Green Hydrogen Market Size, Share & Trends Analysis Report By Technology (PEM Electrolyzer, Alkaline Electrolyzer), By Region (North America, Europe, APAC), And Segment Forecasts, 2020 - 2027

Report Overview

The global green hydrogen market size was valued at USD 786.9 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 14.24% from 2020 to 2027. Green hydrogen is produced by the electrolysis of water for which electric power is utilized, which is generated by renewable energy sources, such as wind or solar energy. The presence of favorable government policies pushing towards the hydrogen economy along with growing environmental concerns regarding increasing carbon emissions from fossil fuel usage is expected to drive the demand for the hydrogen economy. This trend is anticipated to provide a potential growth landscape for the market over the forecast period.

Germany has a comparatively higher share for green hydrogen installation around the world owing to the presence of supportive policies and regulations for green hydrogen coupled with funds available for research and demonstration projects in the country. For instance, in July 2019, the government approved 11 demonstration-scale green hydrogen projects in the country.

Moreover, the country is expected to lead the market in the forecast period owing to the presence of a large number of projects in the pipeline. For instance, Ampiron and OGE, which are transmission and gas system operators in the country, are working to deploy 100 MW electrolyzer capacity along with a dedicated pipeline for hydrogen transportation in the north-west area of Germany, which is expected to become online in 2023.

Hydrogen produced through renewable-powered electrolysis is used as a fuel in vehicles, or it is stored and used later in fuel cells to generate electricity. Furthermore, some of the major countries, such as Germany, Japan, and the U.S., are looking to adopt hydrogen as transportation fuel over conventional fossil fuels, which would boost the market growth in the forecast period.

However, the high capital cost of the electrolyzer unit is one of the major restraints being faced for large-scale deployment of green hydrogen projects. In addition, the presence of low-cost hydrogen production through conventional techniques, such as steam methane reforming and coal gasification, is expected to hamper the market growth over the forecast period.

Technology Insights

Being the conventional technology used in green hydrogen projects, the alkaline electrolyzer accounted for the largest revenue share of more than 50% in 2019. The alkaline electrolyzer uses the liquid alkaline solution of potassium or sodium hydroxide as its electrolyte and it has higher operating hours than PEM electrolyzers.

Furthermore, alkaline electrolyzes are cheaper than PEM electrolyzers, which will boost the segment growth in the future. However, alkaline electrolyzers have lower power and current densities with an operating temperature range of 100 - 105 degree Celsius as compared to 70 - 90 degree Celsius ranges of PEM electrolyzers.

The PEM electrolyzer segment is expected to register the highest growth rate over the forecast period. The presence of solid specialty plastic material-based electrolyte offers higher functional flexibility to the PEM electrolyzer as compared to the alkaline counterpart. Moreover, lower gas permeability and thickness of proton exchange membranes along with high proton conductivity of these electrolyzers will boost the segment growth further.

Industry players are continuously focusing on deploying PEM electrolyzer technology at commercial scales to make the green hydrogen generation process more power-efficient. For instance, in January 2020, a U.K.-based company, ITM Power, announced a joint venture with ITM Linde Electrolysis GmbH. The companies will provide green hydrogen at an industrial scale by utilizing PEM electrolyzer of the capacity of more than 10 MW.

Regional Insights

Europe led the global market in 2019 and accounted for the largest revenue share of over 57% owing to huge investments by the European economies, aiming for an energy transition into clean a hydrogen-based economy. For instance, in August 2019, the U.K. government announced a USD 14.8 billion investment plan for a project that is expected to use 4 GW of offshore wind for green hydrogen production by 2030.

The market in North America is anticipated to attain a prominent growth rate over the forecast period, with U.S. and Canada leading the region owing to the implementation of clean energy policies. In the U.S., California holds the majority of the market share with the growth driven by aggressive de-carbonization targets, such as phasing out of gas or diesel-powered public buses by 2040.

In Canada, Air Liquide is building a large-scale PEM electrolyzer with a 20 MW capacity, which will generate green hydrogen using hydropower. Such developments along with projects under pipeline in Canada will significantly aid the market growth in the region.

Asia Pacific is expected to register the highest CAGR over the forecast period, with Australia and Japan being the largest contributors to the regional growth. For instance, Toshiba is constructing a green hydrogen plant with a 10 MW electrolyzer capacity, which would be utilized to provide hydrogen for transportation application.

Key Companies & Market Share Insights

Key participants in the industry are focusing on technological advancements and innovation to minimize the cost of renewable-powered electrolysis and largely commercialize the production of green hydrogen. In addition, companies are undertaking several strategic initiatives to expand their foothold in the market.

For instance, in April 2020, Siemens Gas & 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. Some of the prominent players in the green hydrogen market include:

• Linde

• Air Liquide

• Air Products and Chemicals, Inc.

• Engie

• Uniper SE

• Siemens

• Green Hydrogen

• Hydrogenics

• Toshiba Energy Systems & Solutions Corp.

• Nel ASA

Green Hydrogen Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global green hydrogen market report on the basis of technology and region:

• Technology Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Alkaline Electrolyzer

  • Polymer Electrolyte Membrane (PEM) Electrolyzer

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • France

  • Asia Pacific

    • Australia

    • Japan

  • RoW