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The primary method for producing green hydrogen is through the electrolysis of water, a process that utilises electricity generated from renewable sources such as wind, solar, or hydropower to split water into hydrogen and oxygen. This method is particularly advantageous because it results in zero carbon emissions, making green hydrogen a clean energy source. It is also highly versatile, finding applications in various sectors such as transportation, industry, and energy storage, and can act as a medium for storing surplus renewable energy.

However, the production of green hydrogen is currently faced with several challenges, including high costs and significant energy requirements. Moreover, there is a substantial need for investment in infrastructure to facilitate its production, storage, and distribution.

Despite the current challenges, the outlook for the green hydrogen market is very promising. As technology continues to advance and production costs decrease, the market is expected to expand significantly. Key to this growth will be the support from government policies and international cooperation.

Europe is poised to hold the highest share in the global green hydrogen market, a status underscored by its strategic, economic, and policy-driven initiatives. This leadership stems from Europe's aggressive approach towards renewable energy and a strong commitment to reducing carbon emissions. Key to this dominance is Europe's robust policy framework, exemplified by ambitious climate goals such as the European Green Deal and various national strategies explicitly supporting green hydrogen development.

The region has witnessed significant public and private investments in green hydrogen, encompassing not just production but also the development of necessary infrastructure for storage and distribution. Technological innovation in Europe is at its peak, with leading renewable energy technology companies spearheading advancements in green hydrogen production.
The application of green hydrogen as an industrial feedstock represents a significant and transformative segment of the global green hydrogen market. As industries worldwide seek to reduce their carbon footprint and transition towards sustainable practices, green hydrogen emerges as a pivotal player, especially in sectors heavily reliant on traditional hydrocarbon feedstocks.

Alkaline Electrolyzer to Lead the Global Green Hydrogen Market (by Technology)

The alkaline electrolyzer segment held the largest share of the green hydrogen market in 2022. Alkaline electrolyzers were the initial electrolyzers to enter the market for industrial applications, and they remained the sole electrolyzer technology available until the 1970s, when proton exchange membrane (PEM) technology emerged. Unlike PEM electrolyzers, alkaline electrolyzers do not require the use of precious metals, offering a longer operational lifespan and a more cost-effective solution.

Solar Energy to Hold Highest Share in Global Green Hydrogen Market (by Renewable Energy Source)

The assertion that solar energy will hold the highest share in the global green hydrogen market is rooted in several key factors. The cost of solar photovoltaic (PV) technology has been decreasing rapidly, making solar energy more economically viable for hydrogen production. This cost-effectiveness is crucial in the context of green hydrogen, where production costs are a significant concern. Solar energy's role in the global green hydrogen market is becoming increasingly prominent, offering a pathway to a sustainable and economically viable hydrogen economy.

Among the prominent players in the global green hydrogen market, the public players dominate, commanding approximately 93.3% of the market share in 2022. The remaining 6.67% is held by private companies.

Source: ResearchAndMarkets.com, BIS Research (2024)