Green Hydrogen Market Set for Explosive Growth, Reaching US$25.4 Billion by 2030

The global green hydrogen market is poised for remarkable expansion, with a projected Compound Annual Growth Rate (CAGR) of 17.8% between 2023 and 2030, according to a comprehensive market analysis. By the end of this forecast period, the market value is expected to soar to approximately US$25.4 billion.

Market Dynamics

The pressing concerns surrounding climate change have spurred a global shift towards sustainable energy solutions, with many countries and authorities implementing stringent environmental regulations. This has laid a solid foundation for the establishment and expansion of the global hydrogen economy, particularly in the green hydrogen sector. Currently, over 90% of hydrogen production worldwide is attributed to grey hydrogen, but the future holds promise as green hydrogen, produced from renewable sources like solar and wind, gains traction.

Key Report Findings

The green hydrogen market is poised to exceed the US$25 billion mark by the end of the forecast period.
Grey hydrogen currently dominates the hydrogen industry, but the commercial viability of green hydrogen is increasing thanks to declining renewable energy costs, lower electrolyser expenses, and technological advancements.
In 2022, the refining segment accounted for more than 61% of the market share, while alkaline electrolysis represented over 52%.
Solar PV technology held the majority share at 53% in 2022.
Asia Pacific leads with over 1/3rd of the market share, closely followed by Europe.

Market Drivers

Rising awareness of green hydrogen as an alternative to fossil fuels and grey hydrogen is driving market growth. Hydrogen-based fuel cells can achieve electricity generation efficiency of up to 60%, making them an attractive option.
Green hydrogen is perceived favorably as a means to achieve net-zero carbon emission goals, with increased support from public events, campaigns, and influential figures.

Market Challenges

Expensive production costs pose a significant barrier to market growth. Initial setup costs, infrastructure maintenance, and ongoing expenses are impacting market expansion.
The COVID-19 pandemic disrupted global operations, affecting various industries, including the green hydrogen market. However, the market has since rebounded.

Key Segments

Refining application dominated in 2022 but is expected to gradually lose market share by 2030.
PEM electrolysis technology is projected to gain market share by 2030 due to its high-purity hydrogen production and ease of cooling.
Solar PV remains the dominant source for green hydrogen production and is expected to maintain its position until 2030.

Growth Opportunities Across Regions

Europe is poised for strong growth in both production and consumption of green hydrogen, with ambitious projects underway to reduce costs and promote adoption in various sectors.
North America, led by the US, is experiencing growth driven by favorable clean energy legislation, with Canada and Australia also contributing significantly.

Competitive Landscape

Major players in the global green hydrogen market include FuelCell Energy, Inc., Adani Green Energy, Bloom Energy Corporation, Linde Plc, Royal Dutch Shell, Plug Power, Inc., Air Products & Chemicals Inc., Air Liquide S.A., Reliance Industries, TotalEnergies, and BP p.l.c.

The global green hydrogen market is on the cusp of significant transformation, with robust growth prospects, driven by the urgent need for sustainable energy solutions and growing environmental awareness. As the world seeks to address the challenges of climate change, green hydrogen emerges as a promising avenue towards a cleaner and more sustainable energy future.

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