While fossil-based production dominates current supply, the rising adoption of low-emissions pathways, including green electrolytic hydrogen and blue hydrogen with carbon capture, is reshaping the industry. Expanding electrolyzer capacities, large-scale international projects, and supportive government policies are accelerating clean hydrogen production.
Chicago, Feb. 05, 2026 (GLOBE NEWSWIRE) — The global hydrogen market was valued at 230.61 billion in 2024 and is expected to reach US$ 1,657.24 billion by 2050, growing at a CAGR of 7.88% from 2025 to 2050.
Global interest in the hydrogen market has risen dramatically, positioning it as a key pillar in the worldwide push toward more sustainable energy systems. As of early 2024, the hydrogen economy is on the cusp of transformational growth, boosted by government commitments, private-sector investments, and advancing technologies. Despite total global hydrogen demand hovering around 97 million tons annually, only about 1% is currently classified as low-emissions hydrogen.
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This shows a vast opportunity for scaling cleaner production pathways, especially via water electrolysis. Recent figures show that global water electrolyzer capacity augmented from 1.4 gigawatts (GW) at the end of 2023 to an expected 5 GW by late 2024, marking a 257% jump in just one year. Furthermore, China alone is poised to account for about 70% of the planned 5 GW electrolysis capacity , illustrating its leading position in green hydrogen expansion. Simultaneously, the hydrogen sector’s job creation potential is immense, with forecasts suggesting up to 2 million jobs annually by 2030–2050. Yet, only 4% of the hundreds of global clean hydrogen projects have reached a final investment decision, indicating an implementation gap between lofty goals and on-the-ground realities.
Fossil Fuels Still Rule Hydrogen Production, but Low-Emission Technologies Poised for Rapid Growth
The modern hydrogen market supply chain remains dominated by fossil-based options, notably steam methane reforming (SMR). Of the 97 million tons of H₂ produced each year globally, more than 96 million tons stem from high-carbon methods, often without carbon capture and storage (CCS). Less than 1% shown in multiple industry radar reports currently qualifies as low-emissions hydrogen, highlighting a significant gap between established fossil-based production and the cleaner processes advocated under global climate objectives. However, multiple factors are propelling the shift toward cleaner technologies. Chief among them is the climb in announced electrolyzer manufacturing capacity: from around 13 GW annually in 2022 to 25 GW in 2023. Yet the actual production output trails behind, with a mere 10% utilization rate in 2023, indicating that many units remain underused or are still in pilot stages.
Looking ahead, the Global Hydrogen market review projects that low-emissions hydrogen production could expand to roughly 38 million tons per annum (Mtpa) by 2030, potentially higher under more ambitious scenarios. Part of this optimism arises from countries experimenting with different electrolyser technologies, such as alkaline, PEM (Proton Exchange Membrane), and solid oxide, each offering unique cost and efficiency profiles. Proponents see a path toward achieving a cost benchmark of US$ 2/kg by the close of the decade, driven by economies of scale and enhancing technologies. Furthermore, programs exploring “blue hydrogen” (fossil-based hydrogen with CCS) provide a bridge solution, cutting CO₂ emissions significantly when compared to unabated SMR production. If backed by supportive policy incentives, these advancements will fortify both the demand and supply side of cleaner hydrogen in the near term.
Industrial Adoption of Green Hydrogen Surges Amid Ambitious Clean Energy Initiatives
The green hydrogen market is rapidly reshaping the energy landscape by providing a zero-carbon alternative for industries long reliant on fossil fuels. Global hydrogen output reached 97 million tons in 2023, yet fewer than 1 million tons originate from electrolyzers, highlighting the limited but expanding footprint of green hydrogen. China’s installed water electrolysis capacity stands at about 1.2 gigawatts as of 2024, highlighting its growing leadership in the sector. At least 29 governments across continents now have formalized hydrogen strategies that prioritize low-emission production and usage. Some pilot facilities in the Middle East are testing integrated solar-powered electrolyzers, with an initial daily output of 40 tons. Large-scale projects in Northern Europe seek to pair wind farms with electrolyser clusters, ensuring a consistent renewable energy supply. In Australia, refineries are experimenting with small on-site electrolyzer units to reduce reliance on trucked-in hydrogen. These efforts collectively signal a sharp turn toward clean power alternatives.
Global Green Hydrogen Boom: 780+ Large-Scale Projects Accelerate Technology and Cost Reductions
Recent data on the hydrogen market shows more than 780 large-scale green hydrogen ventures worldwide, each aiming to accelerate technology breakthroughs and drive down costs. In Western Australia, a new initiative targets an annual production of 10,000 tons of green hydrogen, primarily for export to East Asia. Encouraging cost trends are emerging: advanced pilot sites in Northern Europe have achieved production costs close to US$ 3.2 per kilogram, down from previous levels above US$ 7. The world’s largest planned single-site electrolyzer, with an initial capacity of 2.2 gigawatts, is under development in Neom, Saudi Arabia, aimed at fueling both domestic and international markets. Meanwhile, smaller pilots in Africa are testing how on-site green hydrogen can reduce diesel imports for remote communities. Innovative research in Asia is focusing on next-generation membranes to boost efficiency, with some prototypes promising faster hydrogen output. Collectively, these milestones underscore the accelerating change to green hydrogen on a global stage.
Hydrogen Market Major Players:
- Air Liquide International S.A.
- Air Products and Chemicals, Inc.
- Atawey
- Claind
- Cummins
- Ergousp
- Enapter AG
- EvolOH, Inc.
- Fuel Cell Energy
- Green Hydrogen Systems
- Heliogen
- Accelera (Cummins)
- HyTech Power
- Inox
- ITM Power
- Linde plc
- McPhy Energy
- Messer Group GmbH
- NEL Hydrogen
- Plug Power
- PowerTap
- Siemens AG
- Showa Denko
- Starfire Energy
- Taiyo Nippon
- Verdagy
- Other Prominent Players
Key Market Segmentation:
By Type
- Blue Hydrogen
- Green Hydrogen
- Grey Hydrogen
By Technology
- Thermal Process
- Steam Methane Reforming (SMR)
- Partial Oxidation (POX)
- Coal Gasification
- Biomass Gasification
- Electrolytic Process
- SOEC
- SOFC
- PEM
- Others
By Application
- Methanol Production
- Ammonia Production
- Petroleum Refinery
- Heat Treatment
- Transportation
- Power Generation
- Renewable Energy
- Hydrogen Fuel Cell
- Fuel Cell Vehicles
- Fuel Cell Ships
- Fuel Cell Battery
- Mobile Power Generation
- Others
By Delivery Mode
- Captive
- Merchant
By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
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