Clean Hydrogen Market Size, Global Trends, Growth, Forecast 2032

Clean Hydrogen Industry Prospective:

The global clean hydrogen market size was worth around USD 2.3 billion in 2023 and is predicted to grow to around USD 7.2 billion by 2032 with a compound annual growth rate (CAGR) of roughly 13.5% between 2024 and 2032.

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Clean Hydrogen Market: Overview

Clean hydrogen is generated with low or zero greenhouse gas emissions using specific processes. Clean hydrogen can be classified depending on its production technique; mostly, this relates to the environmental impact and the energy source chosen.

One type of clean hydrogen is green hydrogen, which is generated by electrolysis driven by renewable energy such as solar, wind, hydroelectric or geothermal, to divide water into hydrogen and oxygen.

The clean hydrogen market is driven by several factors, such as growing initiatives across the globe to achieve net-zero-carbon emissions, increasing industrial demand for clean energy, transportation sector transformation, technological advancements, and rising investment.

However, the high production cost and limited infrastructure might be a major challenge for the clean hydrogen industry expansion.

Key Insights

• As per the analysis shared by our research analyst, the global clean hydrogen market is estimated to grow annually at a CAGR of around 13.5% over the forecast period (2024-2032).
• In terms of revenue, the global clean hydrogen market size was valued at around USD 2.3 billion in 2023 and is projected to reach USD 7.2 billion by 2032.
• The rising government initiatives are expected to drive the clean hydrogen market over the forecast period.
• Based on type, the green hydrogen segment is expected to capture the largest market share over the forecast period.
• Based on application, the transportation segment is expected to dominate the clean hydrogen market over the forecast period.
• Based on region, Europe is expected to dominate the market during the forecast period.

Clean Hydrogen Market: Growth Drivers

Technological advancements in electrolysis drive market growth

The efficiency and economy of the method known as electrolysis, which generates hydrogen from water by running electricity, are rising. Large-scale hydrogen generation has become more affordable as PEM (proton exchange membranes) and alkaline electrolyzers have developed.

The use of renewable energy sources such as solar and wind in the electrolysis processes has resulted in a notable cost decrease in green hydrogen generation, as their increasing popularity and affordability indicate.

This makes clean hydrogen an improved form of energy storage and as a fuel for transportation, the power sector, and industrial processing, increasing the clean hydrogen market value.

One cleaner substitute for fossil fuels, hydrogen energy, for instance, has a gravimetric density almost seven times that of fossil fuels and suffers difficulties with storage and transportation.

By 2040, thirty-five percent of European cars are expected to be hydrogen-powered. There are 401 hydrogen fuel stations worldwide; 159 more are in development, and 46 in the USA specifically.

Clean Hydrogen Market: Restraints

Inadequate infrastructure hindering the market growth

One of the main obstacles to the general acceptance of clean hydrogen is inadequate infrastructure. Particularly, green hydrogen, created by electrolysis of renewable energy, is still in the early phases of commercialization.

Many nations and areas lack large-scale, commercially feasible hydrogen-producing facilities. Scaling up electrolysis and other clean hydrogen-generating technologies to satisfy demand requires significant new production facility investment. Similarly, a high cost is incurred for establishing new facilities to generate pure hydrogen.

Establishing green hydrogen plants requires access to renewable energy sources, which might not be abundant everywhere.

Furthermore, advanced technology for electrolysis and other clean hydrogen generation techniques still has to be scaled down and improved further, thereby hampering the growth of the clean hydrogen industry.

Clean Hydrogen Market: Opportunities

Growing public and private initiatives offer a lucrative opportunity for market growth

The growing public and private initiatives are expected to offer a lucrative opportunity for clean hydrogen market growth during the forecast period.

For instance, in November 2023, to fight climate change and improve energy access in developing nations, the World Bank and its international partners are advocating for the adoption of an action agenda to hasten the global deployment of clean hydrogen as a low-carbon energy carrier.

