Report Overview

Europe Green Hydrogen Market – Industry Trends & Forecast Report, 2030

Europe Green Hydrogen Market size was estimated at USD 189.89 million in 2023. During the forecast period between 2024 and 2030, the Europe Green Hydrogen Market size is projected to grow at a robust CAGR of 47.95% reaching a value of USD 2,946.16 million by 2030. A prominent driver of the Europe Green Hydrogen Market is the rising demand for sustainable energy solutions. Green hydrogen, generated through electrolysis using renewable sources like solar and wind power, serves as a clean alternative to traditional fuels. Its popularity is escalating due to its capacity to significantly reduce carbon emissions, meeting the burgeoning expectations for eco-friendly fuels and positioning itself as a long-term replacement for fossil fuels. In Europe, heightened environmental concerns and a demand for cleaner energy across various industrial sectors further drive the market. With the continent's commitment to decarbonization, green hydrogen, easily transportable through pipelines, assumes a strategic role. Collaborative efforts and initiatives like the European Hydrogen Bank and the REPowerEU plan underscore a commitment to fair competition and the promotion of renewable hydrogen. Also, the green hydrogen demand is expected for rapid growth, driven by significant applications in fuel, chemical feedstock, and a rising demand from the refining and iron & steel industry. The surge in demand for green hydrogen is expected to drive the Europe Green Hydrogen Market over the forecast period.

Green Hydrogen – Overview

The Europe Green Hydrogen Market is characterized by a revolutionary technology centered on producing hydrogen, a versatile and highly reactive fuel, through the process of electrolysis. The method involves using an electrical current to separate hydrogen from oxygen in water, offering a carbon-neutral energy production pathway when the electricity is sourced from renewables. Notably, this green hydrogen production approach holds the potential to mitigate approximately 830 million tons of CO2 emissions annually compared to fossil fuel-based hydrogen generation, as highlighted by the IEA. Despite current concerns about the production cost of green hydrogen, its viability is expected to improve with the ongoing global decarbonization efforts and the subsequent reduction in renewable energy generation costs. Hydrogen, being the most abundant chemical element in nature, has seen a significant surge in demand for fuel purposes, tripling since 1975 and reaching 70 million tons yearly by 2018, according to the IEA. Furthermore, green hydrogen stands out as a clean energy source, emitting only water vapor and leaving no environmental residue, distinguishing it from conventional fuels like coal and oil. Having played a historic role in various industries since the 19th century, hydrogen is poised to gain further prominence in the world's decarbonization journey. If the projected 50% reduction in production costs by 2030, as forecast by the World Hydrogen Council, materializes, green hydrogen is poised to become a pivotal fuel for the future, aligning with the imperative shift toward sustainable energy solutions.

Europe Green Hydrogen Market

Growth Drivers

Increasing Investments in Green Hydrogen Market

The Europe Green Hydrogen Market is experiencing substantial growth, driven by the urgent need to curb carbon emissions, particularly in the transport and industrial sectors. Fueled by renewable energy sources like wind and solar power through electrolysis, green hydrogen emerges as a clean and efficient fuel for power generation. Despite challenges, such as high infrastructure costs, the market foresees significant expansion, propelled by noteworthy investments. The European Union's commitment to invest USD 430 billion by 2030, complemented by the 2020 European Commission's hydrogen strategy envisioning a significant share of the world's energy demand met by clean hydrogen by 2050, underscores a strategic and financial dedication to the green hydrogen sector. The Fit-for-55 package, introduced in July 2021, translates the European hydrogen strategy into a robust policy framework, setting ambitious targets for renewable hydrogen adoption by 2030. Noteworthy investment initiatives, including the Recovery and Resiliency Facility and Important Projects of Common European Interest (IPCEIs) like "IPCEI Hy2Tech" and "IPCEI Hy2Use," showcase a substantial commitment to innovative technologies and infrastructure development. The Clean Hydrogen Partnership, initiated in November 2021, further underscores a strategic focus on research and innovation. This comprehensive and committed approach emphasizes a clear trajectory, where increasing investments play a pivotal role in propelling the Europe Green Hydrogen Market forward.

Challenges

High Production Costs

A significant impediment to the growth of the Green Hydrogen Market is the substantial infrastructure cost associated with adoption and hydrogen transportation. While fossil fuels have long served as a conventional power supply, the envisioned large-scale adoption of hydrogen fuel cell technology in the automotive sector necessitates the establishment of new refueling infrastructure. This anticipated requirement poses a considerable challenge and is expected to hinder the demand for green hydrogen over the forecast period. The existing high infrastructure costs become a critical factor in limiting the market expansion, highlighting the financial barriers associated with the production and widespread adoption of green hydrogen in the current landscape.

Impact of Geopolitical Tensions on Europe Green Hydrogen Market

Europe Green Hydrogen Market is impacted by geopolitical tensions in several ways. The recent invasion of Ukraine has highlighted Europe's vulnerability to Russian oil and gas dependencies, prompting urgent measures to diversify energy sources. In response, the European Union has unveiled plans to reduce reliance on Russian gas, with hydrogen emerging as a pivotal element in this strategy. Hydrogen, as an energy carrier, holds the promise of providing a clean alternative in industries difficult to decarbonize. While the push for green hydrogen is gaining momentum, challenges persist, including the dominance of fossil fuel-derived hydrogen. The geopolitical landscape is shifting, and the evolving energy trade dynamics are expected to significantly impact the Europe Green Hydrogen Market, making it a crucial element in Europe's quest for energy security and independence. The global transition to a low-carbon economy, spurred by recent events like the Russia-Ukraine war, has significant implications for energy value chains. Green hydrogen, with its versatility, gains economic and political momentum and is poised to play a crucial role in achieving a carbon-free future. Current challenges to green hydrogen adoption, such as limited infrastructure and cost concerns, are being reshaped by recent spikes in fossil fuel prices. While green hydrogen is becoming cost-competitive with blue and grey hydrogen, the International Renewable Energy Agency (IRENA) forecasts a substantial decline in green hydrogen costs by up to 85% by 2050, making it a crucial element in Europe's quest for energy security and independence.

Europe Green Hydrogen Market

Segmental Coverage

Europe Green Hydrogen Market – By Technology

Based on technology, the Europe Green Hydrogen Market is bifurcated into Alkaline Electrolysis and PEM Electrolysis segments. The alkaline electrolysis segment holds a higher share in the Europe Green Hydrogen Market by technology. Alkaline electrolysis exhibit an efficiency exceeding 70%, ensuring hydrogen gas purity at 99.5%. This technology is widely employed for electrolytic hydrogen production, resulting in exceptionally pure hydrogen and oxygen at 99.99%. The operational principle involves the transport of hydroxide ions (OH-) from the cathode to the anode within the electrolyte. The production of green hydrogen occurs at the cathode side. Commercially available for an extended period, the alkaline electrolysis technology has established their presence in the market, providing a reliable means of generating high-purity hydrogen through the electrolysis process.

Europe Green Hydrogen Market – By Renewable Source

On the basis of renewable source, the Europe Green Hydrogen Market is bifurcated into Wind Energy and Solar Energy segments. The wind energy segment holds a higher share in the Europe Green Hydrogen Market by application. Wind power, especially onshore wind, stands as the primary contributor to driving the production of green hydrogen. Its widespread availability and economic viability position it as a top preference. Although slightly trailing wind energy, solar power is swiftly gaining ground. Its capacity for decentralized production and seamless integration with current grids adds to its attractiveness.

Europe Green Hydrogen Market – By End User

By End User, the Europe Green Hydrogen Market is divided into Mobility, Chemical, Power, Grid Injection, and Industrial segments. The power segment holds the highest share in the Europe Green Hydrogen Market by end user, due to the high utilization of green hydrogen to provide power to the grid using gas turbines. As renewable energy replaces traditional fossil fuels, the likelihood of increased demand for green hydrogen in the power segment becomes apparent.

Europe Green Hydrogen Market – By Country

The in-depth research report on the Europe Green Hydrogen Market covers the market in the region’s major countries including Germany, United Kingdom, Italy, France, Spain, Belgium, Russia, the Netherlands, and Rest of Europe. Germany dominates the Europe Green Hydrogen Market and is expected to maintain its dominance over the forecast period. The changing regulatory environment, initiation of novel projects, and strategic commercial collaborations, coupled with a widespread adoption of energy efficiency objectives, will drive the integration of hydrogen across diverse sectors. Increased research and development initiatives, coupled with the expansion of large scale and low carbon hydrogen and ammonia projects, will contribute to the establishment of an emission-free economy. The significant abundance of renewable resources, particularly wind and solar, along with the expanding electric vehicle fleet in the country, is expected to have a positive impact on market trends.

Competitive Landscape

Major players operating in Europe Green Hydrogen Market include Siemens Energy, NEL ASA, ITM Power, McPhy Energy, Ørsted, Engie, Hynamics (EDF Group), and Covestro. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In January 2024 - Stellantis Pro One extended its hydrogen fuel cell vehicle production to include medium sized and large vans in Hordain (France) and Gliwice (Poland). The strategic move reinforced Stellantis' leadership in zero-emission commercial vehicles across Europe. As part of the Pro One strategic offensive, the company revamped its van lineup in October 2023. The inclusion of fuel cell technology in medium-sized and large vans aligns with Stellantis' commitment to cutting-edge hydrogen advancements. The fuel cell versions offer rapid refuelling, with medium sized vans achieving a segment record range of up to 400 km and large vans boasting a range of up to 500 km.

