Global Green Hydrogen Market Research Report: Forecast (2024-2030)

Market Definition

Green Hydrogen is a fuel produced by the electrolysis of water. It is a renewable source of energy & an upcoming solution for the replacement of non-renewable sources of energy, i.e., fossil fuels. Today, the importance of Green Hydrogen is extensive in energy transition and needs an accelerated deployment to make a change in decarbonizing existing power systems.

Market Insights & Analysis: Global Green Hydrogen Market (2024-30):

The Global Green Hydrogen Market is estimated to grow at a CAGR of around 51.23 % during the forecast period, i.e., 2024-30. The demand for Green Hydrogen witnessed a notable rise globally during the past years due to increasing awareness of environmental sustainability, stringent regulations promoting eco-friendly practices, and a growing preference for renewable & bio-based materials.

In addition, growing concerns over the increasing carbon emissions have forced countries across the globe to develop cleaner and more powerful sources of energy for not only carrying out essential routine tasks but also major industrial operations, such as in the concrete & steel industry, shipping, long-distance trucking, etc. The demand for green hydrogen is expected to reach around 530 million tons by 2050, replacing around 10.4 billion barrels of oil equivalent.

However, the Green Hydrogen Market has depicted a steady growth in terms of growing application and research & development. Despite all these developments, the market was in its embryonic stage in 2023. This was due to the limited application of this energy alternative that has been observed during the period. Moreover, the high production cost of green hydrogen compared to grey hydrogen limits its adoption across the regions.

Besides, with a greater focus on bringing energy efficiency and a paradigm shift toward renewable resources for a cost-effective supply of energy, residential, commercial, and industrial sectors shall augment the utilization of green hydrogen as a prominent energy source to run different operations & contribute to the overall market expansion.

Furthermore, the application of green hydrogen is expected to play a key role in reducing the carbon emissions from heavy industries, such as chemicals, transportation, power generation, etc., and help transition towards a sustainable energy future. Also, with the rising carbon dioxide emissions from the regions, the countries are anticipated to increase their focus on the adoption of green hydrogen in the upcoming years, thus instigating the industry's futuristic growth.

Global Green Hydrogen Market Driver:

Increasing Government Support for the Production of Green Hydrogen – Green Hydrogen plays a critical role in decreasing the dependence on energy imports, safeguarding the environment, and satisfying the growing energy needs globally. In relation to this, governments are developing hydrogen strategies and taking necessary initiatives by providing their support to drive economies towards green hydrogen in refineries, fertilizers, and gas networks across the globe.

Moreover, the Asia-Pacific countries such as Japan, Singapore, Korea, and China promote global supply chains and progress pertinent technologies that have gained the attention of scientists, investors, and governmental bodies towards the utilization of green hydrogen at large. For instance:

• In 2021, the European Commission implemented various intermediate proposals to decrease 55% of greenhouse gas emissions by 2030 as a part of the European Green Deal (EGD) Project.

The EGD is a long-term policy initiative of the EU that focuses on the climate strategy to reach net zero emissions by 2050 and provide a roadmap towards a green economic growth strategy.

Global Green Hydrogen Market Opportunity:

Automotive to Become a Lucrative Potential Area – In the long term, the automotive sector has an enormous opportunity for implementing green hydrogen as an alternative to phase out the usage of fossil fuels, and can also become an alternative to lithium-ion battery-based systems for mobility applications. The advent of electric vehicle (EVs) demands huge investment in building charging infrastructure plus challenges about its range.

If the costs related to green hydrogen are reduced, the automakers, including trucks, heavy vehicles, forklifts, cars, etc., could utilize green hydrogen for powering vehicles with zero carbon emissions and generate electricity on the go. In addition, top green hydrogen companies, like General Motors (GM), Hyundai, Honda, and Toyota, among several others, have shown keen interest in integrating green hydrogen in Electric Vehicles (EV) and Hydrogen-based Fuel Cell Electric Vehicles (FCEVs). For instance:

• In 2023, Honda announced its plans to sell a new fuel-cell electric vehicle in Japan and North America starting in 2024. The FCEV would be equipped with a next-generation fuel cell system codeveloped with US carmaker General Motors.

Therefore, the automotive industry holds colossal opportunities for green hydrogen and would become a lucrative area of investment for automakers in the coming years.

Global Green Hydrogen Market Challenge:

Difficulties in Transportation & Storage of Green Hydrogen – Before the large-scale commercialization of green hydrogen, the complete process has multiple challenges, including the high cost of plant setup & operational costs, supply chain development, integration with energy vectors, and increasing complexity of the technologies. The period required to achieve the economies of scale using the well-interlinked production machinery, feedstock & process is the most prominent factor determining the selling price of green hydrogen.

