Green Hydrogen Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Green Hydrogen Market is Segmented By Technology (Alkaline Electrolyzer, Proton Exchange Membrane Electrolyzer, Solid Oxide Electrolyzer, Others), By Renewable Sources (Wind Energy, Solar Energy, Geothermal, Hydropower, Others), By Application (Power Generation, Transport, Others), By End-User (Industrial, Mobility, Chemical, Power, Grid Injection, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Report Overview

The Global Green Hydrogen Market is expected to reach at a CAGR of 20.9% during the forecast period (2024-2031).  Green hydrogen is universal, light, highly reactive, and has the potential to significantly lower greenhouse gas emissions.

Electrolysis, which divides hydrogen from oxygen in water using an electrical current, is one of many technologies that create green hydrogen. In addition, biogas can be converted into green hydrogen as a sustainable resource by using a multistep process that includes hydrogen separation, water-gas-shift reaction, and biogas reforming. Green hydrogen may also aid in decarbonizing industries like steel and chemicals and businesses like shipping and transportation, where it may be used as a fuel and raw material. Green hydrogen could also generate electricity instead of fossil fuels and store renewable energy. Gas turbines could also use green hydrogen and ammonia to control power demand and supply variations.

Green Hydrogen Market Summary

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Green Hydrogen Market Dynamics

The Increasing usage of green hydrogen in the transportation industry is a major global green hydrogen market driver. However, The limitations associated with manufacturing processes, transportation, and storage could be a major market restraint.

Increasing usage of green hydrogen in the transportation industry

Due to its numerous environmental advantages, such as reducing air pollution in urban areas and overall carbon dioxide emissions to the atmosphere, green hydrogen is widely used in transportation. The transportation industry is responsible for almost 25% of greenhouse gas emissions and urban air pollution. Green hydrogen, which can replace fossil fuels in the mobility sector, is a promising approach to an energy-efficient and decarbonized system.

The world is getting ready to change how it moves toward net zero-emission goals. The transportation sector is developing vehicles that use hydrogen directly in fuel cells or internal combustion engines. Forklifts powered by hydrogen have already been created and used in a few industries throughout Europe, Asia, and North America.

The demand for green hydrogen is soaring due to the popularity of fuel cell-based electric cars and buses, particularly in APAC, North America, and Europe. To supply hydrogen fuel cell vehicles, the European Union (EU) would have about 5,000 hydrogen fueling stations with a combined capacity of roughly 2,615,000 Tons of green hydrogen by 2030.

Since 2017, the U.S. has invested US$ 150 Million annually in the infrastructure and development of hydrogen fuel. Additionally, more than US$ 2 Billion is annually invested in hydrogen fuel production by governments in Europe and Asia.

China has pledged to invest over US$ 217 Billion in hydrogen-powered transportation through 2023. The transition to green hydrogen and electric vehicles will be crucial for India to achieve carbon neutrality by 2070, according to a senior advisor with the Indian Department of Science and Technology. Transportation is one of the areas where this will be the case.

The limitations associated with manufacturing processes, transportation, and storage

Making the manufacturing process economically and commercially viable is the most challenging aspect of the process. Although many countries, including India, have announced national hydrogen programs, they have not yet decided how the fuel will be commercialized on a large scale because many production processes, like electrolysis, are still in the pilot stage.

Additionally, it is more expensive to produce green hydrogen initially than grey hydrogen on average. The challenge is made more difficult by the lack of infrastructure for storage and transportation. The fixed cost of building the plant is only half the battle; there are still financial and security issues with transporting green hydrogen. Management must deal with two different types of uncertainties in the strategic transportation planning horizon. First and foremost, it was impossible to confidently predict the value of the model's numerous parameters due to the dearth of historical data.

Furthermore, management and decision-makers cannot specify the specific restrictions of the models due to the complexity of such network design challenges. Despite the flexibility of the restrictions in green hydrogen supply chains being relevant, no researchers have yet examined how they might affect model formulation. Such uncertainties could significantly affect the dependability of the results, have the potential to significantly affect the responsiveness of the transportation network, and increase client demand resentment.

