Current Global Hydrogen Markets and Future Projections

Market Size and Breakdown by Hydrogen Type

As of 2023, the global hydrogen market is valued at approximately $242.7 billion and is anticipated to reach around $410.6 billion by 2030​ (MarketsandMarkets)​ (Grand View Research). This growth is driven by the increasing demand for clean energy, technological advancements, and global decarbonization efforts.

Here's a breakdown of the current hydrogen market by type:

• Grey Hydrogen: Grey hydrogen remains the most widely produced form of hydrogen, accounting for over 70% of the global hydrogen market. It is primarily derived from natural gas through Steam Methane Reforming (SMR), which is cost-effective but results in significant CO₂ emissions. Despite its dominance, grey hydrogen's market share is expected to decline as industries shift towards cleaner alternatives​ (Grand View Research).

• Blue Hydrogen: Blue hydrogen is produced similarly to grey hydrogen but incorporates carbon capture, utilisation, and storage (CCUS) to reduce CO₂ emissions. The global blue hydrogen market was valued at around $20.4 billion in 2023 and is projected to grow significantly, reaching $64.98 billion by 2033​ (MarketsandMarkets)​ (GlobeNewswire).

• Green Hydrogen: Green hydrogen, produced via electrolysis using renewable energy, is the most environmentally friendly option. While currently a smaller segment, the green hydrogen market is expected to expand rapidly, from approximately $1.1 billion in 2023 to around $30.6 billion by 2030​ (Grand View Research)​ (GlobeNewswire).

• Pink Hydrogen: This form of hydrogen, produced via electrolysis using nuclear energy, is still emerging and not widely commercialized. However, it holds potential for future growth as countries explore diverse low-carbon energy solutions.

Projected Market Growth and Net Zero Targets

To meet global Net Zero targets by 2030 and 2050, the hydrogen market must expand significantly, with particular emphasis on green and blue hydrogen.

• 2030 Projections: By 2030, the hydrogen market is expected to be valued at around $410.6 billion. Green hydrogen's share could increase to 10-20% of total hydrogen production, driven by the decreasing costs of renewables and electrolyzer technology. Blue hydrogen will also see increased adoption, particularly in regions with established natural gas infrastructure​ (McKinsey & Company)​ (Grand View Research).

• 2050 Projections: By 2050, the hydrogen market could be worth $2.5 trillion globally, with green hydrogen potentially making up 50-65% of total production. Blue hydrogen is expected to account for 20-30% of the market, while grey hydrogen's share will likely decline as the industry moves towards cleaner alternatives. Hydrogen will play a crucial role in reducing emissions, particularly in hard-to-decarbonize sectors such as heavy industry and long-haul transportation​ (McKinsey & Company)​ (GlobeNewswire).

Conclusion

The hydrogen market is poised for substantial growth as the world transitions to a low-carbon economy. Grey hydrogen currently dominates the market, but the future will likely see a significant shift towards green and blue hydrogen, driven by the need to meet global climate targets. By 2050, green hydrogen is expected to lead the market, supported by continued investment in hydrogen technologies and infrastructure.