Detail insights into green hydrogen market forecast period 2021-30

Grey hydrogen makes up 95% of the market and is created by steam-reforming natural gas, producing substantially less CO2 than green hydrogen. Green hydrogen can link green electricity and fuel for transportation or feedstock for industrial processes. Thanks to green hydrogen and its derivative fuels, such as green ammonia, market participants can now include wind energy in the fuel tank of a container ship. The decarbonization potential of renewable energy sources could thus be significantly increased by hydrogen. In 2021, the market for green hydrogen was USD 1.45 billion, and by 2030 it will reach USD 75.72 billion, growing at a 55.1% CAGR during the forecast period.

Market Dynamics

Drivers

The ability to lower carbon emissions has increased the desire for green hydrogen over the past few years. Additionally, it aids in supplying the world’s rising energy needs. Due to growing public knowledge of hydrogen’s potential as an energy source, the industry is anticipated to expand. The primary element fueling the market’s expansion is the escalating environmental problem, which emphasizes the necessity of switching to green energy and lowering carbon emissions.

Restraints

The corporations are forced to explore alternate renewable energy sources due to the high costs of building up and maintaining the hydrogen infrastructure. The biggest obstacles preventing the expansion of the green hydrogen business are the initial investment needed to set up hydrogen infrastructure and the prohibitive maintenance expenses.

Opportunity 

The price of the electrolyzer is falling quickly; in the past five years, it has decreased by more than 50%. The final cost is affect by the decrease in the cost of renewable energy sources. The primary factor behind the decline in investment costs is spending on technology research and development.

By Technology Type

Alkaline electrolyzer was the largest market with a share of 66.18% in 2021, as it is the most conventional technology utilize in green hydrogen projects. In contrast to PEM electrolyzers, the alkaline electrolyzer has a higher running time and employs sodium hydroxide as its electrolyte or a a liquid alkaline solution of potassium. PEM electrolyzers will expand at a faster rate during the projection period. Compared to its alkaline predecessor, the PEM electrolyzer has greater functional flexibility thanks to solid specialized plastic material-based electrolytes. High proton conductivity, decreased gas permeability, and thinner proton exchange membranes are all responsible for the significant growth.

By Distribution Channel

The pipeline sector held the largest market in 2021, with 62.07% of the revenue share. There are different methods for transporting green hydrogen, such as storing it as a gas in high-pressure containers, as a liquid in thermally insulated containers, in a processed form like methanol or ammonia, or as a chemical carrier medium. A pipeline is the most practical way to transfer huge amounts across long distances. The conversion of natural gas pipelines for future hydrogen transportation was the subject of a white paper publish in September 2020 by German pipeline operators Nowega and Gascade and Siemens Energy.

By Application

In 2021, the transportation segment had the highest revenue share of 40.61%. Hydrogen is utilize in internal combustion engines or fuel cells for transportation. A hydrogen fuel cell is two-three times more effective than an internal combustion engine running on gasoline due to its high energy efficiency.

Regional Analysis 

Europe ruled the global market for green hydrogen in 2022. Throughout Europe, hydrogen serves as the main energy source. With the European Green Deal, Europe hopes to lessen greenhouse gas emissions and prepare its economy for a post-carbon era. North America will expand at a significant CAGR due to adopting clean energy policies. California controls most of the U.S. market thanks to aggressive decarbonization goals like eliminating gas or diesel-powered public transportation by 2040. Over the projected period, Asia Pacific will develop at the greatest CAGR, with Australia and Japan making up most of the region’s growth.

Key Players 

• Linde
• Linde Air Liquide
• Air Products and Chemicals, Inc.
• Uniper SE
• Siemens
• Engie
• Toshiba Energy Systems and Solutions Corp.
• Nel ASA
• Hydrogenics

In 2021, the market for green hydrogen was USD 1.45 billion, and by 2030. It will reach USD 75.72 billion, growing at a 55.1% CAGR during the forecast period. The market’s expansion is dependent on a number of variables. Such as the rising popularity of clean fuel, fuel cell vehicles, and the increased emphasis on decarbonization. The U.S. is among the early adopters of clean energy arrangements on the planet for areas like power age and transportation. This can be credited to the expanded significance given to clean energy arrangements according to the energy act presented by the U.S. government. The Guide to a U.S. Hydrogen Economy report gauges that hydrogen from low-carbon sources could supply about 14% of the country’s energy needs by 2050, including hard-to-zap areas now subject to gaseous petrol like high-heat modern cycles and assembling compost. In October 2019, Air Liquide declared to put USD 150 million into a sustainable fluid hydrogen age plant in Nevada set to create 30 tons each day, or enough to supply 40,000 power device vehicles, when it begins activity in 2022.