Clean Hydrogen Market Size and Share
Market Overview
| Study Period | 2020 - 2030 |
|---|---|
| Market Volume (2025) | 3.5 MTPA |
| Market Volume (2030) | 12 MTPA |
| Growth Rate (2025 - 2030) | 27.94% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Clean Hydrogen Market Analysis by Mordor Intelligence
The Clean Hydrogen Market size in terms of production capacity is expected to grow from 3.5 MTPA in 2025 to 12 MTPA by 2030, at a CAGR of 27.94% during the forecast period (2025-2030).
The clean hydrogen market is scaling rapidly because hard-to-abate industries face immovable decarbonization deadlines, investors see durable subsidy support, and technology costs deflate in a pattern reminiscent of the solar boom. Blue hydrogen captures share now thanks to existing natural-gas assets, yet cost-driven green hydrogen growth reshapes long-term capital flows. Demand clusters are emerging around steel, ammonia, petrochemical plants, and heavy-duty mobility hubs where secure offtake contracts de-risk projects. Competition remains open because no supplier holds double-digit global sway, encouraging partnerships that pair electrolyzer makers with industrial-gas majors. Regional policy races—especially in Asia-Pacific, Europe, and North America—are turning hydrogen from a pilot fuel into critical infrastructure.
Key Report Takeaways
- By production method, blue hydrogen led with a 68.9% share of the clean hydrogen market in 2024; green hydrogen is on track to expand at a 37.5% CAGR through 2030.
- By electrolyzer technology, alkaline systems accounted for 59.5% of the clean hydrogen market size in 2024, while PEM installations record the highest projected CAGR at 35.2% to 2030.
- By delivery form, compressed gas held 48.6% of the clean hydrogen market share in 2024, whereas liquid hydrogen is advancing at a 33.8% CAGR.
- By application, industrial uses captured 54.3% of the clean hydrogen market in 2024, and transportation is accelerating at a 38.6% CAGR to 2030.
- By geography, Asia-Pacific commanded 43.1% of the clean hydrogen market in 2024; the region also posts the fastest CAGR at 30.3% for the forecast horizon.
Global Clean Hydrogen Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Electrolyzer over-capacity drives price collapse | +8.5% | China, Europe, global export hubs | Medium term (2-4 years) |
| Production tax credits (IRA replicas) | +6.2% | North America, Europe, Asia-Pacific | Short term (≤ 2 years) |
| Green-premium procurement mandates | +4.8% | Europe, North America, Japan | Medium term (2-4 years) |
| Hydrogen pipeline corridor build-out | +3.7% | Europe, U.S. Gulf, Middle East | Long term (≥ 4 years) |
| Renewable-power PPA bundling with H₂ | +2.9% | Early uptake in Europe and North America | Short term (≤ 2 years) |
| Solid-oxide electrolysis efficiency leap | +2.1% | Japan, Germany, R&D hubs | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Soaring electrolyzer manufacturing over-capacity drives price collapse post-2026
Chinese and European factories are adding more than 300% surplus nameplate output, forcing average alkaline module prices below USD 500 kW by 2028.[1]Asahi Kasei, “Alkaline Electrolyzer Capacity Expansion Press Release,” asahi-kasei.com Denmark’s 5 GW Topsoe plant signals Europe’s bid to stay technologically relevant while bracing for Chinese cost pressure. Falling prices compress margins, accelerate consolidation, and let project developers close the gap with fossil benchmarks three years earlier than most 2023 forecasts assumed.
IRA-style production tax credits replicated in EU, India, Brazil
The European Commission cleared EUR 6.9 billion in state aid for IPCEI Hy2Infra, mirroring the U.S. Inflation Reduction Act’s revenue-backstop model.[2]European Commission, “Hy2Infra: 6.9 billion EUR State Aid Approved,” europa.eu India’s National Green Hydrogen Mission and Brazil’s draft law extend kilowatt-hour-indexed incentives, letting developers pick the optimal subsidy mix rather than the highest resource quality. With risk-adjusted returns harmonized across geographies, the clean hydrogen market moves from a subsidy-hungry pilot phase to a scale stage with bankable cash flows.
