Green Hydrogen Market Size, Share & Trends Analysis Report By Technology (PEM Electrolyzer, Alkaline Electrolyzer), By Application (Power Generation, Transportation), By Distribution Channel, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global green hydrogen market size was valued at USD 3.2 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 39.5% from 2022 to 2030. 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 energy or solar energy. The presence of favorable government policies pushing toward the hydrogen economy along with growing environmental concerns regarding increasing carbon emissions from fossil fuel usage are expected to drive the demand for the hydrogen economy. This trend is anticipated to provide a potential growth landscape for the industry.

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.

In October 2019, Air Liquide announced to invest USD 150 million into a renewable liquid hydrogen generation plant in Nevada set to generate 30 tons per day, or enough to supply 40,000 fuel cell vehicles, when it starts operation in 2022.

Germany has a comparatively higher share of 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.

Technology Type Insights

The alkaline electrolyzer segment accounted for the largest revenue share of 66.18% in 2021 owing to it being the conventional electrolyzer technology used in green hydrogen projects. 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 specialty 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.

Industry players are continuously focusing on deploying PEM electrolyzer technology at a commercial scale to make the green hydrogen generation process more power efficient. For instance, in January 2020, 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 a PEM electrolyzer capacity of more than 10 MW.

Distribution Channel Insights

The pipeline segment accounted for 62.07% revenue share of the green hydrogen market in 2021. Green hydrogen can be transported as a gas in high-pressure containers, as a liquid in thermally insulated containers, in processed form as methanol or ammonia, or in a chemical carrier medium.

However, a pipeline is the most economically viable method to transport large volumes over long distances. In September 2020, German pipeline operators Nowega and Gascade and Siemens Energy released a white paper jointly studying the practical aspects of converting natural gas pipelines for future hydrogen transportation.

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

The transport segment accounted for the largest revenue share of 40.61% in 2021. 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.

Hydrogen is one of the major options for storing renewable energy in power generation. In power plants, gas turbines can be run using hydrogen and ammonia to increase power system flexibility. In coal-fired power plants, ammonia can be used to reduce emissions. In the United States, the use of hydrogen as a power plant fuel is growing.

Several power plants have announced plans to operate on a natural gas-hydrogen fuel mixture in combustion gas turbines. For example, the Long Ridge Energy Generation Project facility (485 MW) in Ohio has been using a gas-fired combustion turbine that runs on a 95% natural gas/5% hydrogen fuel blend to use 100% green hydrogen eventually.

Domestic, industrial, and space sectors constitute the other applications of green hydrogen. In the domestic sector, green hydrogen can be used to replace the natural gas network with a green hydrogen network to provide electricity and heat to households without producing pollutant emissions. Hydrogen can be used for cooking and heating in homes. The U.K. proposed hydrogen heating as an alternative to power most homes by 2050.

Regional Insights

Europe accounted for a significant revenue share of about 50% in 2021 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.

North America is anticipated to attain a prominent CAGR over the forecast period, with U.S. and Canada gradually enhancing the green hydrogen industry owing to the implementation of clean energy policies. In the U.S., California holds the majority 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. This sort of development along with projects under pipeline in Canada will significantly aid the growth of the green hydrogen industry in the country in the foreseeable future.

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

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, industry players are practicing several strategic initiatives to expand their foothold in the green hydrogen market over the coming years. 

For instance, 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. Some prominent players operating in the global green hydrogen market include:

• Air Liquide

• Air Products Inc.

• Bloom Energy

• Cummins Inc.

• Engie

• Linde plc.

• Nel ASA

• Siemens Energy

• Toshiba Energy Systems & Solutions Corporation

• Uniper SE

Green Hydrogen Market Report Scope

Global Green Hydrogen Market Segmentation

This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. Forthis study, Grand View Research has segmented the global green hydrogen market report based on technology, application, distribution channel, and region:

• Technology Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Alkaline Electrolyzer

  • Polymer Electrolyte Membrane (PEM) Electrolyzer

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Power Generation

  • Transportation

  • Others

• Distribution Channel Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Pipeline

  • Cargo

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • Australia

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East and Africa