Green Hydrogen Market by Generation Process (PEM, Alkaline, Solid Oxide), Energy Source (Wind, Hydropower), Application (Fueling, Feedstock), End User (Transportation, Chemical Production, Power Generation), and Geography - Global Forecast to 2032

The Green Hydrogen Market is projected to reach $19.2 billion by 2032, at a CAGR of 45.6% during the forecast period of 2025 to 2032. 

The growth of this market is driven by the increasing green hydrogen demand in fuel cell electric vehicles (FCEVs), growing demand for green hydrogen in chemical production, rising government initiatives for net zero-emission, and expanding industrial decarbonization efforts. However, the high cost of production restrains the growth of this market. Furthermore, increasing investment by market players for the development of advanced electrolysis technologies and the growing adoption of green hydrogen due to its zero-carbon footprint is expected to create market growth opportunities. However, the complex and expensive storage and transportation is a major challenge for the players in this market. The latest trends in the green hydrogen market are the integration with AI-optimized systems, gigawatt-scale electrolysis projects, and innovative hydrogen storage solutions.

Increasing Green Hydrogen Demand in Fuel Cell Electric Vehicles (FCEVs) and Heavy Transport:

In transportation, green hydrogen is used as fuel to provide a sustainable mobility alternative. Fuel cells make vehicles more efficient and quieter; using green hydrogen allows vehicles to travel longer distances with less refueling. The increase in demand for green hydrogen is also due to growing government initiatives for reducing air pollution by encouraging the use of cleaner and low-emission fuel. Hence, several automobile companies have started manufacturing hydrogen-powered fuel cell electric vehicles (FCEVs) to achieve zero-carbon emissions. For instance, in May 2025, HYVIA (France) launched the Renault Master Van H2-TECH, a green hydrogen-powered van designed to accelerate the decarbonization of mobility on the roads. The heavy transport sector, including long-haul trucking and maritime applications, has seen particularly rapid adoption due to hydrogen's high energy density advantages. Thus, the growing need to improve vehicle efficiency, reduce fuel cost, minimize pollution levels, and develop hydrogen-powered fuel cell electric vehicles helps to increase the growth of the green hydrogen market.

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The Proton Exchange Membrane Electrolysis Segment to Register the Highest CAGR During the Forecast Period

Based on generation process, the proton exchange membrane electrolysis is projected to register the highest CAGR during the forecast period. The rising use of PEM due to its environmental-friendly nature, being more effective than existing alternatives, rapidly growing low-carbon hydrogen production projects, and the increasing focus on fuel cell technology, are expected to support the growth of this segment. Recent advances in catalyst materials and membrane durability have significantly improved PEM efficiency and lifespan, making it increasingly competitive with traditional methods.

The Hybrid Renewable Systems Segment to Register the Highest CAGR During the Forecast Period

Based on energy source, the hybrid renewable systems segment combining solar, wind and energy storage is projected to register the highest CAGR during the forecast period. These integrated systems enable continuous hydrogen production regardless of intermittent renewable availability. The increasing adoption of renewable energy, rising global electricity consumption, growing government initiatives to reduce dependency on fossil fuels for power generation, and advancements in grid-balancing technologies are expected to support the growth of this segment.

The Industrial Process Decarbonization Segment to Register the Highest CAGR During the Forecast Period

Based on application, the industrial process decarbonization segment is projected to register the highest CAGR during the forecast period. The increasing adoption of green hydrogen for hard-to-abate sectors like steel, cement, and chemicals manufacturing, less environmental impact compared to traditional methods, and increasing government initiatives for industrial sector emissions reduction are expected to support the growth of this segment.

The Maritime Shipping Segment to Register the Highest CAGR During the Forecast Period

Based on end user, the maritime shipping segment is projected to register the highest CAGR during the forecast period. The International Maritime Organization's stringent emissions targets, increasing adoption of green hydrogen and hydrogen-derived ammonia as marine fuels, reducing greenhouse gas emissions in international shipping, and growing government incentives for clean shipping solutions, are expected to support the growth of this segment.

Asia-Pacific to be the Fastest-growing Regional Market

In 2025, North America is expected to account for the largest share of the green hydrogen market, followed by Europe, Asia-Pacific, Latin America, and the Middle East & Africa. However, Asia-Pacific is slated to record the highest growth rate during the forecast period. China's ambitious hydrogen strategy, Japan's hydrogen society vision, Australia's export-oriented hydrogen projects, India's National Hydrogen Mission, the rapid growth of regional economies, growing technological advancements, increasing investment by market players for the development of electrolysis, the growing strategic alliances and large-scale investment for a clean hydrogen economy, and growing government initiatives contribute to the rapid growth of this regional market.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by the leading market participants in the green hydrogen market in the last three to four years. The key players profiled in the green hydrogen market report are FuelCell Energy, Inc. (U.S.), Bloom Energy Corporation (U.S.), Plug Power Inc. (U.S.), Air Products and Chemicals, Inc. (U.S.), China Petrochemical Corporation. (China), L'AIR LIQUIDE S.A. (France), Linde plc (Ireland), Green Hydrogen Systems A/S (Denmark), McPhy Energy (France), ITM Power PLC (U.K.), Nel ASA (Norway), Ballard Power Systems Inc. (Canada), ENGIE SA (France), Repsol S.A. (Spain), Iberdrola, S.A. (Spain), Siemens Energy (Germany), Cummins Inc. (U.S.), Thyssenkrupp AG (Germany), and Hyzon Motors (U.S.).

Scope of the report:

Green Hydrogen Market Assessment, by Generation Process                                    

• Proton Exchange Membrane Electrolysis         
• Alkaline Electrolysis            
• Solid Oxide Electrolysis      

Green Hydrogen Market Assessment, by Energy Source             

• Wind

• Solar
• Hydropower
• Other Energy Sources

Green Hydrogen Market Assessment, by Application   

• Fueling
• Feedstock
• Heat Processing
• Energy Storage
• Other Applications

Green Hydrogen Market Assessment, by End User       

• Transportation
  • Shipping
  • Aviation
  • Cars
  • Railway
  • Trucks
• Chemical Production
• Healthcare
• Steel Production
• Petroleum Refinery
• Power Generation
• Other End Users

Green Hydrogen Market Assessment, by Geography                    

• North America      

  • U.S.
  • Canada
• Europe   
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Netherland
  • Poland
  • Rest of Europe
• Asia-Pacific           
  • Japan
  • China
  • India
  • South Korea
  • Singapore
  • Australia & New Zealand
  • Indonesia
  • Rest of Asia-Pacific
• Latin America       
• Middle East & Africa            

Key questions answered in the report: