Green Hydrogen Market Growth: A Deep Dive Into Trends and Insights

The global green hydrogen market is projected to reach USD 60.56 billion by 2030, reflecting a compound annual growth rate (CAGR) of 38.5% from 2025 to 2030, according to a new report by Grand View Research, Inc. This growth is largely driven by increased government investments and subsidies aimed at supporting clean fuel adoption, alongside the promotion of the hydrogen economy as a sustainable alternative to the fossil fuel-based economy, which is expected to further boost demand in the forecast period.

The market growth is being propelled by the expanding use of renewable energy sources across a variety of industries. Green hydrogen is produced through the electrolysis of water, utilizing renewable energy sources like wind and solar power. Additionally, as the scale of renewable energy production increases, the cost of clean energy generation is anticipated to decrease, further benefiting the green hydrogen market over the coming years.

In 2021, the alkaline electrolyzer segment represented 66.18% of the market share, due to its status as the traditional technology employed in green hydrogen projects. The alkaline electrolyzer uses a liquid alkaline solution of potassium or sodium hydroxide as its electrolyte and typically offers longer operational hours than PEM (Polymer Electrolyte Membrane) electrolyzers. However, PEM electrolyzers are expected to experience a faster growth rate than alkaline electrolyzers during the forecast period.

The transportation sector was the largest segment by application, accounting for approximately 40.61% of the global green hydrogen market in 2021. As the transportation industry shifts away from fossil fuels in favor of renewable energy sources like green hydrogen and solar power, this segment is expected to expand further in the coming years. Similarly, the power generation sector is also poised for steady growth, driven by decreasing costs associated with green hydrogen production.

Regarding distribution channels, the pipeline segment held 63.11% of the market in 2021. Pipelines are the most cost-effective means of transporting large quantities of green hydrogen over long distances. The cargo segment is projected to grow at a CAGR of 40.9% during the forecast period, owing to increased demand for green hydrogen.

North America is expected to experience significant growth during the forecast period, with the U.S. and Canada at the forefront due to their clean energy policies. In the U.S., California plays a pivotal role, accounting for a major share of the market, driven by ambitious decarbonization initiatives, such as the state’s plan to phase out gas or diesel-powered public buses by 2040.

Key industry players are focusing on innovations and technological advancements to reduce the high cost of electrolyzer units, facilitating the wider commercialization of green hydrogen production. In addition, companies are pursuing strategic initiatives like joint ventures, partnerships, and mergers & acquisitions to strengthen their positions in the market.

Countries are increasingly recognizing the untapped potential of the hydrogen sector, which is expected to enhance the industry’s growth. In October 2019, Siemens entered into a technical partnership for a 5 GW wind and solar combined energy project in Australia. The company plans to provide electrolyzer technology to generate green hydrogen via renewable-powered electrolysis, with the hydrogen produced to be exported to Asian markets.

Green Hydrogen Market Report Highlights:

• The alkaline electrolyzer segment held the largest revenue share of 65.46% in 2024, due to its low capital cost and extended operating life compared to PEM electrolyzers.

• The Polymer Electrolyte Membrane (PEM) electrolyzer segment is expected to see the fastest growth rate, driven by its thinner membrane, higher proton conductivity, and lower gas permeability.

• The transportation sector led the market with the largest revenue share of 43.39% in 2024. The rising adoption of renewable energy in the transportation industry is expected to further propel this sector's growth.

• The pipeline distribution segment accounted for 60.66% of the revenue share in 2024, driven by the low cost of pipeline infrastructure and existing networks.

• Europe held a dominant revenue share of 47.47% in 2024, due to the large number of green hydrogen production plants and substantial government investments in the region.

• North America is expected to grow at a notable CAGR, propelled by clean energy policies and increasing applications of green hydrogen, particularly in fuel-cell vehicles.

• Asia Pacific is forecast to grow at the fastest rate, driven by supportive government policies and large-scale green hydrogen projects, particularly in countries like Australia and Japan.

List of Key Players in the Green Hydrogen Market

• Air Liquide

• Air Products Inc.

• Bloom Energy

• Cummins Inc.

• Engie

• Linde plc.

• Nel ASA

• Siemens Energy

• Toshiba Energy Systems & Solutions Corporation

• Uniper SE

Order a free sample PDF of the Green Hydrogen Market Intelligence Study, published by Grand View Research.