Global Green Hydrogen Market By Technology (Proton Exchange Membrane Electrolyzer, Alkaline Electrolyzer, and Solid Oxide Electrolyzer), By Application(Power Generation, Transport), By End-User(Food & Beverages, Medical, Chemical, Petrochemicals, Glass), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2032

Report Overview

The hydrogen which is produced by the splitting of the water by electrolysis is called green hydrogen. In this process, hydrogen is used and oxygen is left in the air which has no negative impact on the environment. Electricity generated by Renewable energy sources is supplied for electrolysis, such as wind and solar.

This makes the green hydrogen the cleanest hydrogen without using carbon dioxide as the by-product. The generation of renewable energy is expected to increase in the forecast period. Green hydrogen is produced with the electrolysis of water. The increase in the number of government policies for the development of green hydrogen and renewable energy is the main factor driving the Green Hydrogen market growth.

There is a rise in the market demand for renewable energy sources due to the strict government regulations related to the environment and an increase in the pressure to reduce the consumption of energy of hydrocarbons to reduce carbon emissions.

The strict regulation imposed by the government to reduce GHG emissions from power generation facilities is driving the growth of the market. This in turn I projected to drive the growth of the global green hydrogen market.

Key Takeaways

• Market Growth: In 2022, global green hydrogen sales reached USD 0.7 billion; they are anticipated to soar past USD 62.9 billion by 2032, growing at an astounding compound annual compound annual compound annual growth rate of 58.6% from 2023-2032.
• Green Hydrogen Production: Electrolysis using renewable energy sources has become the predominant method in green hydrogen production due to its sustainability and minimal environmental impact, but other techniques like biomass gasification may see exponential growth over the coming years.
• Technology Analysis: The Electrolyzer alkaline segment dominates market development based on the technology sector; thus it holds the largest market share globally in coming years.
• Application Analysis: According to application analysis, transport is the dominant segment in terms of global hydrogen use; holding over 50 percent market share over forecast. Hydrogen may be utilized either through internal combustion engines or fuel cells for moving cars using hydrogen as its energy source.
• By End-User Analysis: Regarding end-users, the petrochemical market has the highest compound annual growth rate and remains the market leader over its expected lifespan. No tailpipe emissions other than water generated via hydrogen fuel cells completely eliminate carbon.
• Drivers: Increased focus on carbon reduction, government initiatives supporting clean energy sources, and improvements to electrolysis technology are the major forces promoting the growth of the green hydrogen market.
• Restrictions: High production costs and limited infrastructure can prevent market expansion in regions without sufficient renewable energy resources.
• Opportunities: Technological advances in electrolysis and storage technology, international hydrogen trade agreements, and growing investments in renewable energy represent significant growth prospects for market players.
• Trends: Rising adoption of green hydrogen across transportation and industrial sectors and increased public-private partnerships for large-scale green hydrogen projects are notable market developments.
• Regional Dominance: Europe dominates the Green Hydrogen industry globally and holds the largest market share. An increase in Green Hydrogen manufacturers within this region is one of the major causes behind its expansion.
• Key Players in the Green Hydrogen Market: Green Hydrogen Systems, Solena Group, Air Products Inc., and Siemens Energy are amongst some of the prominent names operating within this space.

Driving Factors

Low Variable Electricity Cost Of The Renewable Energy To Drive The Growth Of The Market.

The majority of the cost that is taken for the production of green hydrogen is the cost that is needed for the energy input. The cost of the production of renewable energy from all sources has drastically reduced during the last few decades. This change is due to high product efficiency, raw material cost, technical advancement, and production advancement.

Costs of Solar and wind energy are continuously declining with the development of new composite. Fixed cost of installation and marginal maintenance is the main cost which is associated with renewable energy. Therefore the cost of producing green hydrogen will see a decline with the continuous operations which will eventually drive the growth of the market globally.

Restraining Factors

High Initial Cost of the Infrastructure To Restraint The Growth Of The Market Globally.

The energy that is going to be used in the production of green hydrogens must come from renewable energy. This energy can be achieved from the plants that produce their electricity, but energy tracking becomes difficult for the plants that utilize grid power for green hydrogen production.

The high cost of the hydrogen infrastructure from setting up and maintaining it forces the Green Hydrogen industry to look for alternative renewable energy sources. For the establishment of the hydrogen infrastructure and the maintenance cost, the initial investment that is required is the main restraint for the growth of the market globally. These are the restraints that hinder the growth of the market globally.

By Technology Analysis

The Alkaline Electrolyzer Segment Dominates The Growth Of The Market Globally.

The alkaline electrolyzer segment dominates the growth of the market, based on the technology segment, and holds the largest market share globally for the forecast period. The rapid expansion of the market and market dominance are the advantages of the technology based on alkaline electrolysis over the other technologies that are based on manufacturing.

