Green Hydrogen Market - Growth, Trends, and Forecast (Outlook to 2028)

The growth of the green hydrogen market is driven by the large-scale integration of renewable energy resources and the ongoing development of hydrogen infrastructures. An increasing proportion of hydrogen-driven automobiles and regulatory norms toward low carbon emissions will positively sway the product demand.

Drivers:

• The green hydrogen industry is growing due to increasing investments from public & private players in environmentally friendly options
• Growing popularity of net zero emissions vehicles is driving the green hydrogen market
• Shifting trends toward fuel cell electric vehicles (FCEV) as an alternative to conventional automobiles will propel product penetration
• Surging investments in large-scale on-site hydrogen production for renewable energy storage will fuel the electrolyzer industry
• The production of green hydrogen is increasingly becoming substantially economical due to the continuously reducing costs of solar photovoltaic & wind electricity generation

Almost all hydrogen produced worldwide is 'grey,' which means it is produced from natural gas. Without a price on carbon emissions, grey hydrogen is inexpensive (€1 to €2 per kilogram), but it compounds the challenge of improving environmental sustainability. Green hydrogen, in contrast, uses renewable electricity to power electrolysis that splits water molecules into hydrogen and oxygen. Because green hydrogen doesn't require fossil fuels, it is a better long-term solution to help decarbonize economies. Yet green hydrogen-currently costing €3 to €8/kg in some regions-is more expensive than grey.

Green hydrogen has been in high demand in recent years, owing to its ability to reduce carbon emissions. It also contributes toward meeting growing demand for energy across the globe. It is a sustainable energy source, hence its use is expected to increase in the future. Growth in awareness regarding the use of hydrogen as an energy carrier is expected to propel growth of the global market. In addition, growth in environmental issues drive the market expansion, highlighting the need for renewable/clean energy generation to reduce emission levels. Furthermore, rise in use of nuclear and green hydrogen fuels growth of the green hydrogen industry. However, initial investment requirements for setting up hydrogen infrastructure as well as prohibitive maintenance costs are the major factors that limit the green hydrogen market growth.

Green hydrogen is a hydrogen-produced fuel obtained from electrolysis of water with electricity generated by low-carbon power sources or renewable energy.

An electrolyzer is a device that is used to produce green hydrogen by breaking water into hydrogen and oxygen in a process known as electrolysis. It comprises a cathode, an anode, and a membrane. The renewable electricity is supplied between anode and cathode across the device; it helps split the water into hydrogen and oxygen.

Hydrogen, used across various industrial applications such as chemicals, electronics, glass, etc., is produced as a principle and by-product. More than 90% of total hydrogen demand across the globe depends upon fossil fuel-based resources. Only a small fraction of this demand is met by hydrogen produced by water electrolysis.

The increasing clean energy demand has increased the generation of renewable energy. The electricity generated can be used for the generation of hydrogen and oxygen by using electrolysis. Different processes are used for electrolysis, such as the alkaline method, PEM, and solid oxide electrolysis method. The hydrogen obtained from the electrolysis is 99.99% pure and stored in either gas form or liquid form. It is used in making fuel cells that are used in electric vehicles.

Alkaline electrolysis based green hydrogen electrolyzer is expected to dominate the global green hydrogen market due to its high technical and economic features over its compatriots. The alkaline electrolyzer utilizes the sea water to produce hydrogen rather than the fresh water.

Some of the government supportive policies:

• In December 2001, the European Commission started the CUTE (Clean Urban Transport for Europe) program in nine European cities (Amsterdam, Barcelona, Hamburg, London, Luxembourg, Madrid, Porto, Stockholm, Stuttgart) to introduce hydrogen and fuel-cell buses into their public transport system
• In October 2021, Japan proposed to develop large-scale electrolysis projects for hydrogen production

Some of the services that are in demand with green hydrogen:

• Onsite hydrogen production using renewable energy
• Providing storage and distribution network for hydrogen gas

Some of the Opportunities:

• Public-private collaborations and government-imposed regulations on advancing the utilization of hydrogen as a fuel and energy transporter are expected to arise. Ex: Public transport, Fueling stations
• The wide utilization of hydrogen in areas like auto, compound, energy, drug and biotechnology, hardware, glass, metal creation, and manufactures might bring great development openings

Some of the Challenges:

• Availability and affordability of renewable energy , transportation and storage of green hydrogen

Some of the Restraints:

• Green Hydrogen production Companies are early-stage companies with a history of operating losses and expect to incur significant expenses and continuing losses, at least for the near and medium term
• The financial results of the companies may vary significantly from period to period due to fluctuations in operating costs or expenses, experience delays in launching and ramping the production of our products and features, inability to control over manufacturing costs, and other foreseeable or unforeseeable factors
• Relying on a limited number of vendors, manufacturers, and suppliers negatively affects the business
• The lack of industry standards may lead to uncertainty, additional competition, and unexpected costs

Europe dominated the global green hydrogen market. The region has the presence of many manufacturers of green hydrogen and their products. Germany accounted for a major share of the global green hydrogen market and is expected to register significant growth during the forecast period. The growth of the green hydrogen market in this region is mainly driven by the growing mobility and power industry.

The study presents a detailed analysis of various factors that affect Global Green Hydrogen Market revenue. The study also comprehensively analyses the global green hydrogen by segmenting it based on geography (Asia Pacific, North America, Africa, Europe, Middle East), based on Technology (Alkaline,Proton Exchange Membrane,Solid Oxide),based on source (Solar,Wind).

Publisher's Global Green Hydrogen Market report provides insights into the current global and regional market demand scenario and its outlook.

The report also addresses present and future market opportunities, market trends, developments, on the Global Green Hydrogen Market, critical commercial developments, trends, regions, and segments poised for the fastest-growing, competitive landscape.

Further, the report will include the Global Green Hydrogen Market size (CAGR), demand forecast, growth rates.


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