Green Hydrogen Market Analysis and Forecast to 2032

Green Hydrogen Market Analysis and Forecast to 2032: By Technology (Proton Exchange Membrane Electrolyzer, Alkaline Electrolyzer, Others), Distribution Channel (Pipeline, Cargo), Source (Solar Energy, Wind Energy, Others), End-Use (Power Generation, Transportation, Chemical Feedstock, Others), and Region

The green hydrogen market size was nearly USD 4.0 billion in 2022 and it is expected to grow at a rate of over 45% from 2023 to 2032.

Green hydrogen is a type of hydrogen produced through the electrolysis of water using renewable energy sources. The process of electrolysis splits water molecules into hydrogen and oxygen atoms using an electric current. The hydrogen produced can be used in a variety of ways, including as a fuel for vehicles or as a way to store energy.

A key advantage of green hydrogen is that it does not produce greenhouse gas emissions when used. This is in contrast to traditional hydrogen, which is produced from natural gas and emits carbon dioxide when burned. Green hydrogen can therefore help to reduce greenhouse gas emissions and combat climate change.

Global Green Hydrogen Market Scope and Report Structure

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Green Hydrogen Market Trends

In the past decade, there has been a growing interest in green hydrogen technology. This is due to the many potential benefits that this technology can offer. Some of the key trends in green hydrogen technology include:

• Increased Efficiency: One of the main trends in green hydrogen technology is the increased efficiency of electrolyzers. This is important because it means that more hydrogen can be produced from renewable energy sources.
• Cost reductions: Another trend is the reduction in the cost of green hydrogen technology. This is due to the improved efficiency of electrolyzers and the development of new technologies.
• Improved Storage: Another trend is the improved storage of green hydrogen. This is due to the development of new storage technologies, such as metal hydrides.
• Increased Use: Another trend is the increased use of green hydrogen. This is due to the many potential applications of green hydrogen, such as in fuel cells and as a chemical feedstock.
• Increased Investment: Another trend is the increased investment in green hydrogen technology. This is due to the growing interest in this technology and the potential benefits it can offer.

Green Hydrogen Market Drivers

There are many factors that are driving the green hydrogen market. One of the most important drivers is the need to decarbonize the economy and move to cleaner energy sources. Hydrogen is seen as a key part of this transition, as it can be used in a variety of ways to replace fossil fuels. For example, it can be used as a fuel for transportation, as a way to store energy, and as a feedstock for various industrial processes.

Another key driver of the green hydrogen market is the falling cost of production. Thanks to advances in technology, it is now possible to produce hydrogen more cheaply and efficiently than ever before. This is making it increasingly competitive with other energy sources, such as natural gas.

Finally, there is growing political support for green hydrogen. Many countries are now committing to hydrogen targets as part of their climate change mitigation plans. This is providing a boost to the market and is helping to drive investment in the sector.

Green Hydrogen Market Restraints & Challenges

The cost of producing hydrogen gas from renewable energy sources is currently higher than the cost of producing hydrogen gas from fossil fuels. In order to make the hydrogen economy economically viable, the cost of producing hydrogen gas from renewable energy sources must be reduced. There are a number of ways to reduce the cost of electrolysis, including improving the efficiency of electrolyzers, using renewable energy sources such as solar and wind power, and using nuclear power.

Another challenge in the development of a hydrogen economy is the need to develop a hydrogen infrastructure, including a network of hydrogen production and distribution facilities. The infrastructure required to support a hydrogen economy is currently not in place. In order to develop a hydrogen economy, it will be necessary to invest in the development of a hydrogen infrastructure.

Green Hydrogen Market Segments

The Green Hydrogen market has been segmented into technology, distribution channel, source, end-use, and region.

Green Hydrogen Market by Technology

By technology, the market is classified into proton exchange membrane (PEM) electrolyzer, alkaline electrolyzer, and others. The alkaline electrolyzer segment accounted for the majority of the green hydrogen market share in 2022, and the proton exchange membrane (PEM) electrolyzer segment is expected to be the fastest-growing segment during the forecast period. In addition, the alkaline electrolyzers are significantly less expensive than PEM electrolyzers. As a result, this type of electrolyzer is commonly used for on-site green hydrogen production. The main benefit of alkaline electrolyzers is that they can sustain greater megawatt (MW) range stacks, resulting in increased capacity and a more stable working environment for them.

Green Hydrogen Market by End-Use

By end-use, the market is divided into power generation, chemical feedstock, transportation, and others. The chemical feedstock segment is further divided into green ammonia, methanol, and others. The chemical feedstock segment is anticipated to account for the largest market share in 2022, and the transportation segment is expected to be the fastest-growing segment during the forecast period. The transportation sector is anticipated to increase significantly over the forecasted period. Hydrogen’s role as a fuel for the transport sector can extend beyond road transport to shipping and aviation. Shipping and aviation sectors use heavy fuel oil and jet fuel, respectively. Moreover, there are few alternatives to decarbonize these sectors, which are less readily available and more expensive than conventional fuels. Hence, hydrogen or hydrogen-based compounds can significantly decarbonize shipping and aviation.

Green Hydrogen Market by Distribution Channel

By distribution channel, the green hydrogen market is bifurcated into pipeline and cargo. Amongst these, the pipeline segment is anticipated to hold the majority of the market share during the forecast period. Green hydrogen can be transported in three main ways such as pipelines, tanker ships, and trucks depending on the volume, distance, and state in which transported. Besides, by far, the most cost-effective and feasible method of transportation is through pipeline, where a very high energy transportation capacity can be achieved.

Green Hydrogen Market by Region

Region-wise, the green hydrogen market is segmented into North America, Europe, Asia Pacific, and the rest of the World. The Europe region is expected to hold majority of the market share during the forecast period. The presence of a large number of green hydrogen companies across the region acts as a favorable factor for the growth of the Europe green hydrogen market. In addition, Europe leads the market due to huge investments by the European countries, focusing on energy transition into a clean hydrogen-based region. Besides, Europe is one of the major regions in the green hydrogen market, with Germany, Austria, Netherlands, France, Spain, and the UK as some of the top countries in the region.

Major Players in the Green Hydrogen Market

The key players in the Green Hydrogen Market are Nel Hydrogen, McPhy Energy, ITM Power Plc, Hydrogenics (Cummins), Plug Power, John Cockerill, Air Liquide, Linde, PowerCell, Ballard Power Systems, FuelCell Energy, Air Products and Chemicals, and Royal Dutch Shell among others.

COVID-19 Impact

COVID-19 outbreak has moderately impacted the green hydrogen industry landscape. The consumption of utilities including electricity was negatively impacted in early 2020 with a slowdown in annual growth. The imposition of partial to complete lockdown measures in response to COVID-19 led to an economic downturn in almost all countries and territories worldwide. The shortage in liquidity forced downsizing and other cost-cutting measures like reduced budgets for attending events and pay cuts. COVID-19 would however accelerate the need for reducing carbon emission by a couple of years which would mean an increased demand for green hydrogen in the future.

The COVID-19 outbreak has significantly affected numerous verticals such as the oil refining industry, chemical sector, and steel manufacturing industry currently have witnessed huge hydrogen demand which the COVID-19 outbreak has significantly impacted. Developing countries such UAE, China, India, Egypt, and others largely focus on integrating clean power energy generation technologies have witness a setback by the outbreak of deadly disease.  Also, several countries globally participating in clan energy installation. Such a factors positively influence the industry expansion.

Transportation and Storage of Green Hydrogen

Transportation and storage of hydrogen have conventionally been challenging owing to the unique features of the gas—low density, flammability, embrittlement, and ease of dispersion. However, commercial impetus and technical development are facilitating more economic modes of transportation and storage.

Hydrogen has three main avenues for storage such as storage tanks, chemical storage, and natural underground storage in salt domes and salt caverns. Each of these storage has its own use cases and challenges. In addition, a growing interest in green hydrogen globally is encouraging developers to think of reusing the existing gas pipelines and other infrastructure with minor modifications for the transportation and storage of green hydrogen.

Green hydrogen can be transported in three main ways such as pipelines, tanker ships, and trucks depending on the volume, distance, and state in which transported. Besides, green hydrogen can be transported as a liquid in thermo-insulated containers, as a gas in high-pressure containers, in a chemical carrier medium, or in processed form as ammonia or methanol. However, by far, the most cost-effective and feasible method of transportation is through pipeline, where a very high energy transportation capacity can be achieved.

