The Green Hydrogen (Market is about to embark on a journey that has the potential to change the energy sector. Because of its environmental friendliness and wide range of applications, green hydrogen is developing as a potential alternative to fossil fuels.
According to a recent market research finding by ChemView Consulting, the market value for Green Hydrogen market is predicted to skyrocket from 574.2 million in 2023 to a whopping 24925.2 million by 2033. The survey also claims that the market is expanding at an extraordinary 45.8% CAGR.
Green Hydrogen Market Outlook
Technological advancements in electrolyzers and storage solutions are propelling the market forward. The alkaline electrolyzer category, in particular, is experiencing massive investment, making it the largest segment of the market.
Demand for Green Hydrogen Market
The need for green hydrogen is increasing, particularly in Europe, which is the largest market for gh. The European Union’s ambition to accomplish net-zero emissions by 2050 is propelling the demand and is spreading to other regions.
Green Hydrogen Market Challenges
The high cost of manufacturing and storage is one of the primary issues confronting the green hydrogen business. Despite technological developments, the sector requires more cost-effective solutions to gain traction.
Green Hydrogen Market Opportunities
The industry has enormous growth potential, particularly in transportation, energy storage, and industrial applications. Companies are looking into partnerships and collaborations to capitalize on these opportunities and increase their market reach.
“The green hydrogen industry is expanding at an exponential rate, driven by rising environmental concerns and the need for sustainable energy alternatives. Governments and organizations are investing extensively in research and development to make green hydrogen a viable alternative for a variety of uses” opines a Senior Research Analyst at ChemView Consulting.
Technology Type Insights in the Green Hydrogen Market
Alkaline Electrolyzers Dominate the Market Landscape
The alkaline electrolyzer category has been a stalwart in the gh industry, accounting for 66.18% of total sales in 2021. This is primarily because it is the traditional technology used in green hydrogen generation initiatives. The electrolyte in alkaline electrolyzers is commonly a liquid alkaline solution of potassium or sodium hydroxide. They also have more operational hours than their PEM counterparts. However, alkaline electrolyzers operate at lower power and current densities and at temperatures ranging from 100 to 105 degrees Celsius, which is greater than the 70-to-90-degree range for PEM electrolyzers. Despite these constraints, the category is predicted to develop because of its cost-effectiveness in comparison to PEM electrolyzers.
PEM Electrolyzers Exhibit Robust Growth Prospects
Proton Exchange Membrane (PEM) electrolyzers are emerging as a serious competitor in the gh market, which is projected to expand at an increased pace in the coming years. The technique encompasses solid specialized plastic material-based electrolytes, that offer greater functional flexibility over alkaline electrolyzers. The growth can be attributed to a variety of drives, including increased proton conductivity, lower gas permeability, and reduced proton exchange membrane thickness.
Industry Focus on Commercial-Scale PEM Electrolyzer Deployment
To improve the power efficiency of green hydrogen production, industry companies are progressively working on commercializing PEM electrolyzer technology. For example, in January 2020, ITM Power, based in the United Kingdom, formed a joint venture with ITM Linde Electrolysis GmbH. The cooperation seeks to provide gh on an industrial scale by utilizing a PEM electrolyzer with a capacity of more than 10 MW. This action reflects the industry’s dedication to expanding PEM technology and, as a result, to contribute to the overall growth of the green hydrogen market.
Regional Highlights
Green Hydrogen Market in Europe
Europe is the industry leader in green hydrogen due to proactive regulations and investments in sustainable energy solutions. Germany and France are leading the way, with various projects and initiatives targeted at developing gh.
Green Hydrogen Market in North America
North America is coming up, with the United States government expressing greater interest in gh as part of its clean energy program. Research and development investments are projected to boost market expansion in this area.
Green Hydrogen Market in Asia-Pacific
Except for Japan, Asia-Pacific is a developing market for gh. Countries such as China and India are investing in gh projects to minimize carbon emissions and develop long-term energy alternatives.
Green Hydrogen Market in Japan
Japan is interested in gh because of its potential for energy storage and mobility. The administration has outlined ambitions to transform the country into a hydrogen economy by 2050.
Green Hydrogen Market in Latin America and Middle East and Africa
Latin America, the Middle East, and Africa are emerging markets with enormous promise. Renewable energy investments are likely to drive market expansion in these regions.
Key Players in the Green Hydrogen Market
The market is dominated by key players such as Siemens, Nel Hydrogen, and Hydrogenics. These companies are investing in new technologies and forming strategic partnerships to expand their market reach.
Siemens: Recently partnered with other energy companies to develop new gh production facilities.
Nel Hydrogen: Focusing on the development of efficient electrolyzers.
Hydrogenics: Acquired by Cummins Inc., aiming to expand its green hydrogen production capabilities.
