The Global Green Hydrogen Market was valued at USD 810.3 Mn in 2020 and is expected to reach USD 2680.4 Mn by 2027, with a growing CAGR of 16.6% during the forecast period.
Green hydrogen is made by splitting water into hydrogen and oxygen in an electrolyzer driven by renewable energy sources like wind and sun. A stronger electrical current pushed through a tank of water breaks the molecule into its two basic components, which is a more environmentally friendly method of obtaining hydrogen. This process is known as electrolysis, and it produces green hydrogen using renewable energy.
The green hydrogen market is gaining fast pace primarily due to the implementation of favorable government regulations encouraging the usage of green and clean energy sources. For instance, in July 2021, the US Department of Energy announced a USD 52.5 million in funding for 31 projects that will utilize next-generation clean hydrogen technologies and support the recently announced hydrogen energy earth shot initiative, which aims to lower costs and speed up breakthroughs in the clean hydrogen sector.
Additionally, hydrogen generated by renewable-powered electrolysis is utilized as a fuel in cars or saved for later use in fuel cells to generate energy. The use of hydrogen in cars is anticipated to drive the green hydrogen industry demand during the forecast period. Furthermore, some major countries, such as Germany, Japan, and the United States, are considering using hydrogen as a transportation fuel instead of traditional fossil fuels, thus this is considerably a boosting factor of the green hydrogen market growth.
The unique insights provided by this report also include the following:
Based on technology, the alkaline electrolyzer segment accounted for the largest market share due to its low cost as compared to other processes
The technique for producing alkaline water hydrogen is well-developed, and the cost of production is inexpensive. Additionally, with an operational temperature range of 100 - 105 degrees celsius, alkaline electrolyzers generate lower power and current densities than PEM electrolyzers with operating temperatures of 70 - 90 degrees celsius. The electrolyte of an alkaline electrolyzer is a liquid alkaline solution of potassium or sodium hydroxide, and it has a longer running time than PEM electrolyzers. Therefore, low cost of alkaline electrolyzer is anticipated to increase the demand for green hydrogen in the near future. However, this technique has drawbacks such as sluggish startup, corrosion, difficult maintenance, of electrolyzer that may hinder the market growth.
Based on end-user segment, automotive segment accounted for the largest market share in the overall green hydrogen market as it is a form of green energy, these vehicles shall be classified as non-emission vehicles
One of the most common uses for green hydrogen is to power fuel-cell cars. However, as the automotive market shifts away from internal combustion engines and toward more cost-competitive battery-powered vehicles, However, it remains to see whether fuel-cell vehicles would gain green hydrogen market attraction. For instance, laws implemented in the California state are anticipated to support the market growth. Additionally, for qualifying used ZEVs, the California Air Resources Board (ARB) is expected to establish the Zero Emission Assurance Project (ZAP) till 2024. This project is aimed to provide funds for the replacement of a battery, fuel cell. There will be a maximum of one rebate per car. ARB shall provide a report to the legislature by January 1, 2024, outlining the number of rebates granted, the ZAP's emissions benefits, and the ZAP's influence on low-income consumers' decisions to purchase zero and near-zero emissions cars.
Based on regions, the green hydrogen market in Europe accounted for the largest market share in 2020 owing to extensive technological advancements
Geographically, Europe is estimated to dominate the green hydrogen market growth during the forecast period. Europe has made significant investments in green hydrogen projects. The European Hydrogen Backbone project is working to build almost 40,000 kilometers of dedicated hydrogen pipeline across. The EU is dedicated to expanding the percentage of renewables in its energy mix, and this commitment is reflected in a steadily increasing amount of renewable energy. Furthermore, green hydrogen price is projected to decrease in the upcoming years. In this perspective, the hydrogen strategy examines the potential for renewable hydrogen to aid in the cost-effective decarbonization of the EU economy, however, which will be essential in the recovery from the COVID-19 phase. Thus, the hydrogen strategy includes a plan to construct at least 6 GW of renewable hydrogen electrolyzers in Europe by 2024 and 40 GW by 2030. This investment is anticipated to drive the green hydrogen market growth in this region.
The report also provides an in-depth analysis of green hydrogen market dynamics such as drivers, restraints opportunities and challenges
Note: Challenges along with in-depth market dynamics analysis is mentioned in the report.
The market remained static because of COVID-19. Many European and Asian governments have announced new initiatives and feasibility studies including various technologies such as carbon reduction. For instance, The EU hydrogen plan was established on July 8, 2020. This plan will look at how clean hydrogen may help cut carbon emissions in the EU economy and make it climate-neutral by 2050. The main effect of COVID-19 on the market was that it caused delays in projects since raw material supply were interrupted due to lockdowns. Therefore, the market was at a stagnant position during the pandemic.
The report also provides in-depth analysis of key trends in green hydrogen market
The report also provides in-depth analysis of recent news developments and investments
Company Profiles and Competitive Intelligence
The key players operating in the green hydrogen market are:
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.