Global Green Hydrogen Market

Global Green Hydrogen Market, By Technology (Alkaline Electrolysis, and PEM Electrolysis); By Renewable Source (Wind Energy, Solar Energy, and Others); By End-User (Mobility, Chemical, Power, Grid Injection, Industrial, and Others); By Region (North America, Europe, the Asia-Pacific, the Middle East & Africa, and Latin America) Trend Analysis, Competitive Market Share & Forecast, 2021-2027

  • Published Date: October 2021
  • Report ID: BWC21121
  • Available Format: PDF
  • Page: 156

Report Overview

Global green hydrogen market is anticipated to grow due to the increasing use of green hydrogen for production of fertilizers and ammonia in chemical industry. Other factors driving the growth of the global green hydrogen market are the development of electrolysis technologies, and strong demand from Fuel Cell Electric Vehicles and the power sector.

Global Green Hydrogen Market- Industry Trends & Forecast Report 2027

Global green hydrogen market is estimated to be worth USD 445.1 million in 2021 and is projected to reach USD 6,836.0 million by 2027, at a CAGR of 57.7% during the forecast period (2021-2027). Green hydrogen is hydrogen fuel produced by water electrolysis with electricity generated by the low carbon power sources. The green hydrogen market is growing due to its zero-emission manufacturing process, which replaces traditional hydrogen such as gray, blue, and brown hydrogen. Green hydrogen lowers the cost of producing renewable energy, owing to which they are being adopted by various end-user such as mobility, chemical, power, grid injection, and others. Thus, owing to the factors mentioned above, the global green hydrogen market is flourishing across the globe.

Green Hydrogen Market

Source: BlueWeave Consulting

Global Green Hydrogen Market Overview

Hydrogen has been hailed for decades as the fuel of the future, offering numerous advantages. Hydrogen fuel created from water electrolysis with electricity provided by low-carbon energy sources is called green hydrogen. In contrast to other forms of hydrogen, green hydrogen operates without emitting greenhouse gases. In the chemical industry, green hydrogen is commonly used for making fertilizers and ammonia. Another use of green hydrogen is in the petrochemical industry for producing petroleum products.

Global Green Hydrogen Market Trend

Growth Drivers

Increasing Use in Mobility Industry

Because fossil fuels are a finite resource, they will most likely be depleted in the coming years. Green hydrogen, on the other hand, provides a sustainable alternative to fossil fuels to a wide range of end-users. The mobility industry is the largest consumer of green hydrogen. The mobility industry includes vehicles such as two-wheelers, three-wheelers, rail, maritime, and aviation. Additionally, the automotive industry is working on vehicles that use hydrogen directly in fuel cells or internal combustion engines. Chinese automakers are among the world's major automakers.

In 2019, approximately 92 million vehicles were produced worldwide, including 67 million cars and 25 million commercial vehicles. Green hydrogen-powered vehicles are ideal for mining vehicles, trains, aircraft, trucks, buses, and maritime transport. Green hydrogen is gaining traction in the automotive industry since it provides three times the energy per unit as fossil fuels. Therefore, oil & gas companies such as China Petroleum & Chemical Corporation (Sinopec) that operate the most petrol stations in Hong Kong, recently announced they are planning to use hydrogen fuel for commercial transportation to help achieve the government's carbon emission reduction goals by 2050.

Increasing Investment for Producing Green Hydrogen

Growing investments in manufacturing a large amount of green hydrogen and achieving net-zero carbon emissions are the key factors driving the growth of green hydrogen. For instance, in October 2021, Ardian, a private investment firm, and FiveT Hydrogen created a joint venture to launch Hy241, a clean hydrogen infrastructure investment platform. The project seeks €1.5 billion in funding. Of that amount, €800 million has already been pledged by a group of industrial and financial investors interested in green hydrogen. Thus, rising investment for producing green hydrogen and increasing utilization of green hydrogen from end-user industry has further propelled the growth of the green hydrogen market.

Restraints

High Initial Investment Requirements for Setting up Hydrogen Infrastructure

The high initial investment for setting up hydrogen infrastructure and the cost of producing green hydrogen is one of the key factors restraining the growth of the green hydrogen market. Hydrogen derived from fuels is less expensive and costs about USD 1.80 per kilogram. On the other hand, Green hydrogen produced using renewable energy costs between USD 3 and USD 6.5 per kilogram, according to the European Commission's July 2020 hydrogen plan. The high cost of manufacturing green hydrogen has thus hampered the growth of the green hydrogen market.

