Product Code: 28750
The Global Low Carbon Hydrogen Market was valued at USD 27.7 billion in 2024 and is expected to reach USD 64.3 billion by 2030, growing at a CAGR of 14.9% during the forecast period. The market is experiencing robust growth driven by declining renewable energy costs, expanding industrial decarbonization goals, and strong government support. Regulatory frameworks and incentive programs such as the U.S. Inflation Reduction Act and Canada's national hydrogen strategy are promoting the competitiveness of green and blue hydrogen. As industries seek to reduce carbon emissions-particularly in sectors such as steel, chemicals, and heavy transportation-low carbon hydrogen has emerged as a key energy vector. Technological innovations, including improved electrolyzers and more efficient storage solutions, are enhancing scalability and economic viability. The development of hydrogen infrastructure, such as Spain's pipeline initiatives and major private sector investments like ExxonMobil's USD 30 billion low-carbon commitment, is accelerating adoption. These collective efforts underscore low carbon hydrogen's role in the global shift toward clean and sustainable energy systems.
Market Overview |
Forecast Period | 2026-2030 |
Market Size 2024 | USD 27.7 Billion |
Market Size 2030 | USD 64.3 Billion |
CAGR 2025-2030 | 14.9% |
Fastest Growing Segment | Steam Methane Reforming (SMR) |
Largest Market | North America |
Key Market Drivers
Government Policies, Incentives, and Regulatory Support
Supportive government frameworks and financial incentives are playing a central role in propelling the global low carbon hydrogen market. Policies such as the U.S. Inflation Reduction Act, which offers generous tax credits for clean hydrogen production, have enabled green and blue hydrogen to compete with conventional fossil fuels. Similarly, the European Union has established ambitious hydrogen production targets, aiming for 10 million tons of green hydrogen annually by 2030. Countries like Japan and South Korea are investing in hydrogen infrastructure and R&D, while Canada is fast-tracking projects through public-private partnerships. In May 2024, the Canada Infrastructure Bank partnered with Vancouver-based HTEC to accelerate hydrogen infrastructure deployment, demonstrating how national strategies are translating into tangible market growth. These initiatives are laying the foundation for a thriving low carbon hydrogen ecosystem by reducing financial risk and encouraging investment.
Key Market Challenges
High Production Costs and Infrastructure Investment Needs
Despite favorable policy momentum, the market faces challenges associated with high production costs and the capital-intensive nature of hydrogen infrastructure development. Green hydrogen, which relies on electrolysis powered by renewable energy, remains more expensive than traditional hydrogen due to the cost of electrolyzers and renewable power infrastructure. While prices have declined, the scale of required investment still limits broader adoption. Electrolyzer production capacity remains constrained, slowing cost reduction through economies of scale. Additionally, blue hydrogen, which uses natural gas in combination with carbon capture and storage (CCS), also faces barriers due to the high costs and limited deployment of CCS systems. Building and maintaining CO2 transport and storage networks adds further complexity. As a result, cost and infrastructure limitations continue to hinder scalability, particularly in emerging markets and regions with underdeveloped clean energy ecosystems.
Key Market Trends
Expansion of Green Hydrogen Production and Scaling of Electrolyzer Technologies
A leading trend in the low carbon hydrogen market is the rapid expansion of green hydrogen projects, fueled by advances in electrolyzer technology. Green hydrogen, generated via electrolysis powered by renewables, is gaining momentum as countries seek to decarbonize hard-to-electrify sectors such as heavy industry, long-haul transport, and power generation. Technological advancements have significantly reduced electrolyzer costs-by over 60% in the last decade-making large-scale green hydrogen projects increasingly viable. Scaling of proton exchange membrane (PEM) and alkaline electrolyzers is improving efficiency, while mass production is driving down costs. Nations with abundant renewable resources, such as Australia, the Middle East, and parts of South America, are emerging as key hubs for green hydrogen development. Government policies are reinforcing this trend, with the EU and U.S. offering production targets and subsidies to stimulate investment. As electrolyzer technology matures and integration with solar and wind power improves, green hydrogen is becoming a critical enabler of global net-zero strategies.
