Green Hydrogen Market

Green Hydrogen Market Size:

The global green hydrogen market size reached USD 1,686.8 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 62,397.6 Million by 2033, exhibiting a growth rate (CAGR) of 46.89% during 2025-2033. Stringent decarbonization policies, falling renewable energy costs, technological advancements in electrolysis, and the rising demand for clean energy alternatives in hard-to-decarbonize sectors, such as heavy industry and transport, are some of the major factors propelling the growth of the market.

Green Hydrogen Market Analysis:

• Major Market Drivers: The global decarbonization goals and stringent environmental policies represent the major drivers of the market. Governments worldwide are setting ambitious net-zero targets, pushing industries to adopt cleaner energy solutions. Green hydrogen’s versatility in reducing emissions across sectors like transportation and power generation adds to its appeal.
• Key Market Trends: The expanding investment in large-scale production facilities and partnerships across the energy and industrial sectors represent the key trends of the market. Technological innovations, such as the development of more efficient electrolyzers and advances in hydrogen storage and transportation, are also driving growth, making green hydrogen increasingly competitive with fossil fuels.
• Geographical Trends: Europe accounts for the largest region in the market across the globe. The market in Europe is driven by ambitious EU climate targets, extensive government funding, and favorable policies like the European Green Deal. Falling renewable energy costs boost the feasibility of green hydrogen production, while industrial sectors, especially steel, chemicals, and heavy transport, seek decarbonization options, which is supporting the green hydrogen market growth across the region.
• Competitive Landscape: Some of the major market players in the green hydrogen industry include Air Liquide S.A., Air Products and Chemicals Inc., Enapter AG, Green Hydrogen Systems A/S, Linde plc, Nel ASA, Ørsted A/S, Plug Power Inc., Siemens Energy AG, and Uniper SE (Fortum Oyj), among many others.
• Challenges and Opportunities: The market faces various challenges, such as high production costs, limited infrastructure for storage and distribution, and low efficiency in current electrolysis technologies. However, the market also has several opportunities including increasing government funding, widespread adoption of supportive policies, and rising research and development (R&D) for efficient electrolysis and storage solutions.

Green Hydrogen Market Trends:

Rising Decarbonization Goals and Climate Policies

Governments worldwide are increasingly setting stringent climate targets to reduce carbon emissions, and green hydrogen is considered as a critical tool to help achieve these goals. Policies supporting renewable energy adoption, carbon pricing mechanisms, and incentives for low-carbon technologies drive the demand for green hydrogen across various sectors, like transport. In line with this, in February 2024, UN Member States took a decisive step toward sustainable low-carbon mobility by adopting the Inland Transport Committee’s (ITC) Strategy for reducing greenhouse gas (GHG) emissions from inland transport. Transport accounts for some 23% of annual GHG emissions. Inland transport accounts for 72% of this total, with 69% coming from road transport, 2% from inland shipping and 1% from rail. In addition to this, the demand for passenger transport is projected to increase by 79% and freight transport by 100% by 2050. Since transport is such a large contributor to carbon emissions, rapid and ambitious climate action by the inland transport sector is imperative. The strategy aims to transform the way inland transport is approached globally and to set a medium- and long-term course towards carbon neutrality by 2050, based on the 61 United Nations legal instruments under ITC’s purview.

Advances in Renewable Energy and Electrolysis Technology

As renewable energy costs, particularly solar and wind, continue to fall, producing green hydrogen through water electrolysis becomes more economically feasible. According to the green hydrogen market forecast, technological advancements in electrolysis are improving energy efficiency, lowering production costs, and making green hydrogen more competitive. For instance, in July 2024, F2N Green Hydrogen Srl (FGH), an innovative Italian start-up based in Varese and specializing in water electrolysis technology, announced the completion of the internal qualification tests and the commercial launch of their alkaline stack product line, CORNERSTONE. As a part of its industrial development program, FGH had completed qualification and characterization tests on alkaline electrolysis stacks in the MW range, generating the product line CORNERSTONE. These tests involved a 500-kW prototype representative of the entire product line, which extends up to 2 MW. The prototype passed both beginning-of-life functional tests and pressure equipment certification for applications up to 30 bars. According to the company, its CORNERSTONE stacks provide a more compact solution than current state-of-the-art technology, with innovations in efficiency, scalability, and sustainability.

Growing Industrial and Transport Sector Demand for Clean Energy Alternatives

Hard-to-decarbonize sectors, such as heavy industry (e.g., steel, cement, and chemical production) and heavy transport (e.g., shipping, aviation, and long-haul trucking), seek green hydrogen as a sustainable alternative to fossil fuels. As these sectors strive to reduce their carbon footprints, the demand for green hydrogen as a versatile and clean energy carrier is increasing rapidly, thus creating a positive green hydrogen market outlook. For instance, in May 2024, Volvo Trucks announced developing trucks with combustion engines that run on hydrogen. On-road tests with trucks using hydrogen in combustion engines will begin in 2026, and the commercial launch is planned for the end of this decade. Trucks that run on green hydrogen provide a significant step for Volvo to achieve its net zero goal and support customers to reach their decarbonization targets.

Green Hydrogen Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on technology, application, and distribution channel.

Breakup by Technology:

• Proton Exchange Membrane Electrolyzer
• Alkaline Electrolyzer
• Others
   

Alkaline electrolyzer accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the technology. This includes proton exchange membrane electrolyzer, alkaline electrolyzer, and others. According to the green hydrogen market report, alkaline electrolyzer represented the largest segment.

