Green Hydrogen Market Forecasted To Reach USD 231.32 Billion By 2035 Driven By Renewable Energy Adoption And Policy Support

How is the Asia Pacific Dominating the Green Hydrogen?

Asia Pacific is a dominating region in the market during the forecast period. The Asia-Pacific (APAC) region provides massive potential for renewables investors, developers, and operators. The spending in renewable energy and advancement of green energy infrastructure are driving economic growth, making jobs, and development innovation globally. The requirement to decarbonize heavy sectors such as steel and chemical manufacturing is driving demand, particularly in China.

India Green Hydrogen Market Trends

India has a significant RE potential of over 24,000 GW, without applying any constraints. India is the 4th major market for renewable energy globally, the 4th largest market for wind, and the 3rd largest market for solar in the world. Strong regulatory policy helps like National Green Hydrogen Mission (NGHM), the SIGHT Programme, and green hydrogen standards, drive the growth of the market.

Why North America is the Fastest-Growing Region in the Green Hydrogen Market?

North America is the fastest-growing region in the market. This region has some of the world's richest wind, solar, geothermal, hydro, and biomass resources. The region also has a vibrant culture of innovation and entrepreneurial spirit, plentiful financing opportunities, and a highly skilled workforce. Renewables are an increasingly important source of energy as countries seek to reduce their CO2 emissions and dependence on imported fossil fuels. North America benefits greatly from its fertile soils, plentiful freshwater, oil and mineral deposits, and forests, which contributes the growth of the market.

U.S. Green Hydrogen Market Trends

The US, hub to iconic hydropower projects such as the Hoover Dam, which tames the Colorado River, also established solar energy and remains a powerhouse in novel renewable energy processes. The main aim is to offer clean energy services for trades that cannot easily rely on through electrification.

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Green Hydrogen Market Segmentation

Source Insights

In 2025, wind energy led green hydrogen production, supported by its mature, large-scale infrastructure and high capacity factors, especially in offshore installations. Reliable, continuous power generation from wind farms enables efficient operation of electrolyzers and mitigates intermittency issues. Many nations have incorporated wind-to-hydrogen projects into national decarbonization plans, particularly around industrial hubs.

Solar-based green hydrogen is anticipated to be the fastest-growing segment, driven by falling photovoltaic module costs and rapid solar deployment worldwide. Regions with strong solar irradiance, including the Middle East, Asia-Pacific, and parts of Africa, are actively investing in solar-to-hydrogen facilities. Its modular scalability, combined with advances in energy storage, makes solar increasingly competitive. Emerging hybrid solar-wind systems further enhance production reliability while reducing overall hydrogen generation costs.

Electrolyzer Type Insights

Proton Exchange Membrane (PEM) electrolyzers dominated the market in 2025 due to their operational flexibility and ability to work effectively with variable renewable power sources. These systems are compact, respond quickly, and produce high-purity hydrogen, making them suitable for both decentralized and large-scale operations. Their compatibility with fluctuating inputs from wind and solar projects has driven widespread adoption, particularly in developed regions emphasizing grid-integrated hydrogen production.

Solid Oxide Electrolyzer Cells (SOEC) are projected to be the fastest-growing technology segment thanks to their high efficiency and capability to utilize industrial waste heat. Operating at elevated temperatures, SOEC systems can significantly cut electricity consumption per kilogram of hydrogen. As industries seek economically viable decarbonization options at scale, SOEC adoption is gaining momentum, particularly within integrated industrial facilities and chemical production clusters.

End-Use Insights

The refining sector accounted for the largest share of green hydrogen consumption in 2025. Hydrogen is crucial in hydrocracking and desulfurization processes, and environmental regulations are driving the shift from grey to green hydrogen. Existing hydrogen infrastructure in refineries further accelerates this adoption, making refining the leading end-use sector in the early commercialization of green hydrogen.

The iron and steel sector is expected to be the fastest-growing end-use market, propelled by the push toward low-carbon steel production. Green hydrogen is increasingly replacing coal in Direct Reduced Iron (DRI) processes, supporting decarbonization initiatives within steelmaking.

✚ Related Topics You May Find Useful:

Materials for Green Hydrogen Market

➡️ Hydrogen Infrastructure Market

➡️ Hydrogen Technology Testing, Inspection and Certification Market

➡️ Hydrogen Electrolyzer Market

➡️ Low Carbon Hydrogen Market

➡️ Hydrogen Energy Storage Market

➡️ Clean Hydrogen Market

➡️ Petroleum Refining Hydrogen Market

➡️ AI in Hydrogen Operations Market

➡️ Hydrogen Generation Market

➡️ Green Ammonia Market

➡️ Hydrogen Aircraft Market

Recent Developments

• In September 2025, a U.S. manufacturer such as Electric Hydrogen, an advanced electrolyzer, announced it had acquired Ambient Fuels, a leading hydrogen project developer. Increasing demand for clean hydrogen in both the U.S. and the E.U. is speeding up the already fast-growing U.S. technology. ( )
  
• In January 2025, Evonik collaborated with Dutch company VoltH2 to advance green hydrogen production at the Delfzijl chemical park. According to the agreement, VoltH2 will construct a 50 MW electrolyzer for Evonik's hydrogen peroxide (H2O2) plant. ( )

Segments Covered in the Report

• By Electrolyzer
  • Proton Exchange Membrane Electrolyzer
  • Alkaline Electrolyzer
  • Solid Oxide Electrolyzer
  • Others
• By Source
  • Solar Energy
  • Wind Energy
  • Others (hydropower, geothermal, and hybrid of solar & wind)
• By End-use
  • Refining
  • Ammonia
  • Methanol
  • Iron & Steel
  • Others
    

By Region

• North America
  • U.S.
  • Canada
  • Mexico
  • Rest of North America
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Europe
  • Western Europe
    • Germany
    • Italy
    • France
    • Netherlands
    • Spain
    • Portugal
    • Belgium
    • Ireland
    • UK
    • Iceland
    • Switzerland
    • Poland
    • Rest of Western Europe
  • Eastern Europe
    • Austria
    • Russia & Belarus
    • Türkiye
    • Albania
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • Taiwan
  • India
  • Japan
  • Australia and New Zealand,
  • ASEAN Countries (Singapore, Malaysia)
  • South Korea
  • Rest of APAC
• MEA
  • GCC Countries
    • Saudi Arabia
    • United Arab Emirates (UAE)
    • Qatar
    • Kuwait
    • Oman
    • Bahrain
  • South Africa
  • Egypt
  • Rest of MEA

Thank you for reading. You can also get individual chapter-wise sections or region-wise report versions, such as North America, Europe, or Asia Pacific.

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