Key Market Players
- Air Products and Chemicals, Inc.
- Nel ASA
- ITM Power PLC
- Plug Power, Inc.
- Siemens Energy AG
- Royal Dutch Shell Plc
- Linde plc
- Hydrogenics Corporation (Cummins Inc.)
Report Scope:
In this report, the Global Low Carbon Hydrogen Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Low Carbon Hydrogen Market, By Process:
- Steam Methane Reforming (SMR)
- Autothermal Reforming Biomass Reforming
- Electrolysis
- Photo Electric Chemical (PEC) Water Splitting
- Thermochemical Water Splitting
- Biomass Gasification
- Coal Gasification
- Methane Pyrolysis
Low Carbon Hydrogen Market, By Energy Source:
- Natural Gas
- Solar
- Wind
- Hybrid
- Biomass
- Geothermal
- Hydro Energy
- Tidal
Low Carbon Hydrogen Market, By End-Product:
- Hydrogen
- Ammonia
- Liquified Hydrogen
- Methane
- Methanol
Low Carbon Hydrogen Market, By Region:
- North America
- United States
- Canada
- Mexico
- Europe
- Germany
- France
- United Kingdom
- Italy
- Spain
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- South America
- Brazil
- Colombia
- Argentina
- Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global Low Carbon Hydrogen Market.
Available Customizations:
Global Low Carbon Hydrogen Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to five).
Table of Contents
1. Product Overview
- 1.1. Market Definition
- 1.2. Scope of the Market
- 1.2.1. Markets Covered
- 1.2.2. Years Considered for Study
- 1.2.3. Key Market Segmentations
2. Research Methodology
- 2.1. Objective of the Study
- 2.2. Baseline Methodology
- 2.3. Key Industry Partners
- 2.4. Major Association and Secondary Sources
- 2.5. Forecasting Methodology
- 2.6. Data Triangulation & Validation
- 2.7. Assumptions and Limitations
3. Executive Summary
- 3.1. Overview of the Market
- 3.2. Overview of Key Market Segmentations
- 3.3. Overview of Key Market Players
- 3.4. Overview of Key Regions/Countries
- 3.5. Overview of Market Drivers, Challenges, and Trends
4. Voice of Customer
5. Global Low Carbon Hydrogen Market Outlook
- 5.1. Market Size & Forecast
- 5.2. Market Share & Forecast
- 5.2.1. By Process (Steam Methane Reforming (SMR), Autothermal Reforming Biomass Reforming, Electrolysis, Photo Electric Chemical (PEC) Water Splitting, Thermochemical Water Splitting, Biomass Gasification, Coal Gasification, Methane Pyrolysis)
- 5.2.2. By Energy Source (Natural Gas, Solar, Wind, Hybrid, Biomass, Geothermal, Hydro Energy, Tidal)
- 5.2.3. By End-Product (Hydrogen, Ammonia, Liquified Hydrogen, Methane, Methanol)
- 5.2.4. By Region (North America, Europe, South America, Middle East & Africa, Asia Pacific)
- 5.3. By Company (2024)
- 5.4. Market Map
6. North America Low Carbon Hydrogen Market Outlook
- 6.1. Market Size & Forecast
- 6.2. Market Share & Forecast
- 6.2.1. By Process
- 6.2.2. By Energy Source
