1. Global Green Hydrogen Market Introduction
The global green hydrogen market is experiencing significant growth, driven by the increasing demand for sustainable and clean energy sources. In 2024, the green hydrogen market revenue is projected to reach $2,981.77 million. This growth is expected to continue in the coming years, with a CAGR of 51.76% from 2024 to 2029. Green hydrogen, defined as hydrogen produced through the electrolysis of water using renewable energy sources such as wind and solar power, is emerging as a crucial component in the transition towards a low-carbon economy. This article delves into the detailed data, driving factors, and limiting factors influencing the growth of the global green hydrogen market.
Green hydrogen is produced by splitting water into hydrogen and oxygen using electricity generated from renewable sources. This process, known as electrolysis, is facilitated by electrolyzers, which come in different types such as Alkaline (ALK) Electrolyzers and Proton Exchange Membrane (PEM) Electrolyzers. Each type has its unique advantages and applications, contributing to the versatility of green hydrogen in meeting diverse energy needs.
Global Green Hydrogen Market Revenue (M USD) in 2024
2. Driving Factors of Green Hydrogen Market Growth
Environmental Concerns and Policy Support: Governments worldwide are increasingly focusing on reducing carbon emissions and transitioning to cleaner energy sources. Policies such as carbon pricing, subsidies for renewable energy, and mandates for clean fuel usage are encouraging industries to adopt green hydrogen. For instance, the European Union has set ambitious targets for hydrogen production, aiming to achieve a significant reduction in greenhouse gas emissions.
Technological Advancements: Improvements in electrolyzer technology have made the production of green hydrogen more efficient and cost-effective. Innovations in PEM and ALK electrolyzers have led to higher production capacities and lower operational costs, making green hydrogen a viable option for various applications. Additionally, advancements in energy storage and distribution technologies have facilitated the integration of green hydrogen into existing energy systems.
Growing Demand from Various Industries: The demand for green hydrogen is expanding across multiple sectors. In the power sector, it is used for electricity generation, reducing reliance on fossil fuels. In transportation, green hydrogen is gaining traction as a fuel for fuel cell electric vehicles, offering a zero-emission alternative to traditional vehicles. Industries such as steel production and chemical manufacturing are also exploring the use of green hydrogen to decarbonize their processes.
Investment and Collaboration: Increased investment from both public and private sectors is driving the development and deployment of green hydrogen projects. Companies are forming strategic partnerships and collaborations to enhance research and development efforts, share resources, and accelerate the commercialization of green hydrogen technologies.
3. Limiting Factors of Green Hydrogen Market Growth
High Initial Costs: The production of green hydrogen currently involves high capital and operational costs, primarily due to the expensive nature of electrolyzers and the infrastructure required for hydrogen storage and distribution. This makes it less competitive compared to traditional fossil fuels and other renewable energy sources in terms of immediate economic viability.
Infrastructure Limitations: The lack of widespread hydrogen infrastructure, including refueling stations for vehicles and storage facilities, poses a significant barrier to the widespread adoption of green hydrogen. Developing a robust infrastructure network requires substantial investment and coordination among various stakeholders, including governments, industry players, and service providers.
Technological Challenges: While significant progress has been made in electrolyzer technology, there are still challenges related to efficiency, durability, and scalability that need to be addressed. Additionally, the integration of green hydrogen into existing energy systems can be complex, requiring advanced energy management solutions and regulatory frameworks.
Public Acceptance and Awareness: The public’s understanding and acceptance of green hydrogen as a clean energy source are crucial for its adoption. There may be concerns related to the safety and reliability of hydrogen-based systems, which could affect the green hydrogen market’s growth. Raising awareness and addressing misconceptions through education and demonstration projects are essential to overcome this challenge.
4. Global Green Hydrogen Market Segment
Product Types of Green Hydrogen Market
Green hydrogen is primarily produced through electrolysis, a process that splits water into hydrogen and oxygen using electricity generated from renewable sources. The green hydrogen market can be segmented into different product types based on the technology used for electrolysis. The two main types are Alkaline (ALK) Electrolyzers and Proton Exchange Membrane (PEM) Electrolyzers.
Alkaline (ALK) Electrolyzers
ALK electrolyzers use a liquid alkaline solution, typically potassium hydroxide or sodium hydroxide, as the electrolyte. They operate by passing an electric current through the electrolyte, which separates water into hydrogen and oxygen. ALK electrolyzers are known for their robustness and ability to handle large-scale production.
The revenue generated by ALK electrolyzers in 2024 is projected to be $1,993.22 million. This type of electrolyzer holds the largest market share due to its established technology and widespread use in industrial applications.
Proton Exchange Membrane (PEM) Electrolyzers
PEM electrolyzers utilize a solid polymer electrolyte membrane that conducts protons while separating hydrogen and oxygen. This technology offers higher efficiency and purity of hydrogen compared to ALK electrolyzers, making it suitable for applications requiring high-quality hydrogen.
