Global Green Hydrogen Market - Focused Insights 2025-2030

GREEN HYDROGEN MARKET SIZE & SHARE

The global green hydrogen market was valued at USD 9.09 billion in 2024 and is projected to reach USD 134.86 billion by 2030, expanding at a CAGR of 56.75% over the forecast period. Although the market is still in its formative stages, it presents vast potential as a fundamental pillar in the worldwide shift toward clean energy. Green hydrogen, created via water electrolysis using renewable power sources like wind, solar, or hydropower, is entirely carbon-free. Its capacity for flexible production at various scales and in diverse locations makes it particularly appealing to developing nations with rising energy demands and abundant renewable resources.

In contrast to fossil-derived hydrogen (gray or blue hydrogen), which heavily contributes to carbon emissions, green hydrogen provides a truly clean energy solution. Governments, corporations, and investors are increasingly embracing this fuel in pursuit of net-zero goals and sustainable, resilient energy infrastructure. Across the globe, countries are rolling out bold initiatives and funding programs to foster domestic and cross-border green hydrogen industries. For example, the European Union targets producing 10 million tonnes of green hydrogen annually by 2030, with imports to supplement supply, while nations such as Japan, Australia, Chile, and Saudi Arabia are becoming major contributors.

GREEN HYDROGEN MARKET NEWS

1. In December 2023, Iberdrola, which pledged to double its Innovation, Development, and Research (R&D&I) funding to $4.37 billion by 2030, earned recognition as the leading private utility in global R&D for the second straight year.
2. In December 2023, SoCalGas partnered with Bloom Energy on a hydrogen initiative at Caltech, highlighting hydrogen’s promise for long-duration, clean energy storage solutions.
3. In September 2023, ITM joined forces with FRIEM to create a standardized Power Supply Unit (PSU) tailored for ITM’s 2MW Plug & Play electrolysis container system.

GREEN HYDROGEN MARKET TRENDS

In recent years, green hydrogen has garnered significant public and private investments worldwide, reflecting rising confidence in its critical role in the energy transition. Industry leaders such as Siemens Energy, Air Liquide, and Plug Power are investing billions in electrolyzer production, hydrogen hubs, and end-use applications.

The growing integration of solar and wind into global electricity grids is introducing supply fluctuations, which green hydrogen helps to stabilize. By serving as both a long-term energy storage medium and a flexible load sink, green hydrogen enables surplus renewable energy to be captured and stored for future use.

Breakthroughs in electrolyzer technologies, especially Proton Exchange Membrane (PEM) and Solid Oxide Electrolyzers (SOEC), are significantly enhancing green hydrogen’s efficiency, durability, and cost-effectiveness. These innovations are lowering capital expenditure, improving current density, and allowing systems to operate under fluctuating conditions.

Anion Exchange Membrane (AEM) electrolyzers are emerging as a compelling alternative to existing electrolysis methods, promising high efficiency at lower costs without the need for precious metals like platinum or iridium. By merging the strengths of alkaline and PEM systems, AEM technology may become optimal for scalable green hydrogen production.

GREEN HYDROGEN MARKET DRIVERS

Green hydrogen is making inroads across multiple sectors, including transportation, power generation, steelmaking, refining, and ammonia synthesis. As carbon-intensive industries pursue decarbonization pathways, green hydrogen presents a practical and scalable alternative to fossil fuels. Its adaptability as a fuel, chemical feedstock, and energy vector is spurring global innovation and infrastructure expansion.

Amid intensifying efforts to cut carbon emissions and address climate change, green hydrogen is emerging as a vital pillar of clean energy strategies. When powered by renewables, its production is emission-free, and its use releases only water, supporting global net-zero commitments and advancing ESG goals for industries and governments alike.

Policy support has become a key accelerator in expanding the global green hydrogen economy. Governments are implementing national roadmaps, tax incentives, grants, and large-scale funding programs to promote hydrogen as a vital decarbonization tool. Many are also forming hydrogen trade agreements and advancing local production initiatives. These measures are mobilizing private capital, mitigating investment risks, and enabling rapid infrastructure growth.

Solid Oxide Electrolyzer Cell (SOEC) technology is attracting attention for its superior efficiency and capacity to harness waste heat from industrial sources, thereby lowering total energy use in hydrogen production. Its compatibility with high-temperature systems makes it ideal for heavy industries, driving commercial adoption and intensified R&D in large-scale hydrogen projects.

