Green Hydrogen Market By Source (Biomass, Geothermal Energy, Hydro Energy, Nuclear Energy, Solar Energy, Waste-to-Energy, Wind Energy), By Technology (Alkaline Electrolyzers, PEM Electrolyzers, SOEC (Solid Oxide Electrolyzer Cells), By Storage and Distribution (Compressed Hydrogen, Hydrogen Carriers, Liquid Hydrogen), By End-User (Aerospace, Industrial Sector, Power Generation, Residential and Commercial, Transportation, and other) Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Green Hydrogen market accounted for USD 8.82 Billion in 2024 and is expected to reach USD 404.7 Billion by 2035, growing at a CAGR of around 41.6% between 2025 and 2035. Green hydrogen refers to hydrogen that has been generated through water electrolysis using renewable energy, including solar or wind energy. This non-polluting process decomposes water into hydrogen and oxygen, and in the process, no greenhouse gases are emitted. Green hydrogen is a type of hydrogen that is produced more sustainably than common methods of hydrogen production, which utilize fossil fuels. It has a vital part in the decarbonization of industries that are difficult to electrify, energy storage, and many other applications they have across industries to meet renewable targets and support the minimal carbon economy globally.

Report Scope:

Market Dynamics

Government initiatives promoting renewable energy adoption and incentives

Governmental support is critical to the increase of renewables’ share and, in consequence, the growth of green hydrogen demand. A large number of countries globally are adopting various policies and financial rewards, including grants, tax credits, and subsidies, to promote the use of renewable energy technologies. These plans and strategies are aimed at decreasing the use of fossil fuels, eliminating the climate change effect, and transitioning to more effective energy usage. As governments set ambitious targets for the use of green hydrogen, they are opening the ground for the facilities required for its generation storage, and distribution. Permits are being developed to guarantee commitments to national and international climate objectives in green hydrogen projects. Therefore, in addition to triggering innovations in the field amenable to hydrogen solutions, they help mobilize rest created by this momentum and play a role in evolving a cleaner and more sustainable energy environment. private capital that propels the growth and global applicability of green hydrogen solutions. The interest created by this momentum plays a role in evolving a cleaner and more sustainable energy environment.

Technological advancements reduce production costs and improve efficiency

Raising production efficiencies and reducing costs are vital to the market since it relies on technology to transform the industry. Technological Advancements in the electrolysis process through the modernization of Electrolyzers mean that cost-effective levels of energy are utilized in the production of hydrogen. Improved catalysts and material science are helping improve the efficiency of the electrolysis process, allowing increased production of hydrogen from renewable energy sources. Advances in the use of renewable energy technologies such as solar and wind energy decrease costs. With operational expenditure reducing, green hydrogen gains a further edge over fossil fuel-derived hydrogen, thereby encouraging its usage across the industry. All these developments help not only enhance the prospects for green hydrogen solutions but also ensure the integral steps toward the creation of a society-wide hydrogen economy and necessary global decarbonization goals.

High initial investment and infrastructure development costs

The high costs of investment and installation of necessary infrastructure act as a major challenge to the green hydrogen market. The setup of the necessary infrastructure, including electrolyzers and storage systems used in the production of hydrogen, is a capital-intensive process; hence, it scares investors and stakeholders. Establishing the overall framework for green hydrogen by creating pipelines and stations that would deliver this product to end consumers leads to extra costs. These high initial costs can be a problem for young markets or small firms that likely do not have the means to fund capital-intensive technologies. However, green hydrogen carrying long payback periods means investors are not willing to invest large amounts in the project as many investors are risk averse. Hence, the total market growth may be constrained, which may slow the rate of penetration of green hydrogen technologies into the market. As a countermeasure to this restraint, governments must provide stimulus packages and undertake public-private partnerships, as the costs must be split to encourage investments in the appropriate infrastructure.

Expansion in transportation and industrial applications for hydrogen

Transportation and industrial sectors’ use of green hydrogen presents a major market potential as the global society shifts toward cleaner sources of energy than hydrocarbons. Hydrogen fuel cell vehicles FCVs are commercially available in the manufacturing range of light-duty vehicles and heavy-duty vehicles and public transportation, in addition to being considered for aviation and maritime industries where battery technologies may not be as viable. In the industrial area, hydrogen is used as a process gas for ammonia synthesis and methanol, and it plays an important role in steel-making and refining processes. This increase in demand for green hydrogen in mobility and industrial applications, in addition to facilitating the decarbonization of these economic segments, also contributes to the improvement of energy diversification of supply sources. With growing pledges to net-zero targets, green hydrogen technologies and allied infrastructure to enable existing and new sectors to transition will demand innovation and investment, making green hydrogen the key to a sustainable energy future.

Potential for integrated renewable energy and hydrogen projects

Thus, the possibility to join the renewable energy and hydrogen projects has great potential for the market development of green hydrogen. These projects, when integrated with renewable electricity generation such as wind and solar, along with hydrogen production, become a rational solution for a better energy system. For instance, during off-seasons of renewable energy sources, the excess can be used for the electrolysis of water so that ‘green hydrogen’ can be manufactured to serve the demand that may arise in future granted systems. This can also assist wide-ranging purposes, including energy storage, in supply in transportation and industrial processes, and boosting demand for green hydrogen.

