Green Hydrogen Market Size, Share, Growth Analysis, By Technology (Alkaline Electrolysis, PEM Electrolysis), By Source, By End-use, By Region -Industry Forecast 2025-2032

Drivers

Advancements in Electrolysis Technologies

• Growing demand for eco-friendly production of hydrogen around the world to promote sustainability has led to significant advancements in electrolysis technologies. Innovations like proton exchange membrane (PEM) and solid oxide electrolysis cells (SOECs) are making green hydrogen production more efficient and scalable thereby promoting the green hydrogen industry growth as well.

Rising Use of Hydrogen-powered Propulsion Systems

• To promote sustainability and reduce reliance on fossil fuels, people around the world are focusing on developing hydrogen-powered propulsion systems. Hydrogen fuel cell electric vehicles (FCEVs), including trucks, buses, and trains, offer longer ranges and faster refueling times compared to battery-electric vehicles (BEVs), which is why the demand for green hydrogen is slated to rise at a notable pace in the future.

Restraints

Lack of Infrastructure for Production

• The infrastructure required for green hydrogen production and transport is still in its initial stages of development, which limits the potential for green hydrogen market growth. Building a global hydrogen network requires substantial investment and coordinated efforts between governments, industries, and private investors, which is nearly impossible to achieve in the short term, thereby slowing down the demand for green hydrogen.

Availability of Alternative Clean Energy Solutions

• Battery power and biofuels are some key alternatives that are projected to negatively impact the adoption of green hydrogen as a clean energy alternative. The established and more cost-effective nature of these alternative clean energy technologies is projected to impede the overall green hydrogen market outlook in the long run.