• In September 2023 - Germany and England collaboratively embraced green hydrogen, aligning with Plug Power's vision for sustainable energy. Plug, a pivotal player in North America, Europe, and beyond, closely monitors transnational initiatives supporting the sector. The company focuses on delivering clean and reliable hydrogen solutions, spanning the entire value chain. With extensive experience, Plug expands into global markets, establishing itself as a leading force in the green hydrogen sector. While challenges persist, Plug's strategic partnerships and initiatives, such as the Hyvia joint venture, showcase its commitment to advancing green hydrogen solutions and contributing to Europe's decarbonization goals.

• In August 2023 - Morocco positioned itself as a major contributor to Europe Green Hydrogen Market, aiming to meet 5% of the continent's clean energy demand. A study by the Fraunhofer Institute highlights Morocco's strategic investments, totaling nearly EUR 16.4 billion, as key to its potential role as a heavyweight supplier of green hydrogen. The "Morocco Offer" project outlines a roadmap for green hydrogen production, aligning with the country's commitment to sustainable energy. With a target of producing 160 terawatt-hours by 2050, Morocco's dedication and substantial investments position it as a key player in shaping Europe's hydrogen landscape and contributing to cleaner energy solutions globally.

Scope of the Report

By Technology

• Alkaline Electrolysis

• PEM Electrolysis

By Renewable Source

• Wind Energy

• Solar Energy

By End User

• Mobility

• Chemical

• Power

• Grid Injection

• Industrial

By Country

• Germany

• United Kingdom

• Italy

• France

• Spain

• Belgium

• Russia

• The Netherlands

• Rest of Europe

1. Research Framework
   1. Research Objective
   2. Technology Overview
   3. Market Segmentation
2. Executive Summary
3. Europe Green Hydrogen Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Climate change goals
         2. Energy security concerns
         3. Increasing investments
      2. Restraints
         1. High production costs
         2. Lack of infrastructure
      3. Opportunities
         1. Export potential
         2. New job creation
      4. Challenges
         1. Addressing public concerns
         2. Developing a harmonized regulatory framework
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Europe Green Hydrogen Market: Market Overview
5. Europe Green Hydrogen Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share and Forecast
      1. By Technology
         1. Alkaline Electrolysis
         2. PEM Electrolysis
      2. By Renewable Source
         1. Wind Energy
         2. Solar Energy
         3. Others
      3. By End User
         1. Mobility
         2. Chemical
         3. Power
         4. Grid Injection
         5. Industrial
         6. Others
      4. By Country
         1. Germany
         2. United Kingdom
         3. Italy
         4. France
         5. Spain
         6. Belgium
         7. Russia
         8. The Netherlands
         9. Rest of Europe
6. Germany Green Hydrogen Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Technology
      2. By Renewable Source
      3. By End User
7. United Kingdom Green Hydrogen Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Technology
      2. By Renewable Source
      3. By End User
8. Italy Green Hydrogen Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Technology
      2. By Renewable Source
      3. By End User
9. France Green Hydrogen Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Technology
      2. By Renewable Source
      3. By End User
10. Spain Green Hydrogen Market Overview
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Technology
       2. By Renewable Source
       3. By End User
11. Belgium Green Hydrogen Market Overview
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Technology
       2. By Renewable Source
       3. By End User
12. Russia Green Hydrogen Market Overview
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Technology
       2. By Renewable Source
       3. By End User
13. The Netherlands Green Hydrogen Market Overview
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Technology
       2. By Renewable Source
       3. By End User
14. Rest of Europe Green Hydrogen Market Overview
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Technology
       2. By Renewable Source
       3. By End User
15. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Europe Green Hydrogen Market Share Analysis, 2023
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
16. Impact of Escalating Geopolitical Tensions on Europe Green Hydrogen Market
17. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
    1. Siemens Energy
    2. NEL ASA
    3. ITM Power
    4. McPhy Energy
    5. Ørsted
    6. Engie
    7. Hynamics (EDF Group)
    8. Covestro
    9. Other Prominent Players
18. Key Strategic Recommendations
19. Research Methodology
    1.    Qualitative Research
       1.  Primary & Secondary Research
    2.    Quantitative Research
    3.    Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.    Breakdown of Primary Research Respondents, By Region
    5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Europe Green Hydrogen Segmentation

