Energy & Environment Industry Today
Green Hydrogen Market rising at CAGR of 36.35% 2030, Driven by Decarbonization Policies and Expanding Industrial Demand | Mordor Intelligence
The global green hydrogen market is set to grow from 0.45 million tons in 2025 to 2.14 million tons by 2030 at a 36.35% CAGR, fueled by clean energy transition, falling renewable power costs, and rising industrial decarbonization demand.
Green hydrogen, produced through electrolysis powered by renewable energy, is increasingly recognized as a cornerstone of future energy systems. Its ability to decarbonize hard-to-abate sectors such as refining, chemicals, steel, and transportation make it a critical solution for governments and corporations pursuing net-zero targets. With Asia-Pacific leading in installed capacity and Europe accelerating deployment through policy-backed initiatives, the market is poised for rapid expansion across multiple regions.
Green Hydrogen Emerging Trends
Declining Renewable Power Costs: Solar and wind tariffs in regions such as the Middle East, Chile, and India are falling below USD 20/MWh, enabling electrolyzers to operate longer hours at lower costs. This is making green hydrogen more competitive against fossil-based alternatives.
Industrial Decarbonization Mandates: Europe’s steel and fertilizer industries are under strict carbon reduction policies. Projects in Sweden and Germany demonstrate how hydrogen-based direct reduction can cut emissions by up to 95%, creating strong demand for electrolyzers and renewable power contracts.
Corporate Net-Zero Commitments: Companies across aviation, polymers, and heavy industry are willing to pay premiums for low-carbon hydrogen, creating long-term offtake contracts that improve project bankability.
Maritime Fuel Regulations: International shipping rules are driving demand for green ammonia as a bunker fuel, reinforcing hydrogen’s role in global trade hubs.
Discover Comprehensive Insights Across Regions, Including the Japan Market Version: https://www.mordorintelligence.com/industry-reports/green-hydrogen-market?utm_source=industrytoday
Green Hydrogen Market Segmentation
The green hydrogen market is segmented by technology, end-user industry, and geography:
By Technology
- Alkaline Electrolysis: Accounted for 55% of market share in 2025, favored for lower costs and long operating lifetimes.
- Proton Exchange Membrane (PEM) Electrolysis: Expected to grow at 42.30% CAGR, suitable for variable renewable inputs like solar and wind.
- Solid Oxide Electrolysis: Still in pilot phase but offers high efficiency when integrated with industrial waste heat.
- Anion Exchange Membrane (AEM) Electrolysis: Emerging designs combine cost advantages of alkaline systems with fast response times.
By End-User Industry
- Refining: Largest segment with 35% share in 2025, as hydrogen is essential for hydrocracking and desulfurization.
- Chemicals: Fastest-growing segment, driven by green ammonia and methanol production.
- Iron and Steel: Adoption of hydrogen-based direct reduction methods is expanding.
- Transportation: Japan and South Korea are building hydrogen fueling infrastructure to support mobility demand.
By Geography
- Asia-Pacific: Largest market with 48% share in 2025, led by China, India, Japan, and South Korea.: Largest market with 48% share in 2025, led by China, India, Japan, and South Korea.
- Europe: Fastest-growing region with a 54.17% CAGR, supported by strong policy frameworks and funding.: Fastest-growing region with a 54.17% CAGR, supported by strong policy frameworks and funding., supported by strong policy frameworks and funding.
- North America: Growth supported by tax credits under the Inflation Reduction Act.: Growth supported by tax credits under the Inflation Reduction Act.
- South America: Brazil emerging as a major exporter with abundant wind and solar resources.: Brazil emerging as a major exporter with abundant wind and solar resources.
- Middle East & Africa: Saudi Arabia’s NEOM project highlights large-scale hydrogen production for export.: Saudi Arabia’s NEOM project highlights large-scale hydrogen production for export.
Explore Competitive Landscapes and Details: https://www.mordorintelligence.com/industry-reports/green-hydrogen-market/companies?utm_source=industrytoday
Green Hydrogen Companies
- Air Liquide
- Air Products and Chemicals Inc.
- BP PLC
- CHARBONE Hydrogen Corporation
- China Petroleum & Chemical Corporation (Sinopec)
- China Three Gorges Corporation
- Cummins Inc.
- Engie SA
- Fortescue Future Industries
- Green Hydrogen International Corp.
- Iberdrola SA
- Intercontinental Energy
- ITM Power PLC
- Lhyfe SA
- Linde PLC
- McPhy Energy S.A.
- Nel
- Ningxia Baofeng Energy Group Co. Ltd.
- Orsted A/S
- Plug Power Inc.
- Reliance Industries Limited
- Shell PLC
- Siemens Energy AG
- thyssenkrupp nucera
- Tidewater Renewables Ltd.
- Uniper SE
- Yara
Conclusion: Future Outlook for the Green Hydrogen Market
Asia-Pacific will continue to dominate capacity expansion, while Europe’s policy-driven initiatives ensure rapid growth. Refining and chemicals remain the backbone of demand, but steelmaking, transportation, and maritime fuels are emerging as strong contributors.
Challenges such as raw material scarcity for electrolyzers, grid bottlenecks, and high transport costs remain, but ongoing innovation and supportive policies are expected to ease these constraints. As governments, industries, and investors align on net-zero goals, green hydrogen is positioned as a critical enabler of a low-carbon future.
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