The Green Hydrogen Market is expected to reach USD 8,702 Million by 2028, growing at a CAGR of 48.19% from 2021 to 2028. The technological advances to scale up hydrogen value chain and increasing concerns about carbon emissions along with the growing need to decarbonize the various industry verticals are the factors anticipated to augment the growth of Green Hydrogen Market within the forecast period.
- The Alkaline Electrolyzer segment held a market share of around 51.39% in 2020. This is owing to its low capital cost and higher operating time capacity.
- The power generation segment held a market is projected to grow at a CAGR of over 50% over the forecast period. This share is due to the increasing demand from the industrial sector for on-site electrolyzer setup.
- The chemical segment is projected to grow at a CAGR of over 38.91% over the forecast period. Chemical industry is s a major producer of by-product hydrogen. For instance, Chlor-alkali electrolysis is a process used by chemicals manufacturers to generate chlorine in large commercial quantities which yields caustic soda and hydrogen as by-products. As much as 0.27 million tons of hydrogen is generated by the Chlor-alkali sector every year, and it is typically of the highest purity.
- Asia Pacific is expected to expand at a CAGR over 52.74% from 2021 to 2028. This surge is attributed to the increasing government policies in economies to accelerate the adoption of Green Hydrogen.
Some of key players in Green Hydrogen Market include Siemens Energy AG, Toshiba Energy Systems & Solutions Corporation, Nel ASA, Linde, Cummins Inc., H&R Ölwerke Schindler GmbH, Wind to Gas Energy GmbH & Co. KG, Guangdong Nation-Synergy Hydrogen Power Technology Co. Ltd., Air Liquide, and Air Products and Chemicals Inc., among others. These players are focusing on innovation, as well as on including advanced technologies in their existing products.
The increasing green-house gas emissions like carbon emissions in the atmosphere across the globe is expected to fuel the growth of the Green Hydrogen Market in the years to come. This is attributable to the increasing urbanization and rapid enhancement of technologies due to industrialization. The increased level of carbon emissions has forced most of the countries to reduce their reliance on fossil fuel-based systems and also escalate their investments in alternative low-carbon technologies, like Green Hydrogen. Furthermore, most of the countries are taking major initiatives to produce Green Hydrogen. In December 2018, the Council of Australian Governments Energy Council set a vision for a clean, innovative, safe and competitive hydrogen industry that benefits all Australians and becomes a major global player by 2030. This is expected to enable and accelerate a more affordable clean energy transition, and provide economic benefits and job opportunities in Australia. Additionally, global plans for net-zero emissions by 2050 and increasing demand from FCEVs and power industry is also expected to support the growth of the Green Hydrogen Market during the forecast period.
Europe is projected to hold largest shares in 2020. This is attributable to the increasing investments in the Green Hydrogen plants and projects in the region. For instance, the European Commission announced its 2030 Hydrogen Strategy to support Green Hydrogen. The strategy underpins the birth of an entirely new hydrogen industry largely based on Green Hydrogen against the current electrolyser installed base of 0.1 GW. The strategy aims to create at least 6 GW of electrolyser capacity by 2024, enough to produce up to 1 Mt/yr. of Green Hydrogen. That would increase to 40 GW in EU countries by 2030, with an additional 40 GW of electrolyser capacity in southern and eastern neighbors (e.g., Ukraine or Morocco), from which the European Union could import Green Hydrogen. The EU Hydrogen Strategy targets total investments of up to c.€400 billion through 2030 (with up to c.€47 billion towards electrolysers).