Green Hydrogen Market Size & Outlook, 2025-2033

Green Hydrogen Market Overview

The global Green Hydrogen Market size was valued at USD 3.72 Billion in 2024 and is projected to grow from USD 5.77 Billion in 2025 to reach USD 192.30 Billionn by 2033, growing at a CAGR of 55% during the forecast period (2025–2033). The growth of the market is attributed to growing Demand for Processed Food Products.

Key Market Indicators

• Europe dominated the Green Hydrogen Market industry and accounted for a 51.8% share in 2024.
• Based on technology, the alkaline electrolyzers segment dominates the global market and is projected to remain the fastest-growing segment. 
• Based on application, the power generation segment dominated the market and is projected to remain the fastest-growing segment. 
• Based on end-use, the petrochemicals segment dominated the market and was projected to remain the fastest-growing segment.

Market Size & Forecast

• 2024 Market Size: USD 3.72 Billion
• 2033 Projected Market Size: USD 192.30 Billion
• CAGR (2025–2033): 2.78%
• Europe: Largest market in 2024
• Asia-Pacific: Fastest-growing region

Green Hydrogen Market Trend

Solar and wind energy produce green hydrogen by splitting water molecules to separate hydrogen and oxygen atoms. It is generated without using hydrocarbons, resulting in a reduction in carbon emissions. Green hydrogen can reduce pollution by powering water electrolysis with renewable energy, which is abundant and can be generated at less-than-ideal times. Green hydrogen presently accounts for around 1% of total hydrogen production; hence, considering its lack of cost competitiveness, the market for green hydrogen is anticipated to boost rapidly during the forecast period.

The increase in the need for renewable energy resources is among the major factors that boost the growth of the global market for green hydrogen. Additionally, an increase in government investments and incentives supporting renewable fuel use, like hydrogen, has led to a rapid rise in the implementation rate of green hydrogen. Governments from different countries are stepping forward to offer investment funding to businesses attempting to commercialize hydrogen-powered vehicles. 

To get more insights about this report Download Free Sample Report

Green Hydrogen Market Growth Factors

Increase in Concern toward Reducing Carbon Emissions

Concerns over carbon emissions and global warming are on the rise. Governments across the globe have implemented several measures and rules which call for a reduction in carbon emissions from various sectors. Electrolyzers generate hydrogen through electrolysis, where water is split into hydrogen and oxygen with electricity. Electricity used is either generated from renewable or nonrenewable resources.

In addition, hydrogen can be generated from electrolyzers combined with solar or wind sources of electricity generation. This method encourages the production of green hydrogen with zero carbon footprint. Thus, many industries are opting for on-site electrolyzers of 1-5 MW capacity to lower their carbon footprint, which notably contributes to the growth of the global market.

Expansion of Green Hydrogen Production Technologies

Hydrogen is currently generated using various technologies, including steam methane reforming, partial oil oxidation, coal gasification, and water electrolysis. The majority of hydrogen produced presently is used in petroleum refineries and fertilizer production. 99% of it is derived from fossil fuel reforming, the most cost-effective process. Several organizations are investing in the construction of new green hydrogen production plants to aid in the reduction of GHG emissions. Akzo Nobel, a Dutch paints and chemicals company, and Gasunie, a gas network operator, announced a proposal to develop Europe's largest green hydrogen production plant in 2019. Hence, all such parameters are projected to propel market growth.

Market Restraint

High Capital Cost of Hydrogen Energy Storage

In high-pressure containers, hydrogen may be contained as compressed gas, a liquid at -253° C, or in chemical form by reacting or absorbing chemicals or metal compounds. The electrolysis process can store electricity in the form of hydrogen. Hydrogen is used to generate electricity. However, round-trip productivity is currently lower than that of other storage technologies. Nonetheless, interest in hydrogen energy storage is growing due to its higher storage capacity than batteries.

Presently, hydrogen energy storage costs more than fossil fuels. Liquid hydrogen has a greater density as compared to gaseous hydrogen and needs liquefaction, which requires a complicated mechanical plant and adds to the total cost. Physical hydrogen storage, in which hydrogen is contained in solids on surfaces, is replaced by hydrogen storage. Hence, all such factors hamper the growth of the market.

