Green Hydrogen Market By Technology (Proton Exchange Membrane Electrolyzer, Alkaline Electrolyzer, and Solid Oxide Electrolyzer), By Application (Power Generation, Transport, and Others), and By End-Use Industry (Food & Beverages, Medical, Chemical, Petrochemicals, Glass, and Others): Global Opportunity Analysis and Industry Forecast 2023-2031
The global green hydrogen market will witness a robust CAGR of 56.1%, valued at $4.45 billion in 2022, expected to appreciate and reach $85.72 billion by 2031, confirms Econ Market Research. Green hydrogen is produced by the electrolysis of water, for which electric power is utilized that is generated by renewable energy sources such as wind energy or solar energy. The presence of favourable government policies pushing toward the hydrogen economy, along with growing environmental concerns regarding increasing carbon emissions from fossil fuel usage, are expected to drive demand for the hydrogen economy. This trend is anticipated to provide a potential growth landscape for the industry.
Market Growth
The global green hydrogen market is growing due to increased awareness of using hydrogen as an energy source. The benefit of employing hydrogen as an energy source is that it only produces water and heat when combined with oxygen. The utilization of hydrogen fuel cells produces no greenhouse gases and other pollutants. Hydrogen fuel cells have been found to be more efficient than traditional combustion-based powerhouses. According to the U.S. Department of Energy, a traditional combustion-based power plant generates electricity at 34 to 35% efficiency, but hydrogen-based fuel cell systems can create electricity at up to 60% efficiency (and even higher with cogeneration).
The increasing carbon emissions in developed and developing countries force them to look for alternative energy sources, which drives the demand for green hydrogen market growth. According to the International Energy Agency, global carbon emissions were 33 Gt CO2 in 2021, a 4.76% increase in emissions from 31.5 Gt CO2 in 2020. Carbon emissions in the United States of America were expected to rebound by more than 200 Mt CO2 in 2021, reaching 4.46 Gt CO2. Increased nuclear and green hydrogen fuel usage has recently expanded the green hydrogen industry. With the increased adoption of renewable energy in current times to reduce the overburden on the environment, the adoption of green hydrogen has been increasing, fostering market growth. According to the IREA (International Renewable Energy Agency), around 120 metric tons of hydrogen are consumed worldwide, with China consuming around 24 metric tons of hydrogen while the United States of America consumes about 11.9 metric tons.
COVID-19 Impact
The green hydrogen industry was unaffected by the COVID-19 disturbance. However, coronavirus-related lockdowns posed a number of problems for industry participants, including disrupted supply chains, logistical difficulties in shipping finished goods, and recruiting workers from quarantines. In addition, the pandemic ensured a strong rise in the renewable energy market, resulting in a continuous increase in energy demand. The renewable energy market will grow steadily during 2020, owing to an increase in energy demand from industrial sectors. Following the modification of lockdown mandates in many countries, the green hydrogen market is quickly returning to normal and is expected to pick up even further.
REPORT SCOPE & SEGMENTATION:
Report Attribute |
Details |
Projected Market Value (2031) |
85.72 billion |
Estimated Market Value (2022) |
4.45 billion |
Base Year |
2022 |
Forecast Years |
2023 - 2031 |
Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- Application, Technology, Source and Region |
Segments Covered |
By Technology, By Application, By Source and Region |
Forecast Units |
Value (USD Billion), and Volume (Units) |
Quantitative Units |
Revenue in USD million/billion and CAGR from 2023 to 2031 |
Regions Covered |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World |
Countries Covered |
U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others |
Report Coverage |
Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis. |
Delivery Format |
Delivered as an attached PDF and Excel through email, according to the purchase option. |
Global Green Hydrogen Market, by Technology
Based on the available technology, the alkaline electrolyzer segment dominates the green hydrogen market during the forecast period. The primary advantages of alkaline electrolysis technology over other manufacturing technologies are responsible for its rapid expansion and market dominance. Alkaline makes use of a wide range of electrolytes that are both readily available and inexpensive to generate. On the other hand, the solid oxide electrolyzer segment is expected to grow at a rapid pace during the forecast period. Solid-oxide uses electrolytes that are easily replicated or interchangeable and have a low corrosive effect on both electrodes. Due to the difficulty of hydrogen ions diffusing into an electrolyte solution, the long life of an electrolyzer is influenced by this factor. Alkaline electrolysis tends to create green hydrogen.
