The global green hydrogen market is experiencing significant growth, driven by several key factors. Here's an overview of the key points mentioned in your statement:

1. Market Size: In 2021, the green hydrogen market was valued at USD 0.28 billion, indicating that it was already gaining traction as a sustainable energy solution.


2. Projected Growth: The market is expected to grow substantially in the coming years. It is projected to reach USD 0.64 billion in 2022 and is forecasted to expand to USD 12.55 billion by 2029. This represents a remarkable compound annual growth rate (CAGR) of 59.45% during the forecast period from 2022 to 2029.


3. Key Drivers:




• Renewable Energy Demand: One of the primary drivers of this growth is the increasing global demand for renewable energy sources. Green hydrogen is produced using renewable energy, making it an attractive option for countries and industries looking to transition away from fossil fuels.


• Carbon Emission Reduction: The urgent need to reduce carbon emissions and combat climate change is another significant driver. Green hydrogen is considered a clean energy carrier because its production emits little to no greenhouse gases, offering a potential solution to decarbonize various sectors of the economy.

Overall, the green hydrogen market's substantial growth reflects the increasing importance of sustainable energy solutions and the transition to a low-carbon economy. It also highlights the role of green hydrogen as a promising option to address climate change concerns and meet renewable energy targets. However, it's essential to monitor developments in technology, infrastructure, and policy support to assess the market's future evolution accurately.

Green Hydrogen Market Trends

Trends in the Green Hydrogen Market Increased awareness of hydrogen's potential as an energy carrier and the growing utilization of nuclear and green hydrogen fuels are driving market expansion.

The global green hydrogen market is experiencing growth as more individuals recognize hydrogen's role as a clean energy source. Hydrogen serves as a clean energy carrier, as its only byproduct is water and heat when combined with oxygen. Utilizing hydrogen fuel cells results in zero greenhouse gas emissions or other harmful pollutants. Moreover, hydrogen fuel cells have demonstrated superior efficiency compared to traditional combustion-based power plants. According to the U.S. Department of Energy, while traditional power plants operate at 33% to 35% efficiency, hydrogen-based fuel cell systems can achieve efficiencies of up to 60% (and even higher with cogeneration).

Recent environmental concerns have been a driving force behind industry growth. The demand for green hydrogen and the expansion of its market are fueled by a global push for alternative energy sources in both developed and developing regions. In a report by the International Energy Agency, global carbon emissions rose by 4.76% from 31.5 Gt CO2 in 2020 to 33 Gt CO2 in 2021. In the United States, carbon emissions were projected to increase by over 200 Mt CO2 to 4.46 Gt CO2 in 2021.

The green hydrogen sector has experienced growth due to increased utilization of nuclear and green hydrogen fuels. The adoption of renewable energy sources in recent years has contributed to the growing use of green hydrogen, with China consuming approximately 23.9 metric tonnes and the United States using about 11.2 metric tonnes, as reported by the International Renewable Energy Agency (IREA). This has led to an increase in the Compound Annual Growth Rate (CAGR) of the global green hydrogen market in recent years.

The extensive use of fossil fuels and rapid urbanization have been linked to rising global greenhouse gas emissions, particularly methane, carbon dioxide, and nitrous oxide, which contribute significantly to global warming and climate change. To combat this, environmental advocates are advocating for hydrogen as a cleaner alternative to polluting fossil fuels, further driving growth in the green hydrogen market.

Segment Insights in the Green Hydrogen Market: Technology Trends in Green Hydrogen In terms of technology, the green hydrogen market can be segmented into alkaline electrolyzers, proton exchange membrane electrolyzers, and solid oxide electrolyzers. Alkaline electrolyzers accounted for the majority of market revenue in 2021, primarily because they are the conventional technology used in green hydrogen projects. These electrolyzers utilize a liquid alkaline solution of potassium as their electrolyte and offer longer operational hours compared to proton exchange membrane (PEM) electrolyzers. Alkaline electrolyzers are also expected to gain popularity due to their greater availability and lower cost compared to PEM electrolyzers.

Applications of Green Hydrogen The green hydrogen market can be segmented based on its applications, including transport, power generation, industries, and heating. The transport segment dominated the market in 2021 and is projected to be the fastest-growing segment during the forecast period from 2022 to 2029. Hydrogen can be used in both internal combustion engines and fuel cell technology for transportation, with hydrogen fuel cells being 2-3 times more efficient than gasoline-powered internal combustion engines. The development of hydrogen-powered aircraft, such as Airbus' plans to launch commercial operations by 2035, is also contributing to market growth.

Locations for Green Hydrogen Production The green hydrogen market can also be segmented by production location, specifically onshore and offshore. In 2021, the offshore segment held a significant share of the market. The production of green hydrogen from offshore wind sources is emerging as a viable solution to advance carbon-free economies in Europe and other regions. The economic feasibility of hydrogen production from offshore wind power hubs considers various factors, including electrolyzer placements, technologies, and operation modes.

Regional Insights on Green Hydrogen

This analysis provides valuable market insights across various regions, including North America, Europe, Asia-Pacific, and the Rest of the World. In 2021, the North American Green Hydrogen market reached a noteworthy value of USD 0.12208 billion and is poised for substantial growth with a remarkable CAGR during the study period. This growth can be primarily attributed to the region's commitment to achieving clean energy objectives and the increasing adoption of green hydrogen, particularly in fueling fuel-cell powered vehicles. Notably, California stands out as a leader in the U.S. market, driven by its ambitious decarbonization goals, such as the elimination of gas or diesel-powered public transportation by 2040.

