Ottawa, Feb. 19, 2026 (GLOBE NEWSWIRE) -- The global green hydrogen market size was estimated at USD 12.31 billion in 2025 and is predicted to reach around USD 231.32 billion by 2035, expanding at a CAGR of 34.09% from 2026 to 2035. Green hydrogen is mainly applied in transportation, industrial use, energy storage, and as a clean fuel substitute for sectors such as cement, steel, and chemicals, and drives growth in the green hydrogen market.
As industries and governments look for cleaner energy alternatives, demand is steadily rising across transportation, manufacturing, and energy storage. At the same time, growing investments in advanced electrolyzer technologies and global efforts to cut carbon emissions are expected to keep the market on a strong growth path in the years ahead.
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Green Hydrogen Market Key Points
- Asia Pacific accounted for the largest share of the global market, contributing over 47.40% of total revenue in 2025.
- By electrolyser type, the PEM electrolyser segment generated a revenue share of 26.43% in 2025.
- By source, the wind segment led the market, capturing over 47.75% of total revenue in 2025.
- By end use, the refining segment dominated, accounting for approximately 41.90% of the market revenue in 2025.
What is Green Hydrogen?
Green hydrogen is produced from renewable energy bases, which is a significant and promising solution for lowering carbon emissions and evolving the development of renewable energy sources, which increases system flexibility and certifies energy security. It is particularly required in the most populous countries.
Naturally occurring hydrogen is considered inexpensive compared to green hydrogen. Major applications of green hydrogen in the transportation sector are emerging as a promising service for availing green hydrogen-driven vehicles. It reduced carbon emissions with different initiatives and pilot agendas that are being developed in the nation. Green hydrogen manufacturing needs an electrolyser from water and green electricity.
The global hydrogen market is expanding rapidly as nations and industries push toward decarbonization and energy transition goals, with green hydrogen produced from renewable electricity gaining particular attention. Government policies and subsidies, especially in Europe, North America, and Asia, are accelerating investments in hydrogen production, infrastructure, and storage technologies.
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Global Green Hydrogen Market, By Source, 2023-2025 (USD Million)
| By Source | 2023 | 2024 | 2025 |
| Solar | 1,953.8 | 2,739.1 | 3,842.9 |
| Wind | 2,984.4 | 4,186.9 | 5,878.2 |
| Others | 1,329.3 | 1,854.7 | 2,589.6 |
Global Green Hydrogen Market, By Electrolyzer Type, 2023-2025 (USD Million)
| By Electrolyzer Type | 2023 | 2024 | 2025 |
| Alkaline | 1,578.5 | 2,212.5 | 3,103.5 |
| SOEC | 1,474.5 | 2,067.5 | 2,901.2 |
| PEM | 1,650.5 | 2,316.6 | 3,253.9 |
| Others | 1,564.1 | 2,184.1 | 3,052.1 |
Global Green Hydrogen Market, By End Use, 2023-2025 (USD Million)
| By End-Use | 2023 | 2024 | 2025 |
| Refining | 2,620.5 | 3,675.1 | 5,157.9 |
| Ammonia | 2,213.2 | 3,104.2 | 4,356.9 |
| Methanol | 924.3 | 1,298.0 | 1,824.0 |
| Iron & Steel | 381.6 | 536.7 | 755.6 |
| Others | 127.9 | 166.8 | 216.4 |
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Major Government Initiatives for the Green Hydrogen Market
- National Green Hydrogen Mission (NGHM): It directly replaces fossil fuel-based feedstocks in petroleum refining, fertilizer manufacturing, and steel construction. Its goal is to offer an inclusive action plan for establishing a green hydrogen ecosystem.
- The SIGHT Programme: The SIGHT programme provides INR 4.44 billion of incentives for organizations to set up 1.5 GW of electrolyser manufacturing capacity. SECI established 21 offers totalling 3,328.5 MW, which is more than double the capacity target.
- Green Hydrogen Standards: Green hydrogen allows the use of domestically abundant renewable energy resources in the regions, seasons, and sectors, feeding major usage streams.
- Green Hydrogen Production: Green hydrogen production is the use of renewable energy sources. This process harnesses the power of wind to make the electricity needed for hydrogen production.
- Renewable Energy Directive (RED III): RED III is expected to significantly increase the development of hydrogen projects in the EU. By setting clear targets and creating a favourable government environment.
- Inflation Reduction Act (IRA): The IRA controls production of airborne pollutants and enhances air quality in each town, city, and state in the United States.
