PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1901492
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1901492
Green hydrogen market size was valued at US$ 7,898.89 Million in 2024, expanding at a CAGR of 37.8% from 2025 to 2032.
Green hydrogen is produced by splitting water into hydrogen and oxygen through electrolysis powered entirely by renewable energy sources such as wind, solar, or hydropower, resulting in zero carbon emissions. This clean hydrogen is gaining traction as a sustainable fuel alternative to fossil-based hydrogen, with applications across energy storage, heavy transportation, industrial processes, and power generation. According to the International Energy Agency (IEA), green hydrogen could supply up to 24% of global energy demand by 2050, driven by escalating climate goals and decarbonization policies. Opportunities lie in expanding electrolyzer manufacturing, green hydrogen fueling infrastructure, sector coupling, and integrating hydrogen in ammonia production, steelmaking, and heavy-duty mobility, creating new markets and investment avenues worldwide.
Green Hydrogen Market- Market Dynamics
Accelerating global decarbonization efforts and renewable energy integration to drive market demand
The growing urgency to reduce greenhouse gas emissions is a critical driver for the global green hydrogen market. Governments worldwide are committing to net-zero targets, with clean hydrogen recognized as essential for decarbonizing heavy industries, power generation, and transport. According to the International Energy Agency (IEA) Hydrogen Report 2023, global electrolyzer capacity is expected to grow from less than 1 GW in 2022 to over 200 GW by 2030, reflecting massive scale-up efforts. Falling renewable electricity costs and advances in electrolyzer technology are making green hydrogen increasingly cost-competitive. Additionally, supportive policies, subsidies, and international hydrogen trade partnerships are accelerating infrastructure investments, further propelling market expansion. Strong cross-sector collaboration and growing corporate sustainability commitments are also fueling demand, while ongoing technological innovations continue to improve efficiency and reduce production costs, creating robust long-term growth prospects worldwide.
The Global Green Hydrogen Market is segmented on the basis of Renewable Source, Technology, Distribution Channel, End-use Industry, and Region.
The market is divided into three categories based on Renewable Source: Solar Energy, Wind Energy, and Others (which includes biomass and small hydro). Solar energy is currently the leading renewable source for green hydrogen production, driven by the dramatic decline in solar photovoltaic (PV) module costs - which fell by nearly 85% between 2010 and 2022 (International Renewable Energy Agency, IRENA). Wind energy follows closely, benefiting from growing onshore and offshore wind installations worldwide, contributing about 40% of total green hydrogen capacity as of 2023 (Hydrogen Council). Other sources remain niche but are gradually being integrated for hybrid systems in specialized applications.
By End-Use Industry, green hydrogen finds applications in Chemical, Mobility, Industrial, Grid Injection, Power, and Others sectors. The chemical industry remains a significant consumer, utilizing green hydrogen primarily for ammonia production and refining processes. Mobility is a key opportunity area, with rising adoption of hydrogen fuel cell vehicles globally, supported by government policies promoting clean transportation. Industrial applications in steel manufacturing and heavy industries are gaining focus as companies aim to reduce carbon footprints. Grid injection and power generation use cases are expanding, driven by the increasing need for renewable energy storage and grid stability, especially in regions with high renewable penetration.
Green Hydrogen Market- Geographical Insights
The global green hydrogen market exhibits diverse growth patterns driven by regional renewable energy capacity, policy support, and industrial demand. Asia-Pacific leads the market, bolstered by abundant renewable resources and ambitious hydrogen strategies, especially in China, Japan, and Australia. According to the International Renewable Energy Agency (IRENA), Asia-Pacific accounted for over 40% of global electrolyzer capacity additions in 2023. Meanwhile, Europe is experiencing rapid growth fueled by the European Green Deal and extensive hydrogen infrastructure investments, with the European Commission targeting 10 million tons of green hydrogen production annually by 2030. North America is expanding steadily, supported by U.S. federal incentives like the Inflation Reduction Act, fostering clean hydrogen hubs in states such as California and Texas. Additionally, emerging markets in the Middle East and Latin America are investing in green hydrogen export projects, leveraging their vast solar and wind potential to position themselves as future global suppliers.
China Green Hydrogen Market- Geographical Insights
China is a pivotal player in the global green hydrogen market, leveraging its massive renewable energy capacity and strong government backing to accelerate green hydrogen adoption. According to the National Energy Administration of China, the country's renewable energy capacity exceeded 1,200 GW in 2023, providing a robust foundation for green hydrogen production via electrolysis. China aims to achieve 100 GW of electrolyzer capacity by 2030, reflecting its commitment to decarbonize heavy industries and transportation sectors. Major state-owned enterprises such as Sinopec, CNPC, and State Grid are actively investing in green hydrogen projects, alongside technological innovations in electrolyzers and hydrogen storage. China's integrated approach includes blending green hydrogen with natural gas pipelines and developing hydrogen refueling stations, reinforcing its leadership in establishing a comprehensive hydrogen economy.
Rising global decarbonization efforts and expanding renewable energy integration are fueling innovation across the green hydrogen industry. Leading players in the market include Air Liquide, Linde plc, Siemens Energy, Nel ASA, ITM Power, Plug Power, Ballard Power Systems, and Thyssenkrupp AG. These companies focus on technological advancement in electrolyzer efficiency, cost reduction, and hydrogen storage solutions while competing on strategic partnerships, project development, and regional market expansion. Common strategies include vertical integration across the hydrogen value chain, targeted mergers and acquisitions, and collaboration with governments and industrial users to scale production. Emphasis on sustainability, operational reliability, and intellectual property safeguards fosters long-term competitive advantage and industry leadership.
In September 2025, Thyssenkrupp Nucera completed the acquisition of key technology assets from Green Hydrogen Systems, including intellectual property and a test facility in Denmark. This strengthens their focus on pressurized alkaline water electrolysis, enabling efficient hydrogen production at up to 35 bar, enhancing their position in industrial green hydrogen applications.
In May 2025, Sungrow Hydrogen launched China's first green hydrogen project using both PEM and alkaline electrolysers in Daye, Hubei. The 27 MW facility integrates 300 MW solar panels and AI-driven management for optimized production. It produces 1,800 tons of hydrogen annually, stored underground and above-ground, powering local hydrogen-fueled vehicles and industry.