USA Green Hydrogen Market Outlook to 2030
Region:North America
Author(s):Yogita Sahu
Product Code:KROD4948
December 2024
96
About the Report
USA Green Hydrogen Market Overview
- The USA Green Hydrogen Market is valued at USD 932 million, driven by advancements in electrolysis technologies and significant investments in renewable energy production. The increased adoption of green hydrogen as a clean fuel alternative in energy-intensive sectors such as transportation and manufacturing highlight its transformative role in the global decarbonization efforts.
- Key regions leading in the green hydrogen market include Europe, particularly Germany and France, and parts of Asia Pacific, with Japan and South Korea spearheading initiatives. Europes leadership is due to strong policy support for green energy, while Japan and South Korea have invested in hydrogen technology for energy security and emissions reduction.
- The U.S. has introduced a tax credit of up to $3 per kilogram for hydrogen produced through clean methods, applicable to production facilities established before 2033. This tax incentive aims to make green hydrogen more economically competitive with conventional fuels, reducing financial barriers for producers.
USA Green Hydrogen Market Segmentation
By Production Technology: The market is segmented by production technology, including Alkaline Electrolysis, Proton Exchange Membrane (PEM) Electrolysis, Solid Oxide Electrolysis, and Other Emerging Technologies. PEM electrolysis currently holds the dominant market share in this segment, largely due to its adaptability and suitability for various industrial applications. Its high efficiency and compatibility with fluctuating renewable power sources make it ideal for green hydrogen production, especially as the energy grid incorporates more renewable energy.
By Application: The green hydrogen market, by application, is divided into Power Generation, Industrial Processing, Transportation Fuel, and Energy Storage. Power Generation holds the largest share, driven by its use in decarbonizing large-scale power plants and as a reliable energy storage solution. As energy storage demand grows, green hydrogens scalability and ability to integrate with renewable resources enhance its appeal for sustained power generation, especially in grid stabilization and balancing renewable intermittency.
By Region: Regional segmentation includes North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Europe currently dominates the market, benefiting from the EUs ambitious climate goals and regulatory policies supporting hydrogen production. Additionally, countries like Germany and France are investing in hydrogen infrastructure to meet stringent emissions targets, with multiple government-funded projects to scale green hydrogen capacity.
USA Green Hydrogen Market Competitive Landscape
The market is dominated by leading companies focused on innovation and technological advancement. The competitive environment reflects ongoing strategic investments and partnerships aimed at enhancing production capabilities and expanding global reach.
USA Green Hydrogen Market Analysis
Market Growth Drivers
- Government Investment in Infrastructure: The U.S. government has allocated funding toward clean hydrogen production and infrastructure, with $9.5 billion directed specifically to clean hydrogen development under the Infrastructure Investment and Jobs Act. This investment aims to establish regional clean hydrogen hubs and support the building of green hydrogen production and distribution networks.
- Increase in Heavy Industry Demand: The push to decarbonize energy-intensive industries, such as steel and cement production, is creating strong demand for green hydrogen as a substitute for fossil fuels. As of 2024, U.S. steel manufacturing alone consumes nearly 1.4 billion cubic meters of natural gas annually, a target for hydrogen replacement. Major steel manufacturers have started pilot programs to incorporate hydrogen-based production processes, providing the hydrogen industry with reliable long-term clients.
- Rising Fuel Cell Vehicle (FCV) Applications: With over 65,000 hydrogen-powered fuel cell vehicles expected on U.S. roads by 2025, the automotive sector is increasingly adopting green hydrogen as a viable alternative fuel source. California currently leads in FCV deployment and refueling infrastructure, and additional states are preparing to follow suit by building hydrogen fueling stations, which boosts green hydrogen production requirements.
Market Challenges
- Insufficient Infrastructure: The United States lacks adequate pipelines and storage facilities dedicated to hydrogen distribution, with less than 1,000 miles of dedicated hydrogen pipelines currently operational, compared to over 3 million miles of natural gas pipelines. This limited infrastructure increases transportation costs, creating obstacles for reliable green hydrogen delivery to potential industrial consumers.
