Green Hydrogen Market size is expected to surpass USD 515.66 billion by the end of 2035, growing at a CAGR of 61% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of green hydrogen was over USD 1.7 billion. The growth of the market can be attributed to the growing capacity of electrolyzers which in turn is expected to boost the production of green hydrogen. Installed electrolyzer capacity could reach 134–240 GW by 2030, exceeding forecasts from the previous year by two times. Electrolyser manufacturing capacity has nearly doubled since last year, reaching nearly 8 GW annually. Moreover, by 2030, home consumption is likely to have the largest electrolysis (green hydrogen generation) capacity in the world, at about 60 GW/5 million tons.
In addition to these, factors that are believed to fuel the green hydrogen market growth of green hydrogen include the rising efforts put by the entire world to reduce the emission of greenhouse gases. Around 131 nations representing nearly 88% of global greenhouse gas emissions had made net zero commitments by April 2022. In comparison to pre-industrial levels, anthropogenic emissions have already resulted in an increase in global temperature of 1.1°C. furthermore, the rising need for fuel cell electric vehicle is also expected to boost the demand for green hydrogen. Over 40 000 fuel cell electric vehicles were in use worldwide by June 2021, with nearly 90% of those being found in Korea, the United States, the People's Republic of China, and Japan.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
61% |
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Base Year Market Size (2022) |
USD 1.7 Billion |
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Forecast Year Market Size (2035) |
USD 515.66 Billion |
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Regional Scope |
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Application (Power Generation, Transport)
The global green hydrogen market is segmented and analyzed for demand and supply by application into power generation, transport, and others. Out of the three applications of green hydrogen, the transport segment is estimated to gain the largest market share in the year 2035. The growth of the segment can be attributed to the increasing initiatives taken by the government to create a green hydrogen-based transport system. The world's most cutting-edge technology-developed Green Hydrogen Fuel Cell Electric Vehicle (FCEV) Toyota Mirai is made available in India as part of a pioneering project by the Ministry of Road Transport and Highways that intends to establish a Green Hydrogen-based ecosystem there. On the other hand, the rising adoption of fuel-cell electric vehicles is also expected to boost the segment growth. Green hydrogen is being used in transportation as an alternative to fossil fuels because of technology like the fuel cell.
Technology (Proton Exchange Membrane Electrolyzer, Solid Oxide Electrolyzer, Alkaline Electrolyzer)
The global green hydrogen market is also segmented and analyzed for demand and supply by technology into proton exchange membrane electrolyzer, solid oxide electrolyzer, and alkaline electrolyzer. Amongst these three segments, the proton exchange membrane electrolyzer segment is expected to garner a significant share in the year 2035. The growth of the segment is attributed to the high efficiency of PEM to produce a pure form of green hydrogen. This method has many advantages over traditional alkaline electrolysis that will make it easier to connect to the solar electricity grid in the future. Proton exchange membrane (PEM) electrolyzers are regarded as an innovative method for manufacturing hydrogen fuel utilizing renewable electricity. Moreover, with polymer serving as the electrolyte, PEM water electrolysis technology has a working current density that can reach 1-3 A/cm2, high electrolysis efficiency, the compact volume under the same power, and hydrogen purity that can approach around 99.999%. On the other hand, the alkaline electrolytic cell has poor efficiency and a working current density that is typically no higher than 0.6 A/cm2.
Our in-depth analysis of the global market includes the following segments:
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By Technology |
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By Application |
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By End User Industry |
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Europe Market Forecast
The green hydrogen market in Europe is projected to be the largest with a share of about ~30% by the end of 2035. The growth of the market can be attributed majorly to the rising manufacturing capacity of electrolyzers. In a Joint Declaration signed by the Commissioner of the European Commission and 20 CEOs from related industries, the business agreed to tenfold its capacity to reach 17.5 GW per year for producing electrolyzers by 2025. By 2030, the EU is expected to be able to produce the 10 million tons of renewable hydrogen that were set as a goal in March 2022. Moreover, the commission also pledged to implement a favorable regulatory environment, easier access to financing, and the promotion of effective supply chains for green hydrogen.
APAC Market Statistics
The Asia Pacific green hydrogen market is estimated to be the second largest, registering a share of about ~28% by the end of 2035. The growth of the market can be attributed majorly to the increasing efforts to reduce carbon emissions. The 2021 Glasgow climate conference saw the introduction of five emission commitments from the Indian government. By the year 2070, net emissions are likely to be zero. Moreover, to reach a 500 GW non-fossil fuel capacity by 2030. Furthermore, the rising demand for hydrogen fuel cell vehicle is also expected to augment the market growth in the region. China wants 1 million hydrogen fuel cell electric vehicles (EVs) on the road by 2030, along with at least 1,000 hydrogen recharging stations, according to the Ministry of Industry and Information Technology.
North American Market Forecast
Further, the green hydrogen market in the North America is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the growing need for clean energy across various sectors which is likely to boost the need for green hydrogen. In response to ongoing economic and environmental concerns, as well as regional demands for clean renewable energy sources, fuels, and other goods, the U.S. economy is growing more flexible and inventive. Moreover, a hydrogen programme plan has been prepared by the U.S. Department of Energy (DOE). In order to advance the production, transportation, storage, and use of hydrogen across various economic sectors. This plan offers a structure that includes the research, development, and demonstration efforts of all the combined offices of energy.
Siemens Energy collaborated with Air Liquide to increase the production of renewable hydrogen electrolyzers in Europe for industrial purposes. A sustainable hydrogen economy would be able to take off in Europe owing to this Franco-German alliance. Production is anticipated to start in the second half of 2023 and build up to a three gigawatt annual production capacity by 2025.
Adani Group announced their plan to invest USD 20 billion for the generation of renewable energy. This is likely to involve investments with possible partners for the production of electrolyzers.
Author Credits: Smruti Ranjan, Rajrani Baghel
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