The revenue from PEM electrolyzers in 2024 is expected to reach $830.25 million. While they have a smaller market share compared to ALK electrolyzers, PEM electrolyzers are gaining traction due to their advanced technology. They are experiencing the fastest growth rate among the product types, driven by their ability to integrate seamlessly with renewable energy sources and provide high-purity hydrogen.
Other Type
This category includes emerging technologies such as solid oxide electrolyzers and hybrid electrolyzers, which are still in the development or early commercialization stages. These technologies aim to improve efficiency and reduce costs further. The revenue from other types of electrolyzers is estimated at $158.30 million. While their current market share is small, they have the potential for significant growth as they mature and become more cost-effective.
Applications of the Green Hydrogen Market
Power Plants
Green hydrogen can be used as a fuel in power plants to generate electricity. This application helps reduce carbon emissions from traditional fossil fuel-based power generation, making it a crucial component in the transition to a low-carbon energy system. The consumption of green hydrogen in power plants is projected to be 571.2 MW in 2024. This represents a significant portion of the total market consumption, reflecting the growing adoption of hydrogen as a clean fuel source in the power sector. The growth rate in this application is driven by the increasing need for sustainable energy solutions and the integration of hydrogen into existing power generation systems.
Steel Production
In the steel industry, green hydrogen can replace coking coal in the steelmaking process, reducing carbon emissions and making the process more sustainable. This application is particularly important as the steel industry is one of the largest emitters of greenhouse gases. The consumption of green hydrogen in steel production is expected to reach 182.4 MW in 2024. The growth rate is influenced by the increasing demand for low-carbon steel and the need to reduce emissions in the steel industry. As more companies and governments set targets for net-zero emissions, the use of green hydrogen in steel production is expected to accelerate.
Electronics and Photovoltaics
Green hydrogen is used in the electronics and photovoltaics industries for processes such as semiconductor manufacturing and the production of solar cells. It provides a clean and reliable source of energy for these high-tech applications, ensuring the quality and efficiency of electronic devices and solar panels. The consumption in this application is estimated at 209.8 MW. The growth rate is driven by the expanding electronics industry and the increasing adoption of renewable energy technologies, particularly in the production of solar panels.
Industrial Gases
Green hydrogen is used as an industrial gas in various processes, including chemical production, refining, and metal processing. It serves as a clean alternative to traditional industrial gases, reducing environmental impact and improving process efficiency. The consumption from industrial gases is projected to be 157.2 MW. The growth rate is driven by the increasing demand for clean industrial processes and the need to reduce emissions in sectors such as chemical manufacturing and refining.
Energy Storage and Fueling for Fuel Cell Electric Vehicles (FCEVs)
Green hydrogen can be used for energy storage and as a fuel for FCEVs, providing a clean and efficient energy solution for transportation. This application is crucial for reducing emissions in the transportation sector and promoting the adoption of zero-emission vehicles. The consumption from this application is expected to reach 263.9 MW. This application is experiencing one of the fastest growth rates due to the increasing adoption of fuel cell technology in the transportation sector and the need for sustainable energy storage solutions.
Power to Gas
Power to Gas involves converting excess renewable energy into hydrogen, which can be stored and used as a fuel or converted back into electricity when needed. This application helps balance the energy grid and supports the integration of renewable energy sources. The consumption from Power to Gas is estimated at 387.5 MW. It is one of the fastest-growing applications due to its role in enhancing energy storage and grid stability, as well as its ability to utilize surplus renewable energy.
In 2024, the application with the largest market share is power plants, which utilize green hydrogen to generate electricity sustainably. The significant market share of power plants can be attributed to the large-scale demand for clean energy and the ongoing transition towards renewable energy sources in the power sector. The use of green hydrogen in power plants helps reduce carbon emissions and supports global efforts to combat climate change.
On the other hand, the fastest-growing application is energy storage and fueling for Fuel Cell Electric Vehicles (FCEVs). The increasing adoption of fuel cell technology in the transportation sector, driven by the need for zero-emission vehicles and sustainable transportation solutions, is the primary factor behind this rapid growth. As more countries and companies invest in the development and deployment of FCEVs, the demand for green hydrogen as a fuel is expected to continue rising.
