Green Hydrogen Market to Hit USD 143.8 Bn by 2032, Growing at 50.3 Percent CAGR
The global green hydrogen market is projected to grow at a 50.3 percent CAGR, reaching USD 143.8 billion by 2032, driven by rising demand, technological advancements, and regulatory incentives.
September 02, 2024. By EI News Network
Green hydrogen, produced using renewable energy sources such as solar, wind, and geothermal power, is increasingly seen as a key component in efforts to decarbonise sectors like transportation, energy storage, and heavy industry. As per the report, Proton Exchange Membrane (PEM) electrolysers are crucial in advancing the green hydrogen market, thanks to their efficiency, scalability, and suitability for integration with renewable energy. Compact and modular, PEM electrolysers support decentralised deployment, making them adaptable for both small-scale applications and larger industrial setups. As demand for clean hydrogen grows, PEM electrolysers are key to driving the market forward by enabling efficient and flexible hydrogen production from renewable sources, thereby supporting the transition to a low-carbon economy.
It may be noted that in 2023, the Asia-Pacific region accounted for the largest share of the green hydrogen market, followed closely by Europe and North America. This growth is driven by increasing investments from major players. The firms are actively expanding their capabilities to capitalise on the burgeoning demand for green hydrogen.
The report identifies several factors fueling this rapid market expansion. The growing need for sustainable power generation amid rising global electricity consumption, spurred by urbanisation and industrialisation, has heightened interest in green hydrogen. The food and beverage industry, with its high energy demands for processing, packaging, refrigeration, and transportation, is expected to see the fastest growth, with a projected CAGR of 51.6 percent from 2023 to 2032.
Additionally, advancements in electrolyer technology, aimed at improving efficiency, durability, and scalability, are reducing costs and enhancing performance. These technological strides are complemented by stringent regulations, carbon pricing mechanisms, and strong governmental support, which are driving industries toward low-carbon alternatives and fostering innovation in the green hydrogen sector.
In the United States, green hydrogen currently represents less than 1 percent of the 10 million metric tons of hydrogen produced annually, with the majority derived from fossil fuels. However, the U.S. Department of Energy (DOE) has set ambitious targets to produce 10 million tons of clean hydrogen per year by 2030, 20 million tons by 2040, and 50 million tons by 2050. To achieve these goals, the U.S. government plans to invest USD 8 billion in developing hydrogen hubs and increasing production capacity by 250 times by 2026.
Globally, the hydrogen market is estimated at around 96 million metric tons annually. With growing focus on reducing greenhouse gas emissions, green hydrogen is expected to play a pivotal role in the shift toward sustainable energy solutions.
The report concludes that the green hydrogen market is well-positioned for rapid growth, driven by rising demand across multiple industries, technological advancements, and supportive policy frameworks. As the world seeks to transition to a low-carbon future, green hydrogen is emerging as a versatile and sustainable solution to meet the escalating global energy needs. The continued development and deployment of green hydrogen technologies will be crucial in achieving ambitious climate goals and ensuring energy security in the coming decades.
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