According to Custom Market Insights (CMI), the Global Green Hydrogen Market size was valued at approximately USD 1.8 billion in 2021 and is projected to grow substantially, reaching nearly USD 90 billion by the end of 2030. This impressive growth trajectory reflects a compound annual growth rate (CAGR) of around 55% between 2022 and 2030. The comprehensive research report provides a 360-degree evaluation of the Green Hydrogen market, thoroughly analyzing the key driving forces and restraining factors influencing demand throughout the forecast period. Furthermore, the report explores global opportunities and provides a detailed competitive landscape for stakeholders in the Green Hydrogen market.

Green Hydrogen Market: Overview

Green hydrogen refers to hydrogen produced using entirely renewable and sustainable energy sources. In contrast to grey hydrogen—which dominates 95% of the current market and is primarily generated through steam methane reforming of natural gas—green hydrogen produces minimal to no carbon dioxide emissions during production.

Green hydrogen serves as a critical enabler in the energy transition by allowing renewable electricity to be converted into a versatile fuel. This energy can be repurposed for transportation or used as an industrial feedstock. For instance, green hydrogen and its derivative fuels, such as green ammonia, can enable the integration of wind power into maritime transport by powering container ships. As a result, green hydrogen plays a vital role in significantly boosting the decarbonization potential of renewable energy sources.

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“Green Hydrogen Market Size, Trends and Insights By Technology (Polymer Electrolyte Membrane (PEM) Electrolyzer, Alkaline Electrolyzer), By Application (Transportation, Power Generation, Others), By Distribution Channel (Cargo, Pipeline), and By Region – Global Industry Overview, Statistical Data, Competitive Analysis, Share, Outlook, and Forecast 2022–2030”

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Growth Factors

The increasing demand for green hydrogen in recent years stems primarily from its potential to drastically reduce global carbon emissions while meeting the rising global energy requirements. As a long-term and clean energy solution, green hydrogen has gained substantial traction. With growing awareness of hydrogen's potential as a clean energy carrier, the market is poised for continued expansion.

Additionally, rising environmental concerns and the global emphasis on reducing emissions have amplified the importance of clean energy sources, thereby fostering the demand for green hydrogen. The industry's growth is also driven by the increased utilization of nuclear power and hydrogen-based energy systems.

However, despite the promising outlook, the market faces certain challenges. The high upfront capital investments required for infrastructure development and the ongoing maintenance costs pose hurdles to large-scale adoption and expansion of green hydrogen technology.

Segmental Overview

The global green hydrogen market is segmented based on technology, application, and distribution channel.

  • By Technology:
    Among the various technologies, Alkaline electrolyzers accounted for more than 60% of total revenue in 2021. These electrolyzers represent the most traditional and widely adopted form of technology in current green hydrogen projects. They operate using sodium hydroxide or potassium hydroxide as an electrolyte and have a longer operational life compared to PEM (Polymer Electrolyte Membrane) electrolyzers. While alkaline electrolyzers have lower power and current density, they function across a broader temperature range (100–105°C) compared to PEM units (70–90°C). Their cost-effectiveness and widespread availability make them a popular choice for hydrogen production.

  • By Distribution Channel:
    In 2021, the pipeline distribution segment dominated the market, accounting for around 60% of total revenue. Green hydrogen can be transported in multiple formats: as a gas under high pressure, as a liquid in thermally insulated tanks, in a chemically processed form like methanol or ammonia, or through chemical carriers. Among these, pipelines remain the most efficient and scalable method for large-volume transport.

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Regional Overview

In terms of regional market share, Europe emerged as a leading contributor in 2021, supported by significant investments from European governments in transitioning towards a hydrogen-based green economy. For example, in August 2019, the UK government unveiled a USD 14.8 billion investment plan for a project aiming to produce green hydrogen using 4 GW of offshore wind capacity by 2030. This highlights Europe’s strong commitment to clean energy infrastructure and innovation in hydrogen technologies.

Competitive Landscape

The green hydrogen industry is becoming increasingly competitive, with major players focused on reducing production costs, innovating process technologies, and accelerating adoption across various end-use sectors. Companies are actively pursuing strategies such as capacity expansions, strategic collaborations, and investments in R&D to strengthen their market positions.

Recent Strategic Developments:

  • 2022: Ashok Leyland Ltd projected that commercially viable hydrogen-powered trucks and buses would become a self-sufficient and green transportation alternative within the next five years. The initiative also calls for lower taxation on green hydrogen, which could help reduce the reliance on imported energy and enhance domestic production. Establishing green hydrogen refueling corridors is expected to further support this shift.

  • 2022: Global private equity firm KKR announced an investment of USD 450 million in Hero Future Energies (HFE). This strategic move will support HFE’s efforts to expand its portfolio in renewable energy solutions, including solar, wind, and green hydrogen technologies.

Key Market Players

The Green Hydrogen Market features numerous global and regional players, with the following companies being the most prominent:

  • Siemens Energy AG

  • ITM Power PLC

  • Reliance Industries Limited

  • Air Products and Chemicals, Inc.

  • Linde plc

  • SGH2 Energy

  • Ballard Power Systems

  • Air Liquide

  • SRI Energy Inc

  • Green Hydrogen Systems

  • Nel ASA

  • Iberdrola S.A

  • Plug Power Inc

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