North America Low Carbon Hydrogen Market is Expected to grow at a robust CAGR of 14.36% through 2030F
The
North America low carbon hydrogen market is expected to be led by the United
States, driven by large-scale investments, policy support, and advanced
hydrogen infrastructure development, during the forecast period 2026-2030F.
According
to TechSci Research report, “North
America Low Carbon Hydrogen Market – By Country, Competition, Forecast &
Opportunities, 2020-2030F, The North America Low Carbon Hydrogen Market was
valued at USD 9.62 Billion in 2024 and is expected to reach USD 21.52 Billion
by 2030 with a CAGR of 14.36% during the forecast period.
The
rapid expansion of renewable energy capacity across North America is playing a
pivotal role in enabling cost-efficient production of green hydrogen, which is
a cornerstone of the low carbon hydrogen market. Wind, solar, and hydroelectric
installations are being deployed at unprecedented rates, creating a surplus of
low-cost, zero-emission electricity that can be harnessed for water
electrolysis. Electrolyzers require large quantities of electricity to split
water molecules into hydrogen and oxygen, and the cost of electricity is one of
the most significant input costs in green hydrogen production. As the levelized
cost of electricity from renewables continues to decline due to technological
improvements and favorable policy mechanisms such as renewable energy credits
and power purchase agreements, the economics of green hydrogen become
increasingly attractive.
The
growth of renewable generation is accompanied by greater volatility in grid
power supply and demand, making hydrogen production an ideal mechanism for grid
balancing and energy storage. Hydrogen electrolysis systems can absorb excess
electricity during periods of peak generation and low demand, converting it
into storable energy that can be used during high-demand periods or converted
back to electricity. This dual benefit—clean hydrogen production and grid
reliability—adds further strategic value to the hydrogen economy. Utilities and
renewable energy developers are now integrating electrolyzers with solar and
wind farms, reducing curtailment losses and boosting plant utilization rates.
Policy incentives such as interconnection priority and grid access subsidies
are also being introduced to support renewable-hydrogen integration. In
addition, low carbon hydrogen can be produced during overnight or off-peak
hours when electricity prices are lower, further improving production
economics. As the North American power grid moves toward higher renewable
penetration, green hydrogen becomes not just viable, but necessary for
maintaining energy security, managing intermittency, and decarbonizing
hard-to-electrify sectors.
A
growing trend shaping the North America Low Carbon Hydrogen Market is the
expansion of government-led funding programs, tax incentives, and policy
mechanisms aimed at accelerating hydrogen deployment across multiple sectors.
Both the United States and Canadian governments have recognized low carbon
hydrogen as a cornerstone for achieving long-term climate goals and are
implementing robust support frameworks to encourage investment and technology
development. In the United States, legislative efforts such as the
Infrastructure Investment and Jobs Act and the Inflation Reduction Act include
significant financial support for clean hydrogen hubs, research and
development, and production tax credits.
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The
fastest growing segment in the North America Low Carbon Hydrogen Market by Energy
Source is the Solar segment. This growth is driven by the increasing
affordability of photovoltaic technology, the abundance of solar irradiance
across regions such as the southwestern United States and parts of Mexico, and
strong federal and state-level incentives supporting solar-powered
electrolysis. As utilities and industries aim to decarbonize operations,
solar-based hydrogen production offers a scalable and environmentally
sustainable solution. Solar energy also integrates seamlessly with advancements
in electrolyzer technology, which further enhances its efficiency and
cost-competitiveness. The rising number of pilot projects and full-scale
installations utilizing solar energy for hydrogen generation underscores the
segment’s rapid expansion within the broader low carbon hydrogen landscape.
Based
on country, Mexico is
rapidly emerging as the fastest-growing country in the North America Low Carbon
Hydrogen Market, fueled by its abundant renewable energy potential and
increasing policy support. The nation’s geographic advantages, including high
solar irradiance in the north and strong wind corridors in the south, position
it as an ideal hub for cost-effective green hydrogen production. Government
initiatives are actively fostering private and public investments in hydrogen
infrastructure, manufacturing of electrolyzers, and the development of hydrogen
corridors that connect industrial zones with energy production sites.
Mexico’s
strategic vision aligns with its broader decarbonization goals, including
reducing national greenhouse gas emissions and improving energy security. With
several large-scale projects already announced and international partnerships
forming, Mexico is transitioning from a nascent participant to a leading force
in shaping the region’s low carbon hydrogen future.
Key
market players in the North America Low Carbon Hydrogen market are: -
- Air
Products and Chemicals, Inc.
- Bloom
Energy Corporation
- Chevron
Corporation
- ExxonMobil
Corporation
- Shell
plc
- Plug
Power Inc.
- NextEra
Energy, Inc.
- Linde
plc
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“The
North America Low Carbon Hydrogen Market is expected to experience robust
growth in the coming years, driven by strong government policies, increasing
investment in clean energy infrastructure, and the rising demand for
decarbonization across industrial, transportation, and power sectors. The development
of large-scale hydrogen production hubs, advancements in electrolyzer
technology, and supportive federal funding initiatives are accelerating market
expansion. Partnerships between energy companies and technology firms are
enabling the commercialization of low carbon hydrogen applications. As
industries transition from fossil fuels to sustainable alternatives, low carbon
hydrogen will play a critical role in achieving regional emissions reduction
targets and energy transition goals.Top
of Form” said Mr. Karan Chechi, Research Director of TechSci Research, a
research-based Global management consulting firm.
“North America Low Carbon Hydrogen Market By
Process (Steam Methane Reforming, Autothermal Reforming, Biomass Reforming,
Electrolysis, Photo Electric Chemical Water Splitting, Thermochemical Water
Splitting, Biomass Gasification, Coal Gasification, Methane Pyrolysis), By
Energy Source (Natural Gas, Solar, Wind, Hybrid, Biomass, Geothermal, Hydro
Energy, Tidal), By Country, Competition, Forecast and Opportunities,
2020-2030F,” has
evaluated the future growth potential of North America Low Carbon Hydrogen
Market and provides statistics & information on market size,
structure, and future market growth. The report intends to provide cutting-edge
market intelligence and help decision makers take sound investment decisions.
Besides the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in North America Low Carbon
Hydrogen Market.
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