Green hydrogen is developed using renewable energy sources, such as solar or wind power, through a process called electrolysis. The global green hydrogen market is experiencing significant growth as governments and businesses worldwide are looking for ways to decarbonize their operations and reduce their reliance on fossil fuels.
The market for green hydrogen in 2021 was worth USD 1.45 billion, and by 2030 it will reach USD 75.72 billion, growing at a 55.1% CAGR during the forecast period.
The market growth is driven by increasing government initiatives to promote the use of renewable energy, the rising demand for clean fuel in the transportation sector, and the growing need for energy storage solutions. Additionally, the declining cost of renewable energy sources and the increasing efficiency of electrolysis technologies are also contributing to the market’s growth.
Market Dynamics
Drivers
Some of the key drivers of the green hydrogen market include:
- Climate change concerns: With growing awareness about the impact of climate change, there is a growing demand for clean energy sources that can help reduce carbon emissions. Green hydrogen is considered one of the most promising options for decarbonizing industries such as transportation, energy, and manufacturing.
- Government incentives and regulations: Governments are implementing policies and incentives to promote the adoption of green hydrogen. For example, the European Union has set a goal to become carbon-neutral by 2050 and is investing heavily in green hydrogen infrastructure.
- Cost reductions: The cost of producing green hydrogen has decreased rapidly in recent years, making it more competitive with traditional fossil fuels. As the cost continues to decrease, demand for green hydrogen is expect to increase.
Restraints
The corporations are forced to explore alternate renewable energy sources due to the high costs of building and maintaining the hydrogen infrastructure. The biggest obstacles preventing the expansion of the green hydrogen business are the initial investment needed to set up hydrogen infrastructure and the prohibitive maintenance expenses.
Opportunity
On a big scale, hydrogen is being produce using several different technologies. Most of the total hydrogen quantum produce in the current situation is use in fertilizer production and petroleum refining to meet consumer needs. With a favorable rate of acceptance and use worldwide, green hydrogen adoption is still close to reaching its peak in several market areas. Technical advancements have created significant opportunities for the growth of the global green hydrogen market.
Market segmentation
By Technology
The alkaline electrolyzer segment ruled the market with the largest revenue share. Alkaline electrolysis uses various electrolytes that are affordable and simple to produce. Furthermore, solid oxide electrolysis uses electrolytes that are easily replicable, interchangeable and have little corrosive effects on both electrodes.
By Application
The transportation segment held the largest position in the market. For the transportation of cars, hydrogen is use in internal combustion engines or fuel cells. A hydrogen fuel cell is 2 to 4 times more expensive than internal combustion engines due to its great efficiency.
By End-User
The pipeline segment led the entire market with a revenue share of more than 62.07% in 2021. Transporting green hydrogen is possible in various ways, including as a gas in high-pressure containers, a liquid in thermally insulated containers, a processed form such as methanol or ammonia, or as a chemical carrier medium.
Regional Analysis
In 2021, Europe was the biggest regional market, with a revenue share of nearly 50% due to large expenditures made by European economies in the pursuit of an energy transition toward a clean hydrogen-based economy during the ensuing years. For instance, the U.K. government revealed a USD 14.8 billion investment plan in August 2019 for a project that will utilize 4 GW of offshore wind to produce green hydrogen by 2030.
Due to the adoption of clean energy policies, North America will see a significant CAGR throughout the forecast period. With the U.S. and Canada gradually growing the green hydrogen industry. California currently controls most of the U.S. market thanks to aggressive decarbonization. Goals like eliminating gas or diesel-powered public transportation by 2040.
Key Players
- Uniper SE
- Linde
- Air Products and Chemicals, Inc.
- Linde Air Liquide
- Nel ASA
- Siemens
- Hydrogenics
- Engie
- Toshiba Energy Systems and Solutions Corp.
The market for green hydrogen in 2021 was worth USD 1.45 billion. And by 2030 it will reach USD 75.72 billion, growing at a 55.1% CAGR during the forecast period. The market for green hydrogen is growing as a large number of people are becoming aware of the benefits of utilizing hydrogen as an energy carrier. Additionally, the market is being drive by increased environmental concerns. Which emphasize the necessity of producing clean energy to cut emissions.
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