Green Hydrogen Market to Cross $134.87 billion Revenue by 2030

Green Hydrogen Market Overview

“The Green Hydrogen Market Predictable at $3.95 billion in 2022, is estimated to increase at a CAGR of 39.83% from $20.05 billion in 2023 to $134.87 billion by 2030.”

Green hydrogen is produced through water electrolysis using renewable energy sources like wind or solar power. Government policies and environmental concerns about rising carbon emissions from fossil fuels are expected to stimulate demand for the hydrogen economy, presenting a potential growth scenario for the industry.

The US is a leading global adopter of renewable energy solutions, particularly in electricity generation and transportation. The government's energy act emphasizes clean energy solutions, with hydrogen from low-carbon sources potentially supplying 14% of the country's energy needs by 2050. In 2019, Air Liquide invested $150 million in a Nevada plant, capable of producing 30 tons per day, enough to power 40,000 fuel cell vehicles.

Germany leads the global green hydrogen installation market due to green hydrogen-friendly legislation, research funding, and demonstration projects. In July 2019, the government approved 11 demonstration-scale projects. With numerous projects in the pipeline, Germany is expected to lead the market during the projection period.

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Key Takeaways

In 2022, the alkaline electrolyzer segment will have a revenue share of more than 66.8%. However, the PEM electrolyzers category is expected to increase at a faster CAGR over the projection period.

The pipeline distribution route will account for 62.4% of revenue in 2022.

In 2022, the transportation segment will have a revenue share of more than 41.5%.

In 2022, Europe will contribute more than 52% of income.

Growth Factors

Green hydrogen, derived from renewable sources, produces fewer CO2 emissions than grey hydrogen, which accounts for 95% of the market. It can be used as a transportation fuel or feedstock in industrial activities. Green hydrogen and derived fuels like green ammonia can incorporate wind energy into cargo ship fuel tanks, boosting the decarbonization potential of renewable energy sources.

Renewable hydrogen, generated from renewable sources, can be used for household energy and electricity supply, making it abundant during weather-related power fluctuations. Currently, 96% of hydrogen generation comes from fossil fuels, releasing carbon dioxide into the environment. The power-to-gas process electrolyzes water into hydrogen and oxygen, with the byproduct oxygen being reused or released into the environment.

Hydrogen, the most abundant element on Earth, holds immense potential for creativity and can be used as a fuel, energy source, and raw material in the industrial industry. Germany is working to create a technologically open legal environment for the widespread use of green hydrogen. Green hydrogen is in high demand due to its ability to reduce carbon emissions and meet global needs.

The worldwide green hydrogen market is expected to grow due to environmental concerns and the growing use of nuclear and green hydrogen fuels. However, initial investment in infrastructure and prohibitive maintenance costs are key challenges in progressing the green hydrogen industry. The focus is on creating a technologically open legal environment for the widespread use of green hydrogen.

The green hydrogen industry is expected to grow in income due to increasing regulations and policies in the energy sector, as well as environmental concerns about carbon emissions from fossil fuel use. The global market will expand due to the convenience of storing and using green hydrogen. Offshore and onshore wind farms are widely used for green hydrogen generation, with offshore plants producing consistently throughout the year.

Wind energy costs have reduced by half in recent decades, increasing wind power's popularity. The mobility end use industry accounts for the majority of the green hydrogen market, as hydrogen has three times the energy per unit as fossil fuels. Fuel cell electric vehicles offer a long-term solution to fossil fuels, making green hydrogen a practical option for the automotive industry. Green hydrogen-powered cars are suitable for various applications.

Market Dynamics

Growth Drivers

Increasing government support

Governments play a critical role in developing supportive policy frameworks and regulations that ensure the green hydrogen market's long-term stability and predictability.

Governments around the world are focusing on establishing renewable energy targets, reducing emissions standards, and introducing carbon pricing mechanisms, all of which incentivize demand for green hydrogen.

Furthermore, policies that encourage the incorporation of green hydrogen into existing energy systems, such as blending it with natural gas in pipelines or supporting fuel cell technology, stimulate market growth.

Opportunity

Increasing spending in research and development

Research and development aim to enhance green hydrogen technology's performance and durability, leading to increased production rates and lower maintenance costs.

Advances in fuel cell technology can improve hydrogen-powered vehicles and other applications. These investments address the market's cost barrier and reduce production costs.

As research advances, scientists and engineers can optimize operations, enhance efficiency, and reduce material demand. Green hydrogen's lower production costs make it more competitive with fossil fuels, attracting investment and encouraging market adoption.

Competitive Landscape of the Green Hydrogen Market

• LINDE
• SEIMENS
• Air Products Inc.
• Messer Group GMBH
• Plug Power Inc.
• Cummins Inc.
• Air LIQUIDE

Recent Developments in Green Hydrogen Market

In January 2023, Linde will increase the production of green hydrogen in California. To expand its hydrogen capacity, Linde will construct, own, and run the first of several proposed five-megawatt PEM (proton exchange membrane) electrolyzers.

In April 2020, two Germany-based companies Siemens Gas and Power and Uniper SE announced a joint agreement on implementing projects that produce and use green hydrogen from renewable energy sources. Such strategies are expected to enable the commercialization of green hydrogen as an alternative to fossil fuels.

Regional Insights

Europe's green hydrogen market is expected to remain dominant in 2022, with hydrogen being the primary energy source. The European Green Deal aims to reduce greenhouse gas emissions and prepare Europe's economy for a post-carbon future. China, the most opportunistic segment, holds the largest market share in the Asia-Pacific green hydrogen market, accounting for one-third of global production with a 20-million-ton output.

Segments Covered in the Green Hydrogen Market Report

Green Hydrogen Market By Distribution Channel

• Pipeline
• Cargo

Green Hydrogen Market By Technology

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

Green Hydrogen Market By Application

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

Green Hydrogen Market By Region

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

Frequently Asked Questions

What is the current size of green hydrogen market?

Green Hydrogen Market Predictable at $3.95 billion in 2022, is estimated to increase at a CAGR of 39.83% from $20.05 billion in 2023 to $134.87 billion by 2030

What is the growth rate of the global green hydrogen market?

The global green hydrogen market is growing at a noteworthy CAGR of 39.83% from 2023 to 2030.

Which are the driving factors of the green hydrogen market?

The global green hydrogen market is investing in the development of procedures that will help reduce production costs and improve infrastructure as the need for hydrogen grow across numerous industries.

Which region hit the highest CAGR in the global green hydrogen market?

Asia-Pacific region is the fastest growing region in the green hydrogen market.