Green hydrogen has been identified as the fuel of the future. While this has been said for many years, it seems that the future that has been talked about might finally arrive within the next five years. Going by the current trends and stats in the market, hydrogen is promising to deliver amazing results. In this article, we take you through some statistics about green H2. These are the stats that are shaping the current debates and are also the basis for the huge investments being made.
Global Market Size and Expected Growth
To provide a clear picture of what’s happening in the green H2 market, we have to look at the size within the last three years. That forms the basis of projects and expected growth rate over the coming years. With that said, the global hydrogen market size as of 2019 was estimated to be worth USD 786.9 million. In the year 2020, the market was estimated to be USD 822.2 million.
Given the nature of investments currently underway, plus the huge support by political elites across the world, the green H2 market is estimated to register a growth rate of 14.24% yearly over the coming years. So, going by such a trend, the market is expected to hit a whopping USD 2,282.4 million by the year 2027. The figures might even be higher than the estimates given here considering the interest by the world’s superpowers and leading companies that are also investing in the hydrogen market.
Which Green H2 Segment Has Accounted for the Largest Market Share?
Alkaline and PEM electrolyzers are the leading segments of the green H2. However, owing to their differences in costs as well as preferences, there is a great difference in performance, especially in terms of revenue for each sector. The difference might also be due to the difference in players in each sector of the green H2 market.
For the last couple of years, the alkaline electrolyzer has accounted for the largest share of the market. The continued dominance of this sector could be due to its low cost compared to the other segments in the green H2 market. The sector continues to enjoy great momentum. However, with more research and the discovery of new technologies, other shares might take over depending on what happens to go into the future of hydrogen.
- Key Driving Factors of Current Green H2 Market Trends
A couple of factors are associated with the interesting statistics and trends in the global green hydrogen market. While these factors are many and people talk about them differently, they all boil down to two major factors: - Environmental Concerns
Over the years, there have been concerns about rising carbon emissions. Yes, there have been efforts to curb the trend, but the fact remains that we are yet to see a breakthrough. Green H2 has been identified as a clean energy source that might help curb emissions. The efforts and growing interest in green H2 are, therefore, driven by the desire to stop the damage to the environment caused by carbons emitted by fossil fuel energy sources and others that emit carbons. - Push for Sustainable Development
Sustainable development is one of the goals that many countries around the world have set for the coming years. More specifically, it has been identified as one of the goals set for the year 2050. One of the strategies set to help achieve this goal is through the promotion and adoption of green hydrogen as a clean source of energy.
It is estimated that the use of green hydrogen to meet the ever-growing energy demand in the world will save approximately 830 million tonnes of carbon emitted by gases and fossil fuels. However, it is worth noting that green hydrogen is still a project under trial. If it succeeds, then the earth might register a downward trend in carbon emissions.
Green H2 Outlook across the World
Globally, the greatest investors in green H2 include the United States, Canada, Germany, France, Australia and Japan. The investments carried out by these countries account for the largest share of the projects ongoing worldwide aimed at making the future hydrogen power a reality sooner. With these as the prominent players, the hydrogen market might be headed for something big! It’s just a matter of time.