- Surge in concern for reducing carbon emissions and expansion of green hydrogen production technologies drive the growth of the global green hydrogen market
PORTLAND, Ore., July 13, 2021 /PRNewswire/ -- Allied Market Research published a report, titled, "Green Hydrogen Market by Technology (Proton Exchange Membrane Electrolyzer, Alkaline Electrolyzer, and Solid Oxide Electrolyzer), Application (Power Generation, Transport, and Others), and End-Use Industry (Food & Beverages, Medical, Chemical, Petrochemicals, Electronics, Glass, and Others): Global Opportunity Analysis and Industry Forecast 2021–2028." According to the report, the global green hydrogen industry generated $0.3 billion in 2020, and is projected to garner $9.8 billion by 2028, growing at a CAGR of 54.7% from 2021 to 2028.
Prime determinants of growth
Surge in concern for reducing carbon emissions and expansion of green hydrogen production technologies propel the growth of the global green hydrogen market. However, high capital cost of hydrogen energy storage restrains the market growth. Contrarily, favorable green hydrogen production technologies offers new opportunities in the next few years.
The green hydrogen market was hampered during the first and second quarter of 2020, owing to prolonged lockdown in major countries and supply chain disruptions.
At the same time, the pandemic ensured a strong rise in renewable energy market, resulting in constant increase in energy demand.
However, the market recovered in the third and fourth quarter, majorly in North America and Europe regions. And with relaxed restrictions the market is expected to recoup rapidly in other regions.
The alkaline electrolyzer segment to maintain its leadership status during the forecast period
By technology, the alkaline electrolyzer segment accounted for the highest market share in 2020, holding more than half of the global green hydrogen market in 2020, and is estimated to maintain its leadership status during the forecast period. In addition, this segment is expected to register the largest CAGR of 54.8% from 2021 to 2028. These electrolyzers are cheaper and can be connected directly to intermittent power supply, used with filtered rainwater, and are user-friendly, which drives the growth of the segment.
The power generation segment to maintain its lead position during the forecast period
By application, the power generation segment held the highest share in 2020, accounting for nearly two-thirds of the global green hydrogen market, and is expected to maintain its lead position during the forecast period. Moreover, the segment is also expected to witness the largest CAGR of 54.9% from 2021 to 2028. Electrolyzers are getting highly demanded for power generation as a clean energy source, which in turn, propels the growth of the segment.
Europe, followed by North America, to grow at a significant pace by 2028-
By region, Europe, followed by North America, contributed to the highest market share in 2020, holding more than two-fifths of the global green hydrogen market, and is projected to continue its dominant share in terms of revenue by 2028. This is due to the increasing number of green hydrogen production plants across the region. However, the Asia-Pacific region is projected to witness the highest CAGR of 55.0% during the forecast period. Australia and Japan are the largest contributors to the green hydrogen market. This factor supports the growth of green hydrogen in this province.
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