COVID-19 Impact Analysis on Green Hydrogen Market Growth

The demand for green hydrogen gas is driven by the surge in launching and selling hydrogen-based fuel cell vehicles globally. For instance, the hydrogen fuel cell vehicles on 12th June 2020, H2X Australia launched and planned to produce a wide range of hydrogen fuel cell vehicles (FCEVs), including movers to heavy-duty vehicles such as tractors and cars, among others. Currently, the green hydrogen gas demand is stable as several manufacturing industries related to metal, glass, and pharmaceuticals, among others, have a sufficient supply of hydrogen as fuel

The demand for hydrogen as a fuel is increasing due to the launching of new hydrogen-based vehicles with a surge in demand for hydrogen fuel stations. For instance, on 27th Nov 2020, origin Energy, an Australian power provider, planned to accelerate hydrogen production by installing around 300 MW of hydrogen electrolyzers and bi batteries in Australia. Thus demand is set to increase as several leading players invest in the hydrogen-related project. The number of countries with policies that directly encourage investment in hydrogen technologies is growing, as is the number of industries targeted. Today, approximately 50 targets, mandates, and policy incentives are in place that directly supports hydrogen, with the majority focusing on transportation. 

For instance, on 23rd October 2020, Canberra Australian government awarded a US$ 36 billion project to Asian Renewable Energy Hub (AREH) to fast-track mega hydrogen and renewable energy projects. Thus currently, the demand for the hydrogen electrolyzer in Asia-Pacific remained stable with the surge in the mega investments and projects for hydrogen technologies by the leading players and government authorities. The pricing structure of green hydrogen gas amid the COVID-19 pandemic slightly declined due to a lack of demand for hydrogen. The government of Australia is planning to reduce the total cost of hydrogen production by allocating huge investments for infrastructure development of hydrogen-related technologies. The hydrogen production cost with the hydrogen electrolyzer is less than US$ 7.6 as per the Enapter company hydrogen electrolyzer as of 2019 and the company aims to reduce the cost between 2020 and 2030 by around US$ 1.60 per Kg. 

Also, government support and initiatives for hydrogen technologies may decline the cost of hydrogen production. For instance, the government of Australia launched National Hydrogen Strategy in 2019, which aims to reduce the hydrogen production cost from under US$ 1.48 which is under A$ 2 per kg.

Green Hydrogen Market Segment Analysis

The global green hydrogen market is classified based on technology, renewable sources, application, end-user, and region.

Increasing launching of advanced technology offering cost-effectiveness with compact-size alkaline platforms that provide customized indoor hydrogen solutions for any application, with the required configuration and size

The alkaline electrolyzer uses potassium hydroxide and sodium hydroxide solutions as an electrolyte for hydrogen production. The alkaline electrolyzer consists of the two electrodes inserted in the electrolyte solutions in which chemical reactions occur after a sufficient voltage is supplied. The response separates water molecules into OH⁻ ions and an H2 molecule at the anode and cathode, respectively.

The demand for the alkaline electrolyzer is driven by the increasing launching of advanced technology offering cost-effectiveness with compact-size alkaline platforms that provide customized indoor hydrogen solutions for any application, with the required configuration and size. For instance, on July 11, 2019, Nel ASA launched an A1000 alkaline hydrogen electrolyzer. It is a medium-scale electrolyzer with a capacity of around 2 Tons/day of hydrogen production. The alkaline A1000 hydrogen electrolyzer is built for industry-leading A-Range atmospheric alkaline platforms. The size ranges from 600 to 970 Nm3/hr with the flexibility to scale per customer demand. 

Further increasing government initiatives, support, and funding for developing hydrogen production electrolyzers and a surge in development projects have propelled the alkaline electrolyzer market. For instance, on April 17, 2020, the Asahi Kasei electrolysis system started the world's largest 10 MW alkaline hydrogen electrolyzer to supply hydrogen in Japan's Ashima hydrogen energy research field. The system was installed at Namie, Futaba, Fukushima hydrogen energy research field as a technological development project of Nado Japan's new energy industrial technology development organization. The alkaline hydrogen electrolyzer can produce 1200 Nm3 per hour of hydrogen.

In addition, the alkaline hydrogen electrolyzer in developing countries is increasing due to the lack of fossil fuels and rising government investment in renewable energy projects to minimize the import of fossil fuels such as oil and coal, among others. For instance, in 2016, the Japanese imports of fossil fuels, such as oil, coal, and liquefied natural gases, increased by around 89%, making Japan the world's third-largest importer of coal. It created a massive demand for this region's hydrogen alkaline electrolyzer market.

Further, leading manufacturers launching and developing hydrogen electrolyzers, coupled with government support and funding, have created a massive demand for the Alkaline electrolyzer market's growth globally. 