Market Opportunity

Favorable Government Policies Encouraging Electric Vehicles

Electric vehicles use hydrogen fuel cells as batteries to operate. The use of electric cars restricts carbon emission, which further leads to decreased air pollution and, to an extent, lowers the use of rapidly depleting fossil fuels. Hence, various governments are offering different policies and subsidies to customers and manufacturers to encourage electric vehicles.

For instance, governments across the globe are building public infrastructure and deploying electric public transport methods. Moreover, the spike in demand for electric vehicles leads to a surge in the need for hydrogen, which drives the demand for electrolyzers. Thus, all these factors provide potential opportunities for the expansion of the industry during the forecast period.

Regional Insights

Europe Green Hydrogen Market Trend

Europe leads the global hydrogen market owing to huge investments by the European economies, aiming for an energy transition into a clean hydrogen-based economy. It is estimated to reach a predicted value of USD 10360 million by 2030 at a CAGR of 55%. Europe is one of the major players in the global market for green hydrogen, with Germany, France, Spain, and the UK as the top five countries in the region. Europe also provides stored hydrogen to North Africa and other regions through interconnections, positively impacting the hydrogen market growth. In addition, an increase in clean hydrogen production and the leading electrolyzer manufacturing industry in the region boosts the hydrogen market size. The Europe market for green hydrogen is expected to maintain its market position throughout the forecast period.

Asia-Pacific comprises China, Japan, India, South Korea, and the Rest of Asia-Pacific. It is estimated to reach a predicted value of USD 4805 million by 2030 at a CAGR of 55%. Asia-Pacific is the fastest-growing region, with Australia and Japan the most significant contributors. The market is driven by the spike in energy demand and growth, emphasizing green energy generation in the region. As conventional power sources struggle to meet increasing energy demands, the spotlight quickly turns to renewable energy sources. The Asia-Pacific green hydrogen market share is also propelled by significant policy changes to increase green energy production and large-scale green hydrogen projects in Australia and Japan.

North America Green Hydrogen Market Trend

North America is the second largest region. It is estimated to reach a predicted value of USD 7135 million by 2030 at a CAGR of 55%. North America is projected to attain a significant growth rate during the forecast period, with U.S. and Canada leading the region, owing to the implementation of clean energy policies. California has the bulk of the market share in the United States, with growth fueled by ambitious de-carbonization goals such as phasing out gas or diesel-powered public buses by 2040.

Furthermore, the rise in deployment of renewable energy resources in residential and commercial areas, fueled by customer buying power, and regulatory changes, are significant factors that propel the growth of the market for green hydrogen. In addition, the regional market growth is influenced by the increase in production capacities and green hydrogen manufacturers.

Market Segmentation

Technology Insight

The alkaline electrolyzers segment dominates the global market and is projected to remain the fastest-growing segment. It is predicted to reach an expected value of USD 12495 million by 2030 at a CAGR of 55%The electrolyte in an alkaline electrolyzer is a liquid alkaline solution of potassium or sodium hydroxide and has a longer operating time than PEM electrolyzers. Furthermore, alkaline electrolyzes are less expensive than PEM electrolyzers, which is expected to boost segment growth in the future. 

The PEM electrolyzer segment is anticipated to rise fastest during the forecast period. It is estimated to reach a predicted value of USD 10100 million by 2030 at a CAGR of 55%. PEM electrolyzer has more mechanical stability than alkaline equivalent, owing to the presence of solid specialty plastic material-based electrolyte. Moreover, reduced gas permeability and thickness of proton exchange membranes, along with high proton conductivity of these electrolyzers, boost the segment growth. PEM electrolyzers exhibit the ability to operate at high current densities. This reduces operational costs during the electrolysis of water. Thus, multiple advantages associated with PEM electrolyzers are key driving factors of global market growth. 

The solid oxide electrolyzer is the third-largest market. It is estimated to reach a predicted value of USD 280 million by 2030 at a CAGR of 51%. Electrolysis in SOEs takes place when electrons from the external circuit combine with water. At the cathode, hydrogen gas and negative ions are formed. The oxygen is passed from solid ceramics membranes, which further reacts at the anode end and thus generates hydrogen. The SOEs operate at higher temperatures such as above 500°C. The advantages of using electrolyzers at higher temperatures act as a driving factor for market growth.

Application Insight

The power generation segment dominated the market and is projected to remain the fastest-growing segment. It is estimated to reach a predicted value of USD 17605 million by 2030 at a CAGR of 55%. Hydrogen is regarded as a substitute for fossil fuels as water re-use is continuous. Moreover, wind and solar energy sources for electricity used in electrolysis have driven the electrolyzer market growth. 

