Market for green hydrogen will grow explosively.
The global market for green hydrogen will grow by 50 percent each year over the next decade. This is the conclusion of the research agency Transparency Market Research in a new study. The market size will increase from 2.10 billion euros now to 133.58 billion euros in 2031.
The market for electrolysers, the devices with which green hydrogen is produced, will also grow exponentially. In a report published earlier this year, market research firm Guidehouse Insights calculated that the supply and demand for electrolysers will increase by 8,000 percent by 2031.
Green hydrogen indispensable link
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The growing demand for hydrogen is caused by governments around the world, which are strongly committed to the production of sustainable energy. Green hydrogen is an indispensable link in a sustainable energy system. It can contribute to storing surpluses of solar and wind energy, replacing natural gas, serving as a sustainable raw material in industry and as fuel in heavy transport.
Europe boosts hydrogen market
With its Green Deal, Fit for 55 programme and ambitious hydrogen strategy, the European Union is a driving force behind the expected growth of both the market for hydrogen and for electrolysers, according to both research agencies.
Germany, with the H2Global initiative, also plays an important role in stimulating a global market for green hydrogen. The specially created organization buys green hydrogen at the lowest possible price on the world market and then sells it at the highest bidder in Europe. The German government made 900 million euros available for this initiative.
But the market for green hydrogen is certainly not limited to Europe. The demand for this sustainable energy carrier is growing all over the world. According to TMR, it is mainly the demand from the chemical industry and the steel industry that is driving the market for green hydrogen.
Market for electrolysers
In the slipstream of the demand for green hydrogen, the market for electrolysers is also growing. According to the Guidehouse Insights report, global annual production capacity will grow from 1.3 GW to 104.6 GW in 2031. That sounds like a huge increase but is still far below the 850 Gigawatt production capacity that the IEA says is needed to achieve a carbon-neutral economy by 2050.
Europe is also leading the way in the production of electrolysers, the researchers say, followed by Asia and Australia and North America. Of the fourteen factories that will produce electrolysers on a gigawatt scale, eight are located in Europe.
Market for green hydrogen will grow explosively, August 18, 2022
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