A wide range of electrolytes that are both inexpensive and readily available to generate is used by Alkaline Electrolysis. Electrolytes that are easily interchangeable and replicated and which have low corrosive effects on both electrodes are used by Solid oxide electrolysis. Eventually, the solid oxide electrolyzer segment is anticipated to grow at a significant rate during the forecasted period.

This factor influences the long life of an electrolyzer. Alkaline electrolysis tends to create green hydrogen due to the difficulty of diffusion of the hydrogen ions in the electrolyte solution.

By Application Analysis

The Transportation Segment Dominates The Growth Of The Market Globally.

Based on the application analysis, the transport segment dominates the growth of the market globally and accounts for the largest market share during the forecast period. Utilization of the hydrogen can be done in internal combustion engines or fuel cells for transportation of the vehicles.

Due to in high efficiency of the hydrogen fuel cell, a hydrogen fuel cell is 2-4 times more than internal combustion engines. By the end of 2035, Airbus is planning to launch an aircraft that is powered by hydrogen, which will result in the positive growth of the market globally.

By End-User Analysis

The Petrochemical Segment Dominates The Growth Of The Market Globally.

Based on the end user, the petrochemical segment dominates the growth of the market and holds the largest market share during the forecasted period. There are no tailpipe emissions other than water which is emitted by the hydrogen fuel cell, fully eliminating the carbon.

The demand for green hydrogen in the petrochemical sector is expected to increase with the potential for rapid development in the petrochemical sector. According to a study cars that run on hydrogen fuel cells produce zero carbon as compared to Petrol, diesel, and CNG cars.

Key Market Segments

Based on Technology

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

Based on Application

• Power Generation
• Transport
• Others

Based on End-User

• Food & Beverages
• Medical
• Chemical
• Petrochemicals
• Glass
• Others

Growing Opportunities

The Drop In The Cost Of The Electrolyzers Is The Main Opportunity in the Market.

The cost of the electrolyzer is decreasing rapidly, it has dropped over 50% in the last five years. This decrease in the price of electrolyzers is expected to fall over the forecasted period. The decrease in the cost of renewable energy sources is another factor that is affecting the final cost. The investment in the research and development of the technology is the major reason for the fall in the cost of the investments.

Latest Trends

Rise In The Awareness Of The Hydrogen As A Energy Carrier To Drive The Growth Of The Market.

People are becoming aware of the use of hydrogen as energy, which is driving the growth of the market. Using hydrogen as an energy carrier has the advantage that it only interacts with oxygen which produces heat and water. The use of hydrogen fuel cells does not produce emissions of gases and does not produce greenhouse gases or any other pollutants.

A study finds that hydrogen fuel cells are more efficient than the internal combustion engine. The rise in environmental issues has driven the growth of the market. These are the key industry trends of the global market.

Regional Analysis

Europe region dominates the growth of the market.

Europe dominates the growth of the market and holds the largest market share globally. The increase in the number of Green Hydrogen manufacturers in the region is the main reason for the growth of the market in the region. Green Hydrogen Industry such as Siemens Energy AG, Nel ASA, etc. is the largest manufacturing company for green hydrogen which is situated in Europe.

The increase in the Green Hydrogen Plants in Europe will result in significant growth of the market in the forecasted period. North America is expected to hold a prominent CAGR over the forecasted period. North America holds the second-largest market share globally. Asia Pacific holds the third position in the market share globally.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Companies are adopting various organic and inorganic strategies to increase their market share in the green hydrogen market. Key major companies are mainly focusing on innovations and technological advancements to increase the production of green hydrogen and reduce the cost of renewable energy.

Such strategies are expected to dominate the growth of the market and commercialize the use of green hydrogen rather than fossil fuels that are used.

Market Key Players

• Green Hydrogen Systems
• Solena Group
• Air Products Inc.
• Siemens Energy
• Cummins Inc.
• FuelcellWorks
• Plug Power
• Fuelcell Energy
• Hydrogenics
• Ballard Power Systems
• Nikola Motors
• Linde Plc
• Plug Power Inc.
• Syzygy Plasmonics
• Other Key Players

Recent Developments

• Air Liquide S.A. and Simens Energy collaborated in June 2022, in Europe, to produce renewable energy which can be used on an industrial scale. The emergence of sustainable hydrogen energy will be enabled in Europe by this collaboration. The production of renewable energy is expected to begin in mid-2023 and will produce around 3 gigatons per year by 2025
• Lhyfe and WPD formed a joint venture in April 2022, for the largest production of renewable green hydrogen at the Soderhamn municipality facility and Storgrundet offshore wind farm.

Report Scope