Powering India's Future: Green Hydrogen Market Set to Reach USD 10 Billion by 2031
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India Green Hydrogen Market is flourishing because of strategic government initiatives, ambitious decarbonization targets, and a rapidly expanding renewable energy infrastructure.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated India Green Hydrogen Market size at USD 4.54 billion in 2024. During the forecast period between 2025 and 2031, BlueWeave expects India Green Hydrogen Market size to boom at a robust CAGR of 11.80% reaching a value of USD 9.91 billion by 2031.
The India Green Hydrogen Market in India is propelled by India's strategic pivot towards a sustainable energy future, anchored by the National Green Hydrogen Mission (launched January 4, 2023). The initiative stems from India's critical need to reduce its significant carbon footprint as the world's third-largest emitter and aims to achieve a transformative 46% green hydrogen share in national energy demand by 2030. Supported by an initial USD 2.4 billion allocation, the Mission provides incentives for both electrolyzer manufacturing and hydrogen production, with the goal of reaching five million metric tons per annum by 2030. India's inherent strengths—including vast land resources, a skilled workforce, and a proactive policy environment—are fostering its development as a global center for green hydrogen innovation. The sector's wide-ranging applications, across key industries like refining, steel, transportation, and energy storage, highlight its potential to replace fossil fuels and facilitate comprehensive decarbonization. Despite the existing challenges of cost competitiveness and infrastructure development, India's commitment to energy independence by 2047 and net-zero emissions by 2070 is set to attract significant domestic and international investments, reinforcing its leadership in the rapidly expanding green hydrogen economy.
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Opportunity- Emerging Hydrogen Valleys
Government of India has approved USD 50 crore in funding for each of the four Hydrogen Valleys in Pune, Jodhpur, Bhubaneshwar, and Kerala, aiming to establish regional hubs for green hydrogen production, storage, and utilization. These Hydrogen Valleys will cater to multiple industries, including mobility, steel, fine chemicals, and shipping, utilizing diverse production methods, such as bioethanol, biomass, and electrolyzers. Led by the Department of Science and Technology (DST) under the National Green Hydrogen Mission, the initiative focuses on research, innovation, and commercialization to strengthen India’s green hydrogen ecosystem. The program follows a structured approach, starting with small-scale demonstrations (2023–2027), expanding to large-scale projects (2028–2033), and eventually achieving market-wide adoption (2034–2050). Hydrogen Valleys are expected to accelerate clean energy deployment, attract investments, and contribute significantly to India's net-zero ambitions by integrating green hydrogen into various industrial applications and developing localised supply chains.
Impact of Escalating Geopolitical Tensions on India Green Hydrogen Market
Intensifying geopolitical tensions could disrupt the growth of India Green Hydrogen Market. Fluctuations in the cost of electrolyzers and essential raw materials, notably iridium and platinum, present a risk to project implementation timelines. Furthermore, the impact of international trade restrictions and volatile energy prices may elevate production expenses, thereby affecting the cost competitiveness of green hydrogen. Geopolitical instability constitutes an additional factor, potentially influencing foreign direct investment and regulatory stability, which could delay necessary infrastructure development. Nevertheless, India's strategic emphasis on domestic manufacturing capabilities and targeted policy incentives may mitigate certain identified risks. While geopolitical uncertainties persist, ongoing technological advancements and consistent policy support are anticipated to sustain the sector's growth trajectory, ensuring green hydrogen's contribution to India's energy transition objectives.
Alkaline Electrolysis Segment to Record Fastest CAGR
The alkaline electrolysis segment is expected to exhibit the most rapid growth in India Green Hydrogen Market over the forecast period. The segment’s market dominance is primarily attributable to its inherent advantages over alternative electrolysis technologies including enhanced hydrogen production, scalability, a compact design profile, and superior energy efficiency. As a technologically mature process alkaline electrolysis facilitates the efficient electrochemical decomposition of water into hydrogen and oxygen. The utilization of cost-effective potassium hydroxide electrolytes provides a significant economic advantage compared to proton exchange membrane (PEM) electrolyzers which rely on expensive precious metal catalysts. Furthermore alkaline electrolyzers offer a viable solution for the storage of surplus renewable energy in the form of hydrogen thereby supporting India's national decarbonization objectives. With the increasing prevalence of sustainability initiatives substantial segment growth is projected from 2025 to 2030. Notably GAIL's ongoing development of a green hydrogen production unit with a capacity of 4.3 tons per day under the auspices of the National Hydrogen Energy Mission represents a critical advancement in the scaling of green hydrogen production.
Competitive Landscape
Major companies in India Green Hydrogen Market include JSW Energy Neo Ltd, Avaada Group, NTPC Limited, Acme Group, L&T, GAIL Limited, Hydrogen Pro AS, Siemens, Stiesdal A/S, Bharat Petroleum Corporation Limited (BPCL), Adani Group, Cummins India, MHI, Air Products, Thyssenkrupp, Reliance Industries Ltd, ReNew Energy Global, and Azure Power. The presence of a number of companies intensify the market competition, as they compete to gain a significant market share. These companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches to further enhance their market share.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and India Green Hydrogen Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in India Green Hydrogen Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
Scope of the Report
By Technology
By Energy Source
By End User Industry
By Region
Frequently Asked Questions (FAQs):
1. What is the current market size of India Green Hydrogen Market?
Ans: India Green Hydrogen Market size by value was estimated at USD 4.54 billion in 2024.
2. What is the expected growth rate of India Green Hydrogen Market by value during the forecast period?
Ans: India Green Hydrogen Market is expected to grow at CAGR of 11.8% period between 2025 and 2031.
3. What is the forecast value of India Green Hydrogen Market size by 2031?
Ans: By 2031, India Green Hydrogen Market size is forecast to reach a value of USD 9.91 billion.
4. What are the major factors driving the growth of India Green Hydrogen Market?
Ans: The growth of India Green Hydrogen Market is primarily driven by the government initiatives & policies, decarbonization goals, and increasing renewable energy capacity.
5. Name the key players in India Green Hydrogen Market.
Ans: Key players in India Green Hydrogen Market include JSW Energy Neo Ltd, Avaada Group, NTPC Limited, Acme Group, L&T, GAIL Limited, Hydrogen Pro AS, Siemens, Stiesdal A/S, Bharat Petroleum Corporation Limited (BPCL), Adani Group, Cummins India, MHI, Air Products, Thyssenkrupp, Reliance Industries Ltd, ReNew Energy Global, and Azure Power.
6. Which is the fastest growing segment in India Green Hydrogen Market by technology?
Ans: The alkaline electrolysis segment is expected to grow at the fastest CAGR in India Green Hydrogen Market by technology during the forecast period between 2025 and 2031.
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