PUBLISHER: Roots Analysis | PRODUCT CODE: 1721379
PUBLISHER: Roots Analysis | PRODUCT CODE: 1721379
As per Roots Analysis, the global green hydrogen market size is estimated to grow from USD 1.5 billion in the current year to USD 125.3 billion by 2035, at a CAGR of 49.5% during the forecast period, till 2035.
The opportunity for green hydrogen market has been distributed across the following segments:
Technology
Distribution Channel
Renewable Sources
Storage
Application
Production Scale
Purity Level
End Users
Geography
Hydrogen is among the colorless chemical elements found on the planet, utilized across a variety of sectors, including vehicle propulsion, electricity generation for residential heating, and supporting businesses. However, traditional hydrogen production methods heavily rely on fossil fuels, which significantly contribute to climate change through greenhouse gas emissions and other environmental risks. In fact, hydrogen currently accounts for more than 2% of the total global CO2 emissions. These concerns have led to the emergence of cleaner hydrogen alternatives in the market, such as green and blue hydrogen.
Green hydrogen is generated through the electrolysis of water using renewable energy sources like wind, solar, and hydroelectric power. This process involves splitting a water molecule into hydrogen and oxygen, resulting in minimal to no greenhouse gas emissions, thus providing numerous advantages in achieving carbon neutrality and reducing ecological impact. In addition to serving as a fuel for transportation, powering fuel cell electric vehicles (FCEVs), green hydrogen can also act as an energy storage solution. Therefore, it offers industries an efficient and cleaner option to decrease their carbon emissions.
Moreover, the growth of the green hydrogen sector has been expedited by the Paris Agreement aimed at combating climate change. Countries that have signed this agreement are dedicated to lowering greenhouse gas emissions through the adoption of cleaner energy sources. Consequently, it establishes a more favorable regulatory landscape and market conditions that can support the application of green hydrogen and encourage the development of various green hydrogen initiatives globally. With the rising demand for clean energy options and nations' commitment to reducing emissions, the green hydrogen market is expected to witness significant growth during the upcoming forecast period.
Based on technology, the global green hydrogen market is segmented into alkaline electrolyzer, proton exchange membrane electrolyzer (PEM) and solid oxide electrolyzer (SOEC). According to our estimates, currently, proton exchange membrane electrolyzers segment captures the majority share of the market. This can be attributed to the multiple benefits provided by PEM electrolyzers, including enhanced electrical efficiency and a rapid response time, enabling swift adjustments during variations in renewable energy supply.
Based on distribution channel, the green hydrogen market is segmented into cargo and pipeline. According to our estimates, currently, pipelines segment captures the majority share of the market. This can be attributed to their economical nature and capability to transport substantial amounts of hydrogen over long distances efficiently. Additionally, the availability of hydrogen in multiple forms, such as liquid, gas, or processed variations (like methanol or ammonia), makes pipelines the most viable transportation option.
Based on renewable sources, the green hydrogen market is segmented into wind, solar and others. According to our estimates, currently, solar renewable source segment captures the majority share of the market. This can be attributed to the declining costs of solar photovoltaic (PV) technology, owing to advancements in the PV sector, making it a more appealing choice for hydrogen generation. This financial feasibility is essential for the progress of green hydrogen, as production costs pose a significant challenge.
Based on storage, the green hydrogen market is segmented into compressed gas, liquid hydrogen, metal hydrides and underground storage. According to our estimates, currently, liquid hydrogen segment captures the majority share of the market. This can be attributed to its high density and greater stability compared to other forms, which facilitate handling and transportation. Moreover, it can be stored in cryogenic tanks and transported using tanker trucks or ships. Additionally, for long-distance transport, liquid hydrogen is more cost-effective than gaseous hydrogen, as a liquid transport truck can accommodate more hydrogen than a gaseous tube trailer.
Based on application, the green hydrogen market is segmented into fuel cells, power-to-gas, ammonia production, methanol production and refining. According to our estimates, currently, fuel cells segment captures the majority share of the market. This is primarily because green hydrogen serves as a fuel in the automotive and transportation industries, offering an alternative to traditional fossil fuel-powered vehicles. Additionally, it can power fuel cell electric vehicles (FCEVs), providing a longer range and quicker refueling times compared to battery electric vehicles.
Based on production scale, the green hydrogen market is segmented into small-scale (< 1 MW), medium-scale (1-10 MW) and large-scale (> 10 MW). According to our estimates, currently, large-scale (> 10 MW) hydrogen plants capture the majority share of the market. This can be attributed to the fact that these plants can provide energy for several industries, including transportation, chemicals, and power, while small-scale and medium-scale facilities generally cater to small communities with the potential to supply power to local grids.
Based on purity level, the green hydrogen market is segmented into ultra-high purity (99.999%+), high purity (99.99%+) and standard purity (99.9%+). According to our estimates, currently, ultra-high purity green hydrogen captures the majority share of the market. This can be attributed to fact that high purity hydrogen is crucial for making a variety of industries more environmentally sustainable.
Moreover, the demand for these green hydrogen sources is on the rise across multiple sectors such as electronics, the semiconductor industry, chemical manufacturing, and energy production, as a means to combat climate change by lowering greenhouse gas emissions released into the atmosphere.
Based on end users, the green hydrogen market is segmented mobility, chemical, power, grid injection, industrial, refining, others. According to our estimates, currently, industrial end users captures the majority share of the market. This can be attributed to the fact that industries are encouraged to implement sustainable practices. Produced from renewable energy sources like wind and solar power, green hydrogen and its derivatives are emerging as promising solutions.
This aligns with sustainability initiatives in agriculture-based economies, contributing to market expansion. Additionally, since industrial end users are significant sources of greenhouse gas emissions, governments have put strict regulations in place to promote the adoption of sustainable packaging materials.
The report on the green hydrogen market features insights on various sections, including: