Green Hydrogen Market Size, Share & Trends Analysis Report By Technology (PEM Electrolyzer, Alkaline Electrolyzer), By Application (Power Generation, Transportation, Others), By Distribution Channel (Pipeline, Cargo), By Region, And Segment Forecasts, 2025 - 2030

Green Hydrogen Market Summary

Presence of favorable government policies pushing towards hydrogen economy along with growing environmental concerns regarding increasing carbon emissions from fossil fuel usage are expected to drive the demand for hydrogen economy. This trend is anticipated to provide potential growth landscape for the market over the forecast period. The U.S. is among the early adopters of clean energy solutions in the world for sectors such as power generation and transportation. This can be attributed to the increased importance given to clean energy solutions as per the energy act introduced by the U.S. government. The Roadmap to a U.S. Hydrogen Economy report forecasts that hydrogen from low-carbon sources could supply roughly 14 percent of the country’s energy needs by 2050, including hard-to-electrify sectors now dependent on natural gas such as high-heat industrial processes and manufacturing fertilizer.

Drivers, Opportunities & Restraints

The market is rapidly expanding, driven by several key factors. Firstly, there is a strong global push to reduce carbon emissions, which has led to increased government support and investments in renewable energy technologies and infrastructure for green hydrogen production.

The market for green hydrogen presents significant opportunities driven by several factors. With global initiatives aimed at achieving net-zero emissions, countries are increasingly investing in green hydrogen production as a clean energy solution. For instance, India aims to become a leader in this sector, targeting a production capacity of five million metric tons per year by 2030, supported by substantial government funding and incentives.

The market faces several significant restraints that could hinder its growth. High production costs remain the primary challenge, as current methods, particularly electrolysis, are considerably more expensive than conventional hydrogen production, with costs estimated at around USD 10.3 per kg compared to USD 1.5-2.3 per kg for fossil fuel-based methods.

Technology Insights

Based on technology, alkaline electrolyzer held the market with the largest revenue share of 65.46% in 2024. The alkaline electrolyzer uses a liquid alkaline solution of potassium or sodium hydroxide as its electrolyte and it has higher operating hours as compared to PEM electrolyzers.

However, alkaline electrolyzers have lower power and current densities with an operating temperature range of 100 to 105 degree Celsius when compared to 70-to-90-degree Celsius ranges of PEM electrolyzers. Further, alkaline electrolyzes are expected to witness growth on account of availability at a lower cost as compared to PEM electrolyzers.

PEM electrolyzers are expected to witness a higher growth rate over the forecast period. The presence of solid speciality plastic material-based electrolytes offers higher functional flexibility to the PEM electrolyzer as compared to the alkaline counterpart. The substantial growth can be attributed to high proton conductivity, lower gas permeability, and lower thickness of proton exchange membranes.

Distribution Channel Insights

Based on the distribution channel, pipeline held the market with the largest revenue share of 60.66% in 2024. The market is developing a substantial pipeline of projects aimed at enhancing production and infrastructure capabilities. Notable initiatives include partnerships between major energy companies, such as RWE and Equinor, which are collaborating to establish hydrogen pipelines that will transport green hydrogen from Norway to Germany.

Hydrogen can be transported through trucks and ships other than pipelines using different carriers. The mode of transportation and the carrier used depends on the targeted end-user application and the terrain to be covered and the distance to be covered. The carriers that are used are Liquid organic hydrogen carriers and ammonia through liquid hydrogen.

Liquid hydrogen is the most efficient method if the end-use requires liquid or high-purity hydrogen, and is the most suitable method of transportation through trucks after landing at port. However, it has low volumetric energy density compared with ammonia and incurs boil-off losses during everyday storage.           

Application Insights

Based on application, transport segment held the market with the largest revenue share of 43.39% in 2024. In transportation, hydrogen can be used in fuel cells or internal combustion engines. Because of its energy efficiency, a hydrogen fuel cell is two to three times more efficient than an internal combustion engine fueled by gasoline. But burning hydrogen in internal combustion engines results in nitrogen oxide emissions and is less efficient than being used in fuel cells. In 2020, major European automotive companies like CNH, Daimler, DAF, Ford, MAN, Scania, and Volvo announced plans to switch their truck fleets to hydrogen power by 2040. Also, Airbus is designing hydrogen-powered aircraft and is planning to run commercial flights by 2035.

Additionally, advancements in smart grid technologies and the need for enhanced grid stability contribute to the growing adoption of Green Hydrogens in the utilities sector, supporting their critical role in maintaining safe and efficient operations across electrical networks.

Regional Insights

North America Green Hydrogen Market Trends

The North American green hydrogen market is being driven by a confluence of factors that emphasize sustainability and innovation. A primary driver is the increasing commitment to achieving net-zero emissions, prompting both government and private sector investments in green hydrogen technologies. This is complemented by a growing demand for fuel cell electric vehicles (FCEVs) and the need for cleaner energy sources across various industries, including transportation and power generation.

U.S. Green Hydrogen Market Trends

The U.S. green hydrogen market is being propelled by several key drivers that emphasize sustainability and innovation. A significant factor is the rising commitment to achieving net-zero emissions, which has led to increased government support and investment in renewable energy projects, particularly in hydrogen production. The growing demand for fuel cell electric vehicles (FCEVs) further stimulates the market, as green hydrogen serves as a clean fuel alternative that aligns with environmental goals.

Europe Green Hydrogen Market Trends

Europe green hydrogen market accounted for a significant revenue share of about 47.47% in 2024 owing to the massive investments made by the European economies, aiming for an energy transition into a clean hydrogen-based economy over the coming years. 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 Europe green hydrogen market is significantly driven by a combination of ambitious climate goals, technological advancements, and substantial investments in renewable energy. The European Union's commitment to achieving net-zero emissions by 2050 has resulted in initiatives aimed at producing millions of tons of renewable hydrogen by 2030, positioning green hydrogen as a crucial element in the decarbonization of hard-to-abate sectors such as steel and chemicals.

Germany Green Hydrogen Market Trends

Germany's Green Hydrogen market holds a significant position in the European region, driven by the country's focus on renewable energy integration and grid modernization. As a leader in wind and solar power generation, Germany requires robust and efficient Green Hydrogens to ensure the reliable transmission of electricity from renewable sources to the grid. The market is characterized by ongoing investments in offshore wind farms and smart grid initiatives, which are key drivers of Green Hydrogen demand.

UK Green Hydrogen Market Trends

The UK green hydrogen market is driven by several key factors that emphasize sustainability and energy independence. A primary motivator is the government's commitment to achieving net-zero carbon emissions by 2050, which has led to the establishment of a comprehensive Hydrogen Strategy aimed at scaling up production and infrastructure. This includes significant investments in electrolytic hydrogen production and carbon capture utilization and storage (CCUS) technologies, supported by funding initiatives that encourage private investment in hydrogen projects.

Asia Pacific Green Hydrogen Market Trends

The Asia Pacific green hydrogen market is poised for significant growth, driven by a combination of ambitious decarbonization goals, substantial investments in renewable energy, and the increasing demand for clean fuel alternatives. Countries in the region, such as Australia, Japan, and South Korea, are prioritizing green hydrogen as a key component of their energy strategies to reduce carbon emissions and enhance energy security. The establishment of large-scale green hydrogen production facilities and collaborations between local and international companies further bolster this market.

China Green Hydrogen Market Trends

The growth of the green hydrogen market in China is driven by several key factors that align with the country's ambitious energy and environmental goals. A primary driver is the strong governmental commitment to decarbonization, supported by policies aimed at reducing carbon emissions and promoting renewable energy sources. China's abundant low-cost renewable electricity, particularly from solar and wind, facilitates the economically viable production of green hydrogen, making it competitive with traditional hydrogen sources.

Japan Green Hydrogen Market Trends

The Japan green hydrogen market is characterized by strong government support, ambitious targets for hydrogen production, and a focus on integrating clean energy solutions across various sectors. The Japanese government has established a comprehensive hydrogen strategy aimed at achieving carbon neutrality by 2050, which includes plans to increase green hydrogen production significantly, targeting around 3 million tons by 2030 and up to 20 million tons by 2050.

Central & South America Green Hydrogen Market Trends

The Central and South America green hydrogen market is characterized by its abundant renewable energy resources, particularly solar and wind, which position the region as a potential leader in clean hydrogen production. Countries like Chile, Brazil, and Colombia are at the forefront, implementing national strategies to harness this potential and aiming for significant production targets in the coming years. The region has over 140 green hydrogen projects in various stages of development, reflecting a growing political will and investment interest.

Middle East & Africa Green Hydrogen Market Trends

The Middle East and Africa (MEA) green hydrogen market is characterized by its abundant renewable energy resources, particularly solar and wind, which provide a strong foundation for sustainable hydrogen production. Countries in the region are increasingly recognizing the potential of green hydrogen as a key solution for decarbonization and energy transition, leading to substantial government support and strategic investments in infrastructure. The MEA region is at a pivotal juncture, with numerous large-scale projects underway, such as those in Saudi Arabia and Oman, aimed at harnessing these renewable resources for green hydrogen production.

Key Green Hydrogen Company Insights

The green hydrogen market is characterized by a diverse array of companies actively participating in its development and expansion across various regions. Major players include Siemens Energy AG, Linde PLC, Air Liquide, and Air Products and Chemicals, which are leveraging their technological expertise and resources to enhance production capabilities and infrastructure. In Asia, companies like BP and Orsted are forming strategic partnerships to explore large-scale projects, while in India, firms such as Adani Green Energy and Bharat Petroleum are investing heavily in renewable energy sources to support green hydrogen initiatives.

Recent Developments

• In September 2024, Thermax has partnered with Ceres Power to manufacture large-scale Solid Oxide Electrolysis Cells (SOEC) for green hydrogen production, focusing on utilizing industrial waste heat. This collaboration aims to create efficient systems tailored for industries such as steel and refineries. Thermax plans to establish a manufacturing facility and localize components, marking a significant advancement in India's green hydrogen sector.

• In September 2024, Jindal Steel (JSPL) and Jindal Renewables (JRPL) announced partnership. This partnership highlights both companies' strong commitment to decarbonization and leadership in green energy within India's steel sector. Under the agreement, JSPL plans to integrate green hydrogen into its Direct Reduced Iron (DRI) units at the Angul facility in Odisha, marking a substantial advancement toward low-emission steel production.

Green Hydrogen Market Report Scope

Global Green Hydrogen Market Report Segmentation

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 2018 to 2030. Forthis study, Grand View Research has segmented the global green hydrogen market based on technology, application, distribution channel and region:

• Technology Outlook (Volume, Kilotons, Revenue, USD Million, 2018 - 2030)

  • Alkaline Electrolyzer

  • Polymer Electrolyte Membrane (PEM) Electrolyzer

  • SOEC Electrolyzer

• Application Outlook (Volume, Kilotons, Revenue, USD Million, 2018 - 2030)

  • Power Generation

  • Transport

  • Others

• Distribution Channel Outlook (Volume, Kilotons, Revenue, USD Million, 2018 - 2030)

  • Pipeline

  • Cargo

• Regional Outlook (Volume, Kilotons, Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • Australia

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East and Africa