Green Hydrogen Market
Green Hydrogen Market by Technology (Proton Exchange Membrane, Alkaline, and Solid Oxide), Source (Solar, Wind, and Others) Application (Power Generation, Transport, and Others), and End-User (Food & Beverages, Medical, Chemical, Petrochemicals, Glass, and Others): Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, and Forecast 2023-2031.
The global green hydrogen market in 2022 was valued at USD 4.02 billion and is predicted to reach roughly USD 331.98 billion in 2031, rising at a CAGR of 54.98% between 2023 and 2031.
Green hydrogen refers to hydrogen gas produced by the electrolysis process, which includes converting water (H2O) into hydrogen (H2) and oxygen (O2) using electricity generated from renewable sources (such as solar or wind power). Since renewable energy sources are used in its production, green hydrogen is considered environmentally friendly and has the potential to replace fossil fuels as a clean energy carrier. Green hydrogen is the cleanest form of hydrogen wherein there is no carbon byproduct at all. The demand for green hydrogen as a renewable source of energy is exponentially increasing in a wide range of sectors such as Food & Beverages, Hospitals, and Chemical industries.
Green Hydrogen Market Report Segmentation
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Report Attribute |
Details |
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Estimated Market Value (2022) |
4.02 Bn |
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Projected Market Value (2031) |
331.98 Bn |
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Base Year |
2022 |
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Forecast Years |
2023 - 2031 |
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Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Technology, By Application, By End User & By Region |
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Segments Covered |
By Technology, By Source, By Application, By End Users & By Region |
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Forecast Units |
Value (USD Billion), and Volume (Tons) |
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Quantitative Units |
Revenue in USD billion and CAGR from 2023 to 2031 |
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Regions Covered |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World |
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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 |
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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. |
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Delivery Format |
Delivered as an attached PDF and Excel through email, according to the purchase option. |
Market Growth Factors:
The market growth of green hydrogen is influenced by several factors, including the following:
- Decreasing costs of renewable energy
- Market Potential and Diversification
Green hydrogen is becoming more economically feasible as the cost of renewable energy technologies, such as solar and wind power, continues to fall. Green hydrogen is a more attractive option for various applications as the cost of producing it through electrolysis falls along with the cost of electricity from renewable sources. Green hydrogen has wide range of uses, including energy storage, transportation fuel, industrial process feedstock, and power production. Its versatility and capacity to meet numerous energy demands make it an attractive option for various sectors, offering up new market opportunities and driving its growth.
Market Drivers:
- Renewable Energy Expansion
The growing use of renewable energy sources such as solar and wind power is a major driver of the green hydrogen industry. Green hydrogen is produced by electrolysis, which requires electricity generated from renewable sources. As renewable energy capacity grows, it provides a consistent and long-term supply of electricity for green hydrogen synthesis. In the United States, hydrogen is used as a fuel for power plants. In 2020, a number of major European automakers, including CNH, Daimler, DAF, Ford, MAN, Scania, and Volvo, announced intentions to convert their truck fleets to hydrogen power by 2040. Airbus is also working on hydrogen-powered aircraft and intends to launch commercial service by 2035. Power plants across the United States have announced the use of combustion gas turbines powered by a fuel mixture of natural gas and hydrogen. The Long Ridge Energy Generation Project (485 MW) in Ohio has been using a gas-fired combustion turbine that works on a 95% natural gas/5% hydrogen fuel blend in order to eventually run on 100% GH2.
- Decarbonization and Climate Goals
Green hydrogen is being driven by the growing need to cut greenhouse gas emissions and mitigate the impacts of climate change. Green hydrogen is seen as a clean and sustainable energy carrier that can help decarbonize sectors such as transportation, industry, and power generation as governments struggle to reach their decarbonization targets. Green hydrogen usage is consistent with national and international climate policy, such as the Paris Agreement, which aims to keep global warming far below 2 degrees Celsius. Many countries have established targets and policies to minimize greenhouse gas emissions, and green hydrogen is seen as a crucial tool in achieving these goals.
Market Opportunities:
Green hydrogen can be produced in countries with abundant renewable energy resources and potentially exported to places with low renewable energy potential. Consequently, green hydrogen can be transported and utilized as a globally accessible clean energy source, enhancing energy security and decreasing dependence on imported fossil fuels. The growth of the green hydrogen market stimulates innovation and research and development (R&D). Electrolysis technologies, materials, storage solutions, and hydrogen infrastructure advancements are critical for improving the efficiency, scalability, and cost-effectiveness of green hydrogen production and utilization. These technical developments open the door to new ideas, patents, and market competitiveness.
