Global Green Hydrogen Market to Register Strong Double-Digit Growth—Projected to Grow at a CAGR of 57.7% by 2027
Published | 06 October 2021
Global green hydrogen market is anticipated to grow due to the increasing use of green hydrogen for production of fertilizers and ammonia in chemical industry. Other factors driving the growth of the global green hydrogen market are the development of electrolysis technologies, and strong demand from Fuel Cell Electric Vehicles and the power sector.
A study recently conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that global green hydrogen market is estimated to be worth USD 445.1 million in 2021 and is further projected to reach USD 6,836.0 million by 2027, at a CAGR of 57.7% during the forecast period (2021-2027). Various government initiatives to reduce carbon emissions and to reach the goal of zero carbon emissions support the growth of the green hydrogen market. Hydrogen derived from green plants is viewed as one of the most promising energy sources, which is why it's being used to meet global needs for increased energy across the globe. In light of the factors listed above, the need for green hydrogen is increasing, causing the green hydrogen market to grow.
Rising Government Strategies for Improving Hydrogen Infrastructure Favoring Market Growth
European Hydrogen Backbone is an initiative of the European Union aiming to improve the dedicated hydrogen transport infrastructure in Europe. The group estimates a hydrogen network of 39,700km by 2040, with even greater growth anticipated after 2040. There are 21 countries in this grid. The European hydrogen backbone initiative has been joined by two European transmission system operators from 11 European countries. This initiative for upgrading infrastructure estimated a total investment of approx. USD 45 billion. The hydrogen infrastructure maps available today reflect the perspectives of 23 gas transmission system operators (TSOs) on how infrastructure will evolve to achieve decarburization goals. These strategies have contributed to the rapid growth of the green hydrogen market.
Increasing Investment for Setting Up New Production Plants Driving the Market Forward
Increased investment in the development of green hydrogen and achieving net-zero net carbon emissions are two of the primary factors driving the green hydrogen market. For instance, a memorandum of understanding (MoU) has been signed between Mauritania and Chariot's UK oil and gas firm to develop a 10GW hydrogen project to advance the giant Nour wind/solar/H2 project. Chariot plans to use the lands to build 10GW of solar and wind capacity to power electrolyzers that produce green hydrogen. Thus, the rising investment for producing green hydrogen and increasing utilization of green hydrogen from the end-user industry has further propelled the growth of the green hydrogen market.
Solar Energy Segment to Cater Largest Growth in the Renewable Source Segment
Based on renewable sources, the green hydrogen market is segmented into wind energy, solar energy, and others. Solar energy is estimated to account for the largest share in 2021 in the global green hydrogen market. The solar energy sector is growing in importance, as solar power is a low-cost energy source for generating green hydrogen. Companies around the globe see solar energy as a lucrative opportunity for the generation of green hydrogen directly from solar panels. Solar power can run electrolyzers to convert water into hydrogen. Therefore, the solar energy industry's growing investment in green hydrogen production has further boosted the growth of the green hydrogen market.
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Impact of COVID-19 on Global Green Hydrogen Market
Many enterprises around the world have been affected by the global pandemic caused by COVID-19. Insufficient supplies have affected several supply chains, logistics, raw material suppliers, miners, and others. The pandemic has also affected green hydrogen markets. Several businesses, commercial buildings, industries, and other facilities have been closed due to the nationwide lockdowns imposed by different countries. As a result of little traffic on the roads, the automobile sector, where green hydrogen finds its greatest application, was hindered. Furthermore, a loss of sales in the automobile sector also affected the overall green hydrogen market.
Global Green Hydrogen Market: Regional Insights
Geographically, the green hydrogen market is categorized into North America, Europe, the Asia-Pacific, the Middle East & Africa, and Latin America. Europe is estimated to account for the largest share in the green hydrogen market in 2021 and is likely to dominate during the forecast period. The growth of the European green hydrogen market is primarily due to an increase in investments for setting up new manufacturing facilities to produce green hydrogen. In June 2021, Shell launched Europe's largest PEM (Polymer electrolyte membrane) green hydrogen electrolyzer for producing green hydrogen. The fully operational plant is the first in the world to use this technology in a refinery.
Some of the key players in the green hydrogen market are Siemens Energy AG, Toshiba Energy Systems & Solutions Corporation, Nel ASA, Linde, Cummins Inc, H&R Ölwerke Schindler GmbH, Wind to Gas Energy GmbH & Co. KG, Guangdong Nation-Synergy Hydrogen Power Technology Co., Ltd., Air Liquide, and Air Products and Chemicals, Inc., and other prominent players. The key players heavily invest in R&D to optimize green hydrogen production since green hydrogen has a high production cost and needs large initial investment. Green hydrogen's increasing applications and extensive research and development create enormous opportunities for the industry's key players.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global green hydrogen market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the green hydrogen market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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