Furthermore, this market report delves into key countries, including the United States, Canada, Germany, France, the United Kingdom, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil, offering comprehensive insights into their respective green hydrogen landscapes.

Europe's green hydrogen market currently holds the second-largest market share, where hydrogen serves as the primary energy source. This commitment to hydrogen aligns with the European Green Deal, which aims to reduce greenhouse gas emissions and transition the economy toward a climate-neutral future. Germany's green hydrogen market dominates with the largest market share, while the United Kingdom's market is the fastest-growing in Europe.

In contrast, the Asia-Pacific Green Hydrogen Market is poised for rapid growth, with the highest expected Compound Annual Growth Rate (CAGR) between 2022 and 2029. Within the Asia-Pacific region, Japan and Australia play pivotal roles in driving this expansion. This growth is primarily driven by rising energy consumption and a strong emphasis on green energy production. For instance, Toshiba is actively constructing a green hydrogen plant in Japan equipped with a 10 M.W. electrolyzer capacity, dedicated to supplying hydrogen for transportation systems. Furthermore, China commands the largest market share in the green hydrogen market, with India boasting the fastest-growing market in the Asia-Pacific region.

Key Market Players and Competitive Insights in the Green Hydrogen Sector: Major industry players are committing substantial resources to Research and Development (R&D) to diversify their product portfolios, further catalyzing the green hydrogen market's growth. These market participants are also implementing strategic initiatives to expand their global presence, such as launching new products, entering into contractual agreements, engaging in mergers and acquisitions, increasing investments, and fostering collaborations with other organizations. As competition intensifies in the green hydrogen sector, cost-effective offerings become crucial for expansion and survival.

One primary strategy adopted by manufacturers in the global green hydrogen industry is local manufacturing to reduce operational costs. Notably, major players like Green Hydrogen Systems (Denmark), Solena Group (U.S.), H2X (Australia), Siemens Gas and Power GmbH & Co. K.G. (Germany), and Engie (France) are actively investing in R&D activities to stimulate market demand.

Engie, a French multinational utility company headquartered in La Défense, Courbevoie, specializes in energy transition, electricity generation and distribution, natural gas, nuclear power, renewable energy, and petroleum. Its dual expertise in both upstream (engineering, procurement, operation, and maintenance) and downstream (waste management, dismantling) activities positions it uniquely in the industry. Engie's partnership with Alstom on a fuel cell system utilizing renewable hydrogen for European rail freight, announced in April 2022, represents a significant milestone in advancing the hydrogen economy and promoting renewable hydrogen solutions.

Hydrogenics is another prominent player in the industry, specializing in proton exchange membrane (PEM) and water electrolysis-based hydrogen production and fuel cell products. The company operates in two segments: OnSite Generation and Power Systems. In 2019, Cummins acquired a substantial portion of Hydrogenics as part of its New Power division, with Cummins holding 81% and Air Liquide owning 19% of the company.

Notable Green Hydrogen Companies in the Global Market Include:

• Green Hydrogen Systems (Denmark)


• Solena Group (U.S.)


• H2X (Australia)


• Siemens Gas and Power GmbH & Co. K.G. (Germany)


• Engie (France)


• FuelcellWorks (U.S.)


• Plug Power (U.S.)


• Fuelcell Energy (U.S.)


• Hydrogenics (Canada)


• Ballard Power Systems (Canada)


• Nikola Motors (U.S.)


• Ergosup (France)


• Loop Energy (Canada)


• Syzygy Plasmonics (U.S.), among others.

Recent Developments in the Green Hydrogen Industry:

• June 2022: Electric Hydrogen Co. secured $198 million in funding to scale up its electrolyzer technology and support essential green hydrogen projects, contributing to global industry decarbonization.


• June 2022: The partnership between Air Liquide and Siemens Energy announced a dedicated joint venture for sustainable hydrogen electrolysis in Europe, with Siemens holding a 74.9% stake and Air Liquide owning 25.1%. The venture's headquarters and electrolysis stack/module manufacturing facility are based in Berlin.


• May 2022: Air Products and Chemicals, Inc. disclosed its collaboration with Schenk Tank transport and Road Transport Project to develop hydrogen vehicles and establish a public hydrogen filling station in Rotterdam, further advancing hydrogen deployment in heavy-duty road transportation.

Green Hydrogen Market Segmentation:

• Green Hydrogen Technology Outlook: Includes Alkaline Electrolyzer, Proton Exchange Membrane Electrolyzer, and Solid Oxide Electrolyzer.


• Green Hydrogen Application Outlook: Encompasses Transport, Power Generation, Industries, and Heating.


• Green Hydrogen Location Outlook: Categorizes projects as Onshore or Offshore.


• Green Hydrogen Regional Outlook: Highlights key markets in North America, Europe (including Germany, France, the UK, Italy, Spain, and the rest of Europe), Asia-Pacific (including China, Japan, India, Australia, South Korea, and the rest of Asia-Pacific), and the rest of the world (including the Middle East, Africa, and Latin America).