Market Revenue and Consumption by Segment
| Market Revenue (M USD) in 2024 | ||
| By Type | Alkaline (ALK) Electrolyzer | 1993.22 |
| Proton Exchange Membrane (PEM) Electrolyzer | 830.25 | |
| Others | 158.30 | |
| Market Consumption (MW) in 2024 | ||
| By Application | Power Plants | 571.2 |
| Steel Plant | 182.4 | |
| Electronics and Photovoltaics | 209.8 | |
| Industrial Gases | 157.2 | |
| Energy Storage or Fueling for FCEV’s | 263.9 | |
| Power to Gas | 387.5 | |
| Other | 75.6 |
5. Regional Analysis of the Global Green Hydrogen Market
Europe
Europe is the largest regional green hydrogen market, accounting for approximately 47.22% with a production of 872.5 MW in 2024. The region’s dominance can be attributed to its strong commitment to renewable energy and aggressive policies aimed at reducing carbon emissions. Countries like Germany, France, and the United Kingdom are leading the charge, investing heavily in green hydrogen projects and infrastructure. The European Union’s ambitious targets for hydrogen production and its support for research and development have further fueled the growth of the green hydrogen market in the region. Europe’s focus on integrating hydrogen into its energy system, particularly in sectors such as transportation and industry, has also contributed to its significant production levels.
China
China is the second-largest green hydrogen market with a production of 562.9 MW, with a share of 30.47% in 2024. The country’s rapid economic growth and increasing focus on sustainable development have driven the demand for green hydrogen. China is investing in large-scale hydrogen production facilities and is actively promoting the use of hydrogen in various sectors, including transportation and industrial processes. The government’s support for renewable energy and its strategic plans to reduce reliance on fossil fuels has also contributed to the growth of the green hydrogen market in China. Additionally, China’s vast industrial base and the need for clean energy solutions to address environmental challenges have further boosted its production capacity.
North America
North America accounts for 5.45% of the global green hydrogen market production in 2024 with a production of 100.7 MW. The region is experiencing steady growth, driven by increasing awareness of the environmental benefits of green hydrogen and growing investments in renewable energy technologies. The United States and Canada are the main contributors, with several pilot projects and initiatives aimed at developing a hydrogen economy. The region’s focus on innovation and technological advancements is expected to further boost the green hydrogen market in the coming years. However, compared to Europe and China, North America’s production is relatively smaller, primarily due to the early stages of market development and infrastructure deployment.
The fastest-growing region in the global green hydrogen market is China. China’s production is expanding rapidly due to its strategic focus on renewable energy and significant investments in hydrogen production and infrastructure. The country’s ambitious plans to reduce carbon emissions and its commitment to developing a hydrogen economy are driving this growth. In 2024, Europe remains the largest regional market for green hydrogen production, driven by its strong commitment to renewable energy and aggressive policies.
Global Green Hydrogen Market Production Market Share by Region in 2024
6. Analysis of the Top 3 Companies in the Global Green Hydrogen Market
718th Research Institute of CSI
Company Introduction and Business Overview: The 718th Research Institute of CSIC, part of the China State Shipbuilding Corporation, was founded in 1966. It is a leading research and development institute specializing in the design and manufacture of hydrogen production equipment. The institute offers a wide range of advanced and reliable products, including water electrolysis hydrogen production systems.
Products Offered: The institute’s flagship product is the ZDQ-type water electrolysis hydrogen production system, which is known for its high hydrogen production capacity and efficiency. The system features a bipolar filter press cell structure and an automatic computer control system, ensuring high purity of hydrogen and oxygen.
Sales Revenue in the Latest Year: In 2022, the institute generated a sales revenue of $106.02 million.
Company Introduction and Business Overview: Suzhou Jingli is a joint venture between Suzhou Jingli Hydrogen Production Equipment Co., Ltd. and John Cockerill Group from Belgium, established in 2018. The company is primarily engaged in the design, development, manufacture, and sales of hydrogen production equipment for various industries.
Products Offered: Suzhou Jingli offers the Ecoloxtech electrolyzed water system, which is compact, easy to operate, and highly reliable. The system is suitable for applications in power plants, electronics, metallurgy, and other industries. In 2022, the company achieved a sales revenue of $82.46 million.
Company Introduction and Business Overview: Hydrogenics, acquired by Cummins Inc. in 2019, is a leading developer and manufacturer of hydrogen generation and fuel cell products. The company specializes in water electrolysis and proton exchange membrane (PEM) technology, offering solutions for industrial and power generation applications.
Products Offered: Hydrogenics’ product portfolio includes the HySTAT and HyLYZER hydrogen generators, which are used in various industries such as chemicals, electronics, and power plants. The company also offers PEM fuel cell systems for transportation and stationary power applications. In 2022, Hydrogenics generated a sales revenue of $58.34 million.
Major Players
| Company Name | Plants Distribution | Sales Region |
| 718th Research Institute of CSIC | China | Worldwide |
| Suzhou Jingli | Mainly in China | Mainly in Asia and Europe |
| Hydrogenics | Canada | Worldwide |
| Nel Hydrogen | Norway | Worldwide |
| Teledyne Energy Systems | US | Worldwide |
| Siemens | Germany | Worldwide |
| McPhy | France | Worldwide |
| Erredue SpA | Italy | Worldwide |
| Idroenergy Spa | Italy | Worldwide |
| TianJin Mainland | China | Worldwide |
| Beijing Zhongdian | China | Mainly in Asia, Europe, America |