Green Hydrogen Market Size To Reach $115.35 Billion By 2033

Green Hydrogen Market Growth & Trends

The global green hydrogen market size is expected to reach USD 115.35 billion by 2033, registering a CAGR of 30.2% from 2026 to 2033, according to a new report by Grand View Research, Inc. Growing government investments and subsidies benefitting clean fuel usage along with hydrogen economy being touted as an environment-friendly alternative to fossil fuel economy are likely to strengthen the demand over the forecast period.

The market is driven by the proliferating deployment of renewable energy sources in various end-use industries. Green hydrogen is produced through the electrolysis of water, with renewable power generation sources such as wind energy, solar energy, and other renewable energy sources. Furthermore, the growing scale of renewable energy is estimated to result in lowering the cost of clean power generation, thereby positively influencing the market growth over the forecast years.

The alkaline electrolyzer segment accounted for 66.18% of the market in 2021 owing to being the conventional electrolyzer technology used in green hydrogen projects. The alkaline electrolyzer uses the liquid alkaline solution of potassium or sodium hydroxide as its electrolyte and it has higher operating hours than PEM electrolyzers. However, PEM electrolyzers are expected to witness a higher growth rate than alkaline electrolyzers in the forecast period.

The transportation segment was the largest in the application segmentation with it accounting for about 40.61% of the global green hydrogen market in 2021. The transportation industry shifting away from fossil fuels and towards renewable energy such as solar energy and green hydrogen is expected to boost the segment in the forecast period. The power generation segment is also expected to grow at a steady pace owing to reducing costs of green hydrogen production.

The pipeline segment in the distribution channel accounted for 63.11% of the market in 2021. A pipeline is the most economically viable method to transport large volumes over long distances. Cargo segmentation is expected to grow at a CAGR of 40.9% in the forecast period owing to increased demand for green hydrogen.

The market in North America is anticipated to attain a prominent growth rate over the forecast period, with U.S. and Canada leading the region owing to the implementation of clean energy policies. In the U.S., California holds the majority of the market share with the growth driven by aggressive de-carbonization targets, such as phasing out of gas or diesel-powered public buses by 2040.

Major players in the industry are focusing on innovation and technological advancements to reduce the high cost of electrolyzer units, boosting the commercialization of green hydrogen production. In addition, market participants are emphasizing practicing several strategic initiatives such as joint ventures, partnerships, mergers & acquisitions, and others to enhance their foothold in the market over the coming years.

Countries realizing their untapped potential in hydrogen markets are expected to enhance the industry landscape over the coming years. In October 2019, Siemens announced a technical partnership on a 5 GW wind and solar combined energy project in Australia. The company is expected to provide its electrolyzer technology to generate green hydrogen through renewable-powered electrolysis. The clean hydrogen produced is intended to be exported to Asian markets.

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Green Hydrogen Market Report Highlights

• Based on technology, the alkaline electrolyzer segment held the largest revenue share of 65.1% in 2025 in the green hydrogen market. Alkaline electrolysis is one of the most established and commercially mature technologies for green hydrogen production, offering high reliability, long operational lifetimes, and comparatively lower capital costs than newer electrolyzer technologies.

• Based on distribution channel, the pipeline segment held the largest revenue share of 60.2% in 2025 in the green hydrogen market. Pipeline-based distribution is widely preferred for large-scale and continuous hydrogen supply due to its cost efficiency, safety, and ability to transport high volumes over long distances.

• Based on application, the transport segment held the largest revenue share of 43.8% in 2025 in the green hydrogen market. The dominance of this segment is driven by the increasing adoption of hydrogen as a zero-emission fuel across fuel cell electric vehicles (FCEVs), public transport buses, heavy-duty trucks, rail, and maritime applications.

• Europe dominated the global green hydrogen market in 2025, capturing approximately 46.9% of total revenue. This leadership position is driven by aggressive decarbonization targets, strong regulatory frameworks, and comprehensive hydrogen strategies adopted by the European Union and its member states.

Green Hydrogen Market Segmentation

Grand View Research has segmented the global green hydrogen market on the basis of technology, application, distribution channel, and region:

Green Hydrogen Technology Outlook (Revenue, USD Million; Volume, Kilo Tons; 2021 - 2033)

• Alkaline Electrolyzer

• PEM Electrolyzer

• SOEC Electrolyzer

Green Hydrogen Distribution Channel Outlook (Revenue, USD Million; Volume, Kilo Tons; 2021 - 2033)

• Pipeline

• Cargo

Green Hydrogen Application Outlook (Revenue, USD Million; Volume, Kilo Tons; 2021 - 2033)

• Power Generation

• Transport

• Others

Green Hydrogen Regional Outlook (Revenue, USD Million; Volume, Kilo Tons; 2021 - 2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

• Latin America

  • Brazil

  • Argentina

• Middle East & Africa

  • Saudi Arabia

  • UAE

  • South Africa

List of Key Players in the Green Hydrogen Market

• Air Liquide

• Air Products Inc.

• Bloom Energy

• Cummins Inc.

• Engie

• Linde plc.

• Nel ASA

• Siemens Energy

• Toshiba Energy Systems & Solutions Corporation

• Uniper SE