Moreover, green hydrogen faces challenges related to cost competitiveness compared to traditional, petrochemically derived olefins. The production costs of bio-based olefins, derived from renewable sources, could be higher, impacting their market competitiveness, as bio-based olefins rely on feedstocks derived from renewable sources, including crops, waste biomass, or other bio-based materials. Furthermore, the production & sourcing of these feedstocks could be more expensive & subject to availability challenges, which are predicted to hamper the market growth.

Global Green Hydrogen Market Trend:

Highly-efficient Electrocatalyst to Enhance Green Hydrogen Fuel Production – The Electrocatalyst plays a significant role in energy-related reactions, which include oxygen reduction, oxygen evolution, and hydrogen evolution for sustainable energy transformation. A more competent and cost-effective new technology Electrocatalyst has evolved to produce green hydrogen from water, which facilitates high production of green hydrogen at a large scale. 

Electrocatalysis plays a pivotal role in the water-splitting electrolysis process to facilitate the production of green hydrogen that helps in energy conversion & storage, hence opening up new opportunities in the energy sector. Also to make it a commercially viable alternative, it can enhance its performance by adding nickel & cobalt to cheaper catalysts.

Furthermore, countries like France are also making necessary efforts to progress the production of green hydrogen at large. These efforts will strengthen the acceptance of green hydrogen as a fuel and act as an alternative to fossil fuels, which would help to deal with the worst effects of climate change in the coming years

Global Green Hydrogen Market (2024-30): Segmentation Analysis

The Global Green Hydrogen study by MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2024–2030 at the global level. Based on the analysis, the market has been further classified as:

Based on Technology:

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

The Proton Exchange Membrane (PEM) Electrolyzer is expected to capture a notable share of the Green Hydrogen Market in the coming years, owing to its benefits over the other technologies, such as better rate of hydrogen production, compact design, and higher energy efficiency. Several companies have opted for this green hydrogen technology. For instance:

• In 2022, Linde, a UK-based industrial gases & engineering company, shared that it will build the world’s largest PEM Electrolyzer plant to produce green hydrogen in Germany at Leuna Chemical Complex. The plant would supply liquefied green hydrogen to its industrial consumers through pipelines.

Furthermore, the rising focus of the utilities towards the adoption of green hydrogen to improve sustainability in manufacturing is anticipated to increase the hydrogen demand for Proton Exchange Membrane (PEM) Electrolyzer to produce green hydrogen in construction and pipe applications are driving the market growth from this segment in the coming years.

Based on End User:

• Power Generation & Energy Storage
• Automotive & Transportation
• Industrial Feedstock
  • Refineries & Petrochemicals
  • Others (Food & Beverage, Steel, Cement Industries, etc.)

Automotive & Transportation is expected to hold a notable share in the Global Green Hydrogen Market in the forthcoming years. The progressive developments to achieve carbon neutrality by 2030, several car manufacturers have taken different approaches to reduce carbon emissions by using alternative and cleaner fuels to power automobiles, including cars, buses, etc.

Moreover, the burgeoning research & development in Fuel Cell Electric Vehicles (FCEVs) and hydrogen-powered cars, would create a positive impact on the technological advancement in green hydrogen as it is generated completely from renewable sources. Further, India is paving their way towards large-scale electric vehicle production, therefore there is huge potential for integrating green hydrogen as a fuel alternative in the forthcoming years.

Global Green Hydrogen Market (2024-30): Regional Projection

Geographically, Global Green Hydrogen Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

North America accounted for a maximum revenue share in the Global Green Hydrogen Market in 2023 and would continue to dominate the market in the forecast years as well. North America is one of the regions globally, which is betting on green hydrogen as a viable source of energy, in the future and is already adopting and investing in its R&D, actively. The region has an enormous capacity to generate renewable power through solar, wind, etc.

To bring down its carbon emissions in line with the Paris Agreement, it would continue to make significant initiatives, create policies, and explore diverse use cases for implementing green hydrogen. Moreover, looking at the region’s current statistics on renewable power generation, it has the potential to expand its renewable power generation in the forthcoming years.

Global Green Hydrogen Industry Recent Development:

• 2023: Air Liquide and Siemens Energy, announced the inauguration of their joint venture gigawatt electrolyzer factory today in Berlin. The mass production of electrolyzer components will allow the manufacturing of low-carbon hydrogen at industrial scale & competitive cost, and foster an innovative European ecosystem.
• 2023: TotalEnergies and Air Liquide, have signed an agreement for the long-term supply of green and low carbon hydrogen to the TotalEnergies refining and petrochemical platform in Normandy. The project will contribute to the decarbonization of the Gonfrevillle site, reducing its CO2 emissions by up to 150,000 tons a year.

Gain a Competitive Edge with Our Global Green Hydrogen Market Report

• Global Green Hydrogen Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, top green hydrogen companies can align their strategies & stay ahead of the competition.
• Global hydrogen market size aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.