Global Green Hydrogen Market Overview
The key drivers impacting the green hydrogen market are the growing environmental concerns regarding increasing carbon emissions from fossil fuel usage. Also, the rising green hydrogen installation globally due to the presence of supportive policies and regulations for green hydrogen with huge funding for research and demonstration projects in the country, in turn, is expected to green hydrogen production. For instance, Germany invests around 8 billion euros in 62 EU-backed hydrogen projects that are funded as a part of a joint EU investment in hydrogen technology; the government proclaimed in May 2021. Thus, it is expected to drive market growth. Moreover, the rising adoption of hydrogen as a transportation fuel over conventional fossil fuels in developed nations, like the Japan, U.S., and Germany, contributes to green hydrogen market demand in the later years. Whereas with regards to volume, the market was calculated XX Million kilotons in 2020 and foreseen to grow with a CAGR of XX% during 2021-2027.
According to Value Market Research, the global green hydrogen market size was valued at about USD 787 million in 2020 and is estimated to grow at a CAGR of around 14.5% during the forecast period 2021 to 2027.
The growth in awareness regarding the use of hydrogen as an energy carrier will likely augment green hydrogen demand in the forecast period. The growth in the development of green hydrogen production technologies owing to its ability to decrease carbon emissions thus positively impact market growth. As per the International Renewable Energy Agency, Substantial greenhouse gas emission reductions are required across all sectors; renewable energy can provide over 90 % of the reduction in energy-related CO2 emissions. So the hydrogen produced by renewable energy rather than fossil fuel usage might help in reducing carbon emission to a large extent. However, the high cost of production hampers the market in the long run. In addition, the presence of low-cost hydrogen production through conventional techniques is negatively impacted the market growth. Nevertheless, the market trends, such as the favorable government policies encouraging electric vehicles, might provide considerable opportunities to the market's leading players.
The green hydrogen market is widespread, with many local and international players. The market leaders follow diverse strategies such as amalgamation, extending product portfolio, acquisitions, contracts, product upgrades to strengthen their market share globally. The key players in the report are Linde, Air Products and Chemicals, Inc., Siemens, Engie, Hydrogenics, Nel ASA, Air Liquide, Uniper SE, Green Hydrogen, and Toshiba Energy Systems & Solutions Corp.
In this research report, the green hydrogen market is segmented by technology and region.
Analysis by Technology:
By technology, the report is segmented into alkaline electrolyzer and polymer electrolyte membrane (PEM) electrolyzer. The alkaline electrolyzer segment dominates with the highest market share in the forecast period. It is because the alkaline electrolyzer is the traditional technology used in green hydrogen projects and is cost-effective than PEM electrolyzers. Moreover, alkaline electrolyzer uses the liquid alkaline solution of potassium or sodium hydroxide as its electrolyte, and it has higher operating hours than PEM electrolyzers, thus adding growth to the alkaline electrolyzer segment in the forecast period.
Analysis by Region:
In the regional outlook of the global green hydrogen market, the European region dominates with the largest market share in 2020. It is due to the huge investments by the European economies, aspiring for an energy transition into a clean hydrogen-based economy. Moreover, a huge number of green hydrogen projects in countries like the UK and Germany are sustaining business development. The area gives emphasis to renewable energy generation and has a large supply of hydrogen, contribute to the huge market growth across Europe.
Market Segmentation covered in the Report:
By Technology
- Alkaline Electrolyzer
- Polymer Electrolyte Membrane (PEM) Electrolyzer
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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