Green Hydrogen Market Size
| Study Period | 2019 - 2029 |
| Market Volume (2024) | 0.33 Million tons |
| Market Volume (2029) | 1.57 Million tons |
| 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 |
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 Market Trends
The Power and Other End-user Industries Segment is Expected to Dominate the Market
- Hydrogen is a very versatile energy carrier that has the potential to play a significant role in decarbonizing the energy system.
- Renewable energy produced via wind or solar farms is stored as compressed gas. The hydrogen energy storage system consists of an electrolyzer to convert electricity to green hydrogen, a storage facility to store hydrogen as a compressed gas, and a fuel cell to convert green hydrogen to electricity.
- Leading economies worldwide are ramping up their hydrogen storage capacities, primarily targeting the power generation sector for decarbonization.
- This push is evident through various initiatives, such as grants and incentives. For example, in 2023, the US government allocated nearly USD 48 million across 16 projects, focusing on advancing clean hydrogen technologies, notably fuel cells and storage.
- Major economies around the globe are foraging into the field of developing innovative solutions to improve the adoption of integrated green hydrogen-based power generation solutions to meet climate goals. In a significant move, in September 2023, India’s Ministry of New & Renewable Energy unveiled plans for a pilot project to generate 100 MW of round-the-clock power using green hydrogen storage.
- Moreover, in April 2024, Satluj Jal Vidyut Nigam (SJVN) announced the commissioning of India’s first multi-purpose green hydrogen pilot project, a 20 Nm3/hr electrolyzer and 25 kW fuel cell capacity-based green hydrogen pilot project, Nathpa Jhakri Hydro Power Station (NJHPS) in Himachal's Jhakri.
- Similarly, China made strides in July 2023, inaugurating a 12 MW/2 MWh green hydrogen-based energy storage facility in Gannanzhou Cooperation City, Gansu Province.
- Numerous market players are developing innovative solutions to integrate green hydrogen into power generation facilities. For instance, Siemens Energy and Siemens Gamesa target a total investment of around EUR 120 million in the coming five years to develop an offshore wind turbine as a single synchronized system to directly produce green hydrogen, with a full-scale offshore demonstration expected by 2025/2026.
- The rising adoption of green hydrogen, coupled with aggressive decarbonization efforts in the building and power sectors, paints a promising picture for the market under study, projecting robust growth in the coming years.
- Additionally, low-carbon fuels, like green hydrogen (H2), will be a key component of the global energy system, which aims to achieve net zero greenhouse gas (GHG) emissions by 2050.
- According to the report of the International Renewable Energy Agency (IRNA), the number of new power-to-hydrogen projects worldwide has changed yearly. For instance, in 2022, there were five projects, and in 2023, there were only two.
- Therefore, the aforementioned factors are projected to boost the consumption of green hydrogen in the power and other end-user energy industries.
Asia-Pacific is Expected to Dominate the Market
- Asia-Pacific is expected to dominate the market. China has the largest GDP in the region, and China and India are among the fastest-emerging economies in the world.
- In March 2022, China revealed its first long-term hydrogen plan from 2021 to 2035. This strategic roadmap emphasizes a phased approach, prioritizing the growth of the domestic hydrogen industry through technological advancements and enhanced manufacturing capabilities. Notably, the plan targets producing 100,000 to 200,000 tons of hydrogen annually from renewable sources by 2025, with a broader goal of mainstreaming renewable hydrogen in the economy to bolster China's green energy transition by 2035. Additionally, the plan advocates for a diverse technology pathway, promoting a varied mix of renewable sources over the next 15 years.
- Chinese steelmakers spearhead the shift toward green hydrogen, aiming to replace fossil fuels in processes like Blast Furnace operations. Notably, Baowu, a major player, initiated the construction of a green hydrogen-fueled electric arc furnace in Zhanjiang, Guangdong.
- Industries like steel, cement, and fertilizers, known for their high carbon footprint, face mounting pressure for decarbonization. However, with India's concerted efforts and the ambitious targets set by the National Green Hydrogen Mission, which aims to slash INR 1 lakh crore worth of fossil fuel imports and nearly 50 million metric tons (MMT) of CO2 emissions annually by 2030, green hydrogen emerges as a beacon of hope in their transition.
- Similarly, NTPC Limited took a significant step starting in January 2023, blending up to 8% green hydrogen into the PNG Network at its Kawas Township in Surat, Gujarat, India.
- Tokyo is making strides in developing its green hydrogen facilities on publicly owned land rather than falling behind. The metropolitan government announced intentions to begin constructing three units by the fiscal year 2024, aiming to have one operational by the end of that year. However, further details from the government are eagerly anticipated.
- In January 2024, SK Ecoplant partnered with Bloom Energy for a groundbreaking green hydrogen initiative. Teaming up with Korea Southern Power and local authorities, they aim to introduce hydrogen power on a significant scale. SK Ecoplant will leverage Bloom’s cutting-edge solid oxide electrolyzer (SOEC) technology to produce green hydrogen as a transport fuel on Jeju Island, South Korea. The upcoming presentation, scheduled to commence in late 2025, will involve the implementation of 1.8 megawatts of electrolyzer technology.
