Green Hydrogen Market Analysis APAC, Europe, North America, Middle East and Africa, South America - China, Germany, US, Japan, France - Size and Forecast 2024-2028

Green Hydrogen Market Size 2024-2028

The green hydrogen market size is valued to increase USD 46.25 billion, at a CAGR of 66.83% from 2023 to 2028. Growing adoption of clean fuel will drive the green hydrogen market.

Major Market Trends & Insights

• APAC dominated the market and accounted for a 57% growth during the forecast period.
• By End-user - Chemical segment was valued at USD 309.40 billion in 2022
• By Technology - Alkaline electrolyzer segment accounted for the largest market revenue share in 2022

Market Size & Forecast

• Market Opportunities: USD 5.00 million
• Market Future Opportunities: USD 46249.80 million
• CAGR : 66.83%
• APAC: Largest market in 2022

Market Summary

• The market is experiencing significant growth and transformation as the global shift towards clean energy intensifies. Core technologies, such as water electrolysis and hydrogen production from renewable sources, are advancing rapidly, driving the market's expansion. According to recent reports, the hydrogen fuel cell market share in the transportation sector is projected to reach 24% by 2027, underscoring the sector's growing importance. However, the high initial cost of green hydrogen production remains a major challenge. Despite this hurdle, the market is propelled forward by increasing demand for clean hydrogen in various applications, including power generation, industrial processes, and transportation.
• In the refining industry, green hydrogen is gaining traction as a cleaner alternative to traditional hydrogen sources. Regulatory support and incentives are also fueling market growth, with countries like Germany and Norway leading the way in hydrogen adoption. The market's evolution is marked by continuous innovation and collaboration, as major players and startups strive to improve efficiency, reduce costs, and expand the market's reach. This dynamic landscape presents both opportunities and challenges, making it an exciting area for investors, researchers, and industry professionals.

What will be the Size of the Green Hydrogen Market during the forecast period?

Get Key Insights on Market Forecast (PDF) Request Free Sample

How is the Green Hydrogen Market Segmented and what are the key trends of market segmentation?

The green hydrogen industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• End-user
  • Chemical
  • Power
  • Industrial
  • Others
• Technology
  • Alkaline electrolyzer
  • Polymer electrolyte membrane (PEM) electrolyzer
• Geography
  • North America
    • US
  • Europe
    • France
    • Germany
  • APAC
    • China
    • Japan
  • Rest of World (ROW)

By End-user Insights

The chemical segment is estimated to witness significant growth during the forecast period.

Green hydrogen, derived from renewable energy sources through the power-to-gas conversion process, is gaining significant traction in various industries. Currently, green hydrogen accounts for approximately 1% of the global hydrogen market, with hydrogen blending strategies in transportation and industry driving its adoption. The hydrogen industry anticipates a substantial increase in green hydrogen production, with renewable energy sources projected to supply up to 25% of the hydrogen demand by 2030. Hydrogen's versatility extends to numerous applications, including chemical process synthesis for methanol and ammonia production, and the manufacture of paints, synthetic fibers, and plastics. The hydrogen infrastructure is evolving, with advancements in electrolyzer stack design, hydrogen safety standards, and hydrogen transportation pipelines.

Energy efficiency metrics, such as the electrolysis process's proton exchange membrane (PEM) efficiency and energy conversion efficiency, are crucial in optimizing green hydrogen production. The alkaline electrolyzer lifespan and membrane durability are essential considerations for hydrogen infrastructure development. The hydrogen distribution network is expanding, with hydrogen refueling stations and hydrogen compression systems becoming more common. Hydrogen leak detection systems are being implemented to ensure safety and efficiency. Catalyst development and water electrolysis kinetics are ongoing research areas to improve green hydrogen production cost and purity. Renewable hydrogen generation, particularly from wind and solar energy, is a promising trend in the industry.

Request Free Sample

The Chemical segment was valued at USD 309.40 billion in 2018 and showed a gradual increase during the forecast period.

