Green Hydrogen: Global Market Scenario, Trends, Opportunity, Growth and Forecast, 2020-2030

Market Definition

Green hydrogen is produced using low-carbon or renewable energy sources. Grey hydrogen, which is primarily made by steam reforming natural gas, has much higher carbon emissions than green hydrogen. Less than 0.04% of all hydrogen produced as of 2021 is green hydrogen.

Market Insights

The overwhelming majority of hydrogen produced is used for ammonia and oil refining. Although amounts vary from country to country, most hydrogen produced is used for ammonia manufacture and the demand is projected to increase by 9.3% annually over the next five years. Total global hydrogen production was an estimated 70.0 million metric tons (MMT) in 2019. Growing at an estimated compound annual growth rate (CAGR) of 7.6%, production should reach 67.1 MMT in 2020 and 97.0 MMT in 2025

Global Green Hydrogen market volume stood at 1,130 kilotons in 2022 and expected to grow at a CAGR of 22.15% during 2023-2030. One approach to reducing climate change in the upcoming years is green hydrogen. The world’s reliance on fossil fuels can be significantly decreased thanks to hydrogen’s adaptability and the wide range of industries in which it can be employed as an energy carrier, including fertilizers, oil and gas, refineries, and others

Furthermore, several countries have set a primary goal of decarbonizing their energy systems by 2050; as a result, the usage of green hydrogen will become increasingly important in order to meet these objectives. Throughout the projected period, the market is anticipated to be driven by rising government initiatives to harness green hydrogen. For instance, the United Nations launched the Green Hydrogen Catapult to lower the price of green hydrogen. The organization declared that it will virtually double its 2020 target for green electrolyzers from 25 gigawatts to 45 gigawatts by 2027

Based on technology, the global green hydrogen market is segmented into alkaline water electrolyzers, solid oxide electrolyzers and proton exchange membrane (also known as polymer electrolyte membrane) electrolyzers. Alkaline Water Electrolyzer is dominating the global green hydrogen market. It has the lowest cost per kW of total installed capacity, plant life, and long-term operational reliability, making it very cost-effective. The use of precious metal in the PEM stack and the development of the technology are the major factors that account for the lower price when compared to PEM

Market Dynamics: Drivers

Rising Stress on Decarbonization and Net Zero Commitments

One approach to reducing climate change in the upcoming years is green hydrogen. The world’s reliance on fossil fuels can be significantly decreased thanks to hydrogen’s adaptability and the wide range of industries in which it can be employed as an energy carrier, including fertilisers, oil and gas, refineries, and others. Furthermore, several countries have set a primary goal of decarbonizing their energy systems by 2050; as a result, the usage of green hydrogen will become increasingly important in order to meet these objectives.

Market Dynamics: Challenges

High Production Cost

Green hydrogen now costs more to produce than grey hydrogen. However, the decline in the cost of renewable energy has opened up significant expansion opportunities for this cost to become competitive. In the last ten years, the cost of solar energy has decreased ten times, while the cost of wind energy has decreased by half. The change in the international weighted levelized cost of electricity based on technology is shown in the following graph.

Market Segmentation

• Based on Technology, the Global Green Hydrogen market is segmented into
  • Alkaline water electrolyser
  • Proton exchange membrane electrolyser
• Based on Power Source, the Global Green Hydrogen market is segmented into
  • Wind
  • Solar
  • Others
• Based on End User, the Global Green Hydrogen market is segmented into
  • Petrochemicals
  • Food & Beverages
  • Medical
  • Chemicals
  • Glass
  • Others
• Based on Geography, the Global Green Hydrogen market is segmented into
  • Asia-Pacific
  • North America
  • Europe
  • Latin America
  • Middle East & Africa

• All market revenue has been given in US Dollar.

Historical Year: 2020-2021

Base Year: 2022

Estimated: 2023

Forecast- 2024-2030

Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Global Green Hydrogen Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Global Green Hydrogen Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global Green Hydrogen Market based on competitive benchmarking matrix?
• What are the key results derived from the market surveys conducted during Global Green Hydrogen Market study?