Rise of green-premium procurement mandates by steel and ammonia buyers
European automakers are paying 15-20% more for low-carbon steel, ensuring a floor price for hydrogen-direct-reduced iron well above spot commodity levels. AM Green secured EU RFNBO pre-certification for a 1 million-ton green-ammonia project, locking in export premiums up front. Such offtake contracts reduce policy dependence and turn hydrogen into a differentiated commodity rather than a parity-priced fuel.
Development of H₂ pipeline corridors in EU, U.S. Gulf and Middle East
IPCEI Hy2Infra dedicates 40% of funds to cross-border pipelines, slicing delivered hydrogen costs up to 80% versus trucking over 200 km. Air Liquide’s Gulf Coast network replicates this logic by linking steam methane reformers, CCS hubs, and export terminals, while Middle-East corridors tie inland solar clusters to coastal ammonia plants.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Renewable-power curtailment penalties | -3.4% | Europe, California, Australia | Medium term (2-4 years) |
| CCS cost inflation | -2.8% | North America, Middle East, Europe | Short term (≤ 2 years) |
| H₂ certification interoperability delay | -2.1% | Global trade routes | Medium term (2-4 years) |
| Critical-mineral geopolitical risk (PGMs) | -1.9% | Supply focused in China, South Africa | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
2030-onwards renewable-power curtailment penalties (grid fees)
The UK now charges wind farms for balancing services, eliminating negative pricing revenue that underpinned many merchant electrolyzer models. California’s 2030 rule will impose USD 50-100 MWh grid service fees, compelling hydrogen projects to secure fixed-price PPAs and raising financing hurdles. Loss of fee exemptions within EU transmission codes further erodes opportunistic curtailment economics.
CCS cost inflation undermines blue-H₂ competitiveness
Capture costs rose to USD 120-150 tCO₂ in 2024, wiping out the blue cost edge in regions banking on cheap natural gas. Delays in storage permits prolong payback periods, forcing developers to reassess steam-methane reformer retrofits as green hydrogen costs keep falling.
Segment Analysis
By Production Method: Green hydrogen accelerates despite blue dominance
Blue hydrogen retains 68.9% of the clean hydrogen market in 2024, riding the sunk-cost wave of natural-gas reformers. Yet green hydrogen posts a 37.5% CAGR to 2030, narrowing levelized-cost parity on the back of module price crashes. Both segments anchor the clean hydrogen market size narrative: blue offers immediate volume, green delivers long-term carbon-free supply. Developers hedge by building twin-track portfolios; Shell’s 100 MW REFHYNE II electrolyzer validates this blended strategy.[3]Shell, “REFHYNE II Final Investment Decision,” shell.com
Green hydrogen’s rise stems from 60% cost declines since 2020, renewable energy surpluses, and procurement mandates that value zero-carbon molecules. The segment’s role in export projects such as NEOM—which is 60% complete—underscores first-mover ambition in the clean hydrogen market. Turquoise and biomass pathways remain niche, serving specialty feedstock plays rather than bulk commodity trade.
Note: Segment shares of all individual segments available upon report purchase
By Electrolyzer Technology: PEM gains ground on alkaline leadership
Alkaline units controlled 59.5% of 2024 installations thanks to durability and low capex, anchoring short-term supply for the clean hydrogen market. PEM stacks rise at 35.2% CAGR, favored for fast response under high-renewable grids and compact footprints. Siemens Energy’s 280 MW PEM award in Germany demonstrates utility-scale confidence.[4]Siemens Energy, “280 MW PEM Contract Award,” siemens-energy.com
Solid-oxide electrolysis (SOEC) moves from lab to pilot, flaunting >85% efficiency and promising USD 1–2 kg cost cuts where process heat is abundant. Thyssenkrupp Nucera’s SOEC partnership positions it for early commercialization, fortifying competitive optionality. AEM technology blends alkaline chemistry with membrane design but remains pre-commercial, keeping developer focus on bankable alkaline and PEM options.
