Green Hydrogen Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The global green hydrogen market size reached a volume of 1.40 in 2024. The market is likely to grow further at a CAGR of 59.70% during 2025-2034 to reach a volume of 151.07 in 2034.

News and Developments in the Market

In September 2023, Linde announced the development of a 35-megawatt PEM (Proton Exchange Membrane) electrolyser to produce green hydrogen in Niagara Falls, New York. The company aims to bolster the production capacity of green liquid hydrogen with the new electrolyser and use hydroelectric power in order to meet the demand for green liquid hydrogen.

In June 2023, Reliance Industries Ltd. announced that the company is assessing new technologies for developing electrolysers in order to facilitate the cost-effective production of green hydrogen in India.

Also, the company intends to bid for production-linked incentives offered by the government to promote the green hydrogen technology. The company aims to produce green hydrogen at $1 per kilogram by 2030 and make India a leader in green hydrogen production and exports. Such developments by the key players are expected to drive the green hydrogen market.

In December 2021, Engie and Masdar of Abu Dhabi collaborated on developing a giga-scale green hydrogen hub with an electrolyser capacity of 2 gigawatts in the UAE. The companies aim to accelerate the local supply by bolstering the production capacity, further increasing exports to other markets.

In November 2021, Siemens Energy signed a Memorandum of Understanding with Oman Hydrogen Centre (OHC) to identify the potential applications of green hydrogen in local markets and offer technical expertise to develop green hydrogen solutions. Such collaborations by the leading global market players are likely to accelerate the green hydrogen market expansion.

In January 2021, Engie and Total signed an agreement to develop and operate the Masshylia project in France, a green hydrogen production site. The production site included a 40 MW electrolyser which is likely to produce 5 tonnes of green hydrogen daily. The green hydrogen is to be used to produce biofuel in the Total biorefinery in La Mède to reduce CO2 emissions annually.

Expanding Production, Surge in Eco-Consciousness, Government Initiatives, and Research Activities to be the Major Green Hydrogen Market Trends

Green hydrogen is a result of water electrolysis, in which electricity from renewable sources is used to segregate the hydrogen and oxygen molecules. Green hydrogen is either compressed or liquefied for use as a green energy source, as it lowers carbon emissions and plays a critical role in limiting the impact of climate change.

• There is a surge in the production of green hydrogen due to the reduction in the costs of electrolysers, the development of high-temperature electrolyser processes, and the measures taken to overcome the system inefficiencies.
• The emerging need to decarbonise the planet, owing to the escalating eco-consciousness among the population and the rising need to reduce dependency on fossil fuels, is aiding the green hydrogen market development.
• The government initiatives to bolster the production of green hydrogen are supporting the market. For instance, in September 2021, the Government of India planned to implement a production-linked incentive scheme to bolster the indigenous manufacturing of electrolysers to set 10 gigawatts of domestic manufacturing capacity for green hydrogen.
• There is an expansion in research and development activities to devise new solutions and multiple methods to produce green hydrogen, such as the decomposition of natural gas, solar hydrogen production, and thermochemical splitting, among others.

Green Hydrogen Market Segmentation

The report titled “Green Hydrogen Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Technology/Electrolyser

• Alkaline Water Electrolysis
• PEM (Proton Exchange Membrane)
• SOEC (Solid Oxide Fuel Cell)

Market Breakup by End User

• Transport / Mobility
• Utilities
• Grid Injection
• Industrial
• Others

Market Breakup by Source

• Solar
• Wind
• Geothermal
• Others

Market Breakup by Capacity

• Up to 500 KW
• 501-1500 KW
• 1501-5000 KW
• Above 5000 KW

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Green Hydrogen Market Share to be Influenced by the Rising Utilisation of Proton Exchange Membrane (PEM) Electrolysers

The proton exchange membrane electrolysers provide multiple benefits, like a faster response, high pressure, lower gas permeability, and the ability to perform in high-pressure or low-temperature operations, among others. There is an increasing availability of superior quality PEM electrolysers and the market players are increasing their efforts to deliver proton exchange membrane electrolysers that are fit for on-site storage. The research activities to enhance the operations of the components of PEM electrolysers for cost-efficiency are expected to support the green hydrogen market.

Meanwhile, alkaline water electrolysis is a safe and simple technology but demands more energy. It requires concentrated lye as an electrolyte and a gas-impermeable separator to avoid the mixing of hydrogen and oxygen gases. It is increasingly used in large-scale industrial applications, owing to its ability for mega-watt production, extended lifetime, and lower maintenance costs.

Solid oxide fuel cell offers benefits like increased efficiency and robustness, and requires ceramic for its production and no precious metals. Also, the solid oxide electrolysis cells technology is energy-efficient. It operates at high temperatures and atmospheric pressure.

Increasing Demand from the Transportation Sector to Support the Green Hydrogen Market Expansion

The improved living standards are leading to the rising demand for fuel cell electric vehicles that use green hydrogen as a fuel. The increasing need to reduce carbon emissions in the transportation sector is resulting in the development of eco-friendly vehicles, such as fuel cell electric vehicles powered by hydrogen. Governments worldwide are taking initiatives to introduce the sustainable transportation solutions and encourage the public to use them for a cleaner future.

For instance, in March 2023, the Government of India launched Toyota Mirai, a green hydrogen fuel cell electric vehicle (FCEV) that is suitable for Indian climatic conditions in New Delhi. The government plans to develop a green hydrogen-based ecosystem in the country through the FCEV technology. Such initiatives by the governments are expected to accelerate the green hydrogen market growth globally.

There is an increased injection of green hydrogen into the natural gas grids to decarbonise the residential and industrial heating loads; this is achieved by delivering green hydrogen fuel or mixing it with natural gas to lower the carbon content in the natural gas network. Several pilot projects are underway which include the use of renewable electricity to power electrolysis, splitting water into hydrogen and oxygen, and the grid entry unit which blends this hydrogen with natural gas to proportionally reduce the gas stream’s carbon content.

Besides, green hydrogen is extensively used in various industries for multiple applications. It is used in the chemical industry for manufacturing ammonia and fertilisers and in the petrochemical industry to produce petroleum products. Also, it is utilised in the steel industry owing to its environment-friendly nature.

Competitive Landscape of Green Hydrogen Market

The report gives a detailed analysis of the following key players in the market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

Air Liquide

Air Liquide is a global company that deals with gases for industries and the health sector. The company aims to overcome environmental challenges and contribute to a more sustainable world with the industrial-scale production of green hydrogen.

Linde Plc

Linde Plc is a multinational industrial gas company based in the United Kingdom. The company offers industrial gases to various end-use sectors, like chemicals, electronics, healthcare, metals, and others. The company provides state-of-the-art gas processing solution to enhance efficiency, reduce carbon emissions, and meet customer demands.

Engie

Engie is a France-based utility company that delivers services in renewable energy and storage. The company intends to accelerate the transition to net zero carbon by promoting low carbon infrastructure and reducing energy consumption.

Other green hydrogen market players include Air Products & Chemicals Inc., Uniper SE, Siemens Energy AG, Reliance Industries Ltd, Madoqua Renewables, and Tecnimont Marie.