Global Green Hydrogen Market, by Application
Due to demand from the industrial sector for on-site electrolyzer setup, the power generation segment dominated the market in 2019. The transportation segment accounted for the largest revenue share of 50.61% in 2022. In transportation, hydrogen is used in fuel cells or internal combustion engines. Because of its energy efficiency, a hydrogen fuel cell is two- to three-times more efficient than an internal combustion engine fuel by gasoline. But burning hydrogen in internal combustion engines results in nitrogen oxide emissions and is less efficient than being used in fuel cells. In 2021, major European automotive companies like CNH, Daimler, DAF, Ford, MAN, Scania, and Volvo announced plans to switch their truck fleets to hydrogen power by 2040, and Airbus is designing hydrogen-powered aircraft and is planning to run commercial flights by 2035.
Hydrogen is one of the main options for storing renewable energy in power generation. To increase the flexibility of the power system, gas turbines in power plants can run on green hydrogen and green ammonia. In coal-fired power plants, green ammonia can be used to reduce emissions. In the United States, the use of hydrogen as a power plant fuel is growing fast. The domestic, industrial, and space sectors constitute the other applications of green hydrogen. In the domestic sector, green hydrogen can be used to replace the natural gas network with a green hydrogen network to provide electricity and heat to households without producing pollution emissions. The Hydrogen can be used for cooking and heating in homes. The United Kingdom has proposed hydrogen heating as a means of powering most homes by 2050.
Global Green Hydrogen Market, by End-Use Industry
By end-use industry, the chemical Industry is a major producer of by-product hydrogen, which is consumed within the industry as well as distributed for industrial use. The pipeline segment accounted for a 62.30 percent revenue share of the green hydrogen market in 2021. Green hydrogen can be transported as a gas in high-pressure containers, a liquid in thermally insulated containers, in processed form as methanol or ammonia, or in a chemical carrier medium. The pipeline is the most economically viable method to transport large volumes over long distances. In September 2020, German pipeline operators Nowega and Gascade and Siemens Energy jointly released a white paper studying the practical aspects of converting natural gas pipelines for future green hydrogen transportation. Other than pipelines, hydrogen can be transported via trucks and ships using various containers. The mode of transportation and the carrier used depend on the targeted end-user application, the terrain to be covered, and the distance to be covered. The carriers that are used are liquid organic hydrogen carriers and green ammonia through liquid hydrogen.
Global Green Hydrogen Market, by Region
Based on the global region, the Europe segment dominated the global green hydrogen market in 2022 in terms of revenue and is estimated to sustain its dominance during the forecast period. In Europe, hydrogen is the primary source of energy. The European Green Deal aims to reduce greenhouse gas emissions while also transforming Europe’s economy for a climate-neutral future. On the other hand, the Asia-Pacific is estimated to be the most important segment during the forecast period. China accounts for the largest market share in the Asia-Pacific green hydrogen market. With a 20-million-ton output, China leads the global green hydrogen market, accounting for one third of global production.
North America is anticipated to attain a prominent CAGR over the forecast period, with the U.S. and Canada gradually enhancing the green hydrogen industry owing to the implementation of clean energy policies. In the United States, California controls the majority of the market, with growth fueled by aggressive de-carbonization goals such as phasing out gas- or diesel-powered public buses by 2040.
Global Green Hydrogen Market, by Key Players
There is fierce competition in the green hydrogen market to reduce manufacturing costs, develop innovative process technology, and expand and improve the use of green hydrogen in end-use sectors. The key market players are attempting to grow their market shares by employing various techniques in response to such possibilities in the industry.
Some of the Key players in the global green hydrogen market include:
Global Green Hydrogen Market, Recent Developments
Global Green Hydrogen Market, Segmentations
Based on Technology
Based on Application
Based on Renewable Source
Based on End-Use
Global Green Hydrogen Market, Regional Outlook
Questions and Answers About This Report:
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Primary Research
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Top-Down Approach & Bottom-Up Approach
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Market Analysis & size Estimation
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