Green Hydrogen Market

Green Hydrogen Market Synopsis

The Global Green Hydrogen Market was valued at USD 36.6 billion in 2024 and is expected to grow from USD 54.4 billion in 2025 to USD 1,297.5 billion by 2033, reflecting a CAGR of 46.0% over the forecast period.

The Green Hydrogen Market is currently exhibiting very fast growth with the whole world running to meet the aims set to achieve decarbonization and a move to clean energy sources. The use of renewable sources of energy like wind, solar or hydropower to combine electrons with hydrogen water and generate green hydrogen makes the alternative a sustainable source of fossil fuels. Governments and industries all around the world are wagering heaving into green hydrogen technologies to cut greenhouse gases emissions, mostly in hard-to-abate industries, such as steel, cement, heavy transport, and the aviation sector. Support in the form of friendly policies, subsidies, and international partnerships in the market is also promoting faster growth in the market.

Green Hydrogen Market Driver Analysis

Decarbonization Goals and Net-Zero Commitments

Green hydrogen is fast becoming a strategic solution by governments and industries worldwide to ensure their climate commitments in order to limit their reliance on fossil fuels. As countries consider high targets towards net-zero carbon emissions, green hydrogen is a clean and versatile replacement of the traditional source of energy, particularly in sectors that are hard to decarbonize heavy industry, shipping, and aviation. Monetary incentives, such as subsidies, grants, and tax incentives, as well as government policies are being released in order to speed up the development and takeoff of green hydrogen technologies.

Green Hydrogen Market Restraint Analysis

Energy Loss in Conversion

The steps involved in electrolysis and then conversion process reflect high loss of potential energy than direct use of electricity to produce direct energy or electricity due to the energy consumption and efficiency loss in every step of the green hydrogen value chain. In the electrolysis process, the conversion of electrical energy to hydrogen is approximately 6070 percent only with the remaining energy being emitted out in form of heat. Should then the hydrogen be compressed, liquefied, stocked, transported or converted into electricity once more (e.g. due to fuel cells or combustion), additional energy is wasted at each of these stages.

Green Hydrogen Market Opportunity Analysis

Decarbonizing Hard-to-Abate Sectors

Green hydrogen would deliver solutions to industries in which electrification is difficult, including the aviation, shipping, and steel sectors, as those sectors involve high energy density, high temperatures, or needs to have a long range, which batteries cannot do effectively. Green hydrogen may be produced directly and utilized in aviation and shipping, or it may be transformed into low-carbon synthetic fuels such as ammonia or e-fuels providing a viable alternative to the traditional fossil-based fuel. Green hydrogen can be used as a reducing agent in the steelmaking industry to substitute carbon-intensive coke as a reducing agent in direct reduction of iron (DRI) process.

Green Hydrogen Market Trend Analysis

Integration with Renewable Energy Grids

Green hydrogen is being investigated as a medium of storage to balance volatile renewable energy supply due to its ability to store surplus electricity produced using renewable energy sources such as solar and wind energy which is variable in nature. In any case of surpluses of renewable energy, electrolysis may be conducted to form hydrogen. This hydrogen can be stored and subsequently repowered back as electricity or used as fuel when the energy generated by the renewable sources happens to be low. Hydrogen has long-duration energy storage capabilities, unlike batteries, and could be up-scaled to seasonal energy storage, serving an important strategic role in grid stability and reliability of energy security in a renewales-dominated power system.

Green Hydrogen Market Segment Analysis

The Green Hydrogen Market is segmented on the basis of Technology, Application, and End-Use Industry.

By Technology

o   SOEC Electrolyzer

o   Alkaline Electrolyzer

o   Polymer Electrolyte Membrane (PEM) Electrolyzer

By Application

o   Extruding

o   Rolling

o   Drawning

o   Forging

o   Casting

By End-Use Industry

o   Medical

o   Food and beverages

o   Petrochemicals

o   Chemical

o   Glass

o   Other End-Use Industries

By Region

o   North America (U.S., Canada, Mexico)

o   Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)

o   Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)

o   Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New-Zealand, Rest of APAC)

o   Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)

o   South America (Brazil, Argentina, Rest of SA)

By Technology, Alkaline Electrolyzer Segment is Expected to Dominate the Market During the Forecast Period

The technologies discussed in this research study, the alkaline electrolyzer segment is expected to account for the largest market share of green hydrogen market in the forecast period. Alkaline electrolyzers are many decades of operation and have been optimized to produce large quantities of hydrogen production, especially in industrial manufacturing. They employ liquid alkaline electrolyte like potassium hydroxide and can be used at low temperature is favorable to improve durability and make maintenance easy. Moreover, the existing alkaline electrolyzers are cheaper when compared to newer electrolyzers, such as proton exchange membrane (PEM) and solid oxide electrolyzers, thus making the former part of the preferred choice in most large-scale green hydrogen projects.

By Application, the Transport Segment is Expected to Held the Largest Share

The transport segment is likely to dominate the market. Green hydrogen is also specifically applicable where battery-electric means are weight-limited or range- or charging-time-limited to heavy-duty and long-distance transportation. Fuel cell electric vehicles (FCEVs) using green hydrogen as fuel have long driving ranges and rapid refueling capacity, which makes them suitable primarily in buses, trucks and trains. Further, alternative fuels like ammonia and synthetic aviation fuel which are hydrogen-based are coming under consideration as a way of decarbonizing maritime transport and transportation of the air.

By End-Use Industry, the Food and Beverages Segment is Expected to Held the Largest Share

By end-use industry, the food and beverages segment is expected to hold the largest share of the green hydrogen market during the forecast period due to the industry's increasing focus on sustainability, clean energy adoption, and carbon footprint reduction. The food and beverage industry also uses green hydrogen to hydrogenate fats and oils, to generate steam required during food processing, and to form protective atmosphere in foods during packaging to maintain freshness. Green hydrogen is a rising requirement of clean and renewable energy as the international food corporations decide to decarbonize their processes.

Green Hydrogen Market Regional Insights

North America is Expected to Dominate the Market Over the Forecast period 

North America is expected to dominate the green hydrogen market over the forecast period owing to strong government support, substantial investments, and the presence of abundant renewable energy resources. Efforts are currently underway to expand the region with green hydrogen using federal incentives, clean energy policies, and funding, including the U.S. Inflation Reduction Act that extends tax credits to hydrogen production. Furthermore, several mega projects of green hydrogen are in the flurry in the region, more so in the states with solar and wind energy abundance. Cooperation among energy firms, technology providers and industrial actors are speeding up the process of infrastructure development and commercialization.

Recent Development

In September 2024, Thermax entered into a partnership with Ceres Power to manufacture large-scale Solid Oxide Electrolysis Cells (SOEC) for green hydrogen production, with a focus on harnessing industrial waste heat. The collaboration aims to develop high-efficiency systems specifically designed for energy-intensive industries such as steel and refineries.

Active Key Players in the Green Hydrogen Market

o   Air Products Inc.

o   Air Liquide

o   Bloom Energy

o   Uniper SE

o   Engie

o   Cummins Inc.

o   Linde plc.

o   Siemens Energy

o   Nel ASA

o   Toshiba Energy Systems & Solutions Corporation

o   Other Key Players

Global Green Hydrogen Market Scope