Green Hydrogen Market Analysis

Green Hydrogen Market Analysis

Based on technology, the PEM segment is anticipated to cross more than USD 66.5 billion by 2032, on account of suitability for use with renewable energy sources like wind and solar power. One of the key advantages of PEM electrolyzers is their ability to ramp up and down quickly in response to changes in the availability of renewable energy. This makes them particularly well-suited for green hydrogen production using intermittent sources like wind and solar. They are increasingly being used for grid balancing in systems with high penetration of renewables.
 

Moreover, many governments are offering financial support and policy incentives to promote the adoption of PEM electrolyzer technology for green hydrogen production, augmenting the technology demand.
 

Based on source, the wind segment is poised to witness about 50% CAGR through 2032, driven by ongoing integration with electrolyzer technology to produce green hydrogen, which is crucial for decarbonizing hard-to-abate sectors. Offshore wind farms, particularly in regions with high wind speeds like the North Sea, Baltic Sea, and the Atlantic, are becoming a major source for green hydrogen production. Several projects are integrating wind farms with hydrogen production facilities to create hybrid wind-hydrogen systems. These projects use excess wind power to drive electrolyzers, converting water into hydrogen.

Additionally, growing investment in building large electrolyzers powered by wind energy along with advances in electrolyzer technology, including Proton Exchange Membrane (PEM) and Solid Oxide Electrolyzer Cells (SOEC), are making it more efficient to produce hydrogen using variable wind energy, thereby driving the business landscape.
 

Europe green hydrogen market is set to reach more than USD 135.4 billion by 2032, driven by the region’s strong commitment to decarbonization and achieving net-zero emissions by 2050. Several European countries, including Germany, Spain, France, and the Netherlands, have developed national hydrogen strategies that outline specific targets, funding, and support for green hydrogen projects. Green hydrogen is increasingly being adopted in industries such as steel, chemicals, and cement as a replacement for fossil fuels, which will drive the business scenario. Further, several countries are blending green hydrogen into natural gas pipelines to decarbonize heating systems and reduce reliance on natural gas, strengthening the industry landscape.