Global Market for Green Hydrogen Will Be Worth $89.18 Billion By 2030
According to Precedence Research, the global market for green hydrogen will reach around US$ 89.18 billion by 2030, expanding at a CAGR of 54 per cent from 2021 to 2030.
The size of the global green hydrogen market will reach $2.79 billion in 2022. The annual production of hydrogen consumes 6% of the world's natural gas and 2% of the world's coal. In 2050, the annual demand for hydrogen could range between 150 and 500 million metric tonnes.
Europe dominated the global market for green hydrogen due to stringent government rules governing the deployment of clean energy and sustainable fuel sources.
Growing concerns about global warming and expanding corporate and government attempts to promote the adoption of clean and green energy in several industries have considerably spurred the expansion of the green hydrogen industry.
In addition, hydrogen is one of the key energy sources in European nations, and the European Green Deal intends to reduce greenhouse gas emissions in Europe to enhance environmental protection and combat climate change.
In addition, the increasing adoption of hydrogen-powered automobiles and aircraft is a significant factor driving the expansion of the green hydrogen market in Europe.
Increasing investments in hydrogen production technology are resulting in falling prices for green hydrogen, which will stimulate market expansion soon.
Globally, a variety of processes, including partial oxidation of oil, water electrolysis, steam methane reforming, and coal gasification, are employed to produce hydrogen.
The vast majority of hydrogen produced is used in fertilisers and petroleum refineries' production. Approximately 90 per cent of hydrogen is derived from reforming fossil fuels because they are not costly.
The increasing implementation of water electrolysis technology, which creates hydrogen from renewable energy sources such as solar and wind, is anticipated to drive the growth of the green hydrogen market in the coming years. Increasing uses of green hydrogen as a fuel cell in several sectors is considerably driving the global market's expansion.
The lack of well-established infrastructure may provide a barrier to the worldwide market for green hydrogen. The increasing popularity of alternative-fuel vehicles is likely to promote sales of these vehicles. Hydrogen is regarded as the most environmentally friendly form of transportation.
However, the absence of a suitable infrastructure for refuelling hydrogen fuel may hinder the market's expansion. In addition, a substantial capital expenditure is necessary for hydrogen energy storage.
Hydrogen energy can be stored as a compressed gas in high-pressure tanks, as a liquid at -253 degrees Celsius, or as a chemical compound. Hydrogen energy storage is an expensive endeavour, which may hamper market expansion. Therefore, significant capital expenditures and a lack of adequate infrastructure are the greatest obstacles facing the green hydrogen market.
China is the leading player in the worldwide green hydrogen market, accounting for around one-third of the global market.
China generates approximately 20 million tonnes of hydrogen annually. The Chinese government is investing considerably in the creation of a green hydrogen infrastructure. As a result of China's fast industrialisation during the past decade, pollution levels and climate change have worsened.
China is one of the leading manufacturers and consumers of alternative-fuel cars, which has contributed to the expansion of the green hydrogen market.
Moreover, nations such as Japan, South Korea, and India are expected to see a considerable growth rate soon because of the increasing government measures to attain carbon-free economic objectives.