The Global Green Hydrogen Market to Surge at 17.8% CAGR Through 2030, Projected to Reach US$25.4 Billion The implications of climate change have become increasingly evident, sparking a growing interest in alternative energy solutions aimed at reducing the carbon footprint. To achieve these shared objectives, numerous countries and concerned authorities are now adopting stricter laws, paving the way for the establishment and expansion of the global hydrogen economy. This, in turn, is set to boost the green hydrogen industry. Presently, over 90% of hydrogen production is accounted for by grey hydrogen. However, future energy needs can be significantly reduced by using green hydrogen, produced from sustainable resources such as solar and wind. The current economics of green hydrogen are challenging due to the disparity in costs and supply of renewable energy sources. Key Report Findings •
The market for green hydrogen is projected to surpass the US$25 billion mark by the end of the forecast year.
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Grey hydrogen currently accounts for over 90% of the worldwide hydrogen industry.
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The commercial viability of producing green hydrogen has increased due to consistently declining costs for renewable energy sources, dropping electrolyser costs, and enhanced efficiency from technological advancements.
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In 2022, the refining segment constituted more than 61% market share, while the alkaline electrolyser category accounted for over 52% share.
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The solar PV technology segment held more than 53% share in 2022.
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Asia Pacific dominates with over one-third market value share, followed by Europe.
Market Drivers Growing Awareness About Green Hydrogen as a Potential Alternative to Fossil Fuel and Grey Hydrogen Hydrogen is increasingly being recognized as an energy carrier that reacts solely with oxygen to produce heat and water, emitting no greenhouse gases or other pollutants. According to the US Department of Energy, hydrogen-based fuel cells can generate electricity with an efficiency of up to 60%, compared to the 33-35% efficiency of traditional combustion-based power plants. This aspect is expected to increase the adoption rate of this technology, boosting market growth opportunities in the global green hydrogen market. Favorable Perception as a Strong Medium to Achieve Net Zero Carbon Emission Goals Public events and campaigns aimed at raising awareness about clean energy solutions have multiplied, garnering support from influential figures and organizations advocating for cleaner technology. Many businesses are focusing on developing more efficient green hydrogen technology that can seamlessly replace conventional energy sources. Market Challenges Expensive Production Costs