the advancement of renewable energy is expected to cause the global market for green hydrogen to grow significantly over the forecast period. The globe has set lofty net-zero goals, and governments are considering green H2 as a solution in a number of industries. The development of green hydrogen as a significant source of renewable energy is possible. This potential has been acknowledged by the European Commission in recent policy plans. Hydrogen is cited as the essential component of a clean and circular economy in the European Green Deal.

Market Growth:

Green hydrogen has been in high demand recently due to its capacity to reduce carbon emissions. The increasing demands of the world are also met by it. The utilization of this long-term energy source is anticipated to increase. It is anticipated that as more people learn about the advantages of using hydrogen as an energy source, the global market for green hydrogen will grow. The business is also being driven by an upsurge in environmental concerns, which emphasize the necessity of clean energy production to cut emissions.

The green hydrogen market will experience an increase in income as a result of the expansion of regulations and policies that support green hydrogen in the energy sector. In addition, environmentalists are becoming increasingly concerned about rising carbon emissions from human activity. Additionally, the expanding number of projects integrating hydrogen will widen the scope of the global market. The capacity to conveniently store green hydrogen and use it at a later time will further fuel the market's expansion during the forecast years.

Regional Snapshot:

The biggest market for green hydrogen in 2021 will be Europe. In particular, expansions and the introduction of new products, it has a sizable number of manufacturers who are actively involved in development activities. Leading green hydrogen producers including Siemens Energy AG (Germany), Nel ASA (Norway), Linde plc (Ireland), H&R lwerke Schindler GmbH (Germany), Wind to Gas Energy GmbH & Co. KG (Germany), and Air Liquide S.A. are present in the area (France). The market for green hydrogen is attractive in Europe. In the upcoming years, the industry has a very high potential for growth due to Europe's developing industrial facilities. The most opportune segment is anticipated to be Asia-Pacific over the projected period, on the other hand. China holds the greatest market share for green products in the Asia-Pacific region.

Green Hydrogen Market Market Report Scope:

Report Coverage Details
Market Revenue in 2023 USD 6.07 Billion
Projected Forecast Revenue in 2032 USD 331.98 Billion
Growth Rate from 2023 to 2032 CAGR of 54.98%
Largest Market Europe
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa


Market Dynamics:

Market Drivers:

Energy input is a major expense in the manufacturing of green hydrogen. The cost of creating renewable energy from all sources has significantly decreased during the last ten years. The most significant reduction was seen in solar energy, which is now only about 27% of what it once was. This is a result of technical development, rising costs for raw materials and production, and improved production efficiency. The cost of solar and wind energy is steadily falling because of the development of new composites. The fixed cost of installation and little maintenance make up the bulk of the cost of renewable energy. As a result, with ongoing operations, the cost of creating green hydrogen will also fall.

Market Restraints:

For the creation of green hydrogen, it must be verified that the energy used originates from sustainable sources. Plants that generate their own electricity can do this with ease, but energy tracking is more challenging for those that use grid power to produce green hydrogen. Calculating the emissions for green hydrogen must take into account electricity production emissions since grid power may include some portions that use fossil fuels. Problems arise because plants that solely rely on renewable energy have variable output and thus higher production costs. Those who use grid power, on the other hand, are associated with indirect greenhouse gas emissions.

Market Opportunities:

Five years ago, the price of electrolyzers was practically halved. The present decade is likely to continue with this fall. The price of renewable energy sources is one more aspect influencing the final cost. The investments made in the technology's research and development to increase its efficiency are the main cause of this cost decrease. The potential of the technique is demonstrated by the recent invention of solid oxide electrolyzers that can operate at high temperatures with 100% efficiency.

Technology Insights:

Businesses, governments, and investors are interested in green hydrogen because of its potential to fill the gap left by intermittent solar and wind power while burning like natural gas and acting as a fuel for industrial chemical processes.

With power provided from renewable resources, green hydrogen is created by electrolysis, a procedure that divides water into hydrogen and oxygen. Currently, it produces barely 0.1% of the world's hydrogen. Green hydrogen, however, maybe the next greatest investment in the clean energy sector given the falling prices of both electrolysis technology and renewable power, which together make up around 70% of the cost of making hydrogen.

However, the solid oxide electrolyzer market is anticipated to expand quickly throughout the course of the projected period. Electrolytes used in solid oxide electrolysis are simple to copy or swap out, and they don't corrode either electrode much. This element affects how long an electrolyzer lasts. Alkaline electrolysis often results in the formation of green compounds because hydrogen ions have a hard time diffusing into an electrolyte solution.

End-Use Insights:

The green hydrogen market has been divided into mobility, chemical, electricity, grid injection, industrial, and others based on end-use industries. In terms of value and volume, the power category is anticipated to increase at the second-highest CAGR over the projection period. Projects using a gas turbine or fuel cell to supply electricity to the grid are included in the green hydrogen market in the power sector. Around the world, renewable energy is replacing conventional fossil fuel-based power plants, but their inability to respond to changes in load circumstances is their biggest challenge. Green hydrogen has proven to be a viable choice for storing extra energy produced by renewable energy sources like solar and wind, which can subsequently be used as needed.

Recent Development:

On June 23, 2022, In order to produce large-scale renewable hydrogen electrolyzes in Europe, Siemens Energy and Air Liquide established a joint venture. By fostering a European ecosystem for electrolysis and hydrogen sources, this alliance is anticipated to enable a sustainable hydrogen economy in Europe. An annual production capacity of three gigawatts is anticipated by 2025 once manufacturing starts in the second half of 2023. Siemens Energy would own 74.9% of the joint venture, with Air Liquide presumably holding 25.1%.

In November 2020, In order to help India make the shift to green energy, the Adani Group recently announced plans to invest US$ 70 billion in the sector. It is anticipated that the Adani Group's position in the renewable energy industry will greatly aid its efforts to produce green hydrogen.

Major Key Players:

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

Market Segmentation:

By Technology

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

By Renewable Source

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

By Distribution Channel

  • Pipeline
  • Cargo

By Application

  • Power Generation
  • Transportation
  • Industry Energy
  • Industry Feedstock
  • Builsing Heat & Power
  • Others

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