By Delivery Form: Liquid hydrogen emerges for long-distance transport
Compressed gas keeps a a 48.6% share in 2024 due to legacy infrastructure and sub-300 km delivery ranges. Liquid hydrogen accelerates at a 33.8% CAGR as intercontinental trade and aviation test routes justify cryogenic densification. JFE’s Yokohama chain pilot aligns with Japan’s import security blueprint.
Ammonia as a carrier unlocks maritime shipping; ACWA Power’s Egypt offtake deal shows how chemical conversion piggybacks on existing tanker fleets. LOHC demonstrations in the UK use repurposed oil pipelines, pointing to latent right-of-way advantages. Therefore, the clean hydrogen market size will hinge on how each form balances distance, energy penalty, and infrastructure lock-in.
Note: Segment shares of all individual segments available upon report purchase
By Application: Transportation surges while industrial leads
Industrial demand captured 54.3% of 2024 volumes, propelled by ammonia, methanol, and steel decarbonization mandates. Transportation grows fastest at 38.6% CAGR as heavy-duty trucking, rail, and marine segments outpace passenger cars in hydrogen adoption. Toyota’s third-generation fuel-cell stack targets commercial vehicles with lower cost and longer life, expanding the clean hydrogen market’s customer base.
Power generation inches up through long-duration storage and peaker replacement, while aviation ground-handling pilots at airports seed future aircraft demand. The clean hydrogen market share in mobility thus jumps from low single digits to double digits by 2030, underpinning station build-out and supply contract depth.
Geography Analysis
Asia-Pacific accounts for 43.1% of 2024 consumption and drives a 30.3% CAGR, cementing leadership in the clean hydrogen market. China alone targets 15 GW electrolyzer capacity by 2030; state funding plus private capital bankroll gigawatt factories that flood global supply chains. Japan subsidizes 3 GW alkaline output at Asahi Kasei’s Kawasaki site to anchor domestic equipment know-how, while South Korea integrates fuel-cell logistics hubs around Ulsan.
Europe weaves integrated policy—production incentives, offtake mandates, and corridors—into a single market strategy. The EUR 6.9 billion Hy2Infra network connects Germany’s industrial heartland to Dutch import terminals, positioning the bloc for resilient supply while promoting technology sovereignty. Ørsted, BP, and Iberdrola pivot from speculative e-fuels toward on-site renewable hydrogen where demand visibility is highest.
North America leverages IRA tax credits, abundant renewables, and Gulf Coast pipelines. Yet slower coordination between federal and state programs tempers near-term volume, even as firms such as Air Liquide contract long-haul offtake. Canada maximizes hydropower for export ambitions, whereas Mexico’s regulatory uncertainty unlocks its vast solar potential. Collectively, these dynamics shape a tri-polar clean hydrogen market where Asia produces, Europe integrates, and North America fine-tunes cost curves.
Competitive Landscape
Market fragmentation defines the present, with no firm exceeding 15% global share. Air Liquide, Linde, and Air Products defend legacy client lists, offering turnkey molecules plus pipeline access. Electrolyzer specialists Nel, ITM Power, Plug Power, and Thyssenkrupp Nucera scale from megawatt to gigawatt manufacturing, chasing cost parity. Joint ventures dominate: Uniper contracts ITM’s 120 MW Humber hub; EWE pairs with Siemens Energy for 280 MW PEM on Germany’s coast.
