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The Green Hydrogen Market Projected to Grow at a CAGR of 54.7% and Generate a Revenue of $9,834.3 Million by 2028 - Research Dive

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The global green hydrogen market is predicted to be valued at $9,834.3 million by 2028, surging from $257.7 million in 2020, at a noteworthy CAGR of 54.7%.

Covid-19 Impact on Green Hydrogen Market

The coronavirus outbreak has led to drastic changes that caused negative impact on green hydrogen market. This is majorly owing to reduced investments in the green hydrogen sector along with slow expansion & adoption of clean energy technologies. For instance, as stated on June 11, 2020, in the International Energy Association (IEA), the intergovernmental organization based in Paris, only 6 out of 46 technologies that focus on tracking the clean energy progress including green hydrogen technology were on track in 2020. Hence, COVID-19 pandemic is estimated to greatly affect the net zero emissions by 2050 climate goal owing to major disruptions in trade, travel, and drastic fall in the economic activities. The green hydrogen technology is already in pre-commercialization phase to play a major role in decarbonizing the economies. However, COVID-19 pandemic has delayed the adoption and roll-out of this technology owing to shortage of liquidity, steep drop in revenues along with climate and environmental policy commitments that have taken backseat in the economic recovery plans in the Europe.

Investments in green hydrogen technology to meet the European climate targets are helping the industry to recover from the chaotic situation. For instance, in July 2020, national hydrogen strategy was launched in Italy with specific focus on green hydrogen to decarbonize the economy. This is mainly owing to the use of green hydrogen as a fuel in heavy industries and transportation sector. The Ministry of Economic Development, in Italy, is targeting an investment of around $12 billion to boost the green hydrogen production by introducing 5 gigawatts of electrolyzing capacity for extracting green hydrogen gas from water over the period of 2021-2030.   

Global Green Hydrogen Market Analysis

The application of green hydrogen across various sectors such as feedstocks, alternative fuel, energy storage, and fuel cell vehicles is estimated to drive the green hydrogen market growth. For instance, in heating sector, green hydrogen can be used for decarbonizing, heating, or cooling the residential and commercial sector that currently relies on the natural gas. In addition, green hydrogen can be used to convert highly volatile and flammable gas into malleable fuel such as methane or ammonia. Also, the use of green hydrogen in fuel-cell vehicles is gaining huge popularity as many people are switching from internal combustion engines to battery powered cars. Green hydrogen can decarbonize the iron and steel production plants by replacing the carbon-based coke which is used as a fuel and reducing agent with green hydrogen that is free from toxic carbon emissions. All these factors are estimated to drive the green hydrogen market size in the upcoming years. 

However, high cost of green hydrogen production which is two to three times more expensive than grey hydrogen and natural gas might hamper the market growth. In addition, lack of dedicated transport infrastructure such as green hydrogen transmission pipelines compared to natural gas pipelines is estimated to affect the market growth.

Growing investments in green hydrogen sector are estimated to generate huge growth opportunities. For instance, as stated on May 03, 2021, in the United Nations Framework Convention on Climate Change, the international environmental treaty, the European Union (EU) has planned to invest $430 billion in the green hydrogen projects by 2030. In addition, countries such as Japan, Chile, Australia, and Saudi Arabia are making huge investments in green hydrogen sector. For instance, as stated on September 09, 2021, by the Australian Trade and Investment Commission, the leading trade and investment agency in Australia, in 2021-2022 Budget, the Australian Government has planned to invest $420 million in new clean hydrogen projects including green hydrogen.  

Global Green Hydrogen Market, Segmentation

The global green hydrogen market is segmented based on type, application, end-use, and region.


