According to a comprehensive research report by Market Research Future (MRFR), green hydrogen market is poised to reach $10.22 billion by 2030, registering an 57.41% CAGR throughout the forecast period (2020–30).
The rise in environmental concerns that emphasize the requirement for the generation of clean energy to reduce emissions will boost market growth over the forecast period.
The increasing adoption of green hydrogen in wind farms will offer robust opportunities for the market over the forecast period. The offshore and onshore wind farms are common. Offshore plants produce consistently throughout the year, unlike onshore facilities. Since the 1970s, the cost of wind energy has decreased by 50%. Wind power’s acceptance as a green hydrogen source has risen as a result of this factor. Offshore & onshore wind farms are now being used to generate electricity for the production of green hydrogen.
The high cost of the green hydrogen solutions and shortage of transportation infrastructure may act as market restraints over the forecast period.
The green hydrogen market is segmented into location, technology, and application. Based on technology, alkaline electrolyzers will dominate the market in the forecast period. Based on application, power generation will lead the market in the forecast period. Based on location, onshore segment will have the lions share in the market in the forecast period.
Europe to Sway Green Hydrogen Industry
During the forecast period, Europe will sway the green market. Strong sustainable infrastructure, the presence of several opportunities, the reduction in the cost of renewable energy generation, the presence of several green hydrogen projects, supply of hydrogen in ample, the presence of several green hydrogen makers and their products, booming power industry & mobility, and the growing need for zero-emission energy in various end-user industries such as power generation, electric vehicles, petrochemicals, and oil and gas are all contributing to the growth.
Germany has the maximum market share due to the presence of both supportive policies & regulations especially for green hydrogen as well as funds available for demonstration and research projects in the country. Because of its proclivity for sustainable schemes and the construction of hydrogen plants, Europe is likely to head the green hydrogen market. Low renewable energy costs, as well as customer and corporate subsidies, may bode well for this market. Denmark’s government recently signed a contract with the H2 Energy Europe for the large-scale development of green hydrogen. The retrofitting of novel systems for the intake of green hydrogen has the potential to increase demand in the region. The European region is expected to grow rapidly during the forecast period. This is owing to the industry’s long-standing, solid infrastructure as well as its diverse range of options. In addition, the price of renewable energy is decreasing, which is another factor driving its growth.
North America to Have Favorable Growth
In terms of revenue, North America is the second-best region in the market. Green hydrogen market growth is fueled by rising energy consumption & power demand, as well as a constantly growing population and rapid urbanization and industrialization. Furthermore, the growing use of renewable energy resources both in residential & commercial areas, fueled by rising consumer purchasing power, as well as regulatory changes, are major factors driving the green hydrogen market share upward. In addition, regional market growth is influenced by growing production capacities & green hydrogen manufacturers. Because of its ability to build massive infrastructures for storing green hydrogen, North America will have a favorable market growth. The US will play a significant role in the market’s growth in this region.
North America’s market is expected to grow at a rapid pace over the forecast period, with the United States and Canada leading the region thanks to the clean energy policies’ implementation. California has the majority of the market share in the United States, with growth fueled by aggressive de-carbonization goals like phasing out gas/diesel-powered public buses via 2040. The federal governments of the countries provide significant support to the North American green hydrogen market. Countries such as the United States and Canada provide significant funding for the pilot scale projects in this area. These funds are predicted to aid in the advancement of green hydrogen technology research and development. Air Liquide is constructing PEM electrolyzer in a large-scale with a capacity of 20 MW in Canada, which will produce green hydrogen using hydropower. Such developments, as well as projects in the pipeline in Canada, will help the region’s market grow significantly.