Green hydrogen is an energy carrier that can be used in many different applications, such as oil and gas, petrochemicals, electric vehicles, and power generation. However, its actual use is still very limited. In 2019, about 120 million tons of hydrogen was produced globally, of which two-thirds were pure hydrogen and one-third was mixed with other gases. Hydrogen production is mainly used for crude oil refining and the synthesis of ammonia and methanol, which account for nearly 75 percent of the total demand for pure hydrogen and mixed hydrogen. At present, hydrogen production mainly relies on natural gas and coal, which together account for 99 percent of production. Electrolysis produces approximately 1 percent of global hydrogen as a by-product of chlorine production. At present, renewable energy does not produce a large amount of hydrogen, and the green hydrogen is limited to demonstration projects.
Read Report Overview: Green Hydrogen Market
Despite its potential, hydrogen production today is a fossil fuel-intensive process, and significant scaling up is needed to decarbonize existing production. The most common methods to extract hydrogen are through the reforming of natural gas, a process that accounts for around 6 percent of global natural gas demand, and gasification, for which about 2 percent of total coal production is allocated, most of which is done in China. Together, these processes are estimated to account for between 96 and 99 percent of global hydrogen production. Thus, hydrogen generation from electricity and water through electrolysis is currently estimated to provide as little as 1 percent of the global hydrogen supply. This situation, however, is set to change as green hydrogen costs fall further.
The global green hydrogen market was valued at $2,570.5 million in 2020 and is projected to reach $4,455.8 million by 2031, registering a compound annual growth rate (CAGR) of 5.13% between 2021 and 2031 in terms of value.
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Proton Exchange Membrane Electrolyzer Technology to Dominate the Global Green Hydrogen Market
In terms of value, the global green hydrogen industry was dominated by the proton exchange membrane electrolyzer, which was valued at $1071 million in 2020 and is projected to reach $1848.2 million by 2031, registering a CAGR of 5.09% during the forecast period 2021-2031. The dominance of proton exchange membrane electrolyzer is attributed to its wide use in the oil and gas and electric vehicles industry. Presently, petrochemical and power generation industries are also adopting green hydrogen produced by proton exchange membrane electrolyzer technology as the product manufactured by the technology is of excellent quality.
Key Strategies and Developments by Leading Companies
Companies active in the green hydrogen market have adopted multiple business and corporate strategies over the past years to maintain/improve their market positioning. While the industry has witnessed a mix of several strategies adopted by companies to evolve their technologies as well as strengthen their market presence, product-centric developments through patents and product developments have been the key features in the market.