Hydrogen created using only green energy is known as green hydrogen. Grey hydrogen, which makes up 95% of the market and is produced by steam-reforming natural gas, produces substantially less CO2 than green hydrogen.

Hydrogen is beneficial as an energy carrier because it only actively interacts with oxygen, which can produce heat and water. As more individuals learn about the use of hydrogen as an energy source, the market is growing. By using hydrogen fuel cells, no greenhouse gases, carbon emissions, or other pollutants are produced. 

In 2021, the market for green hydrogen was worth USD 1.45 billion, and by 2030, it will reach USD 75.72 billion, growing at a 55.1% CAGR during the forecast period.

The need for green hydrogen will increase as the cost of reusable energy and electrolysis technology declines, accelerating the market's expansion. A number of several industries, including oil and gas, steel, utilities, and fertilizers, are looking to green hydrogen as a solution to the erratic nature of reusable resources.

Market Dynamics

Drivers

Many businesses continue to use green hydrogen in place of fossil fuels like coal and natural gas due to the advantages of producing it with no emissions, which has become a key factor in the market's expansion. Furthermore, renewable energy facilities are typically situated far from the end users. In these scenarios, transportation would have been commoditized and unrestricted by grid connection, comparable to LNG, if the generated power was used for electrolysis to make green hydrogen. Therefore, the growing trend toward integrating hydrogen electrolyzers with renewables will boost market growth due to the rising demand for green hydrogen.

Restraints

Due to the high expenses of installing and maintaining the hydrogen infrastructure, businesses are forced to explore alternative renewable energy sources. The biggest obstacles preventing the expansion of the green hydrogen business are the initial investment needed to set up hydrogen infrastructure and the prohibitive maintenance expenses.

Opportunity 

The development and entrance into newer markets will promote the expansion of the global industry. For instance, establishing green hydrogen markets in the US and India might boost the hydrogen economy and propel the total expansion of the hydrogen sector and the green hydrogen market. There are currently 6500 hydrogen fuel cell vehicles on the road, according to the US Department of Energy. Three companies—Toyota (Toyota Mirai), Honda (Honda Clarity), and Hyundai (Hyundai Nexo)—produce these automobiles.

Market Segmentation

By Technology 

In 2022, the alkaline electrolyzer segment led the market with 49.23% of the revenue share. The alkaline electrolyzer generates green hydrogen using water and liquid electrolytes like sodium hydroxide (NaOH) or potassium hydroxide (KOH). With about 6000 operational hours, the alkaline electrolyzer has a higher operating time. As a result, the market for green hydrogen has a significant need for alkaline electrolyzers.

By Renewable sources

Over the forecast period, the solar energy segment will grow at the highest CAGR of 37.93%. There are two ways to produce green hydrogen using solar energy: by directly spilling water while using the energy from the sun or by electrolyzing water while using the power from the sun. One of the main elements influencing the demand for solar energy for the manufacture of green hydrogen is its low cost.

By End-User

In 2022, the transport sector held the biggest market share of 39.12%. This is mostly because hydrogen is a more energy-dense fuel than fossil fuels, making it one of the best options for the transportation sector.

Regional Analysis 

The Europe region emerged as the green hydrogen market's largest market, with a 36.21% revenue share in 2022. It is largely due to growing government measures to assist the expansion of renewable energy projects. Additionally, growing investments in the production of green hydrogen in European nations are fueling the expansion of the market in the continent.

Asia Pacific regional market will experience the fastest growth. Some of the largest contributors to the development of the green hydrogen industry in the Asia Pacific region are nations like South Korea, Australia, and Japan.

Key Players

· Linde

· Linde Air Liquide

· Siemens

· Air Products and Chemicals, Inc.

· Uniper SE

· Hydrogenics

· Nel ASA

· Engie

· Toshiba Energy Systems and Solutions Corp.

In 2021, the market for green hydrogen was worth USD 1.45 billion, and by 2030, it will reach USD 75.72 billion, growing at a 55.1% CAGR during the forecast period. Government initiatives promoting the creation of green hydrogen and renewable energy are the primary driver fueling the market's expansion. The government's stringent requirement to cut GHG emissions from power-producing plants fuels the market's expansion.

Related Reports:

Automotive Sensor Market Report - The global automotive sensor market will witness a robust CAGR of 13.6%, valued at $23.3 Billion in 2021, and expected to appreciate and reach $26.46 Billion in 2022 and $74.42 Billion by 2030, confirms Strategic Market Research.