Recent Developments

• H2Oman Green Hydrogen Project in southern Oman is estimated to attract $6.5 billion in foreign direct investment (FDI). The project is expected to have significantly promising effects on the Sultanate of Oman’s social, economic, and environmental spheres. This project is being carried out in partnership between Air Products, the ACWA Power Group of Saudi Arabia, and the OQ Group of Oman. Besides, the H2 Oman Green Hydrogen Project will use 3 GW of solar and wind, along with 2 GW of electrolysis power to produce 1.1 million tonnes of green ammonia annually.
• In 2022, Amp Energy India and Ohmium have collaborated to deploy nearly 400 MW of green hydrogen projects in India till 2025. The deployments will be aimed at medium-sized industrial and commercial green hydrogen projects of 25 MW or smaller. In these deployments, Amp Energy India will utilize interlocking modular PEM electrolyzers offered by Ohmium, which offer an easy-to-install and flexible alternative to customized electrolyzers.
• Plug Power Inc., one of the leading providers of turnkey hydrogen solutions along with Olin Corporation, a leading vertically integrated Chlor alkali company, announced the launch of a joint venture named Hidrogenii in 2022. The joint venture was launched in order to start the construction of a 15-ton-per-day hydrogen plant in Louisiana. This plant is expected to support the reliability of supply and speed of green hydrogen throughout North America. In addition, it will also benefit from state and local tax subsidies. Moreover, the construction of the plant will create nearly 200 jobs in 2023.
• Recently in November 2022, Buscar Co., a U.S. mining company planned to enter the sustainable energy space and has signed a deal to acquire APTG Inc., a manufacturer of concentrated solar power (CSP) technology that can be combined with green hydrogen production.
• In October 2022, a South Korea-based investment company named SK Inc. agreed to establish a ‘turquoise’ hydrogen joint venture with Monolith Materials Inc. in order to expand its hydrogen business portfolio in South Korea. Monolith Materials Inc. is one of the first mass-producer of turquoise hydrogen globally. Turquoise hydrogen is a unique production method that can be positioned between blue hydrogen made through carbon-based processes and green hydrogen made 100% from water hydrolysis. The company (SK Inc.) also plans to actively use turquoise hydrogen during the shift from blue hydrogen to green hydrogen.

Green Hydrogen Market Report Coverage

• The report offers a comprehensive quantitative as well as qualitative analysis of the current Green Hydrogen Market outlook and estimations from 2022 to 2032, which helps to recognize the prevalent opportunities.
• The report also covers qualitative as well as quantitative analysis of Green Hydrogen Market in terms of revenue ($Million) and volume (MTPA).
• Major players in the market are profiled in this report and their key developmental strategies are studied in detail. This will provide an insight into the competitive landscape of the Green Hydrogen industry.
• A thorough analysis of market trends and restraints is provided.
• By region as well as country market analysis is also presented in this report.
• Porter’s five forces analysis, SWOT analysis, COVID-19 impact analysis, Russia-Ukraine war impact, and PESTLE analysis of the Green Hydrogen Market are also analyzed.

Frequently Asked Questions

Q. How big is the Green Hydrogen market?

Ans. The green hydrogen market size was nearly USD 4.0 billion in 2022 and it is expected to grow at a rate of over 45% from 2023 to 2032.

Q. What is the Green Hydrogen market growth rate?

Ans. The growth rate of the Green Hydrogen market is 45% from 2023 to 2032.

Q. Which region holds a major market share for the Green Hydrogen market?

Ans. Europe holds a major market share of the Green Hydrogen market in 2022.

Q. Which segment accounted for the largest Green Hydrogen market share?

Ans. Based on technology, the alkaline segment contributed significant revenue to the Green Hydrogen market in 2022, and the PEM segment is expected to be the fastest-growing segment during the forecast period.

Q. Who are the key players in the Green Hydrogen market?

Ans. The key players in the Green Hydrogen Market are Nel Hydrogen, McPhy Energy, ITM Power Plc, Hydrogenics (Cummins), Plug Power, John Cockerill, Air Liquide, Linde, PowerCell, Ballard Power Systems, FuelCell Energy, Air Products and Chemicals, and Royal Dutch Shell among others.

Q. What are the factors driving the Green Hydrogen market growth?

Ans. The major factors driving the growth of the market are the growing demand for clean energy, the declining cost of electrolyzers, and the increasing government support for hydrogen fuel cell technology.

Q. What are the key growth strategies of Green Hydrogen market players?

Ans. The key growth strategies of Green Hydrogen market players are partnerships, acquisitions & mergers, and government initiatives.

Q. Which region will provide more business opportunities for the Green Hydrogen market during the forecast period?

Ans. The Asia-Pacific and MENA regions will provide more business opportunities for the Green Hydrogen market during the forecast period.

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