Green Hydrogen Market
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).
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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:
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Report Attribute |
Details |
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Projected Market Value (2031) |
85.72 billion |
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Estimated Market Value (2022) |
4.45 billion |
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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- Application, Technology, Source and Region |
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Segments Covered |
By Technology, By Application, By Source and Region |
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Forecast Units |
Value (USD Billion), and Volume (Units) |
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Quantitative Units |
Revenue in USD million/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. |
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:
- NEL ASA
- ITM Power
- ENGIE
- SEIMENS
- Air Products Inc.
- Messer Group GMBH
- Plug Power Inc.
- Cummins Inc.
- Air LIQUIDE
- LINDE
Global Green Hydrogen Market, Recent Developments
- February 2022: - Linde and BASF announced a long-term agreement in February 2022 for the delivery of hydrogen and steam. Linde thinks they can supply hydrogen to BASF with safety and dependability, meeting their needs and assisting them.
- April 2022: - Engie and Alstom announced their collaboration in April 2022 in order to provide a fuel cell system with renewable hydrogen for European rail freight. Engie thinks the collaboration represents a new milestone in the advancement of the hydrogen economy and the creation of renewable hydrogen solutions.
- June 2022: - Air Liquide and Siemens Energy announced their joint venture in June 2022, which would be completely dedicated to producing sustainable hydrogen electrolyzes in Europe. Siemens will have a 74.9% overall ownership in the joint venture, while Air Liquide will have a 25.1% stake. The headquarters will be in Berlin, and the factory that will make the electrolysis stacks or modules will also be situated there.
- June 2022: - Electric Hydrogen Co. acquired $198 million in investment in June 2022 to use green hydrogen, or fossil-free hydrogen, to decarbonize the industries functioning on a global scale. With the aid of this money, the Electric Hydrogen electrolyzer technology may be scaled up, and the essential projects for producing green hydrogen can be manufactured and deployed.
Global Green Hydrogen Market, Segmentations
Based on Technology
- Alkaline Electrolysis
- PEM Electrolysis
Based on Application
- Power Generation
- Transport
- Others
Based on Renewable Source
- Solar Energy
- Wind Energy
- Others (hydropower, geothermal, and hybrid of solar & wind)
Based on End-Use
- Power
- Medical
- Chemical
- Petrochemical
- Mobility
- Grid Injection
- Others
Global Green Hydrogen Market, Regional Outlook
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Indonesia
- Others
- Europe
- Norway
- Netherlands
- Sweden
- United Kingdom
- France
- Germany
- Others
- North America
- United States
- Canada
- Middle East and Africa
- Turkey
- Saudi Arabia
- Iran
- United Arab Emirates
- Others
- Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Others
Questions and Answers About This Report:
Q1. What are the key factors boosting the global green hydrogen market growth
Q2. Which industry is projected to increase the demand for global green hydrogen market
Q3. How can I get report sample of global green hydrogen market
Q4. Which are the top companies in the global green hydrogen industry
Q5. What will be the market value of global green hydrogen in the forecast period 2023 to 2031
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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.
