Green Hydrogen Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The green hydrogen market is segmented by end-user industry (refining, chemicals, iron and steel, transportation, and other end-user industries) and geography (Asia-Pacific, North America, Europe, and the Rest of the World). The report offers market size and forecasts for all the above segments in terms of volume (kilotons).

Green Hydrogen Market Size

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Green Hydrogen Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR > 60.00 %
Fastest Growing Market Asia-Pacific
Largest Market Europe
Market Concentration Medium

Major Players

Green Hydrogen Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Green Hydrogen Market Analysis

The global green hydrogen market is poised to register a CAGR of over 60% during the forecast period.

In 2020, COVID-19 moderately impacted the overall growth of the green hydrogen industry. However, after the pandemic, the demand for green hydrogen increased in the transportation sector, which, in turn, has propelled the industry's growth.

  • The surging demand for green hydrogen in the chemical industry and growing environmental concerns regarding carbon emissions are projected to drive the demand for green hydrogen.
  • The high cost of green hydrogen is likely to hinder the overall growth of the industry.
  • Favorable policies and regulations promoting the usage of green hydrogen are projected to offer new growth opportunities to the market.
  • Europe is expected to dominate the green hydrogen market owing to the expanding manufacturing facilities in Germany.

Green Hydrogen Market Trends

Surging Demand in the Chemical Industry

  • The chemical industry is one of the largest consumers of hydrogen as it is the largest user of energy in the industry sector.
  • Currently, the EU uses about 10 million tons of hydrogen annually, primarily as a feedstock for the production of ammonia and in the refining sector. The two main low-CO2 alternatives to grey hydrogen, which accounts for 95% of today's hydrogen generation, are blue and green hydrogen.
  • Ammonia is mainly used as a fertilizer but it is also a key component of various household cleaning products in the form of ammonium hydroxide.
  • The global production of ammonia was approximately 150 million metric tons in 2022. East Asia was the highest ammonia-producing region with approximately 64.6 million metric tons. China alone produced roughly 42 million metric tons of ammonia in 2022, leading the ranking of ammonia-producing countries globally.
  • Currently, the consumption of ammonia in China is mainly driven by agricultural applications. In 2021, around 51.9 million metric tons of chemical fertilizer were used in China. Moreover, the production of ammonia in the United States stood at approximately 13 million metric tons in 2022, recording an increase of roughly 50 percent in the last eight years.
  • Additionally, low-CO2 hydrogen and derivatives are likely to play a key role as a sustainable fuel, and as a sustainable feedstock for the chemical industry.
  • Furthermore, the United Arab Emirates is also raising ambition, with the country's new hydrogen strategy aiming to hold a fourth of the global low-carbon hydrogen market by 2030. Moreover, Japan recently announced that it will invest USD 3.4 billion from its green innovation fund to accelerate research and development and promotion of hydrogen use over the next 10 years.
  • Therefore, these aforementioned factors are expected to boost the consumption of green hydrogen in the power generation sector, thereby, propelling the overall industry growth.
Green Hydrogen Market: Ammonia Production, in Million Tons, Global, 2017-2022

Europe is Expected to Dominate the Market

  • Green hydrogen is made from water by electrolysis using renewable wind and solar power.
  • Hydrogen is key in Europe's energy transition to a sustainable environment and net zero emissions by 2050. There are multiple ways green hydrogen can displace fossil fuels in the industrial, power, and transportation sectors. It can be used as a feedstock for steel-making instead of highly polluting coking coal and it can also be replaced by natural gas in the petroleum refining sector.
  • The demand for green hydrogen is likely to increase rapidly in Germany as it is moving towards fully decarbonized electricity systems. According to the German Ministry of Economy and Climate Action, demand is anticipated to reach 90-110 TWh in 2030 and is projected to exceed 600 TWh in 2050. Up until 2030, industrial demand growth is likely to be the primary driver of demand, but after 2050, transportation is anticipated to have the highest demand.
  • In addition to extending its value chain, Iberdrola is already engaged in various projects that will aid in the decarbonization of heavy industry and transportation in Spain and the UK. By 2030, the business aims to produce 350,000 tonnes of green hydrogen yearly and will have a portfolio of finished projects totaling 2,400 MW by that time. Iberdrola has submitted a further 54 projects to the Next Generation EU program, totaling Euro 2.5 billion (USD 2.92 billion) in investments.
  • Moreover, according to the International Energy Agency (IEA), the world's energy demand would rise by 25% to 30% by 2040. As per IEA, this method of obtaining green hydrogen would save the 830 million tonnes of CO2 that are emitted annually when this gas is produced using fossil fuels.
  • Furthermore, several manufacturers of green hydrogen are focusing to enhance its production and also expanding its applications in several sectors. For instance, Linde is taking an important first step towards establishing the green hydrogen economy in Greece, to advance its sustainability agenda across the country.
  • In January 2022, Yara International signed a contract with Linde Engineering for the construction and delivery of a green hydrogen demonstration plant at Yara's ammonia production facility at Herøya Industripark in Porsgrunn, Norway.
  • These above-mentioned factors are expected to boost the consumption of green hydrogen across European countries.
Green Hydrogen Market - Growth Rate by Region

Green Hydrogen Industry Overview

The global green hydrogen market is partially consolidated, with a few major players dominating a significant portion of the market. Some major companies are Siemens Energy, Air Products Inc., Air Liquide, Nel Hydrogen, and Engie, among others (not in any particular order).

