Investments in Green Hydrogen Expected to Reach USD 510 Billion by 2032

Driven by federal incentives, hydrogen hubs and industrial demand, the U.S. green hydrogen market shows a compound annual growth rate of 63.8% through 2032.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The global green hydrogen market is experiencing unprecedented growth momentum, supported by political initiatives, technological advances, and increasing industrial interest. According to SkyQuest Technology Consulting, the market, valued at USD 9.9 billion in 2024, could reach USD 510.8 billion by 2032, representing a compound annual growth rate (CAGR) of 63.8%. This pace is fueled by strategic investments in infrastructure, the expansion of electrolyzer deployment, and the diversification of industrial applications.

In the United States, federal levers play a central role in this expansion. The Inflation Reduction Act (IRA) and the dedicated program of the Department of Energy (DOE) provide billions in subsidies and tax credits to support the production and transportation of green hydrogen. The launch of seven regional hubs by the DOE aims to structure an industrial network, reduce costs, and accelerate adoption in energy-intensive sectors.

Rising Industrial and Logistics Applications

Heavy-duty transport, aviation, maritime shipping, and high-emission industries represent strategic outlets for green hydrogen. In 2024, the transportation segment dominated the global market, largely due to the development of hydrogen propulsion systems and fuel cell technologies. These applications address both the demand for energy security and emission reductions.

The pipeline segment has also emerged as the dominant distribution channel. Reusing existing natural gas infrastructure allows gradual integration of hydrogen, lowering logistics costs and facilitating industrial connectivity. This coupling with gas networks is particularly evident in pilot hydrogen-gas blending projects, such as the one launched by Torrent Group in India, with an annual capacity of 72,000 tons.

Electrolytic Technologies and Emerging Industrial Models

From a technological standpoint, alkaline electrolyzers represented the majority of installations in 2024. Their longer operating hours, compared to polymer electrolyte membrane (PEM) electrolyzers, provide greater profitability for large-scale projects. This trend is reinforced by private initiatives such as the partnership between Wison Engineering and Sungrow Hydrogen, which led to MegaFlex, a modular solution designed for rapid industrial deployment.

The evolution of industrial models now integrates synergies between renewable energy producers and green hydrogen manufacturers. Companies such as Plug Power, Cummins Inc., and Baker Hughes are investing in local supply chains, compression optimization, and production unit automation to strengthen the resilience of the North American market.

Technical Constraints and Operational Limits

Despite this momentum, several obstacles remain. The adoption of green hydrogen requires precise control infrastructure, advanced technical expertise, and costly adjustments to existing facilities. These technical requirements complicate modernization projects in cost-sensitive markets or in sectors with limited human resources.

Maintenance is also a key issue. Demanding industrial environments create significant wear constraints. Performance variability depending on the type of hydrogen requires specific maintenance protocols, increasing the risk of operational downtime. This reality hinders the integration of green hydrogen in remote areas or in industries where reliability remains a top priority.

Structuring Prospects and Strategic Development

Corporate strategies are shifting toward multi-sector cooperation to structure a coherent industrial sector. The convergence between hydrogen producers, network operators, and energy-intensive industries opens the possibility of rapid scaling, provided that financing is secured and technologies are standardized.

International development is also driven by high-visibility pilot projects. India, for example, is multiplying announcements of green hydrogen infrastructure, while China is showcasing new industrial equipment. These initiatives reflect a desire to consolidate the global value chain around this energy carrier, in response to economic imperatives and ongoing industrial restructuring.

Asset manager Quinbrook expands its North American portfolio with a first Canadian investment by acquiring a strategic stake in developer Elemental Clean Fuels.
Lhyfe commissions a 10 MW site in Schwäbisch Gmünd, its first in Germany, to supply RFNBO-certified green hydrogen to industrial and heavy mobility clients.
Brookfield will invest up to $5 billion in Bloom Energy's fuel cells to power future artificial intelligence factories, initiating the first phase of a dedicated global digital infrastructure strategy.
Metacon acquired components from the bankruptcy estate of Hynion Sverige AB for SEK3.5mn ($320,000), aiming to support its hydrogen refuelling station projects in Sweden.
The United Kingdom has carried out its first real-life trial of green hydrogen blending into the national gas transmission network, with power generation as a result.
Swedish company Liquid Wind has secured €3.6mn in public funding for the engineering phase of its eMethanol plant, integrated into a biomass-fuelled cogeneration site.
The Japanese industrial group will replace a 73.5 MW coke and gas-fired turbine with a 30 to 40 MW hydrogen-ready unit, scheduled to start operations in 2030 with ¥7.1bn ($47mn) in public support.
A two-year project aims to identify areas in Texas suitable for natural hydrogen exploitation, despite challenges related to infrastructure, public policy and economic viability.
Plug Power has announced the appointment of Jose Luis Crespo as President effective October 10, before assuming the role of Chief Executive Officer once the company publishes its annual report, expected in March 2026.
Plug Power finalised a deal with an institutional investor to raise $370mn through the immediate exercise of warrants, with the possibility of securing an additional $1.4bn if new warrants are exercised.
Air Liquide announces a $50mn investment to strengthen its hydrogen network on the US Gulf Coast, following long-term contracts signed with two major American refiners.
Global demand for industrial gases will grow on the back of hydrogen expansion, carbon capture technologies, and advanced use in healthcare, electronics, and low-carbon fuel manufacturing.
Green ammonia reaches a new industrial milestone with 428 active projects and over $11bn in investments, highlighting accelerated sector growth across Asia, the Middle East, Europe and the Americas.
Nel Hydrogen US will supply a containerised electrolyser to H2 Energy for a hydrogen production facility commissioned by the Association for Waste Disposal in Buchs, Switzerland.
UK-based manufacturer ITM Power has signed an engineering contract for a green hydrogen project shortlisted under the country's second Hydrogen Allocation Round.
Agfa strengthens its industrial position with the launch of a ZIRFON membrane production site for electrolyzers, backed by a €11mn European subsidy.
Driven by Air Liquide and SEGULA Technologies, the ROAD TRHYP project aims to lower hydrogen transport costs and improve safety through a series of technical innovations by 2030.
Qair obtains structured bank financing of €55mn for its Hyd’Occ ecosystem, integrating renewable hydrogen production and distribution in Occitanie, with commissioning scheduled before the end of 2025.
Swedish firm Metacon has secured a EUR7.1mn ($7.7mn) contract to deliver a 7.5 MW electrolysis plant to Elektra Power SRL, marking its operational entry into the Romanian market.
The Clean Hydrogen Partnership has closed its first call for Project Development Assistance (PDA), totaling 36 applications from 18 countries. Results are expected in October, with support starting in November.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.