Green Hydrogen Market Size & Share to Surpass $36.5 Billion by 2030 | Vantage Market Research
Vantage Market Research
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WASHINGTON, June 20, 2023 (GLOBE NEWSWIRE) -- The Global Green Hydrogen Market is valued at USD 3.5 Billion in 2022 and is expected to reach a value of USD 36.5 Billion by 2030 at a CAGR of 39.8% over the forecast period 2023-2030.
With the growing concerns about climate change, there is an increasing demand for clean and renewable energy sources. Green Hydrogen is one of the cleanest fuels available and is expected to play a significant role in the transition to a low-carbon economy. In addition, the cost of producing Green Hydrogen is decreasing. As technology improves and the demand for Green Hydrogen increases, the cost of producing it is expected to fall further, making it a more attractive energy source.
The report provides a thorough analysis of international producers and suppliers, as well as their current situation and future prospects. It also goes into detail about the global drivers of the demand for Green Hydrogen, including rising investment requirements, developing technology, and new laws.
According to Vantage Market Research, some of the key factors are anticipated to accelerate the Green Hydrogen Market growth over the forecast period are rising government incentives, decreasing costs, rising demand for clean energy, and technological advancements.
We forecast that the alkaline electrolyzer dominated the Green Hydrogen market, based on technology, in 2022. Furthermore, it is predicted to maintain its position during the forecast time. Alkaline electrolyzers also offer enhanced efficiency compared to other technologies. These electrolyzers have higher conversion rates, up to 80%, and generate less heat compared to other technologies which makes alkaline electrolysis technology a preferred option in the Green Hydrogen market.
Europe is one of the most active regions in the world in terms of promoting the production and use of Green Hydrogen. In fact, the European Union has set itself the goal of building a Green Hydrogen ecosystem with an installed capacity of 40 GW by 2030. Europe has a significant potential for renewable energy sources that can power the production of Green Hydrogen. For example, the North Sea alone could generate up to 15 times the current electricity demand of the entire EU.
During the forecast period, North America is expected to develop at the fastest CAGR. The Green Hydrogen industry in North America is driven by various factors such as increasing demand for decarbonization, the availability of natural resources required for hydrogen production, and supportive government policies. Currently, North America's region is one of the largest producers of hydrogen, and with the help of advancements in the production of Green Hydrogen, it has the potential to reach higher heights in the future. According to a report by McKinsey & Company, North America could produce nearly 200 gigawatts of renewable energy capacity, enabling the production of up to 30 million tons of Green Hydrogen by 2040. This would bring down greenhouse gas emissions by around 50% compared to current levels.
Market Dynamics
Increasing Government Support to Flourish the Market Governments across the globe are setting targets for reducing carbon emissions, and Green Hydrogen can play a crucial role in achieving these targets. The increased focus on renewable energy and decreasing carbon emissions has led governments to incentivize the production and adoption of Green Hydrogen. Governments are investing heavily in developing the necessary infrastructure for producing, storing, and transporting Green Hydrogen. For instance, the European Union’s Hydrogen strategy aims to establish a hydrogen economy in Europe by 2050. The strategy sets targets to increase the production of renewable hydrogen to 10 million tons by 2030 and to make Europe the world’s leading producer of renewable hydrogen. To achieve these targets, the European Union is investing in the development of necessary infrastructure and technologies for the production, storage, and transportation of hydrogen. The strategy is also encouraging the deployment of hydrogen-powered transportation and industrial applications. To support the growth of the Green Hydrogen market, the EU has also established a €1 billion European Clean Hydrogen Alliance.
Increasing Demand from End-Users to Encourage Market Growth As businesses and industries seek to decarbonize their operations, the demand for Green Hydrogen is increasing. Industries such as transportation, power generation, and heavy industries are all exploring the use of Green Hydrogen as a sustainable fuel source. For instance, the transportation industry, particularly heavy-duty trucks, buses, and trains, is one of the significant end-users for Green Hydrogen. Many companies, such as Nikola Motor, Toyota, and Hyundai, are investing heavily in Green Hydrogen-powered vehicles. Green Hydrogen fuel cells offer several benefits, such as zero emissions, increased efficiency, and reduced dependence on fossil fuels. Another prominent end-user is the energy industry. Green Hydrogen can be used as an energy storage medium to store excess renewable energy generated by wind and solar power. This would allow renewable energy to be used to power the grid even when there is no sun or wind, providing stable energy supply to consumers.