Alkaline electrolyzers dominate the market due to their mature technology, cost-effectiveness, and long operational lifespan. Unlike newer technologies, alkaline electrolyzers use well-established processes, making them cheaper to produce and maintain. Their robust design allows for reliable, large-scale hydrogen production, particularly suited for industrial applications. Although less responsive to variable loads, they perform efficiently under steady conditions, ideal for continuous hydrogen generation. This combination of affordability, durability, and scalability secures their leading market share. For instance, in March 2024, Greenzo Energy India Limited, a pioneer in green hydrogen solutions, announced the launch of its 1 MW Alkaline Electrolyser, the first of its kind in India. The Electrolyser developed entirely under the ‘Make in India’ initiative, is a breakthrough innovation that will accelerate India’s transition to a clean energy future.

Breakup by Application:

• Power Generation
• Transport
• Others
   

Transport holds the largest share of the industry

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes power generation, transport, and others. According to the report, transport accounted for the largest market share.

Transport leads the market in the application segment as it offers a sustainable alternative for sectors hard to electrify, such as heavy-duty vehicles, shipping, and aviation. Hydrogen fuel cells provide longer ranges and faster refueling times than batteries, which is crucial for long-haul applications, thereby driving the green hydrogen market demand. As countries push for zero-emission transport solutions, hydrogen’s high energy density and low emissions appeal to industries and governments. The growing infrastructure investments and fuel cell vehicle innovations further support hydrogen’s dominance in decarbonizing the transport sector.

Breakup by Distribution Channel:

• Pipeline
• Cargo
   

Pipeline represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes pipeline and cargo. According to the report, pipeline represented the largest segment.

Pipelines hold the largest share in green hydrogen transport due to their cost-efficiency and reliability over long distances. Existing natural gas pipelines can often be repurposed for hydrogen, reducing infrastructure investment needs. Pipelines allow continuous, large-scale hydrogen transportation directly from production sites to end-users, supporting industrial and utility-scale applications. This mode minimizes energy losses as compared to road or maritime transport, making it an ideal solution as green hydrogen demand and production capacities increase globally.

Breakup by Region:

• North America 
  • United States 
  • Canada 
• Europe 
  • Germany 
  • France 
  • United Kingdom 
  • Italy 
  • Spain 
  • Others 
• Asia Pacific 
  • China 
  • Japan 
  • India 
  • South Korea 
  • Australia 
  • Indonesia 
  • Others 
• Latin America 
  • Brazil 
  • Mexico 
  • Others 
• Middle East and Africa
   

Europe leads the market, accounting for the largest green hydrogen market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe represents the largest regional market for green hydrogen.

The market in Europe is driven by stringent EU climate targets, significant government funding, and supportive policies like the European Green Deal and Fit for 55 packages. Falling renewable energy costs enhance the feasibility of green hydrogen production, while hard-to-decarbonize sectors, such as steel, chemicals, and heavy transport, seek sustainable solutions. The EU’s ambitious Hydrogen Strategy encourages investments in electrolyzer capacity, infrastructure, and research to meet the rising demand. Additionally, collaborations in "hydrogen valleys" and cross-border projects position Europe as a leader, while strategic partnerships with North Africa and other regions secure future hydrogen imports to support supply stability. For instance, in September 2024, bp and Iberdrola formed a 50:50 joint venture in Spain to develop a 25MW green hydrogen project. The partners made the final investment decision for the project. The green hydrogen produced will support the decarbonization of bp's refinery operations in Castellón, expected in 2026. It is expected to result in avoiding the emission of 23,000 tons of CO2 per year.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the green hydrogen industry include Air Liquide S.A., Air Products and Chemicals Inc., Enapter AG, Green Hydrogen Systems A/S, Linde plc, Nel ASA, Ørsted A/S, Plug Power Inc., Siemens Energy AG, and Uniper SE (Fortum Oyj).
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• The market features a competitive landscape characterized by major players like Siemens Energy, ITM Power, and Nel ASA, focusing on electrolyzer technology and infrastructure development. Key partnerships and collaborations among energy companies, industrial firms, and governments enhance innovation and investment. Emerging startups are also entering the market with innovative solutions, driving competition. As countries intensify their climate goals, players must navigate evolving regulations and market dynamics while leveraging technological advancements to capture the growing demand for green hydrogen solutions. For instance, in October 2024, Nel ASA's (Nel) EPC partner Saipem unveiled IVHY™ 100, a scalable and modular 100 MW green hydrogen solution leveraging Nel's technology, advancing the decarbonization of hard-to-abate industries and renewable hydrogen production.

Green Hydrogen Market News:

• In July 2024, the Green Hydrogen Organization (GH2) signed a Memorandum of Understanding (MoU) with Gujarat Power Corporation Limited (GPCL), the state nodal agency for green hydrogen schemes. Under this MoU, GH2 will work closely with GPCL to accelerate green hydrogen production within Gujarat, in line with the state’s target of producing over 3 million tonnes of green hydrogen by 2030.
• In June 2024, TotalEnergies and Air Products signed a 15-year agreement for the annual supply in Europe of 70,000 tons of green hydrogen starting in 2030. This first long-term deal follows TotalEnergies’ call for tenders for the supply of 500,000 tons per year of green hydrogen to decarbonize TotalEnergies’ European refineries.

Green Hydrogen Market Report Scope:

Key Questions Answered in This Report:

• How has the global green hydrogen market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global green hydrogen market?
• What is the impact of each driver, restraint, and opportunity on the global green hydrogen market?
• What are the key regional markets?
• Which countries represent the most attractive green hydrogen market?
• What is the breakup of the market based on the technology?
• Which is the most attractive technology in the green hydrogen market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the green hydrogen market?
• What is the breakup of the market based on the distribution channel.?
• Which is the most attractive distribution channel in the green hydrogen market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global green hydrogen market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the green hydrogen market from 2019-2033.
• The green hydrogen market research report provides the latest information on the market drivers, challenges, and opportunities in the global green hydrogen market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the green hydrogen industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.