Green Hydrogen Market By Technology (PEM, Alkaline), By Distribution Channel (Pipeline, High-Pressure Tube Trailers, Liquefied Hydrogen Tankers), By End-use (Chemical, Transport, Power, Industrial), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Green Hydrogen Market was valued at USD 4.1 billion in 2023-e and will surpass USD 34.2 billion by 2030; growing at a CAGR of 35.2% during 2024 - 2030.

Green hydrogen, produced through electrolysis powered by renewable energy sources, is emerging as a critical solution for decarbonizing hard-to-abate sectors such as heavy industry, transportation, and power generation. As the world intensifies its efforts to combat climate change and meet the goals of the Paris Agreement, the demand for sustainable hydrogen is soaring. Governments across the globe are investing heavily in green hydrogen projects, positioning it as a pivotal player in the transition towards a low-carbon future.

The rising availability of renewable energy, along with declining production costs of electrolysis, is contributing to the expanding green hydrogen market. Moreover, industries are increasingly looking to hydrogen as a clean energy alternative to reduce their carbon footprints. The versatility of hydrogen, coupled with its role in energy storage and as a feedstock for industrial processes, further solidifies its place in the future energy mix.

PEM Electrolyzer Segment is Fastest Growing Owing to Technological Advancements

Among the various production technologies in the green hydrogen market, the proton exchange membrane (PEM) electrolyzer segment is expected to be the fastest-growing during the forecast period. PEM electrolyzers offer distinct advantages, such as high efficiency, flexibility in size, and fast response times, making them ideal for pairing with intermittent renewable energy sources like solar and wind. As governments and industries seek to scale up green hydrogen production, the demand for PEM electrolyzers is set to surge due to their ability to optimize energy use and support decentralized hydrogen production.

In addition, significant advancements in PEM technology, coupled with declining costs, are accelerating the adoption of this technology across various sectors. The flexibility of PEM electrolyzers allows them to be integrated into grid balancing, energy storage, and hydrogen refueling stations, further boosting their demand in the growing green hydrogen ecosystem.

Industrial Applications Segment is Largest Owing to Decarbonization Needs

The industrial applications segment holds the largest share of the green hydrogen market, driven by the increasing adoption of hydrogen in industries such as chemicals, steel, and refining. Heavy industries are under immense pressure to reduce carbon emissions, and green hydrogen offers a viable solution to replace fossil fuels in energy-intensive processes. For instance, in the chemical industry, green hydrogen is used as a feedstock to produce ammonia and methanol, while in steel production, it serves as a substitute for coal in direct reduction processes.

Moreover, as industries aim to meet stringent environmental regulations and reduce their carbon footprints, the shift toward green hydrogen is gaining momentum. The decarbonization of hard-to-abate sectors, particularly those reliant on high-temperature processes, is a significant driver for green hydrogen adoption in industrial applications. As a result, this segment is expected to maintain its dominance over the forecast period.

Transportation Segment is Fastest Growing Owing to Emission Reduction Targets

The transportation segment is projected to be the fastest-growing in the green hydrogen market, fueled by the global push toward zero-emission vehicles and the need for cleaner transportation fuels. Hydrogen fuel cell vehicles (FCEVs) are gaining traction, particularly in the commercial vehicle sector, where hydrogen’s high energy density and fast refueling times offer distinct advantages over battery electric vehicles. Green hydrogen is seen as a crucial solution for decarbonizing long-haul trucking, shipping, and aviation, where electrification faces significant technical challenges.

Government policies promoting the adoption of hydrogen-powered vehicles, along with investments in hydrogen refueling infrastructure, are driving the growth of green hydrogen in transportation. Major automotive companies are also increasingly focusing on the development of hydrogen fuel cell technology, further propelling the market in this segment.

