Key Takeaways

• The global green hydrogen market is projected to rise from USD 9.09 billion in 2024 to USD 134.86 billion by 2030, with a CAGR of 56.75%.
• Alkaline electrolysis holds over 61% of market share, while wind energy is the leading source.
• Government support and technological advancements are driving growth, despite high costs and water requirements posing challenges.

The “Green Hydrogen Market Research Report 2025-2030” reveals a booming green hydrogen sector, expected to jump from USD 9.09 billion in 2024 to USD 134.86 billion by 2030. The market is growing at a remarkable compound annual growth rate (CAGR) of 56.75%, fueled by surging demand across various industries, particularly refining.

Transformative Market Dynamics

Alkaline electrolysis is the dominant technology, comprising over 61% of the market share due to its scalability and cost-effectiveness when paired with renewable energy sources. Wind energy has emerged as the leading source for green hydrogen production given its abundant availability. In the refining sector, green hydrogen is increasingly used to replace traditionally fossil-derived hydrogen, driven by a global focus on reducing carbon emissions.

The European market stands out with a 41% share, propelled by robust climate goals like the European Green Deal. Major projects aimed at establishing hydrogen infrastructure, such as the planned H2Med pipeline linking Spain, France, and Germany, underscore Europe’s commitment to green hydrogen as central to its decarbonization strategy.

Technological Innovations and Opportunities

Advancements in electrolyzer technology, significantly in Proton Exchange Membrane (PEM) and Solid Oxide Electrolyzers (SOEC), are enhancing efficiency and reducing costs. The emerging Anion Exchange Membrane (AEM) electrolyzers may also increase production capabilities while minimizing reliance on expensive materials. This technological progress complements the growing investments from public and private sectors in hydrogen capabilitie.

Government initiatives worldwide are another crucial growth driver. Policies promoting hydrogen adoption through strategies, tax incentives, and subsidies are securing investments and fostering infrastructure development. Asian countries, including China and Japan, are rapidly enhancing their hydrogen capabilities, aligning with global decarbonization efforts.

Challenges Facing the Sector

Despite positive projections, the green hydrogen market faces obstacles. The high initial costs associated with electrolyzers and renewable electricity generation still hinder competitive pricing compared to traditional hydrogen methods. Additionally, the substantial water requirements for production pose challenges, especially in arid regions.

Going forward, while the green hydrogen sector shows promise with increasing market opportunities, stakeholders must address the associated costs and operational complexities to achieve widespread adoption and sustainability.

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