The green hydrogen market is expected to develop at a CAGR of 58.0 percent from USD 444 million in 2021 to USD 4,373 million by 2026.
The market is being driven by factors such as the declining cost of renewable energy generation across all sources, the advancement of electrolysis technologies, and increased demand from FCEVs and the power industry.
Mobility accounted for 52.3 percent of the green hydrogen market’s value in 2021 and is expected to reach USD 2,535.1 million by 2026, growing at a CAGR of 61.3 percent. The power sector is forecast to increase at the second-fastest rate of 60.0 percent, from USD 61.4 million in 2021 to USD 633.5 million in 2026.
COVID-19’s effect on the global market for green hydrogen
COVID-19 stifled the green hydrogen industry. Investments in ongoing development projects have continued to grow. Numerous European and Asian governments have announced new projects and feasibility studies including a variety of technologies. The primary effect of COVID-19 on the green hydrogen market was to delay projects due to disruptions in raw material supplies caused by lockdowns. The market for green hydrogen has finally reached the pre-commercialization stage and is poised to play a critical part in the planet’s decarbonization.
The worldwide green hydrogen market is being propelled forward by this factor
As the world moves toward net-zero emissions, it is preparing to alter its trajectory. The mobility sector is developing vehicles that will run entirely on hydrogen, either through fuel cells or internal combustion engines. Hydrogen-powered forklifts have previously been created and are in use in a number of industries in Europe, Asia, and North America. By 2030, the countries intend to more than treble the number of such hydrogen-powered vehicles.
Restriction on the worldwide market for green hydrogen
The high initial cost of setting up a green hydrogen production is a significant commercial constraint.
The initial cost of producing green hydrogen is quite high, and the absence of infrastructure to transport and store it adds another layer of complexity. The fixed costs associated with establishing the manufacturing plant are only half of the difficulty; transporting green hydrogen presents additional economic and safety concerns. On average, green hydrogen is almost two to three times the price of grey hydrogen. Costs are increased by application technology. Fuel cells are nearly 1.5 to 2 times as expensive as fossil fuel alternatives. Even as synthetic jet fuel, the cost is about five to seven times that of conventional jet fuel.
Global green hydrogen market opportunity
Increased government funding in the establishment of green hydrogen ecosystems
Numerous developed country governments are stepping forward to construct infrastructure for green hydrogen. This occurs primarily in Europe, followed by Asia. Infrastructure expansion will enable producers to increase their reach and capacity, hence lowering the price of green hydrogen. Government involvement is critical for building an ecosystem that welcomes green hydrogen as an alternative fuel source.
Global green hydrogen market has a number of obstacles
Transportation infrastructure deficiency
Hydrogen is created in the current situation at the sites where it will be utilised. Due of the lack of a demand for transportation, the hydrogen market has remained untapped. Worldwide, less than 8,000 kilometers of pipeline have been built, including 2,600 kilometers in the United States alone. Europe intends to install 39,700 kilometers of hydrogen pipeline by 2040 as part of its European Hydrogen Backbone (EHB) initiative. Nearly 69% of this will be repurposed natural gas pipes, with the remainder being new. Even with these, the infrastructure appears insignificant in comparison to the almost 3 million kilometers of natural gas pipeline in operation today.
Europe is the greatest market for green hydrogen manufacturing and supply. By volume, it will hold a 58.0 percent share of the global green hydrogen market in 2020, followed by APAC at 27%.
Europe has made significant investments in green hydrogen projects. The European Hydrogen Backbone project is now under way and will result in the development of over 40,000 kilometers of dedicated hydrogen pipeline. This has resulted in an increase in regional investment in green hydrogen. Major automotive manufacturers in the European region, such as Porsche, Ducati, BMW, and Audi, are concentrating their efforts on downsizing car engines and developing lightweight, fuel-efficient engines, which will help boost the green hydrogen market’s growth. The European Union Vehicle Fuel Economy (UNEP) requirement has pushed automotive OEMs to reduce carbon emissions through the use of lightweight materials, propelling the market in this region even further.
The following are the major participants in the worldwide green hydrogen market:
Siemens AG (Germany)
Toshiba Energy Systems & Solutions Corporation (Japan)
Air Liquide (France)
Nel ASA (Norway)
Air Products and Chemicals, Inc. (USA)
H&R Olwerke Schindler GmbH (Germany)
Wind to Gas Energy GmbH & Co. KG (Germany)
Guangdong Nation-Synergy Hydrogen Power Technologies Co., Ltd. (China)
Cummins Inc. (USA)
These companies are pursuing a variety of inorganic and organic strategies in order to strengthen their position in the green hydrogen market. The study provides an in-depth competition analysis of these industry’s leading competitors, including their company biographies, recent developments, and significant market strategies.
The green hydrogen market is segmented in this research report by technology, renewable energy source, end-use industry, and region.
Based on technology, the green hydrogen market has been segmented as follows:
Alkaline Electrolysis
PEM Electrolysis
Based on renewable source, the green hydrogen market has been segmented as follows:
Wind Energy
Solar Energy
Others (geothermal, hydropower, and hybrid of wind & solar)
Based on end-use industry, the green hydrogen market has been segmented as follows:
Mobility
Chemical
Power
Grid Injection
Industrial
Others (CHP+Domestic Heat)
Based on region, the green hydrogen market has been segmented as follows:
North America
Europe
Asia Pacific (APAC)
Middle East & Africa (MEA)
Latin America