To show the feasibility of the fledgling clean hydrogen industry, lower financing costs, and increase adoption rates by developing scalable solutions, the plan proposes the development of priority projects across emerging markets and developing nations to launch a 10 GW capacity initiative, which is ten times the current global hydrogen production using renewable energy input.

Clean Hydrogen Market: Challenges

Competition with other low-carbon technologies poses a major challenge to market expansion

The increasing competition from other low-carbon technologies poses a major challenge for the clean hydrogen market growth during the forecast period.

Due to a large charging network, improved battery technology, and lower costs, BEVs are embraced in the transportation industry, especially in the light-duty vehicle market. BEVs are sometimes more affordable and energy-efficient than hydrogen fuel cell vehicles for passenger cars and even short-distance cargo.

Additionally, short-term energy storage on the electrical grid is provided effectively by battery energy storage systems (BESS). They are utilized alongside solar and wind power projects more and more to balance the energy supply.

Although hydrogen offers long-term storage, batteries are sometimes considered a more effective and simple option for short grid balancing.

Clean Hydrogen Market: Segmentation

The global clean hydrogen industry is segmented based on type, method, application, and region.

Based on the type, the global clean hydrogen market is segmented into blue hydrogen and green hydrogen. The green hydrogen segment is expected to capture the largest market share over the forecast period.

Green hydrogen is produced by electrolyzing water to separate hydrogen from oxygen. The technique is more sustainable and gives consumers a clean energy source because this electrolysis may be performed using energy from renewable sources.

While the resulting oxygen is discharged into the atmosphere or used as a by-product, the hydrogen produced in this manner can be stored or utilized in heavy transportation or industrial activities. Thus driving the segment expansion during the projected period.

Based on the method, the global clean hydrogen industry is bifurcated into electrolysis and carbon capture.

Based on application, the global clean hydrogen market is bifurcated into industrial, transportation, power and others. The transportation segment is expected to dominate the clean hydrogen market over the forecast period due to the increasing application of hydrogen gas-powered vehicles.

Using the installation of refueling stations, governments' and industries' carbon emissions and hydrocarbon consumption reduction activities are encouraging the growth of hydrogen infrastructure.

Compared to electric vehicles, which need charging, hydrogen vehicles—buses, lorries, and passenger cars have rapid refueling times and larger ranges, which makes them quite appropriate for heavy-duty and long-distance excursions.

To this diversity, several nations have already started integrating hydrogen trains and maritime vessels; both big automakers and startups invest in the creation of hydrogen vehicles.

Policy incentives, public-private partnerships, and international cooperation toward developing a sustainable hydrogen economy promote this shift toward hydrogen as a fuel in transportation, therefore transforming the transport sector into a major driver of the hydrogen market development.

Clean Hydrogen Market: Report Scope

Clean Hydrogen Market: Regional Analysis

Europe dominates the market over the projected period

Europe is expected to dominate the global clean hydrogen market during the forecast period. Countries such as France, Italy, Spain, Norway, and the UK have had an enormous impact on the worldwide clean hydrogen market with climate-friendly legislation and strong frameworks.

Many companies unveiling significant low- or zero-carbon hydrogen projects help to explain the increasing number of clean hydrogen initiatives in Europe. These developments are helping the area to fulfill its objective of being a top producer of clean hydrogen.

Apart from that, the European Commission has several strategies for attaining net-zero worldwide emissions by 2050; hydrogen will be an especially important tool.

The European region already has plenty of momentum for the development of clean hydrogen. About 100 MW of clean hydrogen capacity has already been built, and a 20 GW facility has been announced for the coming years.

Clean Hydrogen Market: Competitive Analysis

The global clean hydrogen market is dominated by players like:

• FuelCell Energy Inc.
• ExxonMobil
• Plug Power Inc.
• China Petroleum & Chemical Corporation
• Enel Green Power Spa
• Orsted A/S
• Linde plc
• Air Products & Chemicals Inc.
• Saudi Aramco
• Iberdrola SA

The global clean hydrogen market is segmented as follows:

By Type

• Blue Hydrogen
• Green Hydrogen

By Method

• Electrolysis
• Carbon Capture

By Application

• Industrial
• Transportation
• Power
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa