Green Hydrogen Market to Grow at a CAGR of 63.8% from 2025 to 2032 | SkyQuest Technology Consulting

U.S. Push for Clean Energy, Federal incentives, hydrogen hubs, and U.S. corporate leadership drive adoption in transport, energy, and industrial sectors to accelerate the green hydrogen market in U.S. 

WESTFORD, Mass., Aug. 20, 2025 /PRNewswire/ -- SkyQuest Technology Consulting published a report, titled, Green Hydrogen Market - Global Opportunity Analysis and Industry Forecast, 2025-2032", valued at USD 9.9 Billion in 2024. With a projected CAGR of 63.8% from 2025 to 2032, the market is expected to reach USD 510.8 Billion by the end of 2032. Growing adoption of clean energy solutions, advancements in hydrogen production technology, and high investments in green hydrogen projects are slated to create new business scope for market players going forward.

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Key U.S. Green Hydrogen Market Drivers

• Federal Policy & Incentives: The Inflation Reduction Act (IRA) and DOE Hydrogen Program provide billions in funding and tax credits for hydrogen production and infrastructure.
• Hydrogen Hubs: The U.S. Department of Energy recently announced seven regional hydrogen hubs to drive domestic production, lower costs, and expand industrial use.
• Clean Transport & Energy Security: Adoption of hydrogen fuel cell vehicles in heavy-duty trucking, aviation, and shipping is growing, aligning with U.S. energy independence and net-zero targets.

Green Hydrogen Market Dynamics

Transition towards clean energy solutions to comply with sustainability mandates and efforts to decarbonize economies, are helping boost the demand for green hydrogen. Governments and corporations are committing to net-zero emissions, prompting investments in clean fuels. Green hydrogen, produced using renewable energy through electrolysis, offers a carbon-free alternative for sectors like steel, chemicals, and transport. As solar and wind power become more cost-effective, their integration into hydrogen production enhances feasibility and scalability.

Industries with high emissions and limited electrification options are turning to green hydrogen as a viable decarbonization solution. Heavy-duty transport, shipping, aviation, and industrial heating are key sectors where the demand for green hydrogen is rising rapidly. As nations seek to meet energy security and sustainability goals, the versatility of green hydrogen in bridging energy gaps, and decarbonizing critical sectors is becoming a compelling driver.

Recent Developments in Green Hydrogen Market

• In June 2025, Wison Engineering, a top name in energy engineering joined hands with Sungrow Hydrogen to launch a turnkey solution for green hydrogen production. MegaFlex transforms traditional green hydrogen plants into replicable, scalable, and rapidly deployable industrial products.
• In March 2025, Kandla Port in Gujarat, India revealed its bold plans to emerge as the site for India's first-ever Green Hydrogen production facility. The project was expected to be made operational by June 2025, as India's ambitions for a renewable energy future become bolder.
• In August 2025, Torrent Group, through its entities Torrent Power and Torrent Gas, launched green hydrogen plant with an annual capacity of 72,000 tonnes, will blend up to 2% green hydrogen with natural gas and distribute it through the existing city gas grid to households, CNG stations, and industries.
• In June 2024, Trina Green Hydrogen, a subsidiary of Trina Group showcased three types of green hydrogen equipment at the International Solar Photovoltaic and Smart Energy (Shanghai) Conference & Exhibition event.

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Major Challenges in Green Hydrogen Industry

Hydraulic and electric green hydrogens often require precise calibration, dedicated control systems, and skilled technicians for integration. In retrofit applications, compatibility with existing infrastructure can be challenging. These factors deter adoption, particularly in cost-sensitive markets or industries lacking the technical expertise, and financial resources to undertake large-scale automation or modernization projects.

Green hydrogens of different types face different limitations based on their application. Each type requires specific maintenance protocols to avoid breakdowns and ensure longevity. In high-demand or harsh industrial environments, frequent maintenance needs, and the risk of downtime reduce operational efficiency. These technical limitations and maintenance burdens can deter users from adopting green hydrogens broadly, especially in mission-critical or remote applications where reliability is paramount.

