The market value of green hydrogen stood at US$ 2.14 Bn in 2021. The global market is likely to expand at a phenomenal CAGR of 51.6% during the forecast period, from 2022 to 2031. The insights on the green hydrogen market estimate the market to attain value of US$ 135.73 Bn by 2031. The best natural and cleanest form of hydrogen is green hydrogen, which doesn’t produce CO2 as a by-product. In the foreseeable future, more renewable energy is expected to be produced. Additionally, the use of renewable energy is expanding as environmental regulations become more stringent and there is more emphasis to limit the amount of energy that is derived from hydrocarbons in order to lower CO2 emissions.
The deployment of renewable resources in electric generation facilities is being driven by the implementation of strict restrictions to minimise GHG emissions from power production facilities. The sales of green hydrogen market are thus anticipated to grow throughout the forecast period.
Rising number of government regulations aimed at the production of renewable energy are expected to cause the global green hydrogen market to grow considerably during the forecast period. Policymakers are considering green H2 as an option in a number of industries as a result of the lofty net-zero objectives set by governments throughout the world. The development of green hydrogen as a major renewable energy source is envisaged. This factor is likely to fuel expansion of the green hydrogen market during the forecast period.
- The polymer electrolyte membrane electrolyzes category accounted for a significant portion of the global market in 2021, accounting for 72.02 % of it. Due to its low fuel permeability and high proton conductivity, polymer electrolyte membrane electrolyzes are predicted to dominate the market in the forthcoming years. Green hydrogen is more in demand as polymer electrolyte membrane electrolyzes also provide superior thermal stability and film forming capabilities.
- Depending on source type, the solar category accounted for a significant part of the market in 2021, accounting for 61.9% share. The market is anticipated to be dominated by this segment throughout the forecasted period. By electrolyzing water into hydrogen, solar energy creates green hydrogen.
- Depending on end use, the chemical category accounted for a significant 37.9% of the market in 2021. An increase in the use of green hydrogen in the chemical industries is being attributed to the development of unique solutions that make it possible to move toward a circular and sustainable economy. Additionally, market participants are likely to benefit from an increase in R&D activities in the production of hydrogen green steel.
Global Green Hydrogen Market: Growth Drivers
- Clean hydrogen is being adopted at a faster rate, fostering a green economy, thanks to hydrogen from low- and zero-carbon renewable energy sources like solar and wind. This aspect is probably going to help the worldwide market for green hydrogen in the near future.
- In 2021, Europe held a significant portion of the market share for green hydrogen, accounting for 58.7% of the market. The regional market is anticipated to expand significantly during the forecast period. With a market share of more than 29.7% of the Europe green hydrogen market, Germany is a significant market for the product.