For instance, in July 2021, Hyundai Motor Company and Kia Corporation strengthened their efforts to usher in a global hydrogen society through affordable clean hydrogen production by signing a memorandum of understanding with Next Hydrogen Corporation, a Canadian business specializing in water electrolysis technology subsidiary of Next Hydrogen Solutions Inc. According to the agreement, the businesses will work together to create an alkaline water electrolysis system1 and its associated stack to generate green hydrogen economically and investigate the new business and technological potential.

In December 2021, ABB signed an order with HydrogenPro, a Norway-based hydrogen plant company, to provide electrical equipment for the world's largest single-stack high-pressure alkaline electrolyzer. The system generates hydrogen by using electricity to split water into hydrogen and oxygen. When fully operational in 2023, the system will be able to produce 1,100 normal cubic meters of green hydrogen per hour (Nm3/h) at a specially constructed test site in Herya, Norway.

Global Green Hydrogen Market Geographical  Share

Government and private investments, growing awareness, and green hydrogen's eco-friendly nature

The U.S. produces about 11.4 Million Tons of hydrogen annually, primarily for fertilizer and chemical products and the refining of fossil fuels. The U.S. Gulf Coast region has the infrastructure needed to handle this production. However, most of it is "grey hydrogen," produced in plants using a method that releases carbon dioxide from natural gas. To dramatically reduce the CO2 emissions, which would then produce what is known as blue hydrogen, some fossil fuel and manufacturing gas companies have suggested installing carbon capture and storage systems in these plants. However, proponents of clean energy and climate change worry that the blue hydrogen route could extend the use of natural gas, which, when released into the atmosphere, is a powerful greenhouse gas. 

A zero-carbon substitute would be green hydrogen, produced using renewable electricity to power electrolyzers that split water molecules into hydrogen and oxygen. In challenging-to-decarbonize industries like steel and cement, shipping, and aviation, it might take the place of fossil fuels. The North American green hydrogen market has witnessed enormous growth since 2019 and is expected to propel exponentially due to government and private investments, growing awareness, and green hydrogen's eco-friendly nature. Suppose the plans of a group of former natural-gas storage developers and a significant Canadian energy infrastructure developer go accordingly. In that case, the U.S. could see its biggest green hydrogen hub far up and running by 2025. Thyssenkrupp, a German conglomerate, has signed EPC contracts to construct what it claims will be record-size industrial facilities in North America for producing green hydrogen.

Further, Hy Stor Energy announced in October 2021 that it plans to construct a green hydrogen generation and processing plant that could match the size of similar European projects. The initial stage of the project could produce 110,000 Tons of green hydrogen annually and store more than 70,000 Tons of it in salt caverns beneath the ground by 2025.

Green Hydrogen Market Companies and Competitive Landscape

The global green hydrogen market is growing swiftly. It is becoming increasingly competitive due to the presence of major players such as Siemens Energy AG, Toshiba Energy Systems & Solutions Corporation, Linde AG, Air Liquide, Nel ASA, Cummins Inc., Air Products Inc, H&R GROUP, Nation Synergy Hydrogen, and Hamburg. The market is fragmented and market players employ market tactics such as mergers, acquisitions, product launches, contributions, and collaborations to gain a competitive advantage and recognition.

Siemens Energy AG

Overview: Siemens energy global is engaged in advanced technology providers which thrive on supporting a sustainable world. The company's portfolio of solutions, products, and services includes power generation, energy technologies, decarbonization, industrial applications, power transmission, green hydrogen production, energy storage systems, and renewable energy technologies.

The company exists in more than 90 countries located. The energy technology portfolio includes hybrid power plants operated with hydrogen, gas, and steam turbines and power generators & transformers. On October 27, 2020, Siemens Gas and Power changed its name and business address to Siemens Energy Global.

Product Portfolio: 

• Heavy-duty gas turbines: Heavy-duty gas turbine engines are tough and adaptable, making them ideal for large simple, or combined-cycle power plants. They can be used for peak, intermediate, base load duty, and cogeneration. Our extensive validation and testing capabilities benefit our customers. All engines have been commercially tested and provide exceptional efficiency.

Key Development:

• On August 19, 2020, Siemens Energy Global launched its first-megawatt green Hydrogen production project in China. Siemens Energy Global and Beijing Green Hydrogen Technology Development Co., Ltd., a subsidiary of China Power International Development Ltd. (China Power), collaborated and signed an agreement to provide a Hydrogen production system for a Hydrogen fueling station in Yanqing District, Beijing, China.

The global green hydrogen market report would provide approximately 69 tables, 72 figures, and almost 282 pages.