Green Hydrogen Market Booms by 2030

2025-06-07 industry

London, Saturday, 7 June 2025.
A recent report predicts the green hydrogen market will grow from 0.45 million tons in 2025 to 2.14 million tons by 2030, reflecting a 36.35% CAGR, driven by clean energy demand.

Green Hydrogen’s Meteoric Rise

The green hydrogen market is on a fast track, expanding from 0.45 million tons in 2025 to an expected 2.14 million tons by 2030. This leap reflects a compelling compound annual growth rate (CAGR) of 36.35% [1]. Clean energy demand is tapping into this exponential growth, positioning green hydrogen as a pivotal player in reducing global carbon footprints and driving the energy transition [1][2][3].

Drivers Behind the Boom

Global enthusiasm for green hydrogen is fuelled by a cocktail of technical advances and policy mandates. The decline in renewable energy costs in sun-rich regions like the Middle East and Southern Europe is notable, offering an 8.2% CAGR impact on the market [1]. Add to that the industrial decarbonisation mandates in Europe’s steel and fertiliser sectors, which accentuate the need for sustainable energy sources [1][1].

Challenges Lurking Ahead

However, it’s not all rosy for green hydrogen. Issues like the scarcity of electrolyser stack raw materials, impacting the CAGR by -3.80%, and the hefty costs of hydrogen transportation via cryogenic shipping are notable hurdles [1][1]. Overcoming these issues is critical for maintaining upward momentum and embracing a greener future [2][3].

Emerging Markets Leading the Charge

Regions like Asia Pacific are leading the way with a whopping 48% market share as of 2025, thanks to cost-effective solar manufacturing and strong policy support. China’s aggressive electrolyser production fuels their frontrunner status, providing cheaper alternatives compared to Europe’s offerings [1][4].

Technology: The Game Changer

On the tech front, developments in AEM designs and solid oxide electrolyser efficiencies are bringing down operational costs. These innovations are crucial for distributed generation setups and operational efficiency, nudging the market towards broader adoption and commercial viability across numerous sectors [1][2][5].

Future Prospects

As countries rally around green hydrogen, the market’s potential to revolutionise global energy systems is colossal. With strategic investments and technology at the heart of this expansion, green hydrogen is poised not just as an energy solution but as an integral component of our future energy landscape [1][4][5].

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green hydrogen market growth