- 6.2.3. By End-Product
- 6.2.4. By Country
- 6.3. North America: Country Analysis
- 6.3.1. United States Low Carbon Hydrogen Market Outlook
- 6.3.1.1. Market Size & Forecast
- 6.3.1.2. Market Share & Forecast
- 6.3.1.2.1. By Process
- 6.3.1.2.2. By Energy Source
- 6.3.1.2.3. By End-Product
- 6.3.2. Canada Low Carbon Hydrogen Market Outlook
- 6.3.2.1. Market Size & Forecast
- 6.3.2.2. Market Share & Forecast
- 6.3.2.2.1. By Process
- 6.3.2.2.2. By Energy Source
- 6.3.2.2.3. By End-Product
- 6.3.3. Mexico Low Carbon Hydrogen Market Outlook
- 6.3.3.1. Market Size & Forecast
- 6.3.3.2. Market Share & Forecast
- 6.3.3.2.1. By Process
- 6.3.3.2.2. By Energy Source
- 6.3.3.2.3. By End-Product
7. Europe Low Carbon Hydrogen Market Outlook
- 7.1. Market Size & Forecast
- 7.2. Market Share & Forecast
- 7.2.1. By Process
- 7.2.2. By Energy Source
- 7.2.3. By End-Product
- 7.2.4. By Country
- 7.3. Europe: Country Analysis
- 7.3.1. Germany Low Carbon Hydrogen Market Outlook
- 7.3.1.1. Market Size & Forecast
- 7.3.1.2. Market Share & Forecast
- 7.3.1.2.1. By Process
- 7.3.1.2.2. By Energy Source
- 7.3.1.2.3. By End-Product
- 7.3.2. France Low Carbon Hydrogen Market Outlook
- 7.3.2.1. Market Size & Forecast
- 7.3.2.2. Market Share & Forecast
- 7.3.2.2.1. By Process
- 7.3.2.2.2. By Energy Source
- 7.3.2.2.3. By End-Product
- 7.3.3. United Kingdom Low Carbon Hydrogen Market Outlook
- 7.3.3.1. Market Size & Forecast
- 7.3.3.2. Market Share & Forecast
- 7.3.3.2.1. By Process
- 7.3.3.2.2. By Energy Source
- 7.3.3.2.3. By End-Product
- 7.3.4. Italy Low Carbon Hydrogen Market Outlook
- 7.3.4.1. Market Size & Forecast
- 7.3.4.2. Market Share & Forecast
- 7.3.4.2.1. By Process
- 7.3.4.2.2. By Energy Source
- 7.3.4.2.3. By End-Product
- 7.3.5. Spain Low Carbon Hydrogen Market Outlook
- 7.3.5.1. Market Size & Forecast
- 7.3.5.2. Market Share & Forecast
- 7.3.5.2.1. By Process
- 7.3.5.2.2. By Energy Source
- 7.3.5.2.3. By End-Product
8. Asia Pacific Low Carbon Hydrogen Market Outlook
- 8.1. Market Size & Forecast
- 8.2. Market Share & Forecast
- 8.2.1. By Process
- 8.2.2. By Energy Source
- 8.2.3. By End-Product
- 8.2.4. By Country
- 8.3. Asia Pacific: Country Analysis
- 8.3.1. China Low Carbon Hydrogen Market Outlook
- 8.3.1.1. Market Size & Forecast
- 8.3.1.2. Market Share & Forecast
- 8.3.1.2.1. By Process
- 8.3.1.2.2. By Energy Source
- 8.3.1.2.3. By End-Product
- 8.3.2. India Low Carbon Hydrogen Market Outlook
- 8.3.2.1. Market Size & Forecast
- 8.3.2.2. Market Share & Forecast
- 8.3.2.2.1. By Process
- 8.3.2.2.2. By Energy Source
- 8.3.2.2.3. By End-Product
- 8.3.3. Japan Low Carbon Hydrogen Market Outlook
- 8.3.3.1. Market Size & Forecast
- 8.3.3.2. Market Share & Forecast
- 8.3.3.2.1. By Process
- 8.3.3.2.2. By Energy Source
- 8.3.3.2.3. By End-Product