What are the Key Trends of the Green Hydrogen Market?
- Technological Advancements in Electrolyzers: Electrolyzer technologies such as PEM, AWE, AEM, and SOE are progressing in efficiency, scalability, and renewable energy incorporation. Electrolysers are a significant technology for the manufacturing of low-emissions hydrogen from nuclear or renewable electricity.
- Decarbonizing Hard-to-Abate Sectors: Green hydrogen is a significant energy transporter for decarbonizing hard-to-abate industries, providing a clean substitute to fossil fuels. It is used in the manufacturing of ammonia (fertilizer) or methanol (chemical feedstock).
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Green Hydrogen Market Opportunity
Focus on Remote Asset Monitoring
Recent advances in liquid organic hydrogen carriers (LOHC) have been used as a lossless form of hydrogen storage at ambient conditions. LOHC is a technology that enables hydrogen to be chemically attached to a liquid carrier, creating it safer and more effective to handle. LOHCs are in a liquid state in ambient conditions and exhibit similar characteristics to fossil fuels. The hydrogen distribution technology employing LOHCs relies on the hydrogenation-dehydrogenation technology.
LOHCs show a specifically promising strategy to hydrogen storage, providing many advantages over traditional storage processes. LOHCs provide high storage densities, excellent safety characteristics, and compatibility with current infrastructure, making them well-suited for large-scale deployment and transportation uses.
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Green Hydrogen Market Highlights
| Report Metrics | Details |
| Market Size by 2035 | USD 231.32 Billion |
| Market Size in 2025 | USD 12.31 Billion |
| Market Size in 2026 | USD 17.28 Billion |
| Growth Rate (2026 - 2035) | 34.09% CAGR |
| Largest Market | Asia Pacific |
| Base Year | 2025 |
| Forecast Period | 2026 to 2035 |
| Segments Covered | Source, Electrolyzer Type, End Use and Region |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
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Green Hydrogen Market Regional Insights
How Big is the Asia Pacific Green Hydrogen Market Size in 2026?
According to Precedence Research, the Asia Pacific green hydrogen market size is expected to be worth USD 112.79 billion by 2035, increasing from USD 8.22 billion in 2026, expanding at a notable CAGR of 34.46% from 2026 to 2035.
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How is the Asia Pacific Dominating the Green Hydrogen?
Asia Pacific is a dominating region in the market during the forecast period. The Asia-Pacific (APAC) region provides massive potential for renewables investors, developers, and operators. The spending in renewable energy and advancement of green energy infrastructure are driving economic growth, making jobs, and development innovation globally. The requirement to decarbonize heavy sectors such as steel and chemical manufacturing is driving demand, particularly in China.
India Green Hydrogen Market Trends
India has a significant RE potential of over 24,000 GW, without applying any constraints. India is the 4th major market for renewable energy globally, the 4th largest market for wind, and the 3rd largest market for solar in the world. Strong regulatory policy helps like National Green Hydrogen Mission (NGHM), the SIGHT Programme, and green hydrogen standards, drive the growth of the market.
Why North America is the Fastest-Growing Region in the Green Hydrogen Market?
North America is the fastest-growing region in the market. This region has some of the world’s richest wind, solar, geothermal, hydro, and biomass resources. The region also has a vibrant culture of innovation and entrepreneurial spirit, plentiful financing opportunities, and a highly skilled workforce. Renewables are an increasingly important source of energy as countries seek to reduce their CO2 emissions and dependence on imported fossil fuels. North America benefits greatly from its fertile soils, plentiful freshwater, oil and mineral deposits, and forests, which contributes the growth of the market.
U.S. Green Hydrogen Market Trends
The US, hub to iconic hydropower projects such as the Hoover Dam, which tames the Colorado River, also established solar energy and remains a powerhouse in novel renewable energy processes. The main aim is to offer clean energy services for trades that cannot easily rely on through electrification.
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Green Hydrogen Market Segmentation
Source Insights
In 2025, wind energy led green hydrogen production, supported by its mature, large-scale infrastructure and high capacity factors, especially in offshore installations. Reliable, continuous power generation from wind farms enables efficient operation of electrolyzers and mitigates intermittency issues. Many nations have incorporated wind-to-hydrogen projects into national decarbonization plans, particularly around industrial hubs.
Solar-based green hydrogen is anticipated to be the fastest-growing segment, driven by falling photovoltaic module costs and rapid solar deployment worldwide. Regions with strong solar irradiance, including the Middle East, Asia-Pacific, and parts of Africa, are actively investing in solar-to-hydrogen facilities. Its modular scalability, combined with advances in energy storage, makes solar increasingly competitive. Emerging hybrid solar-wind systems further enhance production reliability while reducing overall hydrogen generation costs.
Electrolyzer Type Insights
Proton Exchange Membrane (PEM) electrolyzers dominated the market in 2025 due to their operational flexibility and ability to work effectively with variable renewable power sources. These systems are compact, respond quickly, and produce high-purity hydrogen, making them suitable for both decentralized and large-scale operations. Their compatibility with fluctuating inputs from wind and solar projects has driven widespread adoption, particularly in developed regions emphasizing grid-integrated hydrogen production.
Solid Oxide Electrolyzer Cells (SOEC) are projected to be the fastest-growing technology segment thanks to their high efficiency and capability to utilize industrial waste heat. Operating at elevated temperatures, SOEC systems can significantly cut electricity consumption per kilogram of hydrogen. As industries seek economically viable decarbonization options at scale, SOEC adoption is gaining momentum, particularly within integrated industrial facilities and chemical production clusters.
End-Use Insights
The refining sector accounted for the largest share of green hydrogen consumption in 2025. Hydrogen is crucial in hydrocracking and desulfurization processes, and environmental regulations are driving the shift from grey to green hydrogen. Existing hydrogen infrastructure in refineries further accelerates this adoption, making refining the leading end-use sector in the early commercialization of green hydrogen.
The iron and steel sector is expected to be the fastest-growing end-use market, propelled by the push toward low-carbon steel production. Green hydrogen is increasingly replacing coal in Direct Reduced Iron (DRI) processes, supporting decarbonization initiatives within steelmaking.
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➡️ Hydrogen Technology Testing, Inspection and Certification Market: Understand the growing importance of safety, compliance, and quality assurance in hydrogen deployment
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➡️ Clean Hydrogen Market: Gain insights into the rising demand for environmentally friendly hydrogen solutions worldwide
➡️ Petroleum Refining Hydrogen Market: Examine hydrogen’s critical role in refining processes and fuel quality enhancement
➡️ AI in Hydrogen Operations Market: Discover how artificial intelligence is optimizing hydrogen production, monitoring, and efficiency
➡️ Hydrogen Generation Market: Understand the evolving technologies and methods used to produce hydrogen at scale
➡️ Green Ammonia Market: Explore how green ammonia is emerging as a key carrier for hydrogen and clean fuel alternative
➡️ Hydrogen Aircraft Market: Analyze the future of aviation with hydrogen-powered aircraft and zero-emission flight innovations
Recent Developments
- In September 2025, a U.S. manufacturer such as Electric Hydrogen, an advanced electrolyzer, announced it had acquired Ambient Fuels, a leading hydrogen project developer. Increasing demand for clean hydrogen in both the U.S. and the E.U. is speeding up the already fast-growing U.S. technology. (https://www.globenewswire.com)
- In January 2025, Evonik collaborated with Dutch company VoltH2 to advance green hydrogen production at the Delfzijl chemical park. According to the agreement, VoltH2 will construct a 50 MW electrolyzer for Evonik’s hydrogen peroxide (H2O2) plant. (https://www.evonik.com)
Segments Covered in the Report
- By Electrolyzer
- Proton Exchange Membrane Electrolyzer
- Alkaline Electrolyzer
- Solid Oxide Electrolyzer
- Others
- By Source
- Solar Energy
- Wind Energy
- Others (hydropower, geothermal, and hybrid of solar & wind)
- By End-use
- Refining
- Ammonia
- Methanol
- Iron & Steel
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Rest of North America
- South America
- Brazil
- Argentina
- Rest of South America
- Europe
- Western Europe
- Germany
- Italy
- France
- Netherlands
- Spain
- Portugal
- Belgium
- Ireland
- UK
- Iceland
- Switzerland
- Poland
- Rest of Western Europe
- Eastern Europe
- Austria
- Russia & Belarus
- Türkiye
- Albania
- Rest of Eastern Europe
- Western Europe
- Asia Pacific
- China
- Taiwan
- India
- Japan
- Australia and New Zealand,
- ASEAN Countries (Singapore, Malaysia)
- South Korea
- Rest of APAC
- MEA
- GCC Countries
- Saudi Arabia
- United Arab Emirates (UAE)
- Qatar
- Kuwait
- Oman
- Bahrain
- South Africa
- Egypt
- Rest of MEA
- GCC Countries
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