Green hydrogen market size to grow by USD 14.74 billion between 2022 and 2027, APAC will account for 57% of the market growth, Technavio
NEW YORK, March 11, 2024 -- The green hydrogen market size is forecasted to increase by USD 14.74 billion from 2022 to 2027, at a CAGR of 45.51%, according to the recent market study by Technavio. APAC is set to significantly rule the global market, accounting for a substantial 57% of anticipated growth in the forecast period. Technavio analysts have meticulously outlined the regional dynamics and catalysts shaping market trends. The surge in APAC's market stems from escalating investments across key sectors including chemicals, fertilizers, refining, glass, semiconductors, metal processing, and food. Notably, the refining sector in APAC is experiencing a robust upswing, propelled by soaring local demand for refined petroleum products such as gasoline and diesel, particularly in high-GDP-growth nations like India and China. Regulatory mandates mandating sulfur level reductions in diesel production are fueling demand for hydrogen, poised to drive market expansion throughout the forecast horizon.
Charts & data tables about market and segment sizes for a historic period (2017-2021) and forecast period (2023-2027) have been covered in this report. Download the Sample Report
Key Companies
The global green hydrogen market is fragmented and highly competitive, with vendors competing to gain more market shares. The intense competition, rapid advances in technology, and ever-changing market dynamics are the key factors fueling competition among vendors. The competitive environment in the market is expected to intensify further during the forecast period, with the increase in the demand for hydrogen and technological innovations. The high fixed costs and high exit barriers increase competition among vendors. Thus, the threat of rivalry was high in 2022 and is expected to remain the same during the forecast period. Some of the key vendors covered in the report include:
- Air Liquide SA - The company offers green hydrogen products such as Electrolyzers and Integrated Power for X plants.
- Air Products and Chemicals Inc. - The company offers green hydrogen products such as NEOM Green Hydrogen Complex.
- Green Hydrogen Systems - The company offers green hydrogen products such as Cummins Hystat 60 10 Electrolyzers.
- Indian Oil Corp. Ltd. - The company is involved in the production of green hydrogen solely based on renewable energy.
- Cummins Inc.
- ERGOSUP
- Guangdong Nation Synergy Hydrogen Power Technologies Co Ltd.
- Jindal Steel and Power Ltd.
- Linde Plc
- Loop Energy Inc.
- Nel ASA
- Plug Power Inc.
- Solena Group
- Ceres Power Holdings plc
- Larsen and Toubro Ltd.
- Siemens Energy AG
Key Benefits for Buyers of this Report
- The report offers information on the criticality of vendor inputs, including R&D, CAPEX, and technology.
- It also provides detailed analyses of the market's competitive landscape and vendors' product offerings.
- The report also provides a qualitative and quantitative analysis of vendors to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
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Market Segmentation:
The market is segmented by end-user (chemical, power, industrial, and mobility and others), technology (alkaline electrolyzer and polymer electrolyte membrane (PEM) electrolyzer), and geography (APAC, Europe, North America, Middle East and Africa, and South America).
- The market growth in the chemical segment will be significant over the forecast period. The chemical industry is the largest end-user of green hydrogen. Green hydrogen is widely used in the manufacturing of chemical compounds such as paints, synthetic fibers, nylon, and polyurethane elastomers and in the plasticization of plastics. The increasing demand for green feedstock or precursor molecules such as ammonia and methanol is another major factor driving the growth of the segment.
Key Drivers:
- Growing adoption of clean fuel
- Growing adoption of fuel cell-powered vehicles
- Increasing focus on decarbonization
Green hydrogen generates zero emissions. Hence, many organizations are replacing fossil fuels such as coal or natural gas with green hydrogen. Green hydrogen power generation offers several benefits. For instance, the extra energy generated through renewable sources such as wind turbines or solar PVs can be used for green hydrogen production. The produced hydrogen finds various applications across different sectors, including transport, industry, or utility for grid injection. Moreover, renewable power plants are generally located at distant locations from end-users. In such cases, the generated power can be used for electrolysis for the production of green hydrogen, thereby making transportation commoditized and unconstrained by grid connection, similar to LNG. Such benefits are increasing the use of green energy as a clean fuel, which is driving the growth of the market.
Major Trends:
- Increasing initiatives by the governments
- Growing focus on using clean hydrogen in refineries
- Rising usage of fuel cells in the stationary power sector
Key Challenges:
- High initial cost
- Lack of refueling infrastructure for FCVs
- Competition from alternative technologies
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Analyst Review
In the electrolysis technologies and FCEVs (Fuel Cell Electric Vehicles), the emergence of green hydrogen presents a transformative opportunity for the power industry and the broader mobility industry. Despite high initial production costs and an under-developed market, the potential for green hydrogen remains vast.
One of the primary drivers behind the green hydrogen market is its ability to leverage low variable electricity costs from solar energy and wind energy, supported by technical advancement and production advancement. As raw material costs decline and product efficiency improves, green hydrogen becomes increasingly competitive.
Technological breakthroughs in new composites further enhance the viability of green hydrogen, reducing wind energy costs and the fixed cost of installation associated with electrolysis. Moreover, the marginal maintenance required for green hydrogen infrastructure ensures reliability in load conditions, especially during periods of excess energy from solar and wind sources.
In the power sector, integration with gas turbines and conventional fossil fuels-based power plants facilitates the transition to green hydrogen, mitigating load fluctuations and enabling efficient energy tracking. This synergy between renewable energy and gas turbines underscores the versatility of green hydrogen across developed and developing countries.
Governments worldwide are committing to net-zero emissions pacts, driving investment in the technology required for efficient use of green hydrogen. With commercial availability expanding, the end-use industry is diversifying, encompassing applications in mobility, chemical, power, grid injection, industrial sectors, and beyond.
As the global green hydrogen market matures over the forecast period, it will play a pivotal role in the transition towards a more sustainable energy landscape. By leveraging the potential of fuel cells and embracing clean energy solutions, stakeholders can accelerate the adoption of green hydrogen, paving the way for a greener, more resilient future.
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Market Overview
The Green Hydrogen Market is poised for significant growth, especially with the rising prominence of FCEVs (Fuel Cell Electric Vehicles) and the power industry's increasing interest in sustainable energy solutions. Despite high initial production costs, advancements in electrolysis technologies are driving down expenses. However, the market faces challenges due to an under-developed market and the need for further investment in infrastructure. Nonetheless, the mobility industry is actively exploring green hydrogen as a viable alternative fuel source. With low variable electricity costs and a focus on sustainability, the dynamics of the green hydrogen market are becoming increasingly favorable, offering promising opportunities for both investors and stakeholders alike.
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Related Reports:
- The hydrogen generation market is estimated to grow at a CAGR of 5.58% between 2022 and 2027. The size of the market is forecasted to increase by USD 47.84 billion.
- The green ammonia market is estimated to grow at a CAGR of 90.05% between 2022 and 2027. The size of the market is forecasted to increase by USD 1,008.31 million.
TOC
- Executive Summary
- Market Landscape
- Market Sizing
- Historic Market Size
- Five Forces Analysis
- Market Segmentation by End-user
- market Segmentation by Technology
- Customer Landscape
- Geographic Landscape
- Drivers, Challenges, and Trends
- Company Landscape
- Company Analysis
- Appendix
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Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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