- 8.3.4. South Korea Low Carbon Hydrogen Market Outlook
- 8.3.4.1. Market Size & Forecast
- 8.3.4.2. Market Share & Forecast
- 8.3.4.2.1. By Process
- 8.3.4.2.2. By Energy Source
- 8.3.4.2.3. By End-Product
- 8.3.5. Australia Low Carbon Hydrogen Market Outlook
- 8.3.5.1. Market Size & Forecast
- 8.3.5.2. Market Share & Forecast
- 8.3.5.2.1. By Process
- 8.3.5.2.2. By Energy Source
- 8.3.5.2.3. By End-Product
9. Middle East & Africa Low Carbon Hydrogen Market Outlook
- 9.1. Market Size & Forecast
- 9.2. Market Share & Forecast
- 9.2.1. By Process
- 9.2.2. By Energy Source
- 9.2.3. By End-Product
- 9.2.4. By Country
- 9.3. Middle East & Africa: Country Analysis
- 9.3.1. Saudi Arabia Low Carbon Hydrogen Market Outlook
- 9.3.1.1. Market Size & Forecast
- 9.3.1.2. Market Share & Forecast
- 9.3.1.2.1. By Process
- 9.3.1.2.2. By Energy Source
- 9.3.1.2.3. By End-Product
- 9.3.2. UAE Low Carbon Hydrogen Market Outlook
- 9.3.2.1. Market Size & Forecast
- 9.3.2.2. Market Share & Forecast
- 9.3.2.2.1. By Process
- 9.3.2.2.2. By Energy Source
- 9.3.2.2.3. By End-Product
- 9.3.3. South Africa Low Carbon Hydrogen Market Outlook
- 9.3.3.1. Market Size & Forecast
- 9.3.3.2. Market Share & Forecast
- 9.3.3.2.1. By Process
- 9.3.3.2.2. By Energy Source
- 9.3.3.2.3. By End-Product
10. South America Low Carbon Hydrogen Market Outlook
- 10.1. Market Size & Forecast
- 10.2. Market Share & Forecast
- 10.2.1. By Process
- 10.2.2. By Energy Source
- 10.2.3. By End-Product
- 10.2.4. By Country
- 10.3. South America: Country Analysis
- 10.3.1. Brazil Low Carbon Hydrogen Market Outlook
- 10.3.1.1. Market Size & Forecast
- 10.3.1.2. Market Share & Forecast
- 10.3.1.2.1. By Process
- 10.3.1.2.2. By Energy Source
- 10.3.1.2.3. By End-Product
- 10.3.2. Colombia Low Carbon Hydrogen Market Outlook
- 10.3.2.1. Market Size & Forecast
- 10.3.2.2. Market Share & Forecast
- 10.3.2.2.1. By Process
- 10.3.2.2.2. By Energy Source
- 10.3.2.2.3. By End-Product
- 10.3.3. Argentina Low Carbon Hydrogen Market Outlook
- 10.3.3.1. Market Size & Forecast
- 10.3.3.2. Market Share & Forecast
- 10.3.3.2.1. By Process
- 10.3.3.2.2. By Energy Source
- 10.3.3.2.3. By End-Product
11. Market Dynamics
- 11.1. Drivers
- 11.2. Challenges
12. Market Trends and Developments
- 12.1. Merger & Acquisition (If Any)
- 12.2. Product Launches (If Any)
- 12.3. Recent Developments
13. Company Profiles
- 13.1. Air Products and Chemicals, Inc.
- 13.1.1. Business Overview
- 13.1.2. Key Revenue and Financials
- 13.1.3. Recent Developments
- 13.1.4. Key Personnel
- 13.1.5. Key Product/Services Offered
- 13.2. Nel ASA
- 13.3. ITM Power PLC
- 13.4. Plug Power, Inc.
- 13.5. Siemens Energy AG
- 13.6. Royal Dutch Shell Plc
- 13.7. Linde plc
- 13.8. Hydrogenics Corporation (Cummins Inc.)
14. Strategic Recommendations
15. About Us & Disclaimer