The global green hydrogen market size is expected to reach USD 2.28 billion by 2027 registering a CAGR of 14.24% over the forecast period, according to a new report by Grand View Research, Inc. Growing government investments and subsidies benefitting clean fuel usage along with hydrogen economy being touted as an eco-friendly alternative to fossil fuel economy are likely to strengthen the market growth over the forecast period.
The market is driven by the proliferating deployment of renewable energy sources in various end-use industries. Green hydrogen is produced through electrolysis of water, with renewable power generation sources, such as wind, solar, and other renewable energy sources. Furthermore, the growing scale of renewable energy is estimated to result in a lowered cost of clean power generation, thereby positively influencing the market growth over the forecast years.
Major players in the industry are focusing on innovation and technological advancements to reduce the costs of electrolyzer units, boosting the commercialization of green hydrogen production. In addition, market participants are emphasizing on practicing several strategic initiatives, such as joint ventures, partnerships, and mergers & acquisitions, to strengthen their foothold in the market over the coming years.
The countries realizing their untapped potential in the hydrogen market are expected to enhance the industry landscape over the coming years. In October 2019, Siemens announced a technical partnership on a 5 GW wind and solar combined energy project in Australia. The company is expected to provide its electrolyzer technology to generate green hydrogen through renewable-powered electrolysis. The clean hydrogen produced is intended to be exported to Asian markets.
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Further key Findings from the Study Suggest:
- Alkaline electrolyzer technology segment led the market in 2019 owing to low capital cost and higher operating period capability of this technology
- However, the PEM electrolyzer technology is expected to be the fastest-growing as well as the largest segment in the forecast period owing to its lower membrane thickness, high proton conductivity, and lower gas permeability
- Europe was the largest regional market in 2019 owing to the presence of a high number of green hydrogen production plants across the region
- North America is estimated to register a significant CAGR over the forecast period owing to implementation of clean energy targets along with growing end-market applications, such as green hydrogen being used as a fuel in fuel-cell driven vehicles
- Asia Pacific is expected to record the fastest CAGR in the forecast period owing to supportive policies and large-scale green hydrogen projects announced in countries, such as Australia and Japan