GLOBAL GREEN HYDROGEN MARKET SIZE (2023 -2030)

The Global Green Hydrogens Market is valued at USD 6.56 Billion in 2023 and is projected to reach a market size of USD 141 Billion by 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 55%.

INDUSTRY OVERVIEW

Using electric power provided from renewable energy sources, such as wind or solar energy, green hydrogen is created by electrolyzing water. The existence of supportive government policies promoting the hydrogen economy together with growing environmental concerns about rising carbon emissions from the use of fossil fuels is predicted to boost demand for the hydrogen economy. Throughout the projected period, it is predicted that this tendency will provide the market with a potential growth scenario.

Germany has a considerably greater %age of green hydrogen installations globally due to the country's laws and legislation supporting the technology as well as the funding it has available for research and demonstration projects. For instance, in July 2019, the government approved 11 national demonstration-scale green hydrogen projects. Furthermore, due to the presence of several projects in the pipeline, the nation is anticipated to dominate the market throughout the projected period. For instance, Germany's transmission and gas system operators Ampiron and OGE are aiming to install 100 MW of electrolyzer capacity together with a specific pipeline for transporting hydrogen, all of which are anticipated to go online in 2023.

Vehicles may run on hydrogen created through electrolysis using renewable energy, or hydrogen can be stored for later use in fuel cells to produce electricity. Additionally, several nations, including the U.S., Japan, and Germany, are planning to switch from using traditional fossil fuels for transportation to hydrogen, which would accelerate the market's growth throughout the projection period. The high capital cost of the electrolyzer unit is one of the main obstacles to the widespread use of green hydrogen projects, though. Additionally, the availability of cheap hydrogen generation by traditional methods, such as steam methane reforming and coal gasification, is anticipated to restrain market expansion over the projection period.

COVD-19 IMPACT ON THE GREEN HYDROGEN MARKET

COVID-19 caused the market for green hydrogen to stagnate. Investments were still being made in ongoing projects. Numerous nations in Europe and Asia have kept announcing fresh initiatives and technological feasibility assessments. The primary effect of COVID-19 on the market for green hydrogen was to cause project delays since lockdowns interrupted the supply of raw materials. Green hydrogen has finally entered the pre-commercialization stage and is prepared to play a significant part in the global decarbonization process.

MARKET DRIVERS: 

Green hydrogen is being used in the transportation sector is propelling the market growth

The world is preparing to alter its modes of transportation as it works toward net zero emission targets. Vehicles using hydrogen directly in internal combustion engines or fuel cells are being developed by the mobility sector. A few sectors in Europe, APAC, and North America have already created and are using hydrogen-powered forklifts. By 2030, the countries hope to have doubled the amount of such hydrogen-powered cars on the road.

Increasing government spending on creating eco-friendly hydrogen systems

Developing infrastructure for green hydrogen is a priority for many wealthy nations' governments. Europe is where this is most prevalent, followed by Asia. Infrastructure growth will enable producers to increase their capacity and reach, which will help them cut the cost of green hydrogen. For the development of an environment that accepts green hydrogen as an alternative fuel, the participation of the governments of the individual nations is extremely important.

MARKET RESTRAINTS:

A significant commercial barrier is the high upfront cost of developing green hydrogen plants

The initial cost of producing green hydrogen is quite costly, and there is currently no infrastructure in place to transport or store it. While transporting green hydrogen presents extra economical and safety problems, the fixed cost necessary to set up the manufacturing facility is just half the difficulty. Green hydrogen often costs two to three times as much as grey hydrogen. The expense of application technology is increased. When compared to fossil fuel alternatives, fuel cells are roughly 1.5–2 times more expensive. The price is about 5-7 times more than fossil jet fuel, even synthetic fuel.

Inadequate transportation facilities are challenging the market growth

In the current situation, hydrogen is created near its intended usage. The hydrogen market has so far been underutilized due to the absence of a requirement for transportation. There have only been 8,000 km (or 2,600 miles) of pipeline installed globally. By 2040, Europe hopes to have 39,700 km of hydrogen pipeline installed as part of its European Hydrogen Backbone (EHB) project. The majority of this—nearly 69%—will be made up of newly installed natural gas pipes. When compared to the more than 3 million kilometers of the natural gas pipeline now in use, the infrastructure still looks incredibly little even with upgrades.

GREEN HYDROGEN  MARKET REPORT COVERAGE:

This research report on the Green Hydrogen Market has been segmented and sub-segmented based on Technology, Application, End-User and By Region.

GREEN HYDROGEN MARKET – BY TECHNOLOGY 

• Alkaline Electrolyzer

• Polymer Electrolyte Membrane (PEM) Electrolyzer

Based on the technology, the green hydrogen market is segmented into Alkaline Electrolyzer and Polymer Electrolyte Membrane (PEM) Electrolyzer. The alkaline electrolyzer, which is the traditional technology used in green hydrogen projects, had the greatest sales share of more than 50% in 2021. The alkaline electrolyzer operates for a longer period than PEM electrolyzers because it employs a liquid alkaline solution of potassium or sodium hydroxide as its electrolyte.

Alkaline electrolyzes are much less expensive than PEM electrolyzers, which will boost future category expansion. Alkaline electrolyzers, on the other hand, operate at working temperatures between 100 and 105 degrees Celsius as opposed to 70 to 90 degrees Celsius for PEM electrolyzers. They also have lower power and current densities.

Over the projection period, the PEM electrolyzer sector is anticipated to develop at the fastest rate. In comparison to its alkaline equivalent, the PEM electrolyzer offers greater functional flexibility thanks to the existence of a solid specialized plastic material-based electrolyte. Additionally, the segment expansion will be aided by the proton exchange membranes' reduced gas permeability and thickness and high proton conductivity.

Industry operating in the market is consistently concentrating on implementing PEM electrolyzer technology at commercial sizes to improve the power-efficiency of the green hydrogen generating process. For instance, ITM Power, a business established in the UK, and ITM Linde Electrolysis GmbH formed a joint venture in January 2020. The firms will use PEM electrolyzers with a capacity of more than 10 MW to deliver green hydrogen on an industrial scale.

GREEN HYDROGEN MARKET - BY APPLICATION

• Power Generation

• Transport

• Others

Based on the application, the green hydrogen market is segmented into power transportation, transport, and others.  The market for green hydrogen was led by the power generating sector, which is also estimated to have the fastest growth rate. By 2030, it is anticipated to reach a value of USD 17605 million with a CAGR of 55%. Due to the constant reuse of water, hydrogen is viewed as a substitute for fossil fuels. In addition, the expansion of the electrolyzer industry has been fueled by the utilization of solar and wind energy sources for power. Throughout the projected period, the transport segment is anticipated to develop somewhat. By 2030, it is anticipated to grow at a CAGR of 54% to reach a value of USD 4240 million. There are presently fuel cell vehicles (FCVs) on sale in numerous nations, including Germany and the United States. Buses, large and light-duty trucks, material handling, unmanned aerial vehicles, rail, and maritime transportation all have access to these FCVs.

GREEN HYDROGEN MARKET - BY END-USER

• Food & Beverages

• Medical

• Chemical

• Petrochemicals

• Glass

• Others

By end-use industry, the global green hydrogen market is divided into food & beverages, medical, chemical, petrochemicals, glass, and others. The petrochemicals category dominated the green hydrogen market in 2021 and was anticipated to continue increasing at the highest rate. By 2030, it is anticipated to reach a value of USD 9925 million with a CAGR of 55%. During the projection period, moderate growth in the food and beverage category is predicted. By 2030, it is anticipated to reach a value of USD 5115 million with a CAGR of 55%. To maintain efficient and effective daily operations, a manufacturing, distribution, or packaging/bottling plant needs a steady power supply. Many companies in the food sector in the United States employ fuel cells to supply energy and, in certain circumstances, to heat and cool industrial facilities.

