Green Hydrogen Market - Global Outlook & Forecast 2022-2027

TO BE PUBLISHED : Dec 2023 | Pages : 239


The Green Hydrogen Market Size, Share, & Trends Analysis Report by

  • Technology: Alkaline Electrolyser and PEM Electrolyser
  • Application: Industrial, Oil Refinery, Transportation, and Others
  • Geography: North America, Europe, APAC, Latin America, and Middle East & Africa

Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast 2022–2027.

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Most Exhaustive Report


239 Pages


92 Tables


73 Charts


5 Regions


21 Countries


19 Companies


3 Market Segment


Report Attribute Details
Market Size (2027) USD 43.68 Billion
Market Size (2021) USD 3.34 Billion
CAGR (2021-2027) 53.45%
Base Year 2021
Forecast Year 2022-2027
Market Segments Technology, Application, and Geography
Geographic Analysis North America, Europe, APAC, Latin America, and Middle East & Africa
Countries Covered Air Liquide, Engie, Linde PLC, Siemens, and Siemens Energy


The global green hydrogen market was valued at USD 3.34 billion in 2022 and is expected to reach USD 43.68 billion by 2027, growing at a CAGR of 53.45% during the forecast period. The hydrogen produced from renewable sources is known as green hydrogen. It contributes to zero carbon emissions which can be used in industries without interrupting production and help to make society carbon-free. The green hydrogen market has helped various industries, especially those that contribute highly to emissions, like heavy industries, steel, and chemicals, to lower their carbon emissions.

Factors such as growing environmental concerns, technological advancements, and government implementing policies to promote green hydrogen drive the green hydrogen market. Rapidly developing industries and the growing transportation sector have increased carbon emissions significantly. Companies, nongovernmental organizations, and governments are trying to implement various strategies to create awareness about the negative impacts of carbon emissions on the environment to solve these problems. Developed countries such as Germany, France, the US, Italy, and others have been promoting renewable energy generation, which will reduce the carbon footprint and prominently boost the green hydrogen market.

The future of the green hydrogen market looks bright as many countries are working towards developing green hydrogen. According to Prospero Events Group, Proton Exchange Membrane electrolyser is the biggest plant with a capacity of 20MW situated in Canada. The HyDeal Ambition project in Western Europe aims to provide 67 GW of electrolysis from 95 GW of solar power. It would yield 3.6 million tons of green hydrogen per year. As per the Government of Western Australia, Asian Renewable Energy Hub developed by InterContinent Energy, CWP Energy Asia, Vestas, and Macquarie aim to export green hydrogen and green ammonia to Asia.


Technology Advancement
The automotive industry is developing various technologies to minimize carbon footprints and maximize fuel efficiency and power output. As per the European Commission, the automobile sector was ranked third globally in R&D investment. Innovations such as artificial intelligence, robotics, and alternative fuels in industries like automotive will positively affect the green hydrogen market. According to the Secondary Sources, automobile manufacturers are investing considerable resources to develop new technologies in internal combustion engines and aerodynamics for vehicles to improve their efficiency. Improvements in the internal combustion engine are expected to reduce fuel combustion of any vehicle. Also, the development of in-vehicle electronics has greatly lowered fuel consumption levels by controlling fuel injection and ignition to deliver an efficient and good-performance engine.

Growing Automotive and Transportation Industry
The demand for commercial and passenger vehicles in India, China, Brazil, and South Korea is on the rise due to the rapid development of the automotive and infrastructure industries. Moreover, the automotive industry developed immensely in terms of R&D, production capacity, and competitive standards over the past decade. Companies in the automotive sector are investing significantly in the development of new and efficient vehicles. Large R&D investments have enabled companies such as Hyundai, Kia, Tata Motors, and SAIC motors to deliver quality vehicles with better performance at reasonable prices and further increase the demand for passenger and commercial vehicles. Green hydrogen has helped the automotive and transport industry by providing a cost-effective, environment-friendly solution. Countries such as China, Japan, Indonesia, India, the US, the UK, France, Canada, Italy, Germany, and Spain are already investing in green chemistry and circular economy. Such initiatives are expected to sustainably improve the pace of urbanization and protect the environment in the coming years through balanced infrastructure development measures. Such initiatives will enable the automotive sector to grow and propel the green hydrogen market growth.

