Clean Hydrogen Market is estimated to be valued at USD 5.66 Bn in 2025 and is expected to reach USD 14.25 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 14.1% from 2025 to 2032
Global clean hydrogen market is expected to expand during the forecast period as there is a rise in awareness regarding carbon emissions and alternatives. Moreover, the production of greenhouse gases like nitrous oxide, carbon dioxide, and methane have increased in many nations because of industrialization and modernization, resulting in the growth of global temperature which is harmful for the ecosystem. The governments of the countries are taking various initiatives to control these carbon emissions and reduce global warming by encouraging the use of hydrogen gas in processes such as building, power generation, industry and transportation.
|
Current Event |
Description and its Impact |
|
EU's REPowerEU Plan and Hydrogen Accelerator Initiative |
|
|
Industrial Decarbonization Mandates and Carbon Pricing |
|
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
|
Company / Organization |
Investment Focus |
Estimated 2025 Spend |
|
Air Liquide (France) |
Electrolyzers, industrial hydrogen |
~$500M |
|
Linde (Germany/US) |
Industrial clusters, hydrogen supply |
~$600M |
|
Siemens Energy (Germany) |
Electrolyzer manufacturing |
~$400M |
|
Shell (Global) |
Hydrogen hubs, transport corridors |
~$700M |
|
Reliance Industries (India) |
Green hydrogen valleys |
~$500M |
|
NTPC (India) |
Hydrogen buses, pilot plants |
~$300M |
|
Tata Motors / Ashok Leyland (India) |
Hydrogen trucks & buses |
~$200M |
|
Toyota & Hyundai (Japan/Korea) |
Fuel cell vehicles |
~$600M |
|
Saudi Aramco (Saudi Arabia) |
NEOM hydrogen export |
~$800M |
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
In terms of end user, the transport segment is expected to dominate the global market over the forecast period. The industry is among the promising for the development of hydrogen technologies due to heavy reliance on oil products and to the few low-carbon options in different applications. Moreover, hydrogen vehicles have huge advantages when compared to electric vehicles. It can be used in vehicles to power cars, trucks, buses and freight trains.
For instance, in March 2025, India started five pilot projects as part of the National Green Hydrogen Mission. These projects use hydrogen-powered buses and trucks on ten routes across the country. The project has ₹208 crore in funding and includes major firms like Tata Motors, Reliance, NTPC, and IOCL, as well as nine refueling stations. The goal of the program is to prove that hydrogen can be used as a fuel for transportation and to cut down on our reliance on fossil fuels.
In terms of technology, the Alkaline Electrolyzer segment is expected to dominate the global market over the forecast period and this is attributed to their simple design. Moreover, it is also relatively effortless as compared to others technology. Alkaline electrolyzer is the most widely adopted technology due to its maturity, scalability, and lower cost.
For instance, in October 2025, Stargate Hydrogen released its Aurora 10MW electrolyzer, which is claimed to be the most space-efficient alkaline system available. Aurora is made for industrial users like refineries, chemical plants, and steelmakers. It makes green hydrogen more affordable and efficient. The launch shows that alkaline electrolyzers are the best way to make clean hydrogen technology work for industries that are hard to clean up.
To learn more about this report, Download Free Sample
Europe is expected to dominate the global clean hydrogen with 57.9% share in 2025, owing to the climate-friendly policies and strict frameworks, the contribution from countries such as France, Spain, Italy, Norway, the UK has made a significant impact on the global clean hydrogen market. The Eu’s hydrogen strategy is targeting the large-scale adoption in steel, fertilizers and transport. The green hydrogen projects are expanding in Europe with strong funding and industrial partnerships.
For instance, in December 2025, the European Commission has announced €6 billion in funding to speed up the use of hydrogen. This includes €1 billion through the third Hydrogen Bank auction for making renewable hydrogen and €5 billion through the Innovation Fund for big projects. The project strengthens Europe's position as a leader in clean hydrogen, helping to reduce carbon emissions in industry and transportation in line with the EU's climate neutrality goals.
North America is accounted for 18.8% of the global revenue share in 2025.The region has the second- largest market for clean hydrogen. Factors such as growing power consumption, increasing population, rapid industrialization and urbanization are fueling the demand for clean hydrogen in the region. Moreover, the growing deployment of renewable energy resources in residential and commercial segments due to increasing consumer purchasing power and regulatory changes are key factors augmenting regional market growth.
For instance, in November 2025, Samsung Engineering launched Compass H2-P, a 100MW PEM-based green hydrogen solution made in partnership with Nel Hydrogen. The system, which was introduced at ADIPEC 2025 in the UAE, provides high-purity, high-pressure hydrogen that is ideal for integrating renewable energy sources. Samsung wants to become the world's leader in clean hydrogen by expanding its product line beyond alkaline technology. This will help decarbonize industry and transportation.
