Green hydrogen, produced using renewable energy sources like wind, solar, and hydropower through the process of electrolysis, has emerged as a key pillar in the global transition to a low-carbon economy. Unlike grey hydrogen, which is derived from natural gas and emits significant carbon dioxide, green hydrogen offers a clean, sustainable alternative that can decarbonize hard-to-abate sectors such as heavy industry, transportation, and power generation.
According to BISResearch, the global green hydrogen market was valued at $828.2 million in 2023, and it is expected to grow with a CAGR of 67.19% during the forecast period 2023-2033 to reach $141.29 billion by 2033.
Industrial Feedstock Application to Dominate Global Green Hydrogen Market
The use of green hydrogen as an industrial feedstock is revolutionizing the global green hydrogen market. As industries intensify efforts to reduce their carbon footprint and adopt sustainable practices, green hydrogen stands out as a game-changer, particularly for sectors traditionally dependent on hydrocarbon feedstocks.
The industrial sector's demand for clean feedstocks creates a prime opportunity for green hydrogen. By replacing fossil fuels like coal and natural gas with green hydrogen in processes such as chemical production and steelmaking, industries can achieve significant decarbonization without compromising progress. For instance, green ammonia, produced using clean hydrogen, offers a sustainable alternative for fertilizers and other applications, heralding a new era of environmentally responsible manufacturing.
Green Hydrogen Market by Region
In 2022, Europe dominated the global green hydrogen market, driven by strategic initiatives and robust policies like the European Green Deal. The region's commitment to renewable energy and carbon reduction, coupled with significant public and private investments, has fueled growth in green hydrogen production and infrastructure. Technological innovation is thriving, with European companies leading advancements in green hydrogen technology, solidifying the region’s leadership in this transformative energy sector.
Request A Detailed Sample on the Green Hydrogen Market!
Market Drivers: Low Variable Renewable Energy (VRE) Electricity Cost
The synergy between low-cost variable renewable energy (VRE) and the expanding green hydrogen market is revolutionizing sustainable energy. Declining costs in solar and wind power are driving widespread adoption of green hydrogen technologies. Innovations and economies of scale have significantly reduced expenses for photovoltaic systems and wind energy. Reports from IEA and IRENA project further cost declines, enhancing green hydrogen’s economic viability. As VRE costs decrease, green hydrogen becomes a more competitive, eco-friendly alternative to fossil fuel-based hydrogen production.
Recent Developments in the Global Green Hydrogen Market
In 2023, Linde plc announced plans to increase green hydrogen production capacity in California, responding to growing demand from the mobility market.
In February 2021, Air Liquide and Siemens Energy signed a memorandum of understanding with the objective of combining their expertise in proton exchange membrane (PEM) electrolysis technology. In this collaboration, both companies intend to focus their activities on key areas such as the co-creation of large industrial-scale hydrogen projects in collaboration with customers, laying the ground for manufacturing electrolyzers at large scale in Europe, especially in Germany and France, and R&D activities to co-develop next-generation electrolyzer technologies.
Get Insights on the Advanced Materials, Chemicals & Fuels Market
Conclusion
The green hydrogen market stands at the forefront of the clean energy revolution, offering a viable path toward carbon neutrality. While challenges persist, technological advancements, coupled with strong policy support, are poised to unlock the full potential of green hydrogen. As global momentum builds, this market will play a critical role in shaping a sustainable and resilient energy future.
