Europe Green Hydrogen Market: Current Analysis and Forecast (2024-2032)
Emphasis on Electrolyzer (Proton Exchange Membrane Electrolyzer, Alkaline Electrolyzer, Others); Source (Solar Energy, Wind Energy, Others); End-User (Refining, Ammonia, Others); and Country
Europe Green Hydrogen Market Size & Forecast
The European green hydrogen market was valued at USD 141.24 Million in 2023 and is expected to grow at a strong CAGR of around 67.1% during the forecast period (2024-2032). This is mainly owing to the increasing efforts to meet the EU’s renewable hydrogen targets.
Europe Green Hydrogen Market Analysis
The European green hydrogen market has catered to significant market demand in the past few years. current hydrogen demand in Europe amounts to 8.7 Mt yearly. The sheer size of the existing hydrogen market provides an opportunity for reducing carbon emissions, as well as providing a scalable offtake market for large-scale electrolyzes.
Further, with the presence of production, import, and end-use targets as well as funding mechanisms in place, the EU is providing an increasingly attractive framework for hydrogen value chain development to kick off.
In addition, a joint effort to boost the green hydrogen economy, the German Federal Government and the European Union have allocated 800 million euros, which aims to foster renewable fuel of non-biological origin (RFNBO) hydrogen production within the EU and the European Economic Area.
Europe Green Hydrogen Market Trends
Growing Hydrogen Infrastructure Development in Europe.
Hydrogen infrastructure development in Europe is growing rapidly, thanks to the increasing demand for green hydrogen as a clean energy source. Green hydrogen is produced by using renewable sources like wind and solar power, and it’s considered as a key solution for reducing carbon emissions and transitioning to a more sustainable energy future. The development of hydrogen infrastructure is playing a crucial role in scaling up the market size of green hydrogen in Europe. In addition to government-led initiatives, private-sector investments are also driving the growth of hydrogen infrastructure in Europe. Companies such as Siemens Energy, Shell, and Ørsted have announced plans to invest in hydrogen production facilities and infrastructure projects, with a focus on green hydrogen production. For example, Siemens Energy recently unveiled plans to build a 100-megawatt electrolyzer plant in Germany, while Shell announced a partnership with Dutch gas grid operator Gasunie to build a massive offshore wind-powered electrolyzer in the Netherlands.
These developments demonstrate the increasing momentum behind hydrogen infrastructure development in Europe, as the region seeks to build a robust and sustainable hydrogen economy. With supportive policies, investments, and technological advancements, the market size of green hydrogen in Europe is set to escalate in the coming years, paving the way for a cleaner and more environmentally friendly energy future.
Europe Green Hydrogen Market Opportunities
Opportunity for Green Hydrogen in Hard to abate sectors:
- Europe has an opportunity to use green hydrogen to decarbonize sectors that are difficult to reduce emissions from, such as transportation, heavy industry, and heating. As the European Union aims to become climate-neutral by 2050, green hydrogen can play a vital role in lowering greenhouse gas emissions in these industries. Additionally, by developing a European hydrogen economy, new employment and economic growth opportunities can be created, positioning Europe as a leading player in the clean energy transition. Moreover, green hydrogen can improve energy security in Europe by decreasing its reliance on imported fossil fuels. By investing in domestic hydrogen production from renewable sources such as wind and solar power, European countries can increase their energy independence and resilience to supply chain disruptions. Ultimately, the key benefits of green hydrogen in Europe are its potential to promote sustainable economic growth, reduce carbon emissions, and enhance energy security in the region.
Europe Green Hydrogen Market Report Coverage
Germany is Expected to Grow with Significant CAGR During Forecast Period
Germany has been actively investing in a green hydrogen economy as it has doubled its green hydrogen production target for 2030 with the implementation of a new national strategy. The country aims to import the excess green hydrogen that will help diversify the import channels and significantly accelerate the level of ambition along with the entire value chain. Moreover, the German government aims to set technical standards for green hydrogen to provide advice on laws and standards and to train specialists.
For instance: In 2024, the German Federal Ministry for Economic Affairs and Climate Protection (BMWK), ministers signed an agreement to support the Green Hydrogen Namibia Program, which aims at establishing local hydrogen value chains that benefit the local population, in developing a national strategy for green industrialization and in carrying out environmental impact assessments for green hydrogen projects in Namibia.
Europe Green Hydrogen Industry Overview
The green hydrogen market is competitive and fragmented, with the presence of several European and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are ABB, Conrad Energy Limited, Gen2 Energy, Lhyfe, TES H2, Protium, Shell, ThyssenKrupp Industrial Solutions AG, Uniper, Nel Hydrogen A/S.
Europe Green Hydrogen Market News
- In January 2024, Gen2 Energy and Norsk e-Fuel collaborated on green hydrogen supply for e-Fuel production in Mosjøen, Norway.
- In February 2024, Lhyfe unveiled plans to develop a 20 MW green hydrogen plant, marking its inaugural project in the UK
- In March 2023, Conrad Energy funded Lowestoft to build a new green hydrogen production plant with an initial capacity of 2MW, using electrolysis.
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
The Europe green hydrogen market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the Europe Green Hydrogen Market Analysis (2022-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the European green hydrogen market were the three major steps undertaken to create and analyze the adoption of green hydrogen in major countries in Europe. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the Europe green hydrogen market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of the green hydrogen market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the green hydrogen market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as electrolyzer, source, and end-user. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the green hydrogen market. Further, we conducted factor analysis using dependent and independent variables such as electrolyzer, source, and end-user of the green hydrogen market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the green hydrogen market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Europe green hydrogen market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets in Europe. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the green hydrogen market across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the Europe green hydrogen market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the Europen green hydrogen market. data was split into several segments & sub-segments after studying various parameters and trends in the areas of the electrolyzer, source, and end-user in the Europen green hydrogen market.
The main objective of the Europen Green Hydrogen Market Study
The current & future market trends of the Europen green hydrogen market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the green hydrogen market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
- Segments in the study include areas of the electrolyzer, source, and end-user
- Define and analyze the regulatory framework for the green hydrogen industry
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
- Analyze the current and forecast market size of the green hydrogen market for the major countries.
- Major countries of regions studied in the report include Germany, U.K. France and rest of Europe.
- Company profiles of the green hydrogen market and the growth strategies adopted by the market players to sustain in the fast-growing market
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