Enjoy complimentary customisation on priority with our Enterprise License!
The green hydrogen market size is estimated to grow at a CAGR of 45.51% between 2022 and 2027. The green hydrogen market size is forecast to increase by USD 14,745.04 million. The growth of the market depends on several factors, including the growing adoption of clean fuel, the growing adoption of fuel cell-powered vehicles, and the increasing focus on decarbonization.
This green hydrogen market report extensively covers market segmentation by end-user (chemical, power, industrial, and mobility and others), technology (alkaline electrolyzer and polymer electrolyte membrane (pem) electrolyzer), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, View Report Sample
The growing adoption of clean fuel are notably driving the market growth, although factors such as the high initial cost may impede the market growth. Our researchers analyzed the data with 2022 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.
One of the key factors driving growth in the green hydrogen market is the growing adoption of clean fuel. The separation of oxygen and hydrogen in the formation of green hydrogen occurs through an electrochemical reaction and is a highly reliable process with high output efficiency. The process of producing green hydrogen can be claimed to be clean or environmentally friendly as the power used for electrolysis is generated by renewable energies such as solar and wind power.
Due to the advantages of producing green hydrogen with zero emissions, several organizations continue to replace fossil fuels such as coal and natural gas with green hydrogen, which has emerged as a major driver of market growth. Moreover, renewable power plants are generally located at distant locations from the end-users. In such cases, if the generated power is used for electrolysis to produce green hydrogen, the transportation would have been commoditized and unconstrained by grid connection, which is similar to LNG. Therefore, owing to the rising demand for green hydrogen, the rising shift toward integrating hydrogen electrolysers with renewables is expected to continue to drive the market growth during the forecast period.
The increasing support given by the European governments is a key trend expected to have a positive impact during the forecast period. The emerging green hydrogen economy is underpinned by an initiative by the governments of the European Union (EU). For instance, as part of the Green Deal, the EU has defined a hydrogen strategy. In the first phase of the Green Deal, that is, from 2020 up to 2024, the strategic objective was to install at least 6 GW of electrolyzers in the EU and produce up to 1 million tons of green hydrogen.
The European Hydrogen Backbone (EHB) Initiative was launched in 2020 by a group of European gas transportation system operators (TSOs) to develop a dedicated hydrogen pipeline network infrastructure that is largely based on the repurposing of existing natural gas pipelines. The overall hydrogen infrastructure is expected to gradually grow to become a pan-European network by achieving a total length of 39,700 km by 2040. Such initiatives are expected to drive the growth of the market during the forecast period.
The high initial cost will be a major challenge for the green hydrogen market during the forecast period. The initial cost associated with the production of green hydrogen is high. The fixed costs required to set up production equipment are also high. On average, green hydrogen costs about two to three times more than grey hydrogen. Application technology also contributes to cost. Fuel cells cost about 1.5 to 2 times more than fossil fuels. Even synthetic fuel costs almost 5 to 7 times more than fossil jet fuel.
Green hydrogen prices are expected to come down to at least $2 per kg so that it could be feasible for industries such as steel, fertilizer, and long-range shipping to adopt this fuel in the long run. Hence, the high initial cost of setting up the production plant is likely to hamper the growth of the market during the forecast period.
The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Green Hydrogen Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ACWA Power International: The company offers a green hydrogen project, which is powered entirely by renewable energy. Also, the company offers power that strengthens its innovative and technical capacity in developing renewable technologies, such as wind and photovoltaic power.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the chemical segment will be significant during the forecast period. Green hydrogen is one of the important supplies used in the chemical industry. Hydrogen, such as green and grey, is used for chemical process synthesis, mainly to manufacture methanol and ammonia. It is an important ingredient in the manufacture of methanol, polymers, and ammonia, thereby playing a key role in the fertilizer sector. Such factors will increase the segment growth during the forecast period.
Get a glance at the market contribution of various segments View the PDF Sample
The chemical segment was valued at USD 214.16 million in 2017 and continued to grow until 2021. Green hydrogen is used in the manufacture of compounds such as paints, synthetic fibers, nylons, polyurethane elastomers, and plasticizing plastics. There is a growing demand from the chemical industry for green feedstocks or precursor molecules such as ammonia and methanol produced using low CO2 and green hydrogen. These green chemicals are converted into high-value end-products for different sectors such as automotive, electronics, and pharmaceuticals. Such factors are therefore expected to drive the growth of the chemical segment of the market over the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
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. The growth of the green hydrogen market in the region is driven by increasing investments in industries such as chemicals, fertilizers, refining, glass, semiconductors, metal processing, and food. APAC's refining industry is driven by huge local demand for refined petroleum products such as gasoline and diesel. This demand is driven by countries exhibiting healthy GDP growth rates, mainly India and China. According to several government regulations, oil and gas refineries are required to reduce sulfur levels in diesel. To do this, these refineries need to increase their hydrogen content. This is expected to increase the demand for green hydrogen in this region during the forecast period.
Many end-user industries, such as chemicals, refining, and industrial manufacturing, which use green hydrogen gas extensively, faced certain challenges following the outbreak of COVID-19 in 2020. However, the market regained momentum in 2021, when business processes in end-user industries returned to normalcy. The increased government funding in the region further augmented the market growth in 2021. Countries in APAC have announced economic stimulus packages to bail out their economies from the negative effects of the pandemic. For instance, in May 2021, Indian govt. announced a stimulus package of about $260 billion. Such relief packages helped different sectors of the economy, including the chemicals and steel industries, which are the major end-users of green hydrogen. Such factors will drive the growth of the green hydrogen market during the forecast period.
The green hydrogen market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global green hydrogen market as a part of the global specialty chemicals market. The parent global specialty chemicals market covers companies engaged in the manufacturing of various types of products under organic and inorganic chemicals. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
|
Green Hydrogen Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
169 |
|
Base year |
2022 |
|
Historic period |
2017-2021 |
|
Forecast period |
2023-2027 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 45.51% |
|
Market growth 2023-2027 |
USD 14,745.04 million |
|
Market structure |
Fragmented |
|
YoY growth 2022-2023(%) |
45.3 |
|
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
|
Performing market contribution |
APAC at 57% |
|
Key countries |
US, China, Japan, Germany, and France |
|
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
ACWA Power International, Air Liquide SA, Air Products and Chemicals Inc., Ballard Power Systems Inc., Cummins Inc., ERGOSUP, Green Hydrogen Systems, Guangdong Nation Synergy Hydrogen Power Technologies Co Ltd., Indian Oil Corp. Ltd., Jindal Steel and Power Ltd., Linde Plc, Loop Energy Inc., Nel ASA, Nikola Corp., Plug Power Inc., Solena Group, Bloom Energy Corp., Ceres Power Holdings plc, Larsen and Toubro Ltd., and Siemens Energy AG |
|
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
|
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Customized Report as per your Business Needs
Let us help you make report more suited to your requirements.
Get the report (PDF) sent to your email within minutes.