Green Hydrogen Market Leaders

  1. Air Liquide

  2. Air Products Inc.

  3. Nel Hydrogen

  4. Siemens Energy

  5. Engie

*Disclaimer: Major Players sorted in no particular order

Green Hydrogen Market Concentration
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Green Hydrogen Market News

  • January 2023: Nel and Statkraft, Europe's largest supplier of renewable energy, signed a contract for delivery of 40 MW electrolyzers and will thus collaborate to create a strong value chain for the production of green hydrogen in Norway.
  • September 2022: ENGIE has taken the final investment decision in the development of one of the world's first industrial-scale renewable hydrogen projects, to be located in the Pilbara region of Western Australia. This will be key to developing a 'Pilbara Green Hydrogen Hub', serving local and export markets, and building on existing export infrastructure and abundant renewable energy resources in the region.
  • September 2022: Siemens commissioned green hydrogen plants in Germany. It is one of the largest green hydrogen generation plants in Germany which has been planned digitally. It will demonstrate the key role in the country's energy future.
  • June 2022: Siemens Energy announced a joint venture with Air Liquide to produce industrial-scale renewable hydrogen electrolyzers in Europe.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

      1. 4.1.1 Surging Demand in the Chemical Industry

      2. 4.1.2 Growing Environmental Concerns Regarding Carbon Emissions

    2. 4.2 Market Restraints

      1. 4.2.1 High Cost of Green Hydrogen

      2. 4.2.2 Other Market Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Technological Snapshot

  5. 5. MARKET SEGMENTATION (Market Size in Volume)

    1. 5.1 End-user

      1. 5.1.1 Refining

      2. 5.1.2 Chemicals

      3. 5.1.3 Iron and Steel

      4. 5.1.4 Transportation

      5. 5.1.5 Other End-user Industries

    2. 5.2 Geography

      1. 5.2.1 Asia-Pacific

        1. 5.2.1.1 China

        2. 5.2.1.2 India

        3. 5.2.1.3 Japan

        4. 5.2.1.4 South Korea

        5. 5.2.1.5 Rest of Asia-Pacific

      2. 5.2.2 North America

        1. 5.2.2.1 United States

        2. 5.2.2.2 Canada

        3. 5.2.2.3 Mexico

      3. 5.2.3 Europe

        1. 5.2.3.1 Germany

        2. 5.2.3.2 United Kingdom

        3. 5.2.3.3 France

        4. 5.2.3.4 Italy

        5. 5.2.3.5 Rest of Europe

      4. 5.2.4 Rest of the World

        1. 5.2.4.1 South America

        2. 5.2.4.2 Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share(%)**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Air Liquide

      2. 6.4.2 Air Products Inc.

      3. 6.4.3 Bloom Energy

      4. 6.4.4 Cummins Inc.

      5. 6.4.5 Engie

      6. 6.4.6 Iberdrola

      7. 6.4.7 Lhyfe

      8. 6.4.8 Linde plc.

      9. 6.4.9 Nel ASA

      10. 6.4.10 Siemens Energy

      11. 6.4.11 Toshiba Energy Systems & Solutions Corporation

      12. 6.4.12 Uniper SE

      13. 6.4.13 Yara International

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Favorable Policies and Regulations Promoting the Usage of Green Hydrogen

**Subject to Availability
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Green Hydrogen Industry Segmentation

Green hydrogen is defined as hydrogen produced by splitting water into hydrogen and oxygen using renewable electricity. Green hydrogen does not emit polluting gases either during combustion or during production. The market is segmented into end-user industry and geography. By end-user industry, the market is segmented into refining, chemicals, iron and steel, transportation, and other end-user industries. The report also covers the market size and forecasts for the green hydrogen market in 11 countries across major regions. The market sizing and forecasts for each segment have been done based on volume (kilotons).

End-user
Refining
Chemicals
Iron and Steel
Transportation
Other End-user Industries
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Rest of Europe
Rest of the World
South America
Middle-East and Africa
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Frequently Asked Questions

The Green Hydrogen Market is projected to register a CAGR of greater than 60% during the forecast period (2024-2029)

Air Liquide, Air Products Inc., Nel Hydrogen, Siemens Energy and Engie are the major companies operating in the Green Hydrogen Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Europe accounts for the largest market share in Green Hydrogen Market.

The report covers the Green Hydrogen Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Green Hydrogen Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Green Hydrogen Industry Report

Statistics for the 2024 Green Hydrogen market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Green Hydrogen analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Green Hydrogen Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)