By 2028, the global green hydrogen market is estimated to reach USD 8,702 million, growing at a CAGR of 48.19 percent over the forecast period.
This can be attributed to technology developments in order to scale up production, as well as lower variable renewable energy (VRE) power costs. Furthermore, Vantage Market Research states in a report titled “Green Hydrogen Market by Technology (Proton Exchange Membrane Electrolyser, Alkaline Electrolyser, Solid oxide Electrolyser) by Application (Power Generation, Transport, Others) by End-use Industry (Food & Beverages, Medical, Chemical, Petrochemicals, Glass, Others) by Region (North America, Europe, Asia-Pacific) by Technology (Proton Exchange Membrane Electrolyser, Alkaline
The COVID-19 epidemic has had an impact on a variety of businesses throughout the world. To slow the spread of the epidemic, governments throughout the world enacted tight lockdown measures and social distance standards. During the early phases of the pandemic, manufacturing facilities all around the world were shut down. Furthermore, the economic crisis that followed the pandemic might cause a considerable delay in the commercialization of green hydrogen.
Small and medium-sized businesses, which are the backbone of the technological industry, have seen a sharp reduction in income since the epidemic began in 2020. As a result, market participants faced several hurdles as supply chain interruptions were noticed. However, when additional supplies become available in the second half of 2022, things will improve. Based on the following data points, the influence of COVID-19 on market demand is considered when evaluating the present and projected market size and growth patterns for all regions and countries:
Government policies, such as subsidies, levies, and direct government financing, will support 70% of the world’s renewable energy initiatives by 2020. Clean hydrogen is one of the most important factors in accelerating the decarbonization process, particularly in long-distance transportation using hydrogen-derived fuels. As a result, ambitious objectives and plans for carbon neutrality and decarbonization declared by numerous countries are anticipated to draw significant investment and promote the use of clean hydrogen.
The European Union (EU), for example, aims to be carbon neutral by 2050 and seeks a net-zero economy through European Green Deal programs. As part of the Paris Agreement, China has likewise declared aggressive carbon reduction targets. Furthermore, around 40 countries throughout the world have adopted or intend to impose a carbon price through cap-and-trade systems and direct levies on fossil fuels.
The key cost driver for green hydrogen generation is energy, and clean electricity produced from onshore wind and solar power installations has decreased significantly over the previous decade. For example, in 2010, the average contractual price of solar energy was 250 USD/MWh, however in 2018, it was 56 USD/MWh.
Similarly, onshore wind energy costs fell throughout the same time period, from 75 USD/MWh in 2010 to 48 USD/MWh in 2018. Furthermore, in 2019 and 2020, sustainable energy prices fell even further, reaching new lows never seen before. Green hydrogen generation is predicted to become even more cost-effective as the cost of clean power falls.
Many of the hydrogen value chain technologies and components that have been implemented in small-scale manufacturing are on the verge of commercialization. According to the Hydrogen Council, the capital cost of electrolysis has decreased by 60% since 2010, thanks to the adoption of technical advancements throughout the supply chain. Furthermore, according to the US DOE, the cost of fuel cells has decreased by 70% since 2006. However, several of the technologies have yet to be proved on a significant scale, but as production prices fall, they are expected to become more appealing.
During the projected period, the European Green Hydrogen Market is expected to dominate the worldwide market. This may be attributed to a high number of green hydrogen projects as well as aggressive yet beneficial government initiatives that will continue to boost regional market growth in the next years. Furthermore, large expenditures in the Hydrogen industry’s research and development are expected to drive the Green Hydrogen Market’s expansion in Europe.
The European Union, for example, has teamed up with Hydrogen Europe Research, an international non–profit organization made up of 91 institutions and R&D organizations from 26 nations. The alliance is anticipated to foster a favorable business climate in the region for the green hydrogen movement.
During the projected period, the green hydrogen market in Asia Pacific and North America is expected to increase significantly. This can be attributed to the growing popularity of green energy programs in nations such as the United States, China, Japan, and India.