Figure 2       Europe Green Hydrogen Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       Europe Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Figure 5       Europe Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Figure 6       Europe Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Figure 7       Europe Green Hydrogen Market Share, By End User, By Value, 2019–2030

Figure 8       Germany Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Figure 9       Germany Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Figure 10     Germany Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Figure 11     Germany Green Hydrogen Market Share, By End User, By Value, 2019–2030

Figure 12     United Kingdom Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Figure 13     United Kingdom Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Figure 14     United Kingdom Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Figure 15     United Kingdom Green Hydrogen Market Share, By End User, By Value, 2019–2030

Figure 16     Italy Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Figure 17     Italy Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Figure 18     Italy Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Figure 19     Italy Green Hydrogen Market Share, By End User, By Value, 2019–2030

Figure 20     France Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Figure 21     France Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Figure 22     France Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Figure 23     France Green Hydrogen Market Share, By End User, By Value, 2019–2030

Figure 24     Spain Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Figure 25     Spain Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Figure 26     Spain Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Figure 27     Spain Green Hydrogen Market Share, By End User, By Value, 2019–2030

Figure 28     Belgium Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Figure 29     Belgium Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Figure 30     Belgium Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Figure 31     Belgium Green Hydrogen Market Share, By End User, By Value, 2019–2030

Figure 32     Russia Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Figure 33     Russia Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Figure 34     Russia Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Figure 35     Russia Green Hydrogen Market Share, By End User, By Value, 2019–2030

Figure 36     The Netherlands Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Figure 37     The Netherlands Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Figure 38     The Netherlands Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Figure 39     The Netherlands Green Hydrogen Market Share, By End User, By Value, 2019–2030

Figure 40     Rest of Europe Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Figure 41     Rest of Europe Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Figure 42     Rest of Europe Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Figure 43     Rest of Europe Green Hydrogen Market Share, By End User, By Value, 2019–2030

List of Tables

Table 1        Europe Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Table 2        Europe Green Hydrogen Market Size, By Technology, By Value, 2019–2030

Table 3        Europe Green Hydrogen Market Size, By Renewable Source, By Value, 2019–2030

Table 4        Europe Green Hydrogen Market Size, By End User, By Value, 2019–2030

Table 5        Germany Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Table 6        Germany Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Table 7        Germany Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Table 8        Germany Green Hydrogen Market Share, By End User, By Value, 2019–2030

Table 9        United Kingdom Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Table 10      United Kingdom Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Table 11      United Kingdom Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Table 12      United Kingdom Green Hydrogen Market Share, By End User, By Value, 2019–2030

Table 13      Italy Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Table 14      Italy Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Table 15      Italy Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Table 16      Italy Green Hydrogen Market Share, By End User, By Value, 2019–2030

Table 17      France Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Table 18      France Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Table 19      France Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Table 20      France Green Hydrogen Market Share, By End User, By Value, 2019–2030

Table 21      Spain Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Table 22      Spain Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Table 23      Spain Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Table 24      Spain Green Hydrogen Market Share, By End User, By Value, 2019–2030

Table 25      Belgium Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Table 26      Belgium Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Table 27      Belgium Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Table 28      Belgium Green Hydrogen Market Share, By End User, By Value, 2019–2030

Table 29      Russia Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Table 30      Russia Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Table 31      Russia Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Table 32      Russia Green Hydrogen Market Share, By End User, By Value, 2019–2030

Table 33      The Netherlands Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Table 34      The Netherlands Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Table 35      The Netherlands Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Table 36      The Netherlands Green Hydrogen Market Share, By End User, By Value, 2019–2030

Table 37      Rest of Europe Green Hydrogen Market Size, By Value (USD Million), 2019–2030

Table 38      Rest of Europe Green Hydrogen Market Share, By Technology, By Value, 2019–2030

Table 39      Rest of Europe Green Hydrogen Market Share, By Renewable Source, By Value, 2019–2030

Table 40      Rest of Europe Green Hydrogen Market Share, By End User, By Value, 2019–2030

Table 41      Siemens Energy Company Overview

Table 42      Siemens Energy Financial Overview

Table 43      NEL ASA Company Overview

Table 44      NEL ASA Financial Overview

Table 45      ITM Power Company Overview

Table 46      ITM Power Financial Overview

Table 47      McPhy Energy Company Overview

Table 48      McPhy Energy Financial Overview

Table 49      Ørsted Company Overview

Table 50      Ørsted Financial Overview

Table 51      Engie Company Overview

Table 52      Engie Financial Overview

Table 53      Hynamics (EDF Group) Company Overview

Table 54      Hynamics (EDF Group) Financial Overview

Table 55      Covestro Company Overview

Table 56      Covestro Financial Overview

Table 57      Other Prominent Players Company Overview

Table 58      Other Prominent Players Financial Overview