Growing Environmental Concerns
Environmental stability has become a major concern for consumers and various industries globally. Various industries have started practicing sustainable development practices to lower carbon emissions. For instance, the Department of Energy plans to invest around USD 100 million in research and development for green hydrogen and fuel cells, the European Union has invested around USD  430 billion, and other nations are also investing. Moreover, Green hydrogen is one of the most significant components that can help achieve the Paris Agreement's objective. Green hydrogen can replace carbon-oriented fuel in transportation, power/electricity, and heavy industries. Such factors are projected to support the growth of the global green hydrogen market.


High Initial Investment
Green hydrogen costs three times as much as natural gas in the US, as producing it is much more expensive than manufacturing grey or blue hydrogen. The production of green hydrogen using electrolysers and electrolysis is expensive. Moreover, it is produced using electricity from renewable energy plants, which is two to three times more expensive than grey hydrogen. Green hydrogen competes with fossil fuels and other types of hydrogen. The production cost of green hydrogen depends on the investment in the technology used in an electrolyser, its capacity, and the cost of electricity produced from renewable energy. The cost of green hydrogen is in the range of USD 2.5/Kg–USD 6/Kg, and the production of green hydrogen is much more expensive when compared to other hydrogen variants, such as grey and blue. Such factors can hamper the growth of the green hydrogen market during the forecast period.


The global green hydrogen market by alkaline electrolyser was valued at USD 2.3 billion in 2021 and dominated the industry. The alkaline electrolyser is a leading electrolyser technology in the world and is a great technology for producing green hydrogen from nuclear or renewable electricity with low emissions. In the last few years, the production capacity of hydrogen has been increasing. Alkaline electrolysers can cover a load of 10% to full capacity and do not require precious metals. Thus, the capital cost required for the operation is lower compared to another electrolyser.

Proton exchange membrane (PEM) electrolyser is the second most useable technology in the world. In this electrolyzer process, platinum and iridium metal is used for electrode catalysts, and titanium metal is used for bipolar. PEM Electrolyser Technology facilitates fast, responsive alerts and helps to solve the issues related to partial load, low-pressure operation, and low current density. The global green hydrogen market by PEM Electrolyser was valued at USD 1.04 billion in 2021.

The industrial green hydrogen market is the leading segment and is growing at a CAGR of 53.63% during the forecast period. Steel and chemical is the most pollutant industry and participants in the race of highest carbon emissions worldwide. In the steel industry, hydrogen is the best alternative substitute for coal, which helps decarbonize steel production. Producing steel using green hydrogen is known as green steel. Green steel is a strong network for knowledge transfer, the community of researchers, engineering, system integrators, plants, etc. Up to 8% of the world’s greenhouse gas emissions come from the manufacture of steel, and the existing methods require a lot of coal. Further carbon can be replaced by green hydrogen, thereby completely decarbonizing the process.

The global green hydrogen market by oil refinery was valued at USD 1.36 billion in 2021. Hydrogen is used to lower the sulfur content of all kerosene, diesel, and gasoline and is considered crucial in refinery operations. Using hydrogen, which is generated from methane, results in carbon emissions. However, using green hydrogen for refinery processing reduces carbon emissions and helps in a sustainable environment.


APAC holds the most prominent share in the global green hydrogen market. Rapid urbanization, rising disposable income, and rapid industrialization have fueled the growth of automotive, transportation, food processing, oil refinery, chemical, and heavy industries. In APAC, China, India, Japan, and Indonesia have been the major market as the respective government promoted foreign investment in the respective countries. Increased purchasing power, strong economic growth, government subsidies & grants, and growing automotive and transportation activities have primarily supported green hydrogen market growth in the region.

