Green Hydrogen Market

Green Hydrogen Market Size and Share:

The global green hydrogen market size was valued at USD 1,686.8 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 62,397.6 Million by 2033, exhibiting a CAGR of 46.89% during 2025-2033. Europe currently dominates the market, holding a significant market share in 2024. Stringent decarbonization policies, technological advancements in electrolysis, falling renewable energy costs, 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.

The need to reduce greenhouse gas and climate change concern, which has prompted the demand for clean energy pathways. The government at various levels has established policies and incentives directed toward renewable energy sources within hydrogen produced via electrolysis with renewable power. The enhancements in technology have made green hydrogen production extremely efficient and cost-effective for large-scale applications. Furthermore, the investment in green hydrogen projects is increasing for industrial use, transport, and power generation as a result of the transition toward net-zero emission goals. The market is also propelled by the rising applications of hydrogen fuel cells, especially for vehicles in the automotive and aviation industries. Energy security concerns and diversifying energy sources are additional factors contributing to green hydrogen adoption. The cooperation of governments, industry, and research institutions will contribute toward accelerating market development, making green hydrogen a cornerstone of global energy transition. 

The United States has emerged as a key regional market for green hydrogen due to a combination of environmental, economic, and policy factors. With the growing awareness about climate change and the need to decarbonize the energy sector, the driving force for the consumer market is that green hydrogen can provide a clean and sustainable alternative to fossil fuels. A prime example of government involvement are tax credits and other subsidies for green hydrogen production and its infrastructure. Besides, the declining costs of renewable energy, particularly solar and wind, have made green hydrogen more economically viable. Moreover, demand has been elicited from industries such as transport, heavy industry, and power generation due to the energy security and diversification objectives and the target of net-zero emissions by 2050.

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 holds 72%, with 69% 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.

Advances in renewable energy and electrolysis technology

The cost of renewable energy around the globe keeps falling. Hence, producing green hydrogen through water electrolysis is becoming economically viable. According to the International Energy Agency (IEA), in 2023, 96% of the new utility-scale solar photovoltaic or PVs and offshore wind generation capacity was cheaper than new coal plants or natural gas plants. As per the green hydrogen market outlook, there are advances in electrolysis technologies which improve energy efficiencies, cut production costs, and hence increase the competitiveness of green hydrogen. For example, in July 2024, F2N Green Hydrogen Srl (FGH), the innovative start-up having its headquarters located in Varese, Italy, and specializing in water electrolysis technology, announced its completion of internal qualification tests and commercial launch of their alkaline stack product line CORNERSTONE. These tests included a 500-kW prototype representative of the product line, which can go up to 2 MW. The prototype passed both beginning-of-life functional tests and pressure equipment certification for applications up to 30 bars.

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. According to the Rhodium Group, the transportation sector emissions increased by 1.6% in 2023 relative to 2022 in the US. 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 growth. For instance, in May 2024, Volvo Trucks announced developing trucks with combustion engines that run on hydrogen. On-road tests with trucks operating on hydrogen in combustion engines will begin in 2026, and the commercial launch is projected for the end of the decade. Trucks that operate on green hydrogen provide a step for Volvo to achieve its net zero goal.

Green Hydrogen Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global green hydrogen market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on technology, application, and distribution channel.

Analysis by Technology:

• Proton Exchange Membrane Electrolyzer
• Alkaline Electrolyzer
• Others
   

Alkaline electrolyzer stand as the largest segment in 2024. Alkaline electrolyzers dominate the green hydrogen market share 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.

Analysis by Application:

• Power Generation
• Transport
• Others
   

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.

Analysis by Distribution Channel:

• Pipeline
• Cargo
   

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.

Regional Analysis:

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

In 2024, Europe accounted for the largest market share. 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 will sustain the decarbonization of bp's refinery operations in Castellón, in 2026. It is expected to result in avoiding the emission of 23,000 Tons of CO2 per year.