- Water Resource Concerns: Green hydrogen production via electrolysis requires large volumes of purified water, raising concerns in water-stressed regions. Producing 1 kilogram of hydrogen consumes approximately 9 liters of water. With the U.S. already facing drought conditions in several states, including California and Arizona, water availability poses a geographical challenge for expanding green hydrogen facilities.
USA Green Hydrogen Market Future Outlook
The Global Green Hydrogen industry is poised for expansion, driven by increasing demand for clean fuel sources across power generation, transportation, and industrial applications. Continued government incentives, coupled with private sector investments in electrolysis technology, will likely facilitate market growth.
Future Market Opportunities
- Expansion in Heavy-Duty Transport: Over the next five years, green hydrogen is expected to penetrate the heavy-duty transport sector, with over 10,000 hydrogen fuel cell trucks projected to be operational by 2029. States such as California and Texas are set to lead in heavy-duty hydrogen fuel adoption due to policy support and infrastructure investments, supporting emissions reduction goals.
- Growth in Hydrogen Blending in Natural Gas Networks: The U.S. will likely see increased blending of green hydrogen into existing natural gas pipelines, reaching volumes of over 200 million cubic feet by 2028. This blending strategy will help reduce overall carbon emissions in gas distribution, with significant adoption expected in states prioritizing renewable energy.
Scope of the Report
|
Production Technology |
Proton Exchange Membrane (PEM) Electrolyzer |
|
Application |
Transportation |
|
Source |
Solar Energy |
|
Distribution Channel |
Pipelines |
|
Region |
Northeast |
Products
Key Target Audience Organizations and Entities Who Can Benefit by Subscribing This Report:
Green Hydrogen Production Companies
Government and Regulatory Bodies (e.g., European Commission, U.S. Department of Energy)
Investors and Venture Capitalist Firms
Renewable Energy Equipment Manufacturers
Utilities and Power Generators
Automotive and Transportation Companies
Industrial End Users (e.g., Chemicals, Steel, Cement)
Research and Development Organizations
Companies
Players Mentioned in the Report:
Air Liquide
Linde plc
Siemens Energy
ITM Power
Nel ASA
Plug Power Inc.