Europe's green hydrogen market is growing at a CAGR of 56.79% during the forecast period. Europe is amongst the top economies boosting the adoption and establishment of various plants for green hydrogen. The development of green hydrogen is becoming necessary for organizations to remain competitive in the market. Various European companies are adopting the latest technologies, investing high amounts, collaborating, adopting, and acquiring, working in various strategies to gain a competitive edge and drive the green hydrogen market. The region aims to become among the global leaders in green hydrogen and is at its development stage, mainly focused on development by building various green hydrogen production plants.


The competitive scenario in the green hydrogen market in the oil & gas, heavy industries, chemical, transportation, and oil refineries is deepening. The fast-changing technological environment can adversely affect companies as customers expect continual innovations and upgrades. The market is consolidated, with a few players preparing to provide green hydrogen solutions in highly functional industries. Market players have adopted expansion, acquisitions, development, joint ventures, and others to increase their revenues in the green hydrogen market.

Engie, Uniper Se, Linde PLC, Siemens, Toshiba energy, Nel ASA, Air products and chemicals Inc, Cummins Inc, Bloom energy, Envision digital, etc., are major companies in the global green hydrogen market. These companies are working to fulfill the vision of making the world carbon-free. Companies worldwide aim to develop the green hydrogen and energy transition, which encourages sustainability. The development of green hydrogen provides abundant opportunities and challenges globally. Currently, grey hydrogen produces at a rate of USD 1.06 to USD 2.12  per kg compared to green hydrogen, which is produced at 3 euros to 8 euros which is more expensive.

Frequently Asked Questions

How big is the green hydrogen market?

The global green hydrogen market size was valued at USD 3.34 billion in 2021 and is expected to reach USD 43.68 billion by 2027.

What is the growth rate of the green hydrogen market?

The global green hydrogen market is expected to grow at a CAGR of 53.45% from 2021 to 2027.

Who are the key players in the global green hydrogen market?

Air Liquide, Engie, Linde PLC, Siemens, and Siemens Energy are the key players in the global green hydrogen market.

What are the key driving factors in the green hydrogen market?

Increasing government regulations, growing automotive and transportation industry, increased EV demand, and decreasing dependency on oil and gas drive the green hydrogen market.

Which region dominates the global green hydrogen market?

APAC held the largest global green hydrogen market share in 2021, valued at USD 1.5 billion.

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The green hydrogen market is expected to grow at a CAGR of approximately 53.45% from 2021 to 2027.

The following factors are likely to contribute to the growth of the green hydrogen market during the forecast period:

  • High Demand for Electricity
  • Growing Environmental Concerns
  • Technological Advancement

Base Year: 2021

Forecast Year: 2022-2027

The report considers the present scenario of the green hydrogen market and its market dynamics for 2022−2027. It covers a detailed overview of several market growth enablers, restraints, and trends. The study covers both the demand and supply sides of the market. It also profiles and analyzes leading companies and several other prominent companies operating in the market.

Key Vendors

  • Air Liquide
    • Business Overview
    • Product Offerings
    • Key Strategies
    • Key Strengths
    • Key Opportunities
  • Engie
  • Linde PLC
  • Siemens
  • Siemens Energy

Other Prominent Vendors

  • ACWA Power
    • Business Overview
    • Market Overview
    • Product Offerings
  • Air Products and Chemicals, Inc
  • Bloom Energy
  • Cummins, Inc
  • Enel Green Power S.P.A
  • Fuel Cell Energy Inc
  • Green Hydrogen International Corp.
  • Iberdrola
  • Lhyfe
  • Nel ASA
  • Orsted A/s
  • Plug Power, Inc
  • SGH2 Energy Global, LLC
  • Toshiba Corporation

Segmentation by Technology

  • Alkaline Electrolyser
  • PEM Electrolyser

Segmentation by Application

  • Industrial
  • Oil Refinery
  • Transportation
  • Others

Segmentation by Geography

  • North America
    • US
    • Canada
  • Europe
    • Germany
    • Netherlands
    • France
    • UK
    • Spain
    • Rest of Europe
  • APAC
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Rest of APAC
  • Latin America
    • Chile
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • UAE
    • Rest of the Middle East & Africa

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