Germany's demand for clean hydrogen in 2025 is due to its efforts to reduce carbon emissions from heavy industries like steel and chemicals, strong support from the EU, and substantial initiatives like the 320 MW Emden facility. Germany is becoming a leader in the use and development of hydrogen owing to the European Green Deal and the integration of renewable energy.
For instance, in December 2025, EWE started building a 320 MW green hydrogen facility in Emden, Germany. This is one of the largest projects in Europe. The plant will use renewable energy to make hydrogen for industrial decarbonization and transportation. The project helps Germany stay ahead in clean hydrogen and helps the EU reach its climate neutrality goals through the European Green Deal.
Strong federal support through the Inflation Reduction Act, the creation of regional hydrogen hubs, and rising demand from industries like steel, chemicals, and refining are all driving the U.S. clean hydrogen market in 2025. Pilot projects in transportation and power generation help more people use hydrogen, making the U.S. a major player in global efforts to reduce carbon emissions from hydrogen.
For instance, in July 2025, CPS Energy and Modern Hydrogen have started a pilot project in San Antonio, Texas, to make clean power in the U.S. by using hydrogen to make electricity. The goal of the project is to lower carbon emissions by mixing hydrogen into power systems. This will contribute to national hydrogen hub initiatives. It is an important advancement toward making hydrogen more useful in power generation, in addition to industry and transportation.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2024 | Market Size in 2025: | USD 5.66 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 14.1% | 2032 Value Projection: | USD 14.25 Bn |
| Geographies covered: |
|
||
| Segments covered: |
|
||
| Companies covered: |
Linde Plc, Air Liquide, Engie, Uniper Se, Air Products Inc, Clean Hydrogen System, Cummins Inc., Toshiba Energy Systems & Solutions Corporation, Nel Asa, and Sgh2 Energy |
||
| Growth Drivers: |
|
||
| Restraints & Challenges: |
|
||
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
For instance, the government of California is planning to invest $230 million in hydrogen projects before 2023. The world’s largest clean hydrogen projects are being built in Lancaster, CA, by an energy company. The Government of India is planning to increase its renewable energy capacity to 450 GW by 2030. The country’s huge renewal potential in terms of surplus solar and wind power capacity will enable the creation of a robust clean energy-based green hydrogen ecosystem. Hence, such support from government is expected to fuel market growth.
The demand for clean hydrogen is on the rise with increasing environmental concerns. The industry is growing at a fast pace and it has the potential to disrupt traditional energy markets. Moreover, clean hydrogen can be manufactured by electrolysis from renewable or low carbon sources such as water and wind power. This makes it a feasible source of energy to replace fossil fuels in power generation, and manufacturing sector.
Hydrogen is a clean and safe energy source that can significantly contribute to the decarbonization of the economy. Also, it is a key ingredient in energy strategies that are important to curb CO2 emissions and meet the global climate goals. For this governments and companies are creating right incentives based on a technology neutral and carbon intensity that would open new avenue for the market growth.
The clean hydrogen market has great potential especially across developing world. As more developing nations become industrialized which is creating high levels of energy demand, they will need more and more clean-energy technologies. This is making the market for clean hydrogen even more attractive in developing countries.
Various countries are increasing the investment in the clean hydrogen sector. This is expected to increase the widespread use of hydrogen and play a key role in the commercial-scale deployment of hydrogen. For instance, in March 2023, the Biden-Harris Administration, through the U.S. Department of Energy (DOE), today announced the availability of $750 million for research, development, and demonstration efforts to dramatically reduce the cost of clean hydrogen. Hence, it is an excellent investment opportunity for who leveraging existing infrastructure and economies of scale and develop innovative solutions to address the needs of key end users.
Hydrogen is a clean energy carrier and is becoming increasingly attractive to governments and various companies. Since the world tries to achieve net zero emissions and decarbonize its economies, hydrogen has emerged as a key alternative fuel. As a renewable source, it produces no carbon dioxide and can be used for heat buildings, to power transport, produce electricity, and make chemicals. This offers a valuable bridge to a low-carbon future.
*Definition: Clean hydrogen is an excellent alternative fuel for cars, trucks and ships. It’s also a valuable way to store energy over long periods of time and to move and deliver it where it is needed.
Share
Share
About Author
Sakshi Suryawanshi is a Research Consultant with 6 years of extensive experience in market research and consulting. She is proficient in market estimation, competitive analysis, and patent analysis. Sakshi excels in identifying market trends and evaluating competitive landscapes to provide actionable insights that drive strategic decision-making. Her expertise helps businesses navigate complex market dynamics and achieve their objectives effectively.
Missing comfort of reading report in your local language? Find your preferred language :
Transform your Strategy with Exclusive Trending Reports :
Frequently Asked Questions
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients
Schedule a meeting with report Author