- Hence, the above-mentioned factors are expected to boost the consumption of green hydrogen in Asia-Pacific.
Green Hydrogen Industry Overview
The global green hydrogen market is partially consolidated. Some of the major players in the market include China Petroleum & Chemical Corporation, Ningxia Baofeng Energy Group Co. LTD, Plug Power Inc., China Three Gorges Corporation (CTG), and Tidewater Renewables Ltd (not in any particular order).
Green Hydrogen Market Leaders
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China Petroleum & Chemical Corporation
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Ningxia Baofeng Energy Group Co. LTD
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Plug Power Inc.
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China Three Gorges Corporation (CTG)
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Tidewater Renewables Ltd
*Disclaimer: Major Players sorted in no particular order
Green Hydrogen Market News
- June 2024: TotalEnergies and Air Products and Chemicals Inc. signed a 15-year agreement to supply 70,000 tons of green hydrogen annually in Europe starting in 2030. Under this agreement, Air Products and Chemicals Inc. plans to deliver green hydrogen to TotalEnergies’ Northern European refineries. This green hydrogen can avoid around 700,000 tons of CO₂ each year.
- June 2024: ExxonMobil and Air Liquide announced an agreement to support the production of low-carbon hydrogen and low-carbon ammonia at ExxonMobil’s Baytown, Texas facility. The agreement will enable the transportation of low-carbon hydrogen through Air Liquide’s existing pipeline network.
- September 2023: TotalEnergies and Air Liquide signed an agreement for the long-term supply of green and low-carbon hydrogen to the TotalEnergies refining and petrochemical platform in Normandy. The project contributes to the decarbonization of the Gonfreville site, reducing its CO2 emissions by up to 150,000 tons a year.
Green Hydrogen Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Realizing the Potential in the Chemical Industry
4.1.2 Growing Environmental Concerns Regarding Carbon Emissions
4.2 Market Restraints
4.2.1 High Investment Cost of Green Hydrogen
4.2.2 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
4.5 Technological Snapshot
5. MARKET SEGMENTATION (Market Size in Volume)
5.1 End-user Industry
5.1.1 Refining
5.1.2 Chemicals
5.1.3 Iron and Steel
5.1.4 Transportation
5.1.5 Power and Other End-user Industries
5.2 Geography
5.2.1 Asia-Pacific
5.2.1.1 China
5.2.1.2 India
5.2.1.3 Japan
5.2.1.4 South Korea
5.2.1.5 Rest of Asia-Pacific
5.2.2 North America
5.2.2.1 United States
5.2.2.2 Canada
5.2.2.3 Mexico
5.2.3 Europe
5.2.3.1 Germany
5.2.3.2 United Kingdom
5.2.3.3 France
5.2.3.4 Italy
5.2.3.5 Rest of Europe
5.2.4 Rest of the World
5.2.4.1 South America
5.2.4.2 Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%) Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Air Products and Chemicals Inc.
6.4.2 Air Liquide
6.4.3 BP PLC
6.4.4 China Petroleum & Chemical Corporation
6.4.5 China Three Gorges Corporation
6.4.6 Engie
6.4.7 Fortescue Future Industries
6.4.8 Green Hydrogen International Corp.
6.4.9 Iberdrola SA
6.4.10 Intercontinental Energy
6.4.11 LHYFE
6.4.12 Linde PLC
6.4.13 Ningxia Baofeng Energy Group Co. Ltd
6.4.14 Plug Power Inc.
6.4.15 Reliance Industries Limited
6.4.16 Tidewater Renewables Ltd
6.4.17 Uniper SE
6.4.18 Yara
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Favorable Policies and Regulations Promoting the Usage of Green Hydrogen
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).
| End-user Industry | |
| Refining | |
| Chemicals | |
| Iron and Steel | |
| Transportation | |
| Power and Other End-user Industries |
| Geography | |||||||
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Green Hydrogen Market Research 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.
Who are the key players in Green Hydrogen Market?
China Petroleum & Chemical Corporation, Ningxia Baofeng Energy Group Co. LTD, Plug Power Inc., China Three Gorges Corporation (CTG) and Tidewater Renewables Ltd are the major companies operating in the Green Hydrogen Market.
Which is the fastest growing region in Green Hydrogen Market?
Europe is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Green Hydrogen Market?
In 2024, the Asia Pacific accounts for the largest market share in Green Hydrogen Market.
What years does this Green Hydrogen Market cover, and what was the market size in 2023?
In 2023, the Green Hydrogen Market size was estimated at 0.21 million tons. The report covers the Green Hydrogen Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Green Hydrogen Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Green Hydrogen Industry Report
Statistics for the 2024 Green Hydrogen market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Green Hydrogen analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Green Hydrogen Market Report Snapshots
