Market Size of Green Hydrogen Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 36.35 % |
| Fastest Growing Market | Europe |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Green Hydrogen Market Analysis
The Green Hydrogen Market size is estimated at 0.33 Million tons in 2024, and is expected to reach 1.57 Million tons by 2029, growing at a CAGR of 36.35% during the forecast period (2024-2029).
The COVID-19 pandemic moderately impacted the overall growth of the green hydrogen industry, owing to a halt in production and disruption in the supply chain. However, after the pandemic, the demand for green hydrogen increased in the transportation segment, which, in turn, has propelled the industry's growth.
Over the medium term, the demand for green hydrogen in the chemical industry and growing environmental concerns regarding carbon emissions are expected to drive the demand for green hydrogen.
On the flip side, the high investment cost of green hydrogen, limited access to technology and infrastructure, and high energy losses will likely hinder the industry's overall growth.
Favorable policies and regulations promoting the usage of green hydrogen are projected to offer new growth opportunities to the market.
Asia-Pacific is expected to dominate the market, and Europe will likely witness the highest annual growth rate during the forecast period.
Green Hydrogen Industry Segmentation
Green hydrogen is generated through an electrolysis process using renewable electricity, splitting water into hydrogen and oxygen. It does not emit polluting gases during combustion or production. Green hydrogen has applications in transportation, power generation, and refining industries.
The green hydrogen market is segmented by end-user industry and geography. By end-user industry, the market is divided into refining, chemicals, iron and steel, transportation, and power and other end-user industries. The report also covers the market size and forecasts for the green hydrogen market in 11 countries across major regions. For each segment, the market size and forecasts are based on volume (tons).
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| Refining | |
| Chemicals | |
| Iron and Steel | |
| Transportation | |
| Power and Other End-user Industries |
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Green Hydrogen Market Size Summary
The global green hydrogen market is experiencing significant growth, driven by increasing demand in the transportation and chemical sectors, alongside rising environmental concerns about carbon emissions. The market is expected to expand rapidly, with Europe anticipated to lead due to its robust manufacturing capabilities, particularly in Germany. The chemical industry remains a major consumer of hydrogen, utilizing it extensively in ammonia production and refining processes. Despite the high cost of green hydrogen posing a challenge, favorable policies and regulations are expected to create new opportunities for market expansion. The shift towards low-CO2 alternatives like green hydrogen is crucial for industries aiming to reduce their carbon footprint and transition to more sustainable practices.
Green hydrogen, produced through the electrolysis of water using renewable energy sources, is pivotal in Europe's transition to a sustainable energy system and achieving net-zero emissions by 2050. Its application as a substitute for fossil fuels in various sectors, including steel-making and petroleum refining, is gaining traction. Countries like Germany and Spain are investing heavily in green hydrogen projects to decarbonize their industries and transportation systems. Major players in the market, such as Siemens Energy, Air Products Inc., and Engie, are actively involved in expanding production capabilities and establishing value chains for green hydrogen. These efforts, coupled with strategic investments and collaborations, are expected to significantly boost the consumption of green hydrogen, particularly in Europe and other regions.
Green Hydrogen Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Realizing the Potential in the Chemical Industry
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1.1.2 Growing Environmental Concerns Regarding Carbon Emissions
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1.2 Market Restraints
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1.2.1 High Investment Cost of Green Hydrogen
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1.2.2 Other Restraints
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1.3 Industry Value Chain Analysis
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products and Services
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1.4.5 Degree of Competition
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1.5 Technological Snapshot
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2. MARKET SEGMENTATION (Market Size in Volume)
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2.1 End-user Industry
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2.1.1 Refining
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2.1.2 Chemicals
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2.1.3 Iron and Steel
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2.1.4 Transportation
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2.1.5 Power and Other End-user Industries
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2.2 Geography
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2.2.1 Asia-Pacific
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2.2.1.1 China
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2.2.1.2 India
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2.2.1.3 Japan
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2.2.1.4 South Korea
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2.2.1.5 Rest of Asia-Pacific
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2.2.2 North America
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2.2.2.1 United States
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2.2.2.2 Canada
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2.2.2.3 Mexico
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2.2.3 Europe
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2.2.3.1 Germany
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2.2.3.2 United Kingdom
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2.2.3.3 France
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2.2.3.4 Italy
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2.2.3.5 Rest of Europe
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2.2.4 Rest of the World
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2.2.4.1 South America
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2.2.4.2 Middle East and Africa
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Green Hydrogen Market Size FAQs
How big is the Green Hydrogen Market?
The Green Hydrogen Market size is expected to reach 0.33 million tons in 2024 and grow at a CAGR of 36.35% to reach 1.57 million tons by 2029.
What is the current Green Hydrogen Market size?
In 2024, the Green Hydrogen Market size is expected to reach 0.33 million tons.