Market Challenges:
The cost of producing green hydrogen is one of the most significant challenges. Green hydrogen production is currently more expensive than hydrogen produced from fossil fuels. Renewable energy, electrolyzer technology, and infrastructural development all add to the total cost. Cost competitiveness with conventional energy sources will require additional breakthroughs in electrolysis technology, economies of scale, and cost reductions in renewable energy.
Segments Analysis:
- Technology Insights
The primary technique for producing green hydrogen is electrolysis. Alkaline electrolyzers, proton exchange membrane (PEM) electrolyzers, and solid oxide electrolyzers are examples of electrolyzers. The operating temperature, efficiency, scalability, and cost of these electrolyzers vary. Electrolysis technology advancements aim to improve efficiency, reduce capital and operating costs, and increase the lifespan and durability of electrolyzer systems. The alkaline electrolyzer segment has the largest market share, owing to its higher operating time capacity and low capital cost. In addition, the segment is expected to expand at a faster pace during the forecast period.
- Application Insights
Green hydrogen can be used as a clean transportation fuel, providing an alternative to conventional fossil fuel-based vehicles. It can power (FCEVs), enabling longer range and faster refueling times than battery electric vehicles. Green hydrogen is particularly well-suited to heavy-duty transportation, such as trucks, buses, trains, and ships, where electrification may be difficult. Green hydrogen may be used to generate energy as a fuel for gas turbines or in fuel cells. It provides a flexible and dispatchable energy source that may be stored and used when power demand is high or renewable energy supply is low. Green hydrogen-based power generation can assist to balance the intermittent nature of renewable energy sources, resulting in a more stable and resilient energy supply.
- End User Insights
The chemical sector is a major producer of by-product hydrogen, which is consumed within the sector as well as distributed for industrial use.
Regional Analysis:
Europe is the largest region contributing to energy transition into a clean hydrogen-based energy over the coming years. For example, in August 2019, the U.K. government announced a USD 14.8 billion investment plan for a project that is expected to use 4 GW of offshore wind for green hydrogen production by 2030.
North America is also gradually moving towards clean source of energy by implementing clean energy policies across United States and Canada. In the U.S., California holds the majority market share with the growth driven by aggressive de-carbonization targets such as phasing out of gas- or diesel-powered public buses by 2040.
The Asia Pacific region is recognizing the potential of hydrogen gas as a clean energy source and making substantial investments in this sector. In India, Ocior signed an MoU with Gujarat government to invest INR 40,000 Cr. (USD 400 Billion), in green hydrogen.
Competitive Landscape:
The global green hydrogen market is fragmented, with a number of large, small, and medium-sized players accounting for majority market revenue. The competitive landscape is dynamic as new competitors enter the market and current ones develop their businesses. As businesses look to improve their positions and capture market opportunities, partnerships, collaborations, and mergers and acquisitions are often used strategies in the market.
Key Market Players:
- Air Liquide
- Air Products and Chemicals, Inc.
- Air Products Inc.
- Bloom Energy
- Cummins Inc.
- ENGIE
- Linde plc.
- Nel ASA
- Siemens Energy
- Toshiba Energy Systems & Solutions Corporation
- Uniper SE
Recent Development:
- On Mar 2023, L&T signs a partnership with French company McPhy Energy to explore green hydrogen market.
- On April 2021, Bloom Energy with its Korean partner SK Engineering & Construction Co., Ltd., has successfully deployed its first 100 kilowatts of solid-oxide fuel cells (SOFC) powered solely by hydrogen.
- On January 2021, Total and Engie partnered to develop France’s largest site for the production of green hydrogen from 100% renewable electricity.
Green Hydrogen Market Report Segmentation
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ATTRIBUTE |
DETAILS |
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By Technology |
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By Source |
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By Application |
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By End User |
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By Geography |
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Customization Scope |
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Pricing |
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Key Benefits of the Report
- This study presents an analytical depiction of the Green hydrogen industry along with current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to market key drivers, opportunities and challenges along with detailed analysis of the Green hydrogen Market share.
- The current market is quantitatively analyzed to highlight the Green hydrogen Market's growth scenario.
- Porter's five forces research demonstrates the market power of suppliers and buyers.
- The report provides a detailed Green hydrogen market analysis based on competitive intensity and how the competition will take shape in the coming years.
Research Methodology
Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region. The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.
Data Collection
Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.
Primary Research
After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market.
Secondary Research
A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.
Top-Down Approach & Bottom-Up Approach
In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.
In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.
This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.
Market Analysis & size Estimation
Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.
Quality Checking & Final Review
The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.