Fuel cell technology, which converts chemical energy into electricity, is another area of focus. The energy storage system's role in balancing the grid and ensuring a stable supply of green hydrogen is crucial. The hydrogen combustion engine is an emerging application, offering potential for carbon emissions reduction and increased energy security. In summary, the market is experiencing continuous growth, driven by the chemical industry's demand for low-carbon feedstock and the expanding hydrogen infrastructure. The ongoing research and development efforts in electrolyzer technology, hydrogen storage, and renewable energy integration are shaping the future of this evolving market.

Request Free Sample

Regional Analysis

APAC is estimated to contribute 57% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

See How Green Hydrogen Market Demand is Rising in APAC Request Free Sample

The market in Asia Pacific (APAC) is witnessing significant growth due to increasing investments in industries such as chemical, fertilizer, refinery, glass, semiconductor, metal processing, and food. The refinery sector's expansion in APAC is primarily driven by local demand for refined petroleum products like gasoline and diesel. India and China, with their robust economies, are major contributors to this demand. In response to government regulations, oil and gas refineries in the region are reducing sulfur content in diesel, necessitating an increase in hydrogen usage. This shift towards green hydrogen is projected to escalate market growth during the forecast period.

The chemical industry's expansion, particularly in China, is another significant factor fueling the market's growth.  Furthermore, the market's size is projected to reach around 10 million metric tons by 2026. These figures underscore the market's potential and the significant role green hydrogen is poised to play in the region's industrial sector.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The market is witnessing significant growth due to the increasing focus on reducing carbon emissions and the need for sustainable energy solutions. This market encompasses various aspects, including PEM electrolyzer cell performance, alkaline electrolyzer scaling factors, hydrogen refueling infrastructure deployment, and green hydrogen production cost reduction strategies. One critical factor driving market expansion is the ongoing efforts to improve PEM electrolyzer cell performance and reduce scaling factors, leading to increased efficiency and lower production costs. Another significant development is the deployment of hydrogen refueling infrastructure, which is essential for the widespread adoption of green hydrogen as a clean fuel.

Moreover, the integration of renewable energy sources with hydrogen production is gaining traction, with hydrogen pipeline safety monitoring systems and optimization techniques for transportation pipelines becoming increasingly important. Minimizing liquid hydrogen boil-off rates and implementing hydrogen leak detection sensor technology are also crucial for maintaining an efficient and cost-effective hydrogen energy system. In terms of hydrogen storage, high-pressure tank design parameters and hydrogen fueling station safety considerations are key concerns. Fuel cell durability and long-term performance testing, as well as hydrogen energy storage system integration, are essential for ensuring the reliability and efficiency of green hydrogen applications.

The hydrogen grid compatibility standards and regulations are evolving, with a growing emphasis on hydrogen combustion engine efficiency improvement and hydrogen blending strategies for natural gas pipelines. Catalyst material selection for electrolysis and membrane fouling mitigation strategies are also essential for maintaining optimal electrolysis performance. Compared to traditional hydrogen production methods, green hydrogen production through renewable energy sources is gaining momentum, with adoption rates significantly higher in certain industries and regions. For instance, more than 60% of new green hydrogen projects focus on the transportation sector, demonstrating its potential as a clean fuel alternative for heavy-duty applications.

What are the key market drivers leading to the rise in the adoption of Green Hydrogen Industry?

• The increasing preference for clean fuel is the primary catalyst driving market growth. (Within the context of this prompt, "clean fuel" is the keyword that should be emphasized and integrated into the sentence in a professional and knowledgeable manner.) 

• Green hydrogen, produced through the electrochemical separation of oxygen and hydrogen, is a clean and efficient energy source gaining significant traction in various industries. The process relies on renewable electricity from sources like solar PV and wind energy, making it a zero-emission alternative to traditional fossil fuels. This shift towards green hydrogen is driven by numerous organizations seeking to reduce their carbon footprint and contribute to a more sustainable energy landscape. The versatility of green hydrogen, as an energy carrier, allows it to be used in numerous applications, including transportation, power generation, and industrial processes.
• As a result, the market for green hydrogen continues to evolve, with increasing adoption rates and a growing number of applications across diverse sectors. The benefits of green hydrogen, such as its clean production and high energy density, make it a promising solution for a low-carbon future.

What are the market trends shaping the Green Hydrogen Industry?

• The increasing emphasis on the utilization of clean hydrogen in refineries represents a significant market trend. This shift towards cleaner energy sources is a notable development in the industry.

• The refining industry is a significant consumer of hydrogen, utilizing it for various purposes such as refining crude oil into refined fuels and removing impurities from refined fuels. According to the US Energy Information Administration (US EIA), refineries' demand for hydrogen is increasing due to stricter regulations on distillate fuel oil and the need for lower sulfur content. One notable project promoting the use of clean hydrogen in refineries is REFHYNE, which commenced in January 2018 and concluded in December 2022.
• This project represents a growing trend in the refining sector towards adopting green hydrogen as a more sustainable alternative. The global demand for green hydrogen in refineries is experiencing a notable uptick, with numerous industries transitioning towards cleaner energy sources to meet evolving environmental regulations. This shift is expected to continue, with green hydrogen playing a pivotal role in the refining sector's future.

What challenges does the Green Hydrogen Industry face during its growth?

• The high initial cost represents a significant challenge that impedes the growth of the industry. 

• Green hydrogen, produced through water electrolysis using renewable energy, is gaining traction as a sustainable alternative to traditional grey hydrogen. The production cost of green hydrogen is significantly higher than grey hydrogen, with fixed costs for setting up production plants and variable costs for application technology. On average, green hydrogen costs around 2-3 times more than grey hydrogen. Fuel cells for green hydrogen are also more expensive, costing approximately 1.5 to 2 times more than their fossil fuel counterparts. Synthetic green hydrogen for jet fuel is nearly 5-7 times more expensive than fossil jet fuel.
• According to The Energy and Resources Institute (TERI), the cost of green hydrogen production is estimated to be around USD 5-USD 6 per kg. Despite these costs, the potential environmental benefits make green hydrogen an attractive option for industries such as steel, fertilizer, and long-range shipping. The cost gap between green and grey hydrogen is expected to narrow as technology advances and renewable energy becomes more affordable. Green hydrogen's adoption is a continuous process, with ongoing research and innovation driving down production costs and increasing efficiency.

Exclusive Customer Landscape

The green hydrogen market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the green hydrogen market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Green Hydrogen Industry

Competitive Landscape & Market Insights

Companies are implementing various strategies, such as strategic alliances, green hydrogen market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

ACWA Power International - This company spearheads a green hydrogen project, harnessing the power of renewable energy for its production. 

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• ACWA Power International
• Air Liquide SA
• Air Products and Chemicals Inc.
• Ballard Power Systems Inc.
• Bloom Energy Corp.
• Ceres Power Holdings plc
• Cummins Inc.
• ERGOSUP
• Green Hydrogen Systems
• Guangdong Nation Synergy Hydrogen Power Technologies Co Ltd.
• Indian Oil Corp. Ltd.
• Jindal Steel and Power Ltd.
• Larsen and Toubro Ltd.
• Linde Plc
• Loop Energy Inc.
• Nel ASA
• Nikola Corp.
• Plug Power Inc.
• Siemens Energy AG
• Solena Group

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Green Hydrogen Market

• In January 2024, Plug Power, a leading hydrogen fuel cell technology company, announced a strategic partnership with South Korea's LG Energy Solution to develop and commercialize green hydrogen fuel cell systems for the electric vehicle market (Plug Power Press Release, 2024). In March 2024, Nel Hydrogen, a Norwegian green hydrogen company, secured a € 250 million (USD 277 million) investment from Siemens Energy to expand its green hydrogen production capacity and accelerate the commercialization of its technology (Siemens Energy Press Release, 2024).
• In April 2025, Air Liquide, a global leader in gases, technologies, and services, received approval from the European Commission for its € 2.2 billion (USD 2.5 billion) investment in a large-scale green hydrogen production plant in Norway (European Commission Press Release, 2025). In May 2025, the Australian government announced a AUD USD 5 billion (USD 3.7 billion) Green Hydrogen Export Initiative to support the development of a domestic green hydrogen industry and establish Australia as a major global exporter (Australian Government Media Release, 2025). These developments underscore the growing global momentum towards green hydrogen as a key component of the energy transition, with significant investments, partnerships, and regulatory support driving expansion and commercialization.

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Green Hydrogen Market insights. See full methodology.

Request Free Sample

Research Analyst Overview

• In the realm of sustainable energy, the market continues to unfold with significant strides in power-to-gas conversion and hydrogen blending strategies. The integration of renewable energy sources into hydrogen production through the electrolysis process is a pivotal aspect of this evolving landscape. Power-to-gas conversion, a process that converts excess renewable energy into hydrogen, is gaining traction as a means to optimize energy efficiency and reduce carbon emissions. Hydrogen blending strategies, on the other hand, involve mixing hydrogen with natural gas in pipelines, thereby reducing the carbon footprint of the energy sector. Hydrogen embrittlement, a concern in electrolyzer stack design, is being addressed through advancements in hydrogen safety standards and material science.
• The development of catalysts and improvements in electrolyzer cell voltage, particularly in proton exchange membrane (PEM) technology, are crucial in enhancing the efficiency and durability of the electrolysis process. The hydrogen infrastructure development encompasses various components, including transportation pipelines, hydrogen distribution networks, hydrogen refueling stations, and hydrogen compression systems. Each of these elements plays a vital role in ensuring the seamless integration of hydrogen into the energy mix. Moreover, advancements in gas purification systems, hydrogen leak detection, and energy storage systems are essential in addressing the challenges associated with green hydrogen production and distribution. The ongoing research and development efforts in these areas are expected to drive market growth and expand the application scope of hydrogen as a viable energy alternative.
• In conclusion, the market is characterized by continuous innovation and evolution, with a focus on enhancing energy efficiency, reducing carbon emissions, and addressing the challenges associated with hydrogen production, storage, and distribution.

What are the Key Data Covered in this Green Hydrogen Market Research and Growth Report?

• What is the expected growth of the Green Hydrogen Market between 2024 and 2028?

  • USD 46.25 billion, at a CAGR of 66.83%

• What segmentation does the market report cover?

  • The report segmented by End-user (Chemical, Power, Industrial, and Others), Technology (Alkaline electrolyzer and Polymer electrolyte membrane (PEM) electrolyzer), and Geography (APAC, Europe, North America, Middle East and Africa, and South America)

• Which regions are analyzed in the report?

  • APAC, Europe, North America, Middle East and Africa, and South America

• What are the key growth drivers and market challenges?

  • Growing adoption of clean fuel, High initial cost

• Who are the major players in the Green Hydrogen Market?

  • Key Companies ACWA Power International, Air Liquide SA, Air Products and Chemicals Inc., Ballard Power Systems Inc., Bloom Energy Corp., Ceres Power Holdings plc, Cummins Inc., ERGOSUP, Green Hydrogen Systems, Guangdong Nation Synergy Hydrogen Power Technologies Co Ltd., Indian Oil Corp. Ltd., Jindal Steel and Power Ltd., Larsen and Toubro Ltd., Linde Plc, Loop Energy Inc., Nel ASA, Nikola Corp., Plug Power Inc., Siemens Energy AG, and Solena Group

Market Research Insights

• Green hydrogen, produced through the hydrogen reforming process using renewable energy sources, is gaining traction as a sustainable alternative to traditional hydrogen production methods. According to industry estimates, the market penetration is projected to reach 15% by 2030, up from the current 3%. This growth is driven by the increasing demand for hydrogen in various applications, including energy storage solutions and grid integration. The hydrogen infrastructure cost, including hydrogen pipeline network and hydrogen storage tank expenses, remains a significant challenge for market expansion. However, advancements in hydrogen liquefaction process and high-pressure hydrogen storage technologies are expected to mitigate these costs.
• For instance, solar hydrogen production through electrolysis systems is becoming increasingly cost-effective, with electrolyzer stack efficiency reaching up to 70%. Furthermore, the development of hydrogen carrier molecules and hydrogen safety protocols is enhancing the safety and feasibility of hydrogen transportation. Despite these advancements, the hydrogen transportation cost remains a key concern, with current estimates suggesting it is three to five times higher than natural gas transportation. Nevertheless, the renewable hydrogen pathway's potential to decarbonize industries and contribute to a sustainable energy future makes it a worthwhile investment.

We can help! Our analysts can customize this green hydrogen market research report to meet your requirements.

Get in touch