The third-largest market is in the medical sector. By 2030, it is anticipated to grow at a CAGR of 55% to reach a value of USD 2320 million. The benefits of hydrogen (H2) for many organs, such as the brain, heart, pancreas, lungs, and liver, include both preventive and therapeutic effects. As a result, the market for green hydrogen is growing as a result of the usage of hydrogen in the medical industry.

GREEN HYDROGEN MARKET - BY REGION

• North America

• Europe

• The Asia Pacific

• Latin America

• The Middle East

• Africa

By region, the Green Hydrogen Market is grouped into North America, Europe, Asia Pacific, Latin America, The Middle East and Africa. Due to significant investments made by European economies in the pursuit of an energy transition to a clean hydrogen-based economy, Europe now dominates the worldwide market for green hydrogen. By 2030, it is anticipated to grow by a CAGR of 55% to reach a value of USD 10360 million. Through interconnectivity, Europe supplies stored hydrogen to North Africa and other locations, which has a favorable effect on the expansion of the green hydrogen market. South Korea, China, Japan, India, and the rest of Asia-Pacific are all included in Asia-Pacific. By 2030, it is anticipated to reach a value of USD 4805 million with a CAGR of 55%. Australia and Japan are the two countries that contribute the most to the fastest-growing area in the world, Asia-Pacific. Significant governmental reforms to enhance the generation of green energy and sizable green hydrogen projects in Australia and Japan are also driving the Asia-Pacific market share. The second biggest region is North America. By 2030, it is anticipated to grow by a CAGR of 55% to reach a forecasted value of USD 7135 million. Significant drivers of the green hydrogen market's expansion include the increased use of renewable energy sources in homes and businesses, driven by consumer purchasing power and regulatory reforms.

GREEN HYDROGEN MARKET - BY COMPANIES

Some of the major players operating in the Green Hydrogen Market include:

1. LINDE

2. AIR LIQUIDE

3. AIR PRODUCTS AND CHEMICALS, INC.

4. ENGIE

5. UNIPER SE

6. SIEMENS

7. GREEN HYDROGEN

8. HYDROGENICS

9. TOSHIBA ENERGY SYSTEMS & SOLUTIONS CORP.

10. NEL ASA

NOTABLE HAPPENING IN THE GREEN HYDROGEN MARKET

• COLLABORATION- A joint venture between Siemens Energy and Air Liquide was established in June 2022, for manufacturing large-scale renewable hydrogen electrolyzes in Europe. By fostering a European ecosystem for electrolysis and hydrogen sources, this alliance is probably going to make it possible for Europe to have a sustainable hydrogen economy. Output is anticipated to start in the second half of 2023 and build up to a three-gigawatt annual production capacity by 2025. In the joint venture, Siemens Energy would own 74.9%, with Air Liquide presumably holding 25.1%.

• PRODUCT LAUNCH- Guangdong Nation-Synergy Hydrogen Power Technology Co., Ltd. introduced a brand-new fuel cell stack in October 2020, expanding on its current line-up. Additionally, ultra-thin CCM technology, flexible graphite plates, and a multi-dimensional integrated stack design are used.

• INVESTMENT- The Adani Group announced intentions to invest US$ 70 billion in green energy in November 2020, and it is anticipated that this investment would be crucial to India's shift to green energy. It is anticipated that the Adani Group's position in the renewable energy industry would greatly aid its efforts to produce green hydrogen.

• PRODUCT LAUNCH- The M Series Containerized Proton PEM electrolyzer was introduced by Nel ASA in May 2019. The M Series' containerized version was supplied in the typical 1 and 2 MW (200 and 400 Nm3/hrs.) versions. A crucial factor in the development was scaling from the 1 MW platform to the 2 MW platform and enabling simple field integration of additional units. The business sought to satisfy market expectations with this new product.