Capital deployment is robust: the Hydrogen Council cites USD 75 billion in announced projects, though execution lag risks policy credibility. Technology rivalry centers on incremental efficiency gains, extended stack lifetimes, and material substitution (nickel for PGM) rather than moon-shot breakthroughs. Logistics white space—cryogenic shipping, LOHC pipelines, and composite storage—invites newcomers with specialized IP to carve niche positions in the clean hydrogen market.
Clean Hydrogen Industry Leaders
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Air Liquide
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Linde plc
-
Air Products
-
Shell
-
Engie
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: ITM Power signed FEED for Uniper’s 120 MW Humber H2ub®, targeting 2029 start-up.
- April 2025: Lhyfe secured a record EUR 149 million French subsidy for a flagship electrolyzer site.
- March 2025: ANDRITZ won engineering for 100 MW Rostock electrolyzer linked to Germany’s core network.
- October 2024: AM Green ordered 1.3 GW electrolyzers from John Cockerill for India’s largest green-ammonia site.
Global Clean Hydrogen Market Report Scope
| Green Hydrogen |
| Blue Hydrogen |
| Turquoise (Pyrolysis) Hydrogen |
| Others |
| Alkaline |
| PEM |
| Solid-Oxide |
| Anion-Exchange |
| Compressed Gas |
| Liquid Hydrogen |
| Ammonia |
| LOHC |
| Transportation (FCEV, Rail, Marine, Aviation) |
| Industrial (Ammonia Production, Methanol Production, Steelmaking, etc) |
| Power Generation |
| Others |
| North America | United States |
| Canada | |
| Mexico | |
| Europe | Germany |
| United Kingdom | |
| France | |
| Italy | |
| NORDIC Countries | |
| Russia | |
| Rest of Europe | |
| Asia-Pacific | China |
| India | |
| Japan | |
| South Korea | |
| ASEAN Countries | |
| Rest of Asia-Pacific | |
| South America | Brazil |
| Argentina | |
| Rest of South America | |
| Middle East and Africa | Saudi Arabia |
| United Arab Emirates | |
| South Africa | |
| Egypt | |
| Rest of Middle East and Africa |
| By Production Method | Green Hydrogen | |
| Blue Hydrogen | ||
| Turquoise (Pyrolysis) Hydrogen | ||
| Others | ||
| By Electrolyzer Technology | Alkaline | |
| PEM | ||
| Solid-Oxide | ||
| Anion-Exchange | ||
| By Delivery Form | Compressed Gas | |
| Liquid Hydrogen | ||
| Ammonia | ||
| LOHC | ||
| By Application | Transportation (FCEV, Rail, Marine, Aviation) | |
| Industrial (Ammonia Production, Methanol Production, Steelmaking, etc) | ||
| Power Generation | ||
| Others | ||
| By Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| NORDIC Countries | ||
| Russia | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| India | ||
| Japan | ||
| South Korea | ||
| ASEAN Countries | ||
| Rest of Asia-Pacific | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Middle East and Africa | Saudi Arabia | |
| United Arab Emirates | ||
| South Africa | ||
| Egypt | ||
| Rest of Middle East and Africa | ||
Key Questions Answered in the Report
What growth rate is expected for the clean hydrogen market through 2030?
The market is projected to grow at a 27.94% CAGR, moving from 3.50 MTPA in 2025 to 12 MTPA by 2030.
Which region leads current demand for clean hydrogen?
Asia-Pacific holds 43.1% of 2024 volume and is also the fastest-growing region at a 30.3% CAGR.
Why is blue hydrogen still dominant today?
Existing natural-gas reformers and low upstream gas costs give blue hydrogen 68.9% share in 2024, though its edge is narrowing as CCS costs rise.
What technology is gaining ground on alkaline electrolyzers?
PEM units are rising at a 35.2% CAGR, favored for fast response when coupled with variable renewable generation.
How are green-premium procurement contracts shaping demand?
Steel and ammonia buyers pay 15-20% price premiums for low-carbon products, creating stable revenue that accelerates green hydrogen adoption.
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