Competitive Landscape

Top green hydrogen manufacturers are focusing on collaborating with governments, and other clean energy companies to expand their business scope. Integrating green hydrogen manufacturing with other renewable energy sources, is also expected to create new opportunities.

• Plug Power (U.S.) continues expanding hydrogen infrastructure, aiming to deliver over 500 tons of green hydrogen daily by 2025.
• Cummins Inc. (U.S.) is scaling electrolyzer production to support clean hydrogen projects across North America.
• Doosan Fuel Cell America (U.S.) is advancing hydrogen fuel cell deployment for stationary power applications.
• Baker Hughes (U.S.) is investing in hydrogen compression and production technologies to strengthen domestic supply chains.

The major players in the green hydrogen industry include,

• Air Liquide (France)
• Siemens Energy (Germany)
• Linde plc. (UK)
• Nel ASA (Norway)
• Plug Power (US)
• ITM Power (UK)
• McPhy Energy (France)
• Hydrogenics (Canada)
• Green Hydrogen Systems (Denmark)
• Ballard Power Systems (Canada)
• Engie (France)
• Enapter (Germany)
• Haldor Topsoe (Denmark)
• Mitsubishi Power (Japan)
• Toshiba Energy Systems & Solutions (Japan)
• Cummins Inc. (US)
• Doosan Fuel Cell America (US)
• Siemens Gas and Power (Germany)
• Thyssenkrupp (Germany)
• Baker Hughes (US)

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Green Hydrogen Market Segmental Analysis

Global green hydrogen market is segmented by application, technology, distribution channel and region. Based on technology, the market is segmented into alkaline electrolyzer, polymer electrolyte membrane (PEM) electrolyzer, and others.  Based on application, the market is segmented into power generation, transportation, and others. Based on distribution channel, the market is segmented into pipeline, cargo, and others.

• By application, the transportation segment dominated the global green hydrogen market in 2024 owing to development of hydrogen propulsion systems and fuel cell technologies.
• By distribution channel, the pipelines segment dominated the global green hydrogen market in 2024, which can be linked to the presence of existing network of natural gas infrastructure that is used to transport hydrogen.
• By technology, the alkaline electrolyzer segment dominated the global green hydrogen market in 2024, owing to higher operating hours offered by this type of electrolyzer as compared to PEM electrolyzers.

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Regional Outlook

• Europe is estimated to spearhead the global green hydrogen demand on the back of supportive government initiatives to promote hydrogen production. High sustainability awareness among consumers and presence of stringent environment conservation mandates are also helping this region maintain its dominant stance.
• The Asia Pacific region is slated to emerge as the fastest-growing region for green hydrogen vendors. Growing investments in new green hydrogen production plants, increasing awareness regarding clean energy, and surge in demand for hydrogen-based transport are also driving revenue generation in this region,
• High emphasis on decarbonization of economy, and renewable energy integration are helping boost green hydrogen demand in North America. Government support and adoption of hydrogen fuel cell-powered vehicles are helping bolster the demand for green hydrogen production in the United States and Canada.
• In the LAMEA region, the green hydrogen market is driven by abundant availability of renewable energy resources, and government emphasis on developing hydrogen economy. Brazil, Argentina, Saudia Arabia, United Arab Emirates, and Columbia are key markets in this region.

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About SkyQuest Technology Consulting

SkyQuest Technology Consulting is a leading Strategy Consulting and Market Research firm, provides syndicated as well as customized research reports and growth consulting services, trusted by CXOs from Fortune 500 Companies, Start-ups, and MSMEs. The company comprises a team of expert research analysts and consultants, adding more than 1200 market research reports in our database each year. These reports offer in-depth analysis on 40+ industries & sub industries across 25 major countries worldwide, serving global clients across diverse industries. The company specializes in delivering customized intelligence, data-driven insights, and strategic advisory services that enable businesses to stay competitive and make informed decisions in rapidly evolving industries.

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