Deploying hydrogen production in facilities of renewable energies may add value, storage, and distribution of resources with maximum available energy efficiency. These projects can also help open up hydrogen hubs, which are central Asia points of production, storage, and distribution, which can improve scalability. Such integrated systems can also assist wide-ranging purposes, including nation-building energy systems, lying transportation and industrial processes, and boosting demand for green hydrogen. These synergies are gradually drawing the attention of the global community and private organizations,  the prospects of integrated renewable energy and hydrogen development projects will continue to gain investment attention as the global community strives for more efficient and cleaner energy systems.

Industry Experts Opinion

“India's fiscal support under NGHM for green hydrogen and its derivatives are creating an initial ecosystem for establishing the market, however, there is a necessity to provide additional support.”

• Vineet Bhatia, executive director, Grant Thornton Bharat,

"To ensure a robust transition to green hydrogen the government should issue a regulatory mandate on the demand side for switching to green hydrogen, coupled with a fiscal incentive for adoption, reduce electrolyzer cost through the easing of duties and taxes, subsidize RTC green power." 

• Kunal Saxena, Head - Strategic Investments at AMPIN Energy

Segment Analysis

Based on the Source, green hydrogen production involves the use of reusable power which involves solar energy, wind energy, hydropower, biomass, and geothermal energy. Of these sources, solar and wind energy are the most preferred since these are readily available and the costs of harnessing them are rapidly reducing and are suitable for hydrogen generation on a large scale. Again, the choice of energy source may be limited to the region, whereas the production of hydrogen incorporates renewable energy to overcome energy intermittency where excess electricity is used to produce hydrogen.

Based on End-User, the Green Hydrogen Market is offered to different customer segments which include Transportation, Industrial, Electric power, and Residential/commercial. In transportation, it is used for fuel cell vehicles (FCVs) in heavy transportation, buses, and ships. Chemicals and steelmaking industries use hydrogen as a raw material in their processes, and the electricity sector for balancing and energy storage. Both are active on the demand side as they need to reduce carbon emissions and transform into clean energy markets.

Regional Analysis

Europe is the leading regional segment of Green Hydrogen consumption now, owing to governmental incentives, strict climate goals, and a well-developed renewable power industry.  Germany, France, and the Netherlands are at the forefront of funding and developing large centers of hydrogen. The targeted industrial transition toward low-carbon technologies in industry, with a particular emphasis on energy-intensive sectors like steel and chemicals, plus a deep commitment to public-private partnerships, guarantees Europe is forging ahead with a commitment to the green hydrogen frontier.

Currently, the Asia-Pacific region is the fastest-growing Green Hydrogen Market, with credits to Japan, South Korea, China, and Australia. Japan and South Korea have come out with hydrogen roadmaps that point out how the countries plan to scale up their hydrogen use, whereas China has started shifting its attention to using hydrogen to move away from coal. Australia is leveraging its rich flow of renewable resources to invest in green hydrogen for both local consumption and export. Ongoing energy hikes in the Asia-Pacific area coupled with continued governmental backing of change towards green energy render green hydrogen admission swift.

Competitive Landscape

The Green Hydrogen Market revolves around several players that are driving the technology and production of green hydrogen as well as the infrastructure that supports them. Many large-cap firms like Linde plc, Air Liquide, Siemens Energy, and Plug Power have captured significant market attention because of their massive capital outlay, strategic collaboration, and functionality-specific experiences in hydrogen manufacturing and storage. Air Products Inc. and Cummins also have substantial shares, the former mainly targets the hydrogen refueling stations, and the latter emphasizes the electrolyzer part. Europe dominates the market due to government support and long-term goals for implementing strategies for reducing the carbon footprint, whereas companies in North America and APAC are following the trend by entering various partnerships with innovative mechanisms for integrating renewable energy. These players are new-generation leaders in this space because of their strong focus on research, big manufacturing scale capabilities, and long-term plans that correspond to global net zero carbon objectives.

Green Hydrogen Market, Company Shares Analysis, 2024

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Recent Developments:

• In April 2024, Oman’s Hydrom signed an agreement worth USD 11 billion with Electricite de France (EDF Group) to develop two green hydrogen production projects.
• In December 2022, Cummins supplied a 35-MW electrolyzer to Linde's green hydrogen facility in Niagara Falls, Canada. This electrolyzer will energize Linde's largest green hydrogen plant in the U.S., underscoring a pivotal advancement in the green hydrogen economy. This moves not only underscores Cummins' dedication to amplifying the green hydrogen landscape but also showcases its prowess in championing large-scale renewable hydrogen production through industry-leading innovations.

Report Coverage:

By Source

• Biomass
• Geothermal Energy
• Hydro Energy
• Nuclear Energy
• Solar Energy
• Waste-to-Energy
• Wind Energy

By Storage and Distribution

• Compressed Hydrogen
• Hydrogen Carriers
• Liquid Hydrogen

By Technology

• Alkaline Electrolyzers
• PEM Electrolyzers
• SOEC (Solid Oxide Electrolyzer Cells)

By End User

• Aerospace
• Industrial Sector
• Power Generation
• Residential and Commercial
• Transportation
• Other

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• ACME
• Air Liquide
• Air Products Inc.
• Bloom Energy
• Cummins Inc.
• CWP Global
• Engie
• Getech Group
• GH2
• Hiringa Energy Limited
• Iberdrola
• Lhyfe
• Linde plc.
• Plug Power
• Siemens Energy

Frequently Asked Questions (FAQs)