Green Hydrogen Market Trends, Size, Challenges, In-Depth Insights 2030
The global green hydrogen market is poised for significant expansion, with a compound annual growth rate (CAGR) of 17.8% from 2023 to 2030. By the end of the forecast period, the market is projected to reach an impressive value of approximately US$25.4 billion. As the impacts of climate change become more evident, the pursuit of alternative energy solutions that significantly reduce the carbon footprint is intensifying. This shift is bolstered by stringent regulations and policies adopted by numerous countries and authorities, laying a solid foundation for the burgeoning global hydrogen economy and propelling the green hydrogen industry forward.
**Market Analysis in Brief**
Currently, grey hydrogen dominates the hydrogen production landscape, accounting for over 90% of output. However, the shift towards green hydrogen, which is produced from sustainable resources like solar and wind, presents a significant opportunity to meet future energy needs with reduced carbon emissions. Despite economic challenges due to cost disparities between renewable energy sources and conventional methods, the commercial viability of green hydrogen is improving. This is driven by declining costs of renewable energy, reduced electrolyser prices, and technological advancements enhancing efficiency.
**Key Report Findings**
• Market Valuation: By 2030, the green hydrogen market is expected to surpass the US$25 billion mark.
• Current Hydrogen Production: Grey hydrogen currently accounts for over 90% of global hydrogen production.
• Cost Reductions: Production costs for green hydrogen are becoming more viable due to falling renewable energy costs, reduced electrolyser prices, and technological advancements.
• Market Share by Segment (2022): Refining segment - 61%, Alkaline electrolyser - 52%, Solar PV technology - 53%.
• Regional Dominance: Asia Pacific holds over one-third of the market value share, followed by Europe.
**Market Drivers**
Rising Awareness of Green Hydrogen’s Potential: Hydrogen, as an energy carrier, reacts with oxygen to form heat and water without producing greenhouse gases or other pollutants. This characteristic is gaining recognition, supported by research indicating hydrogen-based fuel cells can generate electricity with up to 60% efficiency, compared to 33-35% for traditional combustion-based power plants.
Net Zero Carbon Emission Goals: Public events, campaigns, and endorsements from influential figures are increasing awareness and support for cleaner technology. Many businesses are developing greener hydrogen technologies to replace conventional energy sources, further driving market growth.
**Market Challenges**
High Production Costs: The initial set-up and ongoing infrastructure maintenance costs for green hydrogen production, storage, conversion, and transportation remain significant. However, increased investments and continuous R&D efforts aimed at developing cost-effective production technologies are expected to mitigate these challenges.
**Impact of COVID-19**
The COVID-19 pandemic caused operational disruptions, supply chain constraints, and a decline in revenue across various industries, including green hydrogen. Despite these setbacks, the market has gradually recovered to pre-pandemic operational levels as restrictions eased.
**Overview of Key Segments**
Refining Application Dominates: The refining segment, which accounted for 61.3% of the market in 2022, is expected to lose some share by 2030. Segments like transport, iron & steel, and chemical industries are anticipated to gain additional market share.
Growing Preference for PEM Electrolyser: In 2022, the alkaline electrolyser segment held a 52.4% share. By 2030, the PEM electrolyser segment is expected to grow significantly due to its capability to produce high-purity hydrogen and efficient cooling.
Solar PV Technology to Maintain Dominance: The solar PV technology segment, with a 53.8% share in 2022, is expected to continue its dominance, driven by the high preference for solar power to run electrolysers in sunny regions.
**Regional Growth Opportunities**
Europe: Europe is expected to witness strong growth in both production and consumption of green hydrogen. Nations like Spain, France, and Germany are leading initiatives to integrate green hydrogen into various sectors, including primary metals and transport.
North America: The US dominates the North American market with multiple new green hydrogen projects set to commence. Canada also plays a significant role, hosting the largest PEM electrolyser plant developed by Air Liquide.
Asia Pacific: Asia Pacific is projected to achieve the highest CAGR, driven by major contributions from China, India, and Australia.
**Competitive Landscape**
Key players in the global green hydrogen market include FuelCell Energy, Inc., Adani Green Energy, Bloom Energy Corporation, Linde Plc, Royal Dutch Shell, Plug Power, Inc., Air Products & Chemicals Inc., Air Liquide S.A., Reliance Industries, TotalEnergies, and BP p.l.c.
**Market Segmentation**
• By Application: Refining, Ammonia, Transport, Others
• By Technology: Alkaline Electrolyser, PEM Electrolyser, Solid Oxide Electrolyser & Others
• By Source: Solar PV, Offshore Wind, Onshore Wind
• By Geographical Coverage: North America, Europe, Asia Pacific, Middle East & Africa, Latin America
**For More Information Visit: [https://www.fairfieldmarketresearch.com/report/green-hydrogen-market](https://)**