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Green Hydrogen Market Booming Due to Decarbonization Efforts & Growing Investments in Renewable Energy; Market to Reach USD 281.07 Billion by 2031

The Green Hydrogen Market is anticipated at USD 166.07 billion in 2023 and is expected to reach USD 281.07 billion in 2031 growing at a CAGR of 12.01% over the forecast period of 2024-2031.

The rising demand for green hydrogen is associated with several key factors, SNS Insider analyses the key factors in a more technical way. The global interest for decarbonization has created a need for clean energy solutions. Green hydrogen, produced by splitting water with renewable electricity, offers a zero-emission alternative to traditional fossil fuel-based hydrogen. Secondly, advancements in electrolysis technology and the declining cost of renewable energy are making green hydrogen increasingly cost-competitive. This, coupled with government initiatives like India’s National Hydrogen Mission with a target of 5 million metric tonnes by 2030 representing 40% of domestic demand and a proposed Rs 15,000 crore production-linked incentive (PLI) scheme for electrolyzers, is significantly boosting demand.


  • linde plc
  • Engie
  • Nel asa
  • bloom energy
  • air liquid
  • air products Inc.
  • Cummins
  • Engie

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The high cost of production is a major roadblock.

Electrolyzers, the machines that split water into hydrogen using electricity, are expensive. In 2022, their price ranged from $500 to $5,600 per kilowatt (kW) according to the industry experts. Additionally, infrastructure for large-scale storage and transportation of hydrogen is lacking. Key players like Linde and Air Products are investing heavily, with Linde aiming for $1.5 per kilogram of green hydrogen by 2030, but significant gaps remain to bridge the cost and infrastructure challenges. These hurdles necessitate advancements in technology and substantial investment to unlock the true potential of green hydrogen as a clean energy carrier.

In the green hydrogen market, distribution channels play a crucial role. Pipelines currently holds the maximum share, holding over 60% of the market share. This dominance stems from their cost-effectiveness for transporting large volumes of green hydrogen across vast distances. However, cargo methods will be growing at rapid pace experiencing a CAGR of 13.07%. This increase is driven by the growing demand for green hydrogen in remote locations where pipelines are impractical. As the green hydrogen market continues to evolve, the optimal distribution channel will likely depend on factors like transportation distance, volume requirements, and infrastructure availability.

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APAC will be holding the maximum share, the predicted CAGR is 13.91%.  

This dominance is associated to rising demand for clean energy solutions across various industries, with the chemical sector consuming over 32.8% of the hydrogen produced. Key players like Japan, China, and India are at the forefront, with ambitious government targets like India’s National Hydrogen Mission driving significant investments. However, challenges like high production costs and underdeveloped infrastructure need to be addressed to unlock the full potential of this expanding Green Hydrogen Market.

How the current landscape of geopolitical pressures is changing the and shape of the Green Hydrogen Market.

Resource-rich countries with abundant sunshine and wind, like Chile with 28% of global solar radiation potential and Morocco accounting for 31% of Africa’s wind energy potential, are competing for a head start, aiming to capture a significant share of the projected global hydrogen demand expected to reach 5.2 million tons by 2026. Meanwhile, established powers like the EU and Japan, currently major importers of fossil fuels, are investing heavily in research and development to not lose their energy dominance. This intense competition has the potential to reshape global alliances and trade partnerships, with countries strategically collaborating to secure reliable green hydrogen supplies and establish themselves as leaders in this expanding clean energy sector.

Market Segments:

By Application

  • Power generations
  • Transportations
  • Methanol Production

By Technology

  • Alkaline electrolyzer
  • Polymer electrolyte Membrane

By Distribution Channel

  • Pipeline
  • Cargo

By End User

  • Chemical
  • Power
  • Medical
  • Automobile
  • others

Competitive Landscape:

The green hydrogen market is a dynamic space witnessing a high intensity in competition. Established players like Siemens, thyssenkrupp, and Linde currently hold a dominant share, collectively exceeding 50% of the market.

However, innovative companies are rapidly emerging. For instance, Plug Power, a US-based firm, is making significant strides in electrolyzer technology, while startups like Enapter are developing modular and cost-effective solutions.

This rush of new entrants is shaping the competitive landscape, pushing for advancements that will drive down production costs and promote green hydrogen into the mainstream.

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Table of Contents – Major Key Points

  1. Introduction
  2. Research Methodology
  3. Market Dynamics
  4. Impact Analysis
    • COVID-19 Impact Analysis
    • Impact of Ukraine- Russia war
    • Impact of ongoing Recession
  5. Value Chain Analysis
  6. Porter’s 5 Forces Model
  7. PEST Analysis
  8. Green Hydrogen Market Segmentation, by rating
  9. Green Hydrogen Market Segmentation, by type of cooling method
  10. Green Hydrogen Market Segmentation, by phase
  11. Green Hydrogen Market Segmentation, by core
  12. Green Hydrogen Market Segmentation, by application
  13. Regional Analysis
  14. Company Profiles
  15. Competitive Landscape
  16. Conclusion

About Us:

SNS Insider is one of the leading market research and consulting agencies that dominates the market research industry globally. Our company’s aim is to give clients the knowledge they require in order to function in changing circumstances. In order to give you current, accurate market data, consumer insights, and opinions so that you can make decisions with confidence, we employ a variety of techniques, including surveys, video talks, and focus groups around the world.

Our staff is dedicated to giving our clients reliable information, and with expertise working in the majority of industrial sectors, we’re proud to be recognized as one of the world’s top market research firms. We can quickly design and implement pertinent research programs, including surveys and focus groups, and we have the resources and competence to deal with clients in practically any company sector.

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