Key Regional Takeaways:
 

United States Green Hydrogen Market Analysis

A key driver is the increasing focus on decarbonization to combat climate change. According to the Nature Conservancy, the average carbon footprint in the US is 16 Tons. Green hydrogen, produced through water electrolysis using renewable energy, offers a sustainable solution for reducing greenhouse gas emissions (GHG) in hard-to-abate sectors, such as heavy industry, transportation, and energy storage. Supportive government policies and incentives are significantly propelling the market. Initiatives, such as the Inflation Reduction Act and funding from the Department of Energy's Hydrogen Shot program aim to lower production costs and enhance infrastructure development. These policies encourage investments in electrolyzer manufacturing, hydrogen storage, and distribution networks, creating a conducive environment for the green hydrogen industry. In line with this, the growing adoption of renewable energy sources, particularly solar and wind, is offering a favorable market outlook. The United States has an abundance of renewable resources, enabling cost-effective production of green hydrogen. Moreover, technological advancements in electrolysis and energy storage are enhancing efficiency and reducing costs, making green hydrogen increasingly competitive with conventional fuels. Furthermore, corporate commitments to sustainability and net-zero targets are also driving demand. In addition, the export potential of green hydrogen is expanding, with the U.S. positioning itself as a global leader in hydrogen production.

Asia Pacific Green Hydrogen Market Analysis

The Asia Pacific green hydrogen market is witnessing remarkable growth because of the region's increasing commitment to clean energy transitions, supportive policies, and abundant renewable energy resources. Governing agencies across the Asia Pacific region are prioritizing green hydrogen as a key solution to achieve carbon neutrality and meet international climate goals like the Paris Agreement. This shift is particularly evident in nations, such as Japan, South Korea, China, and Australia, which have set ambitious targets for hydrogen adoption across various sectors. A significant driver is the region's extensive investment in renewable energy infrastructure. The availability of solar, wind, and hydro resources creates an ideal environment for cost-effective green hydrogen production through electrolysis. India has added a record renewable energy capacity of 18.48 GW in 2023-24, according to the latest data of the Ministry of New & Renewable Energy. Moreover, technological advancements in electrolyzers and economies of scale are further driving down production costs, making green hydrogen more competitive compared to fossil fuels. Asia Pacific is also experiencing a growing industrial demand for green hydrogen, particularly in sectors like steel manufacturing, ammonia production, and chemical refining, where decarbonization is challenging. Additionally, the transportation sector is embracing green hydrogen for fuel cell vehicles (FCVs), especially in markets like Japan and South Korea, where hydrogen fuel cell technology is a strategic focus. Export opportunities are another driving force. Nations with abundant renewable energy potential, like Australia, are positioning themselves as global suppliers of green hydrogen to meet rising demand in international markets. 

Europe Green Hydrogen Market Analysis

The strong policy support, technological advancements, and the region's commitment to achieving ambitious climate goals is impelling the market growth. The European Union’s Green Deal and the Hydrogen Strategy have set clear objectives to decarbonize the economy, aiming for net-zero emissions by 2050. Green hydrogen is a critical pillar of this transition, especially for decarbonizing hard-to-electrify sectors, such as heavy industry, aviation, and maritime transport. A significant driver is the substantial policy and financial backing from the EU and individual member states. Programs like the European Clean Hydrogen Alliance and large-scale funding initiatives through Horizon Europe and the NextGenerationEU plan are accelerating the development of green hydrogen infrastructure, including electrolyzers, pipelines, and storage facilities. Carbon pricing under the EU Emissions Trading System (ETS) further incentivizes industries to adopt low-carbon solutions like green hydrogen. The region's vast renewable energy capacity is another enabler. Europe has a strong foothold in wind and solar energy, particularly in countries like Germany, Spain, and the Nordics, allowing cost-effective green hydrogen production via electrolysis. Ongoing investments in renewable energy projects further strengthen this capability. Renewable energy sources represented an estimated 24.1% of the European Union’s final energy use in 2023, as reported by the European Environment Agency. Furthermore, Europe’s strategic push to establish itself as a global leader in green hydrogen is supported by growing export ambitions. Partnerships with countries in the Middle East and Africa for green hydrogen imports, combined with intra-European collaboration, bolster the market growth.