Top Players in the Global Green Hydrogen Market
Linde PLC (Ireland)
Air Products Inc. (U.S.)
Air Liquide (France)
Cummins Inc. (U.S.)
Engie SA (France)
Nel ASA (Norway)
Siemens Energy (Germany)
Toshiba Energy Systems & Solutions Corporation (Japan)
One trend that Vantage Market Research (VMR) expects to see in the Green Hydrogen industry is the increasing investment. The Green Hydrogen industry has attracted a significant amount of investment from both public and private sectors. For example, in 2020, the Australian government announced a $570 million investment in hydrogen technologies, while Saudi Arabia's Aramco and Air Products are investing $5 billion to build the world's largest Green Hydrogen plant in Saudi Arabia.
Another trend that VMR predicts will continue in the Green Hydrogen industry is the growth in applications. The use of Green Hydrogen is expanding to different industries, such as transportation, power generation, and industries that require high-temperature heat. For instance, Toyota and Hyundai are investing in hydrogen fuel cell vehicles, while Siemens is developing Green Hydrogen technology for power generation.
Top Report Findings
Based on the Technology, alkaline electrolyzer are the leading category in the market for Green Hydrogen market. With the increasing demand for clean and sustainable energy, renewable energy sources like wind and solar are being widely adopted. Alkaline electrolyzer technology has a significant advantage in that it can use renewable energy sources directly, without incurring additional costs. This feature has been driving the demand for this technology in the Green Hydrogen market.
Based on Application, the power generation segment accounted for the most significant market growth in 2022. The power sector is a major contributor to greenhouse gas emissions, and Green Hydrogen can help to decarbonize the sector. By replacing fossil fuels like coal and natural gas in power generation, Green Hydrogen can reduce emissions and help achieve climate goals.
Collective Efforts of Individuals, Businesses, and Supportive Institutions Generate Maximum Market Revenue Players such as venture capitalists, private equity firms, and institutional investors play a significant role in the growth of the Green Hydrogen industry by investing capital in the development of Green Hydrogen production technologies and infrastructure. They help to provide the necessary funds for companies to develop, test, and commercialize their Green Hydrogen products and services. Established energy companies are also important players in the growth of the Green Hydrogen industry. They are investing in research and development of Green Hydrogen technologies and are also building the necessary infrastructure to support the production, storage, and transportation of hydrogen. These companies have a lot of experience in dealing with energy infrastructure, and they can leverage their existing networks to help bring Green Hydrogen to the mainstream. The most significant players operating in the Green Hydrogen Market are Air Liquide, Air Products Inc., Bloom Energy, Cummins Inc., Engie, Linde plc., Nel ASA, Siemens Energy, Toshiba Energy Systems & Solutions Corporation, and Uniper SE.
Transport Application Segment in the Green Hydrogen Market to Propel the Market Vantage Market Research has analyzed the market for Green Hydrogen to understand its current state and potential future growth factors. For better understanding, based on application, the Green Hydrogen market is categorized into: power generation, transport, and others. We predict that by 2030, the market for Green Hydrogen will account for more than 38% of total sales in the category of transport owing to the use of hydrogen fuel cells (HFC) in vehicles has several advantages over conventional internal combustion engines (ICE). Green Hydrogen can be used in fuel cell vehicles (FCVs) such as cars, buses, trucks, and trains, and it is expected to play a critical role in decarbonising the transport sector.
On the other hand, in 2022, power generation dominated the market for Green Hydrogen. Green Hydrogen can help to integrate renewable energy sources like wind and solar into the power grid. Since electricity generated from renewable sources can be intermittent, the stored Green Hydrogen can serve as an energy reservoir during periods of low availability of electricity from renewables. This can help to improve grid stability and reduce reliance on fossil fuels for backup power generation.
Browse market data Tables and Figures spread through 143 Pages and in-depth TOC on Green Hydrogen Market Forecast Report (2023-2030).
Linde PLC, Air Products Inc., Air Liquide, Cummins Inc., Engie SA, Nel ASA, Siemens Energy, Toshiba Energy Systems & Solutions Corporation, Uniper SE, Bloom Energy
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