Green Hydrogen Market (By Electrolyzer: Proton Exchange Membrane Electrolyzer, Alkaline Electrolyzer, Solid Oxide Electrolyzer; By End User: Refining, Ammonia, Methanol, Iron and Steel; By Sources: Solar Energy, Wind Power, and Others) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

Green Hydrogen Market Size and Growth

The global green hydrogen market size was estimated at around USD 6.28 billion in 2023 and it is projected to hit around USD 166.43 billion by 2033, growing at a CAGR of 38.78% from 2024 to 2033.

Key Pointers      

• Asia-Pacific dominated the market with the largest market share of 48% in 2023.
• By Electrolyzer, the alkaline electrolyzer segment registered the maximum market share of 26% in 2023.
• By Electrolyzer, the solid oxide electrolyzer segment is projected to experience significant growth during the forecast period.
• By Source, the wind energy contributed the largest market share of 48% in 2023.
• By End User, the refining sector held the largest revenue share of 42% in 2023.

Green Hydrogen Market Overview

Green hydrogen, produced using renewable energy sources through the electrolysis of water, is emerging as a critical component in the global transition to sustainable energy. Unlike traditional hydrogen production methods, which rely on fossil fuels and emit significant amounts of carbon dioxide, green hydrogen is generated with minimal environmental impact. This makes it a vital player in achieving net-zero emissions and fostering a cleaner energy ecosystem.

Green Hydrogen Market Growth Factors

The growth of the green hydrogen market is driven by the stringent government policies and regulations supporting the transition to clean energy are crucial. Initiatives such as subsidies, tax incentives, and research grants are designed to make green hydrogen more competitive compared to traditional energy sources. Technological advancements also play a significant role; innovations in electrolyzer technologies and renewable energy integration are enhancing efficiency and reducing costs. Additionally, the increasing global focus on sustainability and carbon reduction is fueling demand across various sectors, including transportation, industrial processes, and power generation. Corporate sustainability commitments are further accelerating the adoption of green hydrogen, as companies seek to meet their environmental goals and improve their market positions.

What are the Trends in the Green Hydrogen Market?

• Increased Investment in R&D: There is a significant rise in investment towards research and development of green hydrogen technologies. Companies and governments are funding innovations to improve electrolyzer efficiency, reduce production costs, and develop advanced hydrogen storage solutions.
• Expansion of Electrolyzer Capacity: The deployment of larger and more efficient electrolyzers is increasing, aimed at scaling up green hydrogen production. Advances in electrolyzer technologies, including PEM and alkaline systems, are enhancing overall production capabilities.
• Integration with Renewable Energy Sources: Green hydrogen projects are increasingly being integrated with renewable energy sources such as wind, solar, and hydropower. This integration helps to maximize the use of excess renewable energy for hydrogen production and improves overall energy efficiency.
• Development of Hydrogen Infrastructure: There is a growing focus on developing infrastructure for hydrogen production, storage, and distribution. Investments in hydrogen refueling stations, pipelines, and storage facilities are expanding to support the commercialization of green hydrogen.
• Expansion into Emerging Markets: Emerging economies are exploring green hydrogen as a solution for their energy needs and economic development. Countries in Asia-Pacific, the Middle East, and Africa are investing in green hydrogen projects to leverage their renewable energy resources and enhance energy security.

What are the Key Challenges Faced by Green Hydrogen Market?

• High Production Costs: The cost of producing green hydrogen remains high compared to conventional hydrogen and other energy sources. This is largely due to the expenses associated with renewable energy, electrolyzers, and infrastructure development, which can impede widespread adoption.
• Infrastructure Development: The infrastructure required for green hydrogen—such as production facilities, storage tanks, and distribution networks—is still underdeveloped. Building this infrastructure involves substantial investment and time, which can slow market growth.
• Energy Efficiency: The overall energy efficiency of green hydrogen production and utilization needs improvement. Current processes involve energy losses during production, storage, and conversion, making it less efficient compared to other energy solutions.
• Technological Limitations: While advancements are ongoing, there are still technical challenges related to electrolyzer performance, hydrogen storage, and fuel cell technology. Overcoming these limitations requires continued innovation and research.
• Scale-Up Challenges: Scaling up green hydrogen production to meet global demand presents significant challenges. Large-scale deployment involves addressing technical, economic, and logistical issues that can be difficult to manage.

Electrolyzer Insights

In 2023, the alkaline electrolyzer segment led the market with a 26% revenue share. This dominance is largely attributed to the advantages of alkaline electrolysis technology, such as the use of readily available and inexpensive electrolytes. The broad availability of these materials contributes to the rapid expansion and market leadership of alkaline electrolyzers.

Conversely, the solid oxide electrolyzer segment is projected to experience significant growth during the forecast period. Solid oxide electrolysis benefits from electrolytes that are easy to replicate or replace and exhibit minimal corrosive effects on electrodes, which extends the electrolyzer's lifespan. The challenges associated with hydrogen ions diffusing into the electrolyte solution contribute to the efficiency of alkaline electrolysis in producing green hydrogen.

Source Insights

Wind energy held the largest share of the green hydrogen market in 2023, accounting for 48% of the market. Wind energy is a prevalent and renewable resource with substantial potential for generating clean electricity. Wind turbines, whether installed onshore or offshore, harness air movement to produce electricity without emitting greenhouse gases or pollutants. As wind energy becomes more cost-competitive compared to fossil fuels, the decreasing costs of wind turbines, installation, and maintenance make it a viable and economical source for green hydrogen production. This enables cost-effective hydrogen production through electrolysis powered by wind-generated electricity.

End User Insights

The refining sector commanded a significant share of 42% of the green hydrogen market in 2023. Refineries, with their established infrastructure and expertise in handling large volumes of gases and liquids, can adapt their existing facilities for hydrogen production. This capability allows refineries to enter the green hydrogen market efficiently and economically. Many refineries are investing in research and development to advance green hydrogen production technologies, including improvements in electrolysis, catalysts, and renewable energy integration, which enhance the efficiency and cost-effectiveness of hydrogen production in the refining industry.

Regional Insights

In 2023, the Asia-Pacific region led the global green hydrogen market in revenue and is expected to maintain this leadership throughout the forecast period. China, in particular, holds the largest market share within Asia-Pacific, contributing significantly to global green hydrogen production. With an output of 20 million tons, China commands approximately one-third of the world's total green hydrogen production.

Meanwhile, Europe also captured a substantial share of the market. Hydrogen plays a critical role in Europe’s energy landscape, supported by the European Green Deal. This initiative aims to cut greenhouse gas emissions and transition Europe’s economy towards a climate-neutral future.

Who are the Top Manufactures in Green Hydrogen Market?

• NEL ASA
• ITM Power
• ENGIE
• SEIMENS
• Air Products Inc.
• Messer Group GMBH
• Plug Power Inc.
• Cummins Inc.
• Air LIQUIDE
• LINDE

Green Hydrogen Market Segmentation:

By Electrolyzer

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

By Source

• Solar Energy
• Wind Energy
• Others (hydropower, geothermal, and hybrid of solar & wind)

By End User

• Refining
• Ammonia
• Methanol
• Iron & Steel
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Rest of the World