Green Hydrogen Market Analysis by Technology (Proton Exchange Membrane Electrolyzer, Solid Oxide Electrolyzer, and Alkaline Electrolyzer); by Application (Power Generation, Transport, and Others); and by End Use Industry (Medical, Food & Beverages, Chemical, Glass, Petrochemicals, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035

Buy Now Report ID: 4778 | Published Date: Apr 03, 2023

Global Green Hydrogen Market Size, Forecast, and Trend Highlights Over 2023 - 2035

The global green hydrogen market size is estimated to reach USD 515.66 Billion by the end of 2035 by growing at a CAGR of 61% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of green hydrogen was 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 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.

Get more information on this report: Request Free Sample PDF

Global Green Hydrogen Market: Key Insights

Base Year


Forecast Year




Base Year Market Size (2022)

USD 1.7 Billion

Forecast Year Market Size (2035)

USD 515.66 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Global Green Hydrogen Market: Growth Drivers and Challenges


Growth Drivers

  • Growing Levels of Global Warming– Green hydrogen emits no greenhouse gases but can provide high-temperature heat to drive sizable industrial activities. Therefore, it can be a great alternative to other energy sources for reducing the levels of global warming. The average world temperature is expected to rise by about 1.15 degrees Celsius in the eight warmest years which are anticipated to be those from 2015 to 2022. Moreover, in 2022, the atmospheric concentrations of the three primary greenhouse gases—carbon dioxide, methane, and nitrous oxide have grown.
  • Increasing Demand for Hydrogen– Green hydrogen is hydrogen created by using renewable electricity to separate water into hydrogen and oxygen. Therefore, higher production of hydrogen is likely to boost the production of green hydrogen In 2021, the world's demand for hydrogen increased by 5% to 94 Mt, primarily due to increased activity in the chemical and refining industries. The historical peak of 91 Mt was surpassed by the demand for hydrogen in 2019.
  • Growing Investment in Hydrogen Energy – Higher spending on the development of hydrogen energy is likely to create more opportunities for the market. With a 35% increase over 2020, public financing for hydrogen R&D experienced its biggest yearly growth in 2021. Around 5% of the entire R&D expenditure for sustainable energy technologies was allocated to hydrogen technologies.
  • Rising Capacity of Electrolyzer– High capacity of electrolyzers is expected to boost the manufacturing of green hydrogen. Electrolysers, which are required to manufacture low-emission hydrogen from renewable power, are predicted to see a six-fold rise in worldwide manufacturing capacity by 2025.
  • Rising Need for Clean Energy – The only byproduct of using green hydrogen as fuel in a fuel cell is water which makes it green energy. According to the International Energy Agency the capacity of new renewable energy sources is expanded to 290 gigawatts (GW) in 2021, breaking the previous record set in the previous years.


  • High Cost of Manufacturing -Hydrogen is more expensive to obtain, as it costs more to produce the energy from renewable sources that is necessary to produce green hydrogen through electrolysis.
  • It Requires a High Initial Investment
  • Lack of Storage and Moving Facilities for Green Hydrogen

Global Green Hydrogen Market Segmentation

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.

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 green hydrogen market includes the following segments:

     By Technology

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

     By Application

  • Power Generation
  • Transport
  • Others

     By End Use Industry

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

Global Green Hydrogen Market Regional Synopsis


The market share of green hydrogen in Europe, amongst the market in all the other regions, 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.

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.

Further, the market in the North America, amongst the market in all the other regions, 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.


Get more information on this report: Request Free Sample PDF

Top Featured Companies Dominating the Global Green Hydrogen Market

    • Siemens Energy
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Cummins Inc.
    • Linde plc
    • ITM Power plc
    • Nel ASA
    • Air Products and Chemicals Inc.
    • Iwatani Corporation Ltd.
    • Messer SE & Co. KGaA
    • Adani Group
    • Air Liquide


In The News

  • April 2022: 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.

  • October 2020: 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.


Global Economic Impact

Request Insights
Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

Author Credits:  Smruti Ranjan, Rajrani Baghel

Key Questions Answered in the Report

1) What are the major factors driving the growth of the green hydrogen market?

Ans: Increasing production and demand for hydrogen, and the growing need to reduce carbon emissions are the major factors driving the market growth.

2) What would be the CAGR of green hydrogen market over the forecast period?

Ans: The market size of green hydrogen is anticipated to attain a CAGR of 61% over the forecast period, i.e., 2023 – 2035.

3) What are the challenges affecting the green hydrogen market growth?

Ans: Lack of adequate infrastructure, high demand for investment, and the transportation and storage of green hydrogen can be tricky is estimated to be the growth hindering factors for the market expansion.

4) Which region will provide more business opportunities for growth of green hydrogen market in future?

Ans: The market in the Europe region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

5) Who are the major players dominating the green hydrogen market?

Ans: The major players in the market are Cummins Inc., Linde plc, ITM Power plc, Nel ASA, Air Products and Chemicals Inc., Iwatani Corporation Ltd., Messer SE & Co. KGaA, Adani Group, Air Liquide, and Siemens Energy.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the green hydrogen market?

Ans: The market is segmented by technology, application, end use industry, and by region.

8) Which segment captures the largest market size in the application segment in the green hydrogen market?

Ans: The transport segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

Let Us Hear About Your Requirements:

Submit Your Request For Proposal (RFP)

 Request Free Sample Copy