February 15, 2025
Clean Hydrogen Market

The increasing demand for green fuel is anticipated to open up the new avenue for Clean Hydrogen Market

The Clean Hydrogen Market is estimated to be valued at US$ 4.35 Bn in 2023 and is expected to exhibit a CAGR of 14.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Clean hydrogen refers to hydrogen produced from renewable energy sources through electrolysis rather than from fossil fuels. It can be used as fuel in transport applications like trucks, ships and supply clean power without emitting greenhouse gases. Electrolyzers powered by renewable energy split water into hydrogen and oxygen. This hydrogen can then be compressed and distributed through pipelines or transported in liquid or gas forms. It provides carbon-free solution in energy intensive industries like refining, chemical and steel production.

Market Dynamics:

The growing awareness regarding greenhouse gas emissions and focus toward decarbonization is a key driver boosting the clean hydrogen market growth. Governments across regions have introduced policies and incentives for production and usage of clean hydrogen. For instance, European Union’s hydrogen strategy aims to install at least 6 GW of renewable hydrogen electrolyzers by 2024 and 40 GW by 2030. Similarly, US department of energy aims to reduce the cost of clean hydrogen to $1 per kg by 2030 to make it commercially viable. Additionally, clean hydrogen can enable flexible and seasonal energy storage to balance the intermittency issues associated with renewable power generation. It provides long-term storage of energy from solar and wind which is increasingly driving its adoption.

 Segment Analysis

The clean hydrogen market is predominantly dominated by the gray hydrogen sub-segment. Currently, over 95% of total hydrogen production is classified as gray hydrogen which is produced from natural gas through steam methane reforming. However, with increasing environmental concerns, the demand for low-carbon clean hydrogen is growing significantly. Green hydrogen, produced through water electrolysis using renewable energy sources, is expected to be the fastest growing sub-segment over the forecast period.

PEST Analysis

Political: Governments across various countries are introducing supportive policies and regulations to boost clean hydrogen production and infrastructure. For instance, the European Union has announced a strategy to scale up hydrogen usage with an aim to deploy 40 GW of renewable hydrogen electrolyzers by 2030.

Economic: Strong economic growth along with declining costs of renewable energy technologies are making clean hydrogen economically viable compared to conventional hydrogen production methods. This will drive greater private sector investments in scaling up clean hydrogen value chains.

Social: Growing environmental awareness among public and industries is increasing demand for clean and sustainable energy sources like clean hydrogen. This will positively influence the hydrogen market potential.

Technological: Rapid advancements are happening in electrolyzer technologies which are bringing down the costs of hydrogen production from renewable sources. Fuel cell vehicles are also improving which will further enhance clean hydrogen applications.

Key Takeaways

The global clean hydrogen market is expected to witness high growth, exhibiting CAGR of 14% over the forecast period, due to increasing adoption in various applications like transportation, power generation, and industrial processes. The market size for 2023 is estimated at US$ 4.35 Billion.

Regional analysis: Europe is currently the largest as well as the fastest growing regional market for clean hydrogen attributed to strong policy support and private sector investments in the region. Countries like Germany, France and Netherlands are at the forefront to develop hydrogen ecosystems and required infrastructure.

Key players: Key players operating in the clean hydrogen market are Linde Plc, Air Liquide, Engie, Uniper Se, Air Products Inc, Clean Hydrogen System, Cummins Inc., Toshiba Energy Systems & Solutions Corporation, Nel Asa, and Sgh2 Energy. These players are focusing on capacity expansions and partnerships to cater to the growing demand. For instance, Linde partnered with Fortescue Future Industries (FFI) to develop green hydrogen projects in Australia.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Money Singh
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

View all posts by Money Singh →