Latin America Green Hydrogen Market Analysis

The Latin America green hydrogen market is gaining momentum that is influenced by the region’s abundant renewable energy resources, supportive policies, and growing demand for sustainable energy solutions. In 2023, the government of Brazil announced a new “growth acceleration” plan that comprised USD 12.5 Billion to invest in new renewable energy projects. Countries like Chile, Brazil, and Argentina are leveraging their vast solar and wind energy potential to produce cost-competitive green hydrogen through electrolysis. Chile, for instance, aims to become a global leader in green hydrogen exports, supported by its National Green Hydrogen Strategy. Moreover, several Latin American nations are implementing policies and incentives to attract investments in hydrogen production, infrastructure, and research. Additionally, the region’s strategic geographic location positions it as a key exporter of green hydrogen to Europe and Asia. Industrial decarbonization efforts, particularly in mining, transportation, and heavy industries, are accelerating the adoption of green hydrogen.

Middle East and Africa Green Hydrogen Market Analysis

The Middle East and Africa (MEA) green hydrogen market is expanding rapidly because of the region's abundant renewable energy resources, strategic geographic position, and growing global demand for clean energy. Countries like Saudi Arabia, UAE, and South Africa are capitalizing on their solar and wind energy potential to produce green hydrogen at competitive costs. By the end of 2023, the production capacity of renewable energy projects under construction in Saudi Arabia will exceed 8 GW, as per the Saudi and Middle East. Apart from this, government policies and international investments are accelerating market growth. MEA nations are implementing frameworks and partnerships to develop hydrogen production, storage, and transportation infrastructure. Export opportunities to Europe and Asia, driven by strong demand for decarbonization, is contributing to the market growth.

Competitive Landscape:

Key players in the green hydrogen market are implementing diverse strategies to strengthen their position amid growing demand. Companies are investing heavily in research and development to improve electrolyzer efficiency, reduce production costs, and enhance storage and distribution technologies. These advancements aim to make green hydrogen more commercially viable across industries. For instance, global energy giants are forming strategic partnerships to co-develop large-scale green hydrogen production facilities, leveraging renewable energy sources like wind and solar. Besides, major corporations are aligning with government initiatives, such as tax incentives under the Inflation Reduction Act, to establish domestic production hubs and capitalize on policy support. Some are integrating vertically by securing renewable energy assets to ensure cost-effective and sustainable hydrogen production. Collaboration with automakers and heavy industries is another common approach, as companies seek to develop hydrogen-based solutions for transportation, steelmaking, and power generation.

The report provides a comprehensive analysis of the competitive landscape in the green hydrogen market with detailed profiles of all major companies, including:

• 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
• Uniper SE (Fortum Oyj) 
   

Latest News and Developments:

• December 2024: Hero Future Energies Private Limited (HFEPL) signed a memorandum of understanding (MoU) with the Government of Karnataka to invest in projects like renewable energy, green hydrogen, and its derivatives in Karnataka.
• November 2024: The IIT Bombay and HSBC India green hydrogen program shortlisted six innovative projects from proposals submitted by six IITs, the Indian Institute of Science, Education and Research (IISER), and the National Institute of Technology (NIT).
• July 2024: U.S.-based firm opened green hydrogen electrolyser gigafactory near Doddaballapur. The unit assists the breaking of water into hydrogen and oxygen utilizing renewable energy.
• April 2024: India's first multi-purpose green hydrogen pilot project was inaugurated at 1,500 MW Nathpa Jhakri Hydro Power Station (NJHPS) in Himachal's Jhakri. The project is the region’s first multi-purpose green hydrogen generation plant with the capability to cater to the high-velocity oxygen fuel coating facility of NJHPS to meet its combustion fuel requirements and generate electricity through its 25kW capacity fuel cell.

Green Hydrogen Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s 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 research study 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.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.