The global green hydrogen market is valued at $2.79bn for 2025 and is expected to reach $74.81bn by 2032, with a compound annual growth rate of 60 %. This expansion is supported by the growth of renewable energy capacity, carbon reduction targets, and increasing demand from the transport sector.
Alkaline electrolysis remains dominant
Alkaline electrolysis is the leading technology in the global green hydrogen market, accounting for 61.2 % of total market value in 2024. This process uses low-cost electrolytes such as potassium or sodium hydroxide and does not require precious metals, significantly reducing capital expenditure. It also benefits from high operational stability, long lifetimes, and suitability for large-scale operations, making it attractive for industrial-scale projects.
Alkaline systems account for over 50 % of the global installed electrolyser capacity. Ongoing multi-megawatt and gigawatt-scale projects rely heavily on this technology to ensure steady and cost-effective hydrogen production.
Wind power drives production expansion
Wind energy is the leading renewable source for green hydrogen electrolysis, representing 48.9 % of market value in 2024. Offshore wind farms, in particular, offer high capacity factors—often above 40 %—which ensure a reliable and energy-dense electricity supply for electrolysers. This consistency boosts hydrogen output and lowers production costs.
The largest hydrogen projects are located in wind-rich regions. Falling wind electricity prices, advances in turbine technology, and government support further strengthen wind power’s competitiveness in the hydrogen value chain.
Transport sector drives green hydrogen demand
With a 57.7 % market share in 2024, the mobility sector is the leading industrial end-use for green hydrogen. The segment is driven by rising adoption of hydrogen-powered vehicles, particularly in long-haul transport, where energy density and fast refuelling are major advantages over battery-electric solutions.
Large-scale deployment programmes, hydrogen corridors, and zero-emission mandates support this trend. Several global manufacturers are investing in hydrogen vehicle fleets, supported by expanding refuelling infrastructure and growing acceptance among logistics operators.
North America leads regional growth
North America is expected to be the fastest-growing region in the global green hydrogen market, with a growth rate of 69.7 % over the forecast period. This growth is supported by favourable fiscal policies, notably in the United States, where tax credits of up to $3 per kilogram of low-carbon hydrogen accelerate project economics.
The U.S. Department of Energy has committed between $7bn and $8bn to the creation of multiple Regional Hydrogen Hubs. Canada is also advancing its national hydrogen strategy and export-focused projects, particularly around green ammonia. With abundant renewable resources and strong regulatory backing, the region is shaping up to be a key deployment zone for green hydrogen.
