- Introduction to the Green Hydrogen Industry
South Korea’s Hydrogen Economy Promotion and Safety Management Act, enacted in February 2020, establishes a pioneering legal framework for hydrogen pricing, infrastructure, and safety, targeting a 100 MW green hydrogen production system by 2030 and cost reductions to 3000 KRW/kg by 2040. China’s Hydrogen Energy Industry Development Plan (2021-2035) aims for 100,000 to 200,000 tonnes of renewable-based hydrogen annually by 2025, supporting its carbon peak by 2030 and neutrality by 2060 goals. The International Energy Agency (IEA) notes that global hydrogen demand reached 97 million tonnes in 2023, up 2.5% from 2022, though green hydrogen’s contribution remains marginal at under 1 million tonnes. With planned projects, production could scale to 49 million tonnes by 2030, driven by cost declines in renewable-powered electrolysis.
Market Size and Growth Forecast
The global green hydrogen market is projected to reach USD 100 billion to USD 120 billion by 2025. With an estimated compound annual growth rate (CAGR) of 30% to 40% through 2030, the market reflects accelerating adoption across mobility, power generation, and industrial applications, bolstered by policy incentives and technological breakthroughs.Regional Analysis
Europe anticipates a growth rate of 32% to 42%, propelled by the EU’s aggressive climate policies like CBAM and investments in hydrogen infrastructure. Germany and France lead, with trends favoring green hydrogen in industrial decarbonization and renewable energy integration.Asia Pacific expects a growth rate of 35% to 45%, with South Korea and China at the forefront. South Korea’s legal framework supports a shift to hydrogen-based mobility and industrial use, while China’s focus on renewable hydrogen aligns with its carbon neutrality ambitions, emphasizing large-scale production.
North America projects a growth rate of 28% to 38%, driven by the U.S., where federal incentives and corporate commitments from firms like Air Products boost green hydrogen in power and transport sectors.
Middle East and Africa (MEA) anticipate 25% to 35% growth, with Saudi Arabia’s NEOM Green Hydrogen Company spearheading ambitious projects to export clean energy, capitalizing on abundant solar resources.
South America expects 20% to 30% growth, with Brazil emerging as a potential hub due to its renewable energy capacity, though adoption remains nascent.
Application Analysis
- Mobility: Projected at 35% to 45%, this segment is fueled by hydrogen fuel cell vehicles (FCVs) in markets like South Korea and Europe, with trends toward heavy-duty transport decarbonization.
- Power Generation: Expected at 30% to 40%, green hydrogen supports grid stability and renewable energy storage, gaining traction in regions with high solar and wind penetration.
- Chemical: Anticipated at 25% to 35%, it serves as a low-carbon feedstock for ammonia and methanol production, with growing use in Asia and Europe’s industrial clusters.
- Others: Projected at 20% to 30%, includes niche applications like heating, expected to expand as infrastructure develops.
Key Market Players
- Nel: A Norwegian leader, Nel specializes in electrolyzers for green hydrogen production.
- ITM Power: A UK firm, ITM Power focuses on scalable hydrogen solutions for mobility and industry.
- Nikola: A U.S. company, Nikola develops hydrogen-powered trucks and refueling networks.
- HNO International: A U.S.-based player, HNO advances green hydrogen technologies.
- NEOM Green Hydrogen Company: A Saudi venture, NEOM targets large-scale renewable hydrogen production.
- Air Products: A U.S. multinational, Air Products invests in hydrogen projects globally.
- Plug Power: A U.S. firm, Plug Power emphasizes hydrogen fuel cells for mobility and power.
- BP: A UK energy giant, BP integrates green hydrogen into its decarbonization strategy.
- Linde: A German company, Linde provides hydrogen production and distribution expertise.
- Lhyfe: A French firm, Lhyfe focuses on offshore green hydrogen production.
- First Hydrogen: A Canadian player, First Hydrogen targets hydrogen mobility solutions.
- AMEA Power: A UAE company, AMEA explores green hydrogen in emerging markets.
- Shell: A Dutch-British multinational, Shell invests in hydrogen for energy and transport.
- Sinopec: A Chinese giant, Sinopec aligns green hydrogen with national energy goals.
- Reliance Industries: An Indian conglomerate, Reliance scales up hydrogen initiatives.
- Messer Group: A German firm, Messer supports industrial hydrogen applications.
- H2Pro: An Israeli company, H2Pro innovates in cost-effective electrolysis.
Porter’s Five Forces Analysis
- Threat of New Entrants: Moderate. High capital costs and technical expertise create barriers, though government subsidies encourage startups.
- Threat of Substitutes: Moderate to High. Grey hydrogen and battery storage compete, but green hydrogen’s carbon neutrality sustains its edge.
- Bargaining Power of Buyers: Moderate. Early adopters in mobility and industry have limited options, though cost sensitivity pressures pricing.
- Bargaining Power of Suppliers: High. Renewable energy and electrolyzer providers hold leverage due to specialized inputs.
- Competitive Rivalry: High. Established energy firms and innovators vie for market share through scale and cost leadership.
Market Opportunities and Challenges
Opportunities
- Policy Support: Initiatives like CBAM and South Korea’s hydrogen law drive adoption.
- Cost Declines: IEA forecasts green hydrogen costs dropping to USD 2-9/kg by 2030, enhancing competitiveness.
- Renewable Integration: High solar and wind regions like MEA offer production potential.
- Industrial Decarbonization: Chemical and steel sectors provide growth avenues.
- Global Trade: Export hubs like NEOM position green hydrogen as a commodity.
Challenges
- Infrastructure Lag: Limited refueling and storage networks hinder mobility growth.
- High Initial Costs: Current production costs (USD 2-9/kg) exceed grey hydrogen (USD 1.5-8/kg).
- Scale-Up Risks: Achieving 49 million tonnes by 2030 requires massive investment.
- Energy Intensity: Electrolysis demands significant renewable capacity.
- Market Maturity: Green hydrogen’s marginal role (under 1% of 2023 demand) delays widespread adoption.
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Table of Contents
Chapter 1 Executive SummaryChapter 2 Abbreviation and Acronyms
Chapter 3 Preface
Chapter 4 Market Landscape
Chapter 5 Market Trend Analysis
Chapter 6 Industry Chain Analysis
Chapter 7 Latest Market Dynamics
Chapter 8 Trading Analysis
Chapter 9 Historical and Forecast Green Hydrogen Market in North America (2020-2030)
Chapter 10 Historical and Forecast Green Hydrogen Market in South America (2020-2030)
Chapter 11 Historical and Forecast Green Hydrogen Market in Asia & Pacific (2020-2030)
Chapter 12 Historical and Forecast Green Hydrogen Market in Europe (2020-2030)
Chapter 13 Historical and Forecast Green Hydrogen Market in MEA (2020-2030)
Chapter 14 Summary For Global Green Hydrogen Market (2020-2025)
Chapter 15 Global Green Hydrogen Market Forecast (2025-2030)
Chapter 16 Analysis of Global Key Vendors
List of Tables and Figures
Companies Mentioned
- Nel
- ITM Power
- Nikola
- HNO International
- NEOM Green Hydrogen Company
- Air Products
- Plug Power
- BP
- Linde
- Lhyfe
- First Hydrogen
- AMEA Power
- Shell
- Sinopec
- Reliance Industries
- Messer Group
- H2Pro
