Growing Investment in Renewable Energy Boosts Demand for Green Hydrogen Market Growth
According to our latest study on “Green Hydrogen Market Forecast to 2030 – COVID-19 Impact and Global Analysis – by Technology, Renewable Source, and End-use Industry,” the market is expected to grow from US$ 4,061.21 million in 2022 to US$ 88,055.64 million by 2030; it is estimated to record a CAGR of 46.9% from 2022 to 2030.
Green Hydrogen Market – by Region, 2022
Green Hydrogen Market Forecast to 2030 - Global Analysis by Technology (Alkaline Electrolysis and PEM Electrolysis), Renewable Source (Wind Energy, Solar Energy, and Others), and End-use Industry (Chemical, Power, Food & Beverages, Medical, Petrochemicals, and Others)
Green Hydrogen Market Size Analysis | Forecast & Trends 2030
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According to the International Energy Agency (IEA) in 2022, the global energy demand will increase by 8%. Investments in cleaner technologies are significantly growing due to a structural shift in capital flows toward such technologies. A few of the recent investments are mentioned below:
- According to the Solar Power Organization of Europe, Europe installed 41.4 GW of solar plants in 2022, showcasing an increase of 47% from 2021.
- In January 2023, The Saudi Arabian Ministry announced its plan to invest US$ 226 billion in the development of clean energy across the country. This investment will be utilized for the development of wind and solar energy infrastructure and the generation of power to meet the country-wide demand.
- In January 2023, China’s National Energy Administration 2022 installed 87 GW of solar infrastructure, showcasing a 59% year-on-year growth.
To achieve net-zero emissions, there is a growing focus on expanding renewable energy capacity and integrating it into the energy mix. Green hydrogen provides a means to store and utilize excess renewable energy, especially from intermittent sources such as solar and wind. This synergy between renewable energy and green hydrogen supports the development of a sustainable and reliable energy system. Thus, the increasing investments in renewable energy are contributing to the green hydrogen market growth.
Global Green Hydrogen Market Insight
Governments of several countries have announced plans and investments to develop green hydrogen infrastructure. For example, Australia has unveiled its National Hydrogen Strategy, aiming to position the country as a leading exporter of hydrogen by 2030. The European Union has included green hydrogen as a key element in its Green Deal strategy, pledging substantial funding and regulatory support for its development. Moreover, in the transportation sector, various companies and governments have initiated pilot projects and other initiatives to explore the feasibility of green hydrogen as a fuel for public transport. For instance, in Germany, hydrogen-powered trains have been deployed in Lower Saxony, showcasing the potential for zero-emission rail transport.
Regional Insights of Green Hydrogen Market
According to the China Hydrogen Alliance (CHA), China is the world's largest hydrogen producer, with an annual production of 33 million metric tons of hydrogen, accounting for approximately one-third of the total global hydrogen output. The majority of hydrogen production in China is derived from oil or coal-based plants situated in refineries or chemical facilities. Coal-based production remains a more cost-effective method compared to natural gas or water electrolysis, with costs ranging from RMB 0.7–1.2 per cubic meter (equivalent to US$ 0.1–0.19). Favorable government policies are playing a crucial role in propelling the growth of hydrogen production in China, witnessing an increase in production from 25 metric ton in 2020 to 33 million metric ton in 2021. The China Hydrogen Alliance (CHA) estimates that hydrogen production in the country is expected to continue growing and is likely to reach 120 million metric ton by 2060.
Air Liquide, Siemens Energy, Cummins Inc., Linde Plc, NEL ASA, Ørsted A/S, Toshiba Energy Systems and Solutions Corporation, Uniper SE, Engie, and Air Products and Chemicals Inc are among the key green hydrogen market players operating in the market. In addition to all the players profiled in the report, there are several other global, regional, and local green hydrogen market players operating in the market, which were also analyzed and studied during this study to get a holistic view of the global green hydrogen market.
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