The type segment is further classified into proton exchange membrane electrolyzer, alkaline electrolyzer, and solid oxide electrolyzer. Among these, the alkaline electrolyzer sub-segment is anticipated to have a dominant market share and shall surpass $5,108.7 million by 2028, with an increase from $133.3 million in 2020. The alkaline electrolyzer for production of green hydrogen is a well-established and cost-effective technology. It is suitable for large scale green hydrogen production having the production amount of more than 1000m3/h. Higher durability is achieved with alkaline electrolyzer owing to the presence of exchangeable electrolyte and lower dissolution of anodic catalyst. The purity of green hydrogen gas obtained via alkaline electrolysis is high due to low gas diffusivity.


The application segment is further classified into power generation, transport, and others. Among these, the power generation green hydrogen sub-segment is anticipated to have a dominant market share and shall surpass $7,184.7 million by 2028, with an increase from $186.0 million in 2020. Green hydrogen is used as a fuel in power generation sector because it is produced using renewable energy sources such as wind and solar energy that has zero carbon emissions. The energy obtained from green hydrogen is versatile that can either be in gaseous form or liquid form which is then converted into electricity.


The end-use industry segment is further classified into food & beverages, medical, chemical, petrochemical, glass, and others. Among these, the petrochemical sub-segment is anticipated to have a dominant market share and shall surpass $4,053.3 million by 2028, with an increase from $104.5 million in 2020. Green hydrogen is used in petrochemical sector as the price of gasoline fuels is increasing rapidly. Also, the gasoline fuels emit harmful gases such as carbon dioxide. The green hydrogen obtained via electrolysis of water leaves only oxygen as a byproduct and it is derived from renewable energy source which is pollutant-free hydrogen. As renewable energy is available abundantly and its cost is declining, the interest for the use of green hydrogen in the petrochemical sector is growing substantially.


The green hydrogen market for the Asia-Pacific region is projected to witness rapid growth. This region’s market generated a revenue of $52.3 million in 2020 and is projected to reach up to $2,023.9 million by 2028. This is majorly owing to huge investments in the green hydrogen projects especially in countries such as Japan and Australia. For instance, as stated on December 8, 2020, in the Australian Trade and Investment Commission, three largest Japanese organizations namely Kawasaki Heavy Industries, Iwatani Corporation, and Mitsubishi Heavy Industries have invested in green hydrogen projects in Australia. For instance, in November 2020, Mitsubishi Heavy Industries, Ltd., announced an investment of $172.5 million in Eyre Peninsula Gateway Project which is one of the largest green electrolyzer projects in Australia.

Top 10 Major Key Players in the Global Green Hydrogen Market are -

  1. Air Liquide
  2. Ballard Power Systems
  3. Enapter
  4. SGH2 Energy Global, LLC
  5. Engie
  6. Plug Power, Inc.
  7. Royal Dutch Shell plc.
  8. Siemens Energy Global GmbH & Co. KG. AG
  9. Green Hydrogen Systems
  10. Next Hydrogen

Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.

Porter’s Five Forces Analysis for the Global Green Hydrogen Market:

  • Bargaining Power of Suppliers: Majority of the green hydrogen companies are dependent on raw materials such as renewable biomass and others from the suppliers. The raw materials required for production of green hydrogen are less hence suppliers have moderate bargaining power.  
    Thus, the bargaining power of suppliers is moderate.
  • Bargaining Power of Buyers: The concentration of buyers in green hydrogen market is increasing significantly. Also, they are eligible for various government, private investments, subsidies due to which their bargaining power reduces.  
    Thus, buyer’s bargaining power will be low.
  • Threat of New Entrants: The threat of new entrants in green hydrogen market is increasing slowly as it is the new technology that requires capital investment.  
    Thus, the threat of the new entrants is moderate.
  • Threat of Substitutes: The presence of alternatives such as blue hydrogen, grey hydrogen, and fossil fuels which are present since ages is estimated to restrain the green hydrogen market growth, but green hydrogen is sustainable as it facilitates carbon free emissions.   
    Thus, the threat of substitutes is moderate.
  • Competitive Rivalry in the Market: The green hydrogen market players are focusing on enhancing their production capacity via technological innovations and partnerships to attract large number of customers. 
    Therefore, competitive rivalry in the market is high.
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