Introduction

Green hydrogen generated through electrolysis using renewable power is moving from niche pilot schemes to a central element of the clean-energy transition. With emerging electrolyser technologies, policy support, and investment in infrastructure, green hydrogen is becoming increasingly vital to decarbonising hard-to-abate industries such as heavy industry, transport, and long-duration energy storage.

Market Dynamics

• Market Size: The size of the green hydrogen market will increase from US$ 8.38 billion in 2024 to US$ 71.31 billion by 2031; it is projected to achieve a CAGR of 37.8% during the period from 2025 to 2031. The strongly increasing government investment in renewable energy is likely to continue to be an important green hydrogen market trend.

Market Growth Drivers

1.Electrolyser Technology Advancements

• PEM, alkaline, and next-generation AEM/SOEC systems reduce efficiency while decreasing reliance on rare/precious metals. Certain AEM stacks have efficiencies above 94%.

2.Integration with Renewable Energy

• Solving solar, wind, and battery storage with electrolysers allows for stable, efficient production.

3.AI & Digitalization

• Intelligent plants leverage AI, IoT, digital twins, and predictive analytics to maximize electrolyser performance and reliability.

4.Transport & Infrastructure Innovations

• Pipeline, cryogenic/liquid, and carrier format growth (e.g., ammonia, methanol) underpins scalable green hydrogen distribution

Get Sample PDF:- https://www.theinsightpartners.com/sample/TIPRE00029371

Innovations Redefining the Market

• High-Efficiency Electrolysers: Gigawatt-scale, modular PEM/alkaline configurations aimed at 80–95%+ efficiency.
• AEM Systems-free from critical minerals: Pioneered by companies such as Cipher Neutron and HyMeth to minimize dependence on platinum/iridium.
• PFAS-Free Membranes: Europe-funded R&D (TNO, GIRAFFE) is developing non-toxic electrolyser materials.
• Smart Production Plants: Application of AI, digital twins, and predictive maintenance enhances output and uptime.
• Transport & Storage Technologies: New cryogenic systems, pipeline retrofits, LOHCs, and hydrogen carriers (ammonia/methanol) simplify logistics.

Key Players & Trends

1. Air Liquide

• €1 B Electrolyser Projects in the Netherlands: Collaborating with TotalEnergies, Air Liquide is building two big electrolysers—a 200 MW Rotterdam plant (ELYgator) and a 250 MW JV plant in Zeeland—fueled by offshore wind. These would generate ~53,000 tons/year of green hydrogen and reduce CO₂ by ~500,000 t/yr.
• ENHANCE Ammonia-Cracking & Liquefaction in Antwerp-Bruges: Awarded €110 M by the EU, this project will produce and liquefy renewable hydrogen from ammonia, reducing emissions by over 300,000 t/yr

2.Siemens Energy

• AI-Powered Hydrogen Plant Configurator & Engineering Tools: Launched a generative AI “Hydrogen Plant Configurator”, plus Comos AI and AI-driven SFC charts in Simatic PCS neo, to streamline design, planning, and automation of hydrogen facilities. Available via Xcelerator Marketplace end 2024/early 2025.
• Electrolyser Manufacturing & Green Hydrogen Collaboration Partnerships: Signed an international partnership with Guofu Hydrogen for the standardisation of the electrolyser manufacturing process and production facilities In May, partnered with RIC Energy for green hydrogen, ammonia & e-fuel project development in Spain .

3.Engie

• HYFLEXPOWER Integrated Power-to-X-to-Power Gas Turbine: Engie Solutions supplies the HYFLEXPOWER demonstrator, demonstrating a unique combined P2X and hydrogen-fueled turbine plant to decarbonize industry

Growth Opportunities

• Heavy Industry Decarbonization: Steel (DRI), chemicals, and refining industries increasingly need green hydrogen.
• Mobility & Transport: Used in FCEVs (buses, trucks, trains), maritime, and future aviation.
• Energy Storage & Grid Services: Used as medium and long-duration storage to match renewable energy supply.
• Export Hubs: India, Australia, Middle East, and North Africa can produce hydrogen in volume for global trade.
• Hydrogen Clusters & Hubs: Industrial parks with shared production, pipelines, and refueling facilities are developing globally.

Challenges to Track

• Cost Gap: Still 2–3× more costly than grey hydrogen; requires capex reduction, economies of scale, and low-cost renewables to achieve $1–2/kg parity.
• Infrastructure Requirements: Massive investment needed in pipelines, storage, refueling, and export infrastructure. Material & Supply Chain Risks: Reliance on critical minerals in electrolysers is still a chokepoint.
• Regulatory Complexity: Differing definitions and standards (e.g., EU's additionality) can increase costs.
• Workforce and Financing: A qualified talent pipeline and innovative financing structures are essential to scale globally.

Conclusion: -

Green hydrogen industry is going through a phase of rapid growth, driven by declining technology prices, strong policy support, and industrial-scale deployment. Advances in electrolyser technology, digitalisation of plant operations, green material replacements, and supply chain infrastructure are propelling efficiency and scale. As economies around the world look for net-zero ways, green hydrogen is poised to green industry, transport, and energy storage and to reward the innovators and strategic thinkers.