US Green Hydrogen Market Forecast (2025-2035)
The US green hydrogen market is experiencing robust growth, underpinned by the nation's shift towards decarbonization and renewable energy adoption. With advancements in electrolyzer technology and increased commercialization, the sector is poised for rapid expansion, serving diverse applications from power generation to transportation and industrial processes. Key players are investing in production capacity, while favorable regulatory frameworks and federal incentives further accelerate market momentum.
Understanding the Impact of Tariffs on "US Green Hydrogen Market".
Latest Market Dynamics
Key Drivers
- Rising Government Incentives and Funding: In 2025, federal initiatives like the Inflation Reduction Act and the DOE’s Hydrogen Shot program are catalyzing investments in large-scale hydrogen projects, driving new production capacity.
- Corporate Commitments toward Decarbonization: Leading companies such as NextEra Energy and Air Products are scaling up green hydrogen operations to meet stringent decarbonization targets across multiple industrial sectors.
Key Trends
- Scaling Electrolyzer Deployments: Emerging partnerships, such as Plug Power’s collaboration with Olin Corporation announced in March 2025, signal a trend toward gigawatt-scale electrolyzer plants across the US.
- Integration in the Mobility Sector: Companies like Nikola and Cummins are advancing fuel cell and hydrogen-powered transport solutions, driving adoption in commercial fleets and logistics.
Key Opportunities
- Expanding Industrial Feedstock Market: Major chemical and refining facilities are transitioning to green hydrogen as a zero-emission feedstock, highlighted by Air Liquide’s expansion in Texas in early 2025.
- Hydrogen Export Potential: Development of hydrogen export infrastructure at major ports, with companies like Linde and Bloom Energy investing in export-ready facilities by Q2 2025.
Key Challenges
- High Production Costs: The higher cost of green hydrogen compared to conventional hydrogen and fossil fuels remains an obstacle, despite Plug Power's cost-reduction efforts announced in February 2025.
- Infrastructure Gaps: Limited hydrogen distribution networks and storage capabilities, as noted by FuelCell Energy’s March 2025 analysis, hamper widespread commercial adoption.
Key Restraints
- Limited Renewable Energy Availability for Electrolysis: Projects including SunHydrogen’s pilot operations face delays due to insufficient renewable supply in select regions in early 2025.
- Complex Regulatory Landscape: Varied state and local permitting, as experienced by Nelson Energy, slows the deployment of new hydrogen facilities.
US Green Hydrogen Market Share by Type, 2025
The market share for green hydrogen production technology in the US is led by Alkaline Electrolyzers, owing to their long operational track record, followed by Proton Exchange Membrane (PEM) Electrolyzers, which offer greater flexibility for variable renewable energy integration. Solid Oxide Electrolyzers, while promising for efficiency, currently hold a smaller but growing segment as technology matures. Companies like Nel Hydrogen and Siemens Energy are poised to expand both alkaline and PEM capacity as demand rises.
US Green Hydrogen Market Share by Application, 2025
In 2025, the leading application segment for green hydrogen in the US is power generation, as utilities incorporate hydrogen for grid balancing and storage. Transport applications, driven by zero-emission policies in logistics and public transport, represent a significant share. Industrial energy and chemical feedstock remain core end-uses, but heating and other emerging applications account for an increasing portion as technology adoption widens.
US Green Hydrogen Market Revenue (2020-2035)
US green hydrogen market revenue is projected to rise sharply from $210 million in 2020 to approximately $3,800 million by 2035. The acceleration is fueled by favorable policies, technological innovations, and increased end-user adoption across sectors. Notably, the mid-2020s mark an inflection point as gigawatt-scale facilities come online, driving exponential revenue growth and establishing the US as a major player in the global hydrogen economy.
US Green Hydrogen Market YOY Growth (2020-2035)
Year-on-year growth rates in the US green hydrogen market are expected to surge in the latter half of the 2020s as new projects transition from pilot to full-scale operations. The market sees moderate double-digit growth early on, accelerating to peak YOY increases above 20% as federal and state-level incentives reach the market, before gradually moderating as the market matures.
US Green Hydrogen Market Share by Regions, 2025
The West region leads US green hydrogen adoption, benefiting from strong renewable resources and innovative policies in California and the Pacific Northwest. The South follows, with Texas emerging as a hydrogen hub due to investment from industry leaders. The Midwest and Northeast are expanding rapidly, with output fueled by manufacturing and logistical strengths. Regional growth reflects localized deployment of renewable generation and supportive regulatory frameworks.
US Green Hydrogen Market Players Share (%), 2025
The competitive landscape is dominated by a handful of leading technology suppliers and project developers. Air Liquide, Plug Power, and Bloom Energy together command over half of the total market, leveraging early-mover advantages in technology and infrastructure. Other notable companies, including Nel Hydrogen, Siemens Energy, and Linde Plc, form a strong secondary tier, with market share distributed among innovative startups and niche specialists.
US Green Hydrogen Market Buyers Share (%), 2025
Utility companies are the largest buyers of green hydrogen in the US, as they seek zero-carbon alternatives to natural gas. Industrial users in chemicals and refining make up a substantial share, while transportation firms are rapidly expanding procurement for fleet decarbonization. Other buyers include government agencies and emerging sectors exploring hydrogen for heating and power backup.
Study Coverage
| Metrics | Details |
|---|
| Years | 2020-2035 |
| Base Year | 2025 |
| Market Size | Revenue (USD Million) |
| Regions | West, South, Midwest & Northeast |
| Segments | Type (Alkaline Electrolyzer, Proton Exchange Membrane Electrolyzer, Solid Oxide Electrolyzer, Anion Exchange Membrane Electrolyzer, Others), Application (Power Generation, Transport, Industry Energy, Chemical Feedstock, Heating, Others), Distribution Channels (Direct Sales, Distributors/Dealers, Online, EPC Contracts, Others), Technology (Electrolysis, Photolysis, Biomass Gasification, Solar Hydrogen, Wind Hydrogen, Others), Organization Size (Small, Medium, Large) |
| Players | Air Liquide, Plug Power, Bloom Energy, Nel Hydrogen, Siemens Energy, Cummins Inc., ITM Power, Linde Plc, Ballard Power Systems, Air Products and Chemicals, NextEra Energy, ENGIE, Enapter, SunHydrogen, FuelCell Energy |
Key Recent Developments
- March 2025: Plug Power and Olin Corp announced a joint venture to construct the largest US green hydrogen plant in Louisiana.
- February 2025: Air Liquide expands Texas hydrogen facility with additional 80 MW electrolyzer capacity.
- January 2025: NextEra Energy started full commercial operation of its 250 MW hydrogen production facility in California.
- June 2024: Linde Plc unveiled new export-oriented green hydrogen plant at the Port of Houston.
- July 2024: Bloom Energy partners with Shell to deliver on-site hydrogen solutions for industrial clients.