The transport segment is projected to expand at a moderate rate during the forecast period. It is estimated to reach a predicted value of USD 4240 million by 2030 at a CAGR of 54%. The transportation industry is one of the significant contributors to carbon emissions. Therefore, the industry is continuously seeking methods to reduce its carbon footprint. Electric vehicles that operate on fuel cells or batteries serve as an ideal way for the industry to lower their carbon emissions.

Hydrogen produced is stored in fuel cells that are further used to power vehicles. Fuel cell vehicles (FCVs) are currently available in many countries such as Germany and the U.S. These FCVs are available in buses, heavy & light-duty trucks, material handling, uncrewed aerial vehicle, rail, and marine transportation. Germany already has rails running on fuel cells, and now Japan and South Korea are ready to deploy the same. Companies such as Hyundai, Toyota, and Honda provide commercial FCVs. Such hydrogen applications in fuel cells, produced from electrolysis, for transportation drive the market growth.

End-Use Industry Insight

In 2020, the petrochemicals segment dominated the market and was projected to remain the fastest-growing segment. It is estimated to reach a predicted value of USD 9925 million by 2030 at a CAGR of 55%. Commercial hydrogen applications are not recent, but carbon-intensive heavy industries such as oil refineries and petrochemical plants are now leading the way in low-carbon hydrogen projects across the globe. In the petrochemical industry, hydrogen is already being used and is expected to be used in the future. This is particularly real in areas where heavy oil reserves are abundant. Furthermore, CO2 from these refineries and chemical plants could be combined with hydrogen to create a renewable synthetic fuel.

The food & beverages segment is predicted to expand at a moderate rate during the forecast period. It is estimated to reach a predicted value of USD 5115 million by 2030 at a CAGR of 55%. A reliable power source is needed to keep daily operations in manufacturing, distribution, or packaging/bottling facility running smoothly and efficiently. Fuel cells are used by several businesses in the U.S. food industry to provide electricity and, in some cases, heating and cooling manufacturing sites. Companies such as Coca-Cola, Kellogg's, Pepperidge Farm, and The Wonderful Company use green hydrogen on their premises. These businesses are saving money on various levels, including pollution, energy costs, and water use. Using waste as a fuel source is expected to help save money, which, in turn, propels market growth.

The medical segment is the third-largest market. It is estimated to reach a predicted value of USD 2320 million by 2030 at a CAGR of 55%. Hydrogen (H2) has been a preventative and therapeutic benefit in various organs, including the brain, heart, pancreas, lungs, and liver. Hence, the use of hydrogen in the medical sector propels the growth of the hydrogen market.

List of key players in Green Hydrogen Market

1. Hydrogenics Ballard Power Systems
2. Engie
3. Enapter
4. Green Hydrogen Systems
5. Plug Power
6. Nikola Motors
7. SGH2 Energy Global LLC
8. Shell
9. Siemens Gas and Power GmbH & Co. KG.

To get more findings about this report Download Market Share

Recent Development

• August 2025:-  In its Q2 2025 earnings, Ballard narrowly beat earnings estimates but missed on revenues. Heavy-Duty Mobility revenue rose 22% year-over-year. The company has cash reserves ( USD 550M) and is targeting cash‐flow positivity by 2027.
• August 2025:-  Ballard’s “strategic realignment” aims to scale its hydrogen fuel cell business profitably by 2027. The plan includes tighter cost management, focusing on proven proton exchange membrane (PEM) stacks, and trying to improve manufacturing / supply-chain efficiencies.
• August 2025:-  In Q2 2025, Plug Power reported 21% revenue growth; their electrolyzer sales tripled vs the comparable period, and losses narrowed under their “Quantum Leap” plan.
• April 2025:-  Green Hydrogen Systems (a Danish electrolyser manufacturer) announced layoffs of 89 employees, as part of a court-led corporate restructuring. The company is under severe financial stress, with mounting debt. A reconstruction plan was proposed, involving selling assets, new capital, and additional cost-cutting measures.
• July 2025:-  Plug Power extended a strategic hydrogen supply agreement through 2030 with a U.S.-based industrial gas partner. This multi-year contract helps secure reliable hydrogen supply for its growing applications business, while reducing cost structure and improving cash flows.