Impact of COVID-19 on the Global Green Hydrogen Market

The COVID-19 disruption did not impact green hydrogen. However, nationwide lockdowns triggered by the Coronavirus caused numerous problems for industry participants, such as disrupted supply chains and trouble shipping finished goods. Several enterprises, commercial buildings, industries, and other businesses have suffered losses due to the shutdown. The mobility sector, where green hydrogen finds its most application, has been hampered by a lack of traffic on the roads. Additionally, a decline in mobility sales has slowed the overall green hydrogen market.

Global Green Hydrogen Market: By Technology

Based on types, the green hydrogen market is grouped into alkaline electrolysis and PEM electrolysis. In 2021, the alkaline electrolysis segment is estimated to account for the largest share in the green hydrogen market. The long operating time and lower capital costs of alkaline electrolysis are expected to boost its popularity. In addition, alkaline technology offers long-term stability, thus providing an optimized process for manufacturing green hydrogen. Thus, rising adoption of alkaline technology for manufacturing green hydrogen has propelled the growth of the overall market.

Global Green Hydrogen Market

Source: BlueWeave Consulting

Global Green Hydrogen Market: Regional Insights

Geographically, the green hydrogen market is categorized into North America, Europe, the Asia-Pacific, the Middle East & Africa, and Latin America. Europe is estimated to hold the largest share in the green hydrogen market among these regions in 2021. The region is also likely to dominate during the forecast period. Several manufacturers of green hydrogen have their operations in Europe, which has led to the growth of the European market for green hydrogen. Additionally, an increase in investments by industry players for setting up new production plants has further fueled the market's growth. In September 2021, The Greek Ministers of Development and Investment and Environment, Energy, and Climate Change accepted two 'Important Projects of Common European Interest (IPCEI)' proposed by Advent Technologies. The aim of these projects is to increase the production of green hydrogen in the region. The two projects would replace Greece's largest coal-fired facilities with renewable solar energy parks, which will be backed by 4.65 GW of green hydrogen production and a 400 MW fuel cell heat and electricity generation.

Regional Insights

Source: BlueWeave Consulting

Competitive Landscape

The key players in the green hydrogen market are 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., and other prominent players. Because green hydrogen has a high production cost and requires a large initial investment cost, the key players heavily invest in R&D to optimize green hydrogen production. Additionally, the growing applications of green hydrogen and extensive R&D in this field are creating lucrative opportunities for the prominent players in the industry.

Recent Developments

  • In October 2021, Lhyfe, a French green hydrogen startup, announced that it has secured USD 58 million in a Series A investment round headed by SWEN Capital Partners and Banque des Territoires, with participation from its original investors.

 

  • In October 2021, ABB and PERIC, China's top hydrogen electrolyzers manufacturer, signed a Memorandum of Understanding (MoU) to expedite green hydrogen's more extensive use as an energy source.

Scope of the Report

Attribute

Details

Years Considered

Base Year – 2021

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Million

Volume in Kilo Tons

Market Coverage

U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Argentina, Japan, South Korea, Australia, China, India, UAE, South Africa, Saudi Arabia, Turkey

Product/Service Segmentation

By Technology, Renewable Source, End-User, and Region

Key Players

Key Players for the market are 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., and other prominent players

 

By Technology

  • Alkaline Electrolysis
  • PEM Electrolysis

By Renewable Source

  • Wind Energy
  • Solar Energy
  • Others

By End-User

  • Mobility
  • Chemical
  • Power
  • Grid Injection
  • Industrial
  • Others

By Region

  • The Asia-Pacific
  • North America
  • Europe
  • The Middle East & Africa
  • Latin America

Frequently Asked Questions:

Ans: The global green hydrogen market is estimated to reach USD 445.1 million in 2021.
Ans: The major factors driving the growth of the global green hydrogen market are the development of electrolysis technologies, decreasing cost of producing renewable energy from all sources, and strong demand from Fuel Cell Electric Vehicles and the power sector.
Ans: The key players in the global green hydrogen market are 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., and other prominent players.
Ans: Based on type, the alkaline electrolysis segment accounted for the larger share in the global green hydrogen market.
Ans: Europe holds the largest share in the global green hydrogen market.