Green Hydrogen Market Set to Soar, Predicted to Reach US$25.4 Billion by 2030
In response to the growing urgency of addressing climate change and reducing carbon footprints, the global green hydrogen market is poised for a phenomenal expansion, with experts predicting a staggering Compound Annual Growth Rate (CAGR) of 17.8% between 2023 and 2030. By the end of this forecasted period, the market's estimated value is projected to surpass the US$25.4 billion mark.
Read More: https://www.fairfieldmarketresearch.com/report/green-hydrogen-market
Market Analysis in Brief
With increasing awareness of the environmental impact of traditional energy sources, countries and governing bodies worldwide are implementing stricter regulations to reduce carbon emissions. This is laying a strong foundation for the establishment and growth of the global hydrogen economy, particularly the green hydrogen industry. Currently, more than 90% of hydrogen production globally comes from grey hydrogen, which is not environmentally friendly. However, the shift towards green hydrogen, produced using sustainable resources like solar and wind, is gaining momentum despite economic challenges stemming from disparities in renewable energy costs and supply.
Key Report Findings
• The green hydrogen market is expected to surpass US$25 billion by the end of the forecast period.
• Grey hydrogen currently dominates the global hydrogen industry, constituting over 90% of production.
• Increasing commercial viability of green hydrogen production due to declining renewable energy costs, reduced electrolyser costs, and technological advancements.
• In 2022, the refining segment accounted for over 61% of the market share, while alkaline electrolysis contributed over 52%.
• Solar PV technology held over 53% market share in 2022.
• Asia Pacific leads with over one-third of the market value, followed by Europe.
Market Drivers
Growing Awareness About Green Hydrogen
The understanding of hydrogen as a clean energy carrier is on the rise, driven by its efficiency in electricity generation and its minimal environmental impact. Hydrogen-based fuel cells can achieve
up to 60% efficiency compared to traditional combustion-based power plants. This increased awareness is expected to drive the adoption of green hydrogen technology.
Favorable Perception as a Net Zero Carbon Emission Solution
Increased public awareness and campaigns advocating for cleaner technology, along with the support of influential individuals and businesses, are fostering a favorable perception of green hydrogen as a means to achieve net-zero carbon emissions.
Market Challenges
Expensive Production Costs
The initial setup costs for green hydrogen production, along with ongoing infrastructure maintenance, pose challenges to market growth. However, increased investments and ongoing R&D projects aimed at reducing production costs are expected to positively impact the industry.
The COVID-19 Impact
The COVID-19 pandemic temporarily disrupted the green hydrogen market due to restrictions on movement, supply chain disruptions, and operational challenges. However, the market has since rebounded to pre-pandemic levels as restrictions have eased.
Overview of Key Segments
Refining Application Dominance Expected to Decrease
While refining currently dominates the green hydrogen market, its share is projected to gradually decline over the next seven years. Other segments, such as transport, iron and steel, and chemical industries, are expected to gain market share.
Preference for PEM Electrolyser to Grow Strong
The preference for Proton Exchange Membrane (PEM) electrolysis is expected to increase by 2030 due to its capability to produce high-purity hydrogen and ease of cooling.
Solar PV Source to Maintain Dominance
Solar PV technology is anticipated to maintain its dominance in the market, with strong growth expected by 2030, driven by its high suitability for electrolysis in regions with abundant sunlight.
Growth Opportunities Across Regions
Europe to Register Strong Growth
Europe is poised for robust growth in both production and consumption of green hydrogen. Initiatives like HyDeal and ongoing projects in Spain, France, and Germany demonstrate a strong commitment to green hydrogen adoption.
North America Flourishes with Clean Energy Legislation
North America, led by the US and Canada, is experiencing growth in the green hydrogen market due to favorable clean energy legislation. Canada's 20 GW PEM electrolyser plant is a notable milestone in the region's development.
Green Hydrogen Market: Competitive Landscape
Major players in the global green hydrogen market include FuelCell Energy, Inc., Adani Green Energy, Bloom Energy Corporation, Linde Plc, Royal Dutch Shell, Plug Power, Inc., Air Products & Chemicals Inc., Air Liquide S.A., Reliance Industries, TotalEnergies, and BP p.l.c.
The global green hydrogen market is on a trajectory of substantial growth, driven by the urgent need for clean energy solutions and the continuous efforts of industry leaders to innovate and expand the market.
Our Trending Reports:
Hydrogen Vehicles Market
https://www.fairfieldmarketresearch.com/report/hydrogen-vehicles-market
Hydrogen Market
https://www.fairfieldmarketresearch.com/report/hydrogen-generation-market
Hydrogen Tube Trailer Market
https://www.fairfieldmarketresearch.com/report/hydrogen-tube-trailer-market
Fairfield Market Research
London, UK
UK +44 (0)20 30025888
USA (Toll-free) +1 (844) 3829746