GREEN HYDROGEN MARKET SEGMENTATION INSIGHTS

• Insights By Technology: The alkaline electrolysis (ALK) segment held the largest share of the global green hydrogen market, over 61%, underscoring its pivotal role in advancing the clean energy transition. ALK systems use an alkaline electrolyte, commonly potassium hydroxide (KOH), to separate water into hydrogen and oxygen. Their established scalability makes them ideal for high-volume hydrogen generation, meeting industrial demands and supporting grid-scale energy storage. A major factor driving demand for alkaline electrolysis is its compatibility with renewable energy sources. As decarbonization efforts accelerate, storing excess renewable power has become vital for maintaining energy reliability. ALK systems convert this surplus energy into green hydrogen, providing a dependable and adaptable storage solution that addresses the variability of wind and solar output. In addition, falling renewable energy prices and continuous electrolysis innovations are boosting ALK technology’s market position. As clean electricity becomes increasingly affordable, the economic viability of green hydrogen production improves, promoting wider industrial adoption among organizations focused on lowering their carbon footprints.
• Insights By Source: The wind energy segment dominates and holds the largest global green hydrogen market share in 2024. Wind energy plays a vital role in generating green hydrogen via electrolysis, thanks to its technological maturity, widespread use, and compatibility with global decarbonization objectives. As the push for clean energy accelerates, demand for renewable hydrogen as a sustainable fuel continues to grow, positioning wind power as a key enabler due to its low-carbon footprint and plentiful supply. The variable output of wind energy pairs well with the flexible operation of electrolyzers, which can scale production up or down based on real-time power availability. This operational synergy makes wind energy an ideal source for hydrogen production, particularly in wind-rich regions like coastal zones and expansive plains. In October 2024, ABO Energy secured approval under the German Federal Immission Control Act for its inaugural hydrogen pilot project. This project will link a wind turbine to a green hydrogen production system and feature both a hydrogen refueling station and a trailer-filling installation.
• Insights By End-User: The refining sector holds the largest share of the global green hydrogen market in 2024. This industry currently consumes around 40 million tonnes of hydrogen each year, mainly for vital operations such as hydrocracking and desulfurizing fuels like diesel and gasoline. Traditionally, this hydrogen is sourced from fossil fuels—most commonly via steam methane reforming (SMR)—which results in significant carbon emissions. Hydrogen is crucial in refining, particularly for desulfurizing crude oil to meet the quality standards required for fuel products. The demand for hydrogen in refining is fueled by two major factors. First, global consumption of refined petroleum products is projected to rise, especially in developing nations. Second, increasingly strict environmental regulations to curb sulfur content in fuels are driving greater reliance on hydrogen in desulfurization workflows.

GREEN HYDROGEN MARKET GEOGRAPHICAL ANALYSIS

EUROPE GREEN HYDROGEN MARKET

In 2024, Europe captured over 41% of the global green hydrogen market share. The region leads the worldwide green hydrogen transition, propelled by bold climate policies outlined in the European Green Deal and the Fit-for-55 initiative. The European Union has positioned green hydrogen at the heart of its decarbonization roadmap, aiming for 10 million tonnes of domestic production and an equal volume of imports by 2030, as part of the REPowerEU Strategy.

Major European energy and industrial firms are forging alliances to accelerate hydrogen development. Initiatives like H2Med—a proposed hydrogen pipeline linking Spain, France, and Germany—highlight the continent’s unified efforts to establish a transnational hydrogen economy by 2023.

With a growing base of renewable power, Europe frequently generates surplus electricity. Green hydrogen offers a solution by converting excess wind or solar energy into a storable and transportable fuel. This helps balance electricity grids and optimizes the use of renewables, as illustrated by Iberdrola’s solar-powered hydrogen plant in Spain.

APAC GREEN HYDROGEN MARKET

The APAC region is witnessing robust expansion, recording the fastest-growing CAGR of over 63% throughout the forecast period. Green hydrogen development is accelerating rapidly, led by major economies such as China, Japan, South Korea, and Australia. China is making substantial investments in electrolyzer production and hydrogen hubs, aligning its hydrogen ambitions with national dual carbon objectives. Japan and South Korea are at the forefront of hydrogen mobility, with national strategies focused on fuel cell vehicles and building hydrogen refueling infrastructure.

Regional efforts aim to reduce reliance on imported fossil fuels and enhance energy security. South Korea, which imports nearly all of its energy, is turning to hydrogen to diversify its supply. Its Hydrogen Economy Roadmap outlines comprehensive plans for deploying hydrogen vehicles and infrastructure by 2040.

Heavy industrial sectors across APAC, including steel, cement, and chemicals, face mounting decarbonization demands, and green hydrogen presents a scalable solution. China, the top global steel producer, is exploring hydrogen-based steelmaking, with companies like Baowu Steel piloting direct reduction processes using green hydrogen technologies.

GREEN HYDROGEN MARKET COMPETITIVE LANDSCAPE

The global green hydrogen market report includes exclusive insights on 44 vendors. The market presents a dynamic and competitive environment, comprising traditional hydrogen producers, technology innovators, and emerging green hydrogen suppliers. Established players such as Linde, Air Liquide, and Air Products continue refining conventional hydrogen production, often positioning themselves against green hydrogen on cost-efficiency grounds. In contrast, companies like ITM Power, Nel, and Siemens Energy are advancing electrolyzer technologies powered by renewable energy. Leading energy firms, including Engie and Linde, are also expanding into green hydrogen supply chains.

Key competitive factors include production cost per kilogram and system energy efficiency, with research and development playing a crucial role in lowering costs and scaling infrastructure. The green hydrogen competitive landscape remains in an early stage of development but is evolving quickly. At present, the most prominent competition comes from companies based in the European Union and the United Kingdom.