Ballard Power Systems
Engie
Shell Hydrogen
Uniper SE
Table of Contents
1. USA Green Hydrogen Market Overview
1.1. Definition and Scope
1.2. Market Taxonomy
1.3. Market Growth Rate
1.4. Market Segmentation Overview
2. USA Green Hydrogen Market Size (In USD Million)
2.1. Historical Market Size
2.2. Year-On-Year Growth Analysis
2.3. Key Market Developments and Milestones
3. USA Green Hydrogen Market Analysis
3.1. Growth Drivers
3.1.1. Decarbonization Initiatives
3.1.2. Government Policies and Incentives
3.1.3. Technological Advancements
3.1.4. Industrial Demand
3.2. Market Challenges
3.2.1. High Production Costs
3.2.2. Infrastructure Limitations
3.2.3. Regulatory Hurdles
3.3. Opportunities
3.3.1. Expansion into Hard-to-Abate Sectors
3.3.2. Export Potential
3.3.3. Public-Private Partnerships
3.4. Trends
3.4.1. Integration with Renewable Energy Sources
3.4.2. Development of Hydrogen Hubs
3.4.3. Advancements in Electrolyzer Technologies
3.5. Government Regulations
3.5.1. Clean Hydrogen Production Tax Credit
3.5.2. National Clean Hydrogen Strategy and Roadmap
3.5.3. State-Level Initiatives
3.6. SWOT Analysis
3.7. Stakeholder Ecosystem
3.8. Porter’s Five Forces Analysis
4. USA Green Hydrogen Market Segmentation
4.1. By Production Technology (In Value %)
4.1.1. Proton Exchange Membrane (PEM) Electrolyzer
4.1.2. Alkaline Electrolyzer
4.1.3. Solid Oxide Electrolyzer
4.2. By Application (In Value %)
4.2.1. Transportation
4.2.2. Power Generation
4.2.3. Industrial Energy
4.2.4. Industrial Feedstock
4.2.5. Building Heat and Power
4.3. By Source (In Value %)
4.3.1. Solar Energy
4.3.2. Wind Energy
4.3.3. Hydroelectric Power
4.4. By Distribution Channel (In Value %)
4.4.1. Pipelines
4.4.2. Cargo Transport
4.5. By Region (In Value %)
4.5.1. Northeast
4.5.2. Midwest
4.5.3. South
4.5.4. West
5. USA Green Hydrogen Market Competitive Analysis
5.1. Detailed Profiles of Major Companies
5.1.1. Air Liquide SA
5.1.2. Air Products and Chemicals, Inc.
5.1.3. Bloom Energy Corporation
5.1.4. Cummins Inc.
5.1.5. ENGIE SA
5.1.6. Linde PLC
5.1.7. Nel ASA
5.1.8. Siemens Energy AG
5.1.9. Plug Power Inc.
5.1.10. Toshiba Energy Systems & Solutions Corporation
5.1.11. Ballard Power Systems
5.1.12. FuelCell Energy, Inc.
5.1.13. ITM Power PLC
5.1.14. McPhy Energy SA
5.1.15. Nikola Corporation
5.2. Cross-Comparison Parameters (Number of Employees, Headquarters Location, Year of Establishment, Annual Revenue, Market Share, Key Products and Services, Recent Developments, Strategic Initiatives)
5.3. Market Share Analysis
5.4. Strategic Initiatives
5.5. Mergers and Acquisitions
5.6. Investment Analysis
5.7. Venture Capital Funding
5.8. Government Grants
5.9. Private Equity Investments
6. USA Green Hydrogen Market Regulatory Framework
6.1. Environmental Standards
6.2. Compliance Requirements
6.3. Certification Processes
7. USA Green Hydrogen Future Market Size (In USD Million)
7.1. Future Market Size Projections
7.2. Key Factors Driving Future Market Growth
8. USA Green Hydrogen Future Market Segmentation
8.1. By Production Technology (In Value %)
8.2. By Application (In Value %)
8.3. By Source (In Value %)
8.4. By Distribution Channel (In Value %)
8.5. By Region (In Value %)
9. USA Green Hydrogen Market Analysts’ Recommendations
9.1. Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) Analysis
9.2. Customer Cohort Analysis
9.3. Marketing Initiatives
9.4. White Space Opportunity Analysis
Disclaimer
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Research Methodology
Step 1: Identification of Key Variables
This stage involves identifying crucial variables within the Global Green Hydrogen Market, such as production costs, technological advancements, and regulatory policies. This is achieved through desk research and the use of secondary databases to gather foundational data.
Step 2: Market Analysis and Construction
In this phase, historical data is analyzed to understand market penetration, supply-demand dynamics, and revenue growth. These metrics are validated to ensure an accurate representation of the current market status.
Step 3: Hypothesis Validation and Expert Consultation
Market hypotheses developed from initial findings are verified through consultations with industry experts. Telephone interviews are conducted with stakeholders from hydrogen production companies and regulatory bodies to validate our hypotheses and gather qualitative insights.
Step 4: Research Synthesis and Final Output
The final stage involves synthesizing data gathered from direct engagements with key market players. This ensures a comprehensive analysis, allowing for a holistic view of the market trends and future projections.
Frequently Asked Questions
01. How big is the Global Green Hydrogen Market?
The global green hydrogen market, valued at USD 932 million, is gaining traction as a sustainable energy source, driven by growing demand across multiple sectors.
02. What are the challenges in the Global Green Hydrogen Market?
Key challenges in the global green hydrogen market include high production costs, limited infrastructure for storage and distribution, and regulatory hurdles, which can slow down industry growth and adoption.
03. Who are the major players in the Global Green Hydrogen Market?
The global green hydrogen market is dominated by companies such as Air Liquide, Linde plc, Siemens Energy, ITM Power, and Nel ASA, which lead in technological advancements and partnerships.
04. What factors drive the Global Green Hydrogen Market?
The global green hydrogen market is driven by government policies favoring renewable energy, advancements in electrolysis technology, and increasing industrial demand for sustainable energy solutions.
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