Renewable Energy Segment is Largest Owing to Strong Integration with Green Hydrogen Production

The renewable energy segment is the largest in the green hydrogen market, primarily due to the direct connection between renewable energy sources and hydrogen production through electrolysis. Green hydrogen is produced by splitting water into hydrogen and oxygen using electricity generated from renewable sources such as wind, solar, and hydropower. As global renewable energy capacity continues to expand, particularly in regions like Europe, the U.S., and China, the production of green hydrogen is expected to grow in tandem.

Renewable energy companies are increasingly exploring the integration of hydrogen production with their wind and solar farms, creating a symbiotic relationship between renewable energy generation and hydrogen as a form of energy storage. This integration helps in balancing grid fluctuations, storing excess energy, and ensuring the continuous supply of clean hydrogen for industrial and transportation use.

Asia-Pacific is Fastest Growing Owing to Expanding Renewable Capacity and Hydrogen Initiatives

The Asia-Pacific region is anticipated to be the fastest-growing market for green hydrogen between 2024 and 2030. Countries like China, Japan, South Korea, and Australia are at the forefront of green hydrogen development, with significant investments in hydrogen infrastructure and renewable energy projects. China, the world’s largest producer of hydrogen, is rapidly scaling up its green hydrogen production to decarbonize its heavy industries and transportation sector. Japan and South Korea are also investing heavily in hydrogen as part of their national energy strategies, aiming to become global leaders in hydrogen technology.

Moreover, Australia’s abundant renewable energy resources and proximity to major hydrogen markets in Asia make it a key player in the green hydrogen export market. Several large-scale green hydrogen projects are underway in the region, supported by government policies and international partnerships, further solidifying Asia-Pacific’s leadership in the global green hydrogen transition.

Europe is Largest Owing to Strong Policy Support and Advanced Hydrogen Ecosystem

Europe remains the largest market for green hydrogen, bolstered by strong policy support, ambitious decarbonization goals, and a well-established hydrogen ecosystem. The European Union’s (EU) Green Deal and Hydrogen Strategy have laid out a clear roadmap for the region’s transition to a hydrogen-based economy, with plans to install 40 GW of electrolyzer capacity by 2030. Germany, France, and the Netherlands are leading the charge with substantial investments in green hydrogen projects, aimed at reducing emissions across key sectors, including energy, industry, and transportation.

Additionally, Europe’s focus on renewable energy, particularly offshore wind, is driving the integration of green hydrogen production. The region’s robust hydrogen infrastructure, including refueling stations and storage facilities, positions it as a key player in the global hydrogen economy. Europe’s leadership in regulatory frameworks and technological advancements continues to make it the largest market for green hydrogen.

Leading Companies in the Competitive Landscape

The green hydrogen market is highly competitive, with companies striving to develop innovative technologies and expand their production capacities to capitalize on the growing demand. Some of the top companies in the green hydrogen market include:

1. Siemens Energy
2. Air Liquide
3. Linde plc
4. ITM Power
5. Nel ASA
6. Plug Power
7. Ballard Power Systems
8. ENGIE
9. Hydrogenics (Cummins Inc.)
10. Thyssenkrupp AG

These companies are focusing on strategic partnerships, research and development, and large-scale green hydrogen projects to strengthen their market position. The competitive landscape is also characterized by an increasing number of mergers and acquisitions, as established players seek to enhance their technological capabilities and market reach. With governments and industries accelerating the transition to green hydrogen, these companies are expected to play a pivotal role in shaping the future of the global hydrogen economy.

Report Objectives

The report will help you answer some of the most critical questions in the Green Hydrogen Market. A few of them are as follows:

1. What are the key drivers, restraints, opportunities, and challenges influencing the market growth?
2. What are the prevailing technology trends in the Green Hydrogen market?
3. What is the size of the Green Hydrogen Market based on segments, sub-segments, and regions?
4. What is the size of different market segments across key regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa?
5. What are the market opportunities for stakeholders after analyzing key market trends?
6. Who are the leading market players and what are their market share and core competencies?
7. What is the degree of competition in the market and what are the key growth strategies adopted by leading players?
8. What is the competitive landscape of the market, including market share analysis, revenue analysis, and a ranking of key players?

Report Scope: