According to IMARC Group’s report titled “India Green Hydrogen Market Size, Share, Trends and Forecast by Technology, Application, Distribution Channel, and Region 2026-2034” the report offers a comprehensive analysis of the industry, including market share, growth, trends, and regional insights.
India Green Hydrogen Market Outlook
The India green hydrogen market size was valued at USD 1,953.00 Million in 2025 and is projected to reach USD 35,265.29 Million by 2034, growing at a compound annual growth rate (CAGR) of 37.92% during the forecast period from 2026-2034. The market is fueled by government initiatives supporting clean energy, decarbonization goals, and reduction in fossil fuel imports, alongside increased demand from refining, fertilizer, steel, and transport sectors.
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India Green Hydrogen Market Growth Factors
The potential demand for green hydrogen in India creates a meaningful opportunity for India to be a key player in supporting the global effort to decarbonize. India has the potential to become a global leader in large scale hydrogen production meeting domestic demand as well as catering to international markets, given its renewable energy resources, geographic diversity and cost competitiveness. The dominant industrial application using hydrogen today is the largest and earliest emerging market, where industries are looking to replace existing grey hydrogen use with green hydrogen to reach corporate and regulatory goals.
The fertilizer industry, which currently uses large amounts of conventional hydrogen, presents one of the largest opportunities for rapid growth via shifts to green hydrogen. The steel sector is also exploring hydrogen-based direct reduction technologies as an alternative process route to making steel, potentially offering large decarbonization opportunities. Additionally, green hydrogen is being investigated for energy storage to address the intermittency of renewable energy generation, providing another potential outlet for increased hydrogen demand. There is also an export opportunity and several coastal states are investing in port infrastructure to support a hydrogen supply to countries that have a hydrogen shortfall.
The development of so-called hydrogen derivatives, such as green ammonia and methanol, opens up new potential hydrogen markets for transportation and various end-use applications. Overall growth is also obvious in substantial new capacity announcements from the industrial gas sector. Industrial companies’ stable long-term involvement in the green hydrogen industry is also apparent in the greening of existing energy infrastructures, most notably through blends in natural gas grids. The outlines of a regulatory framework specifically for green hydrogen are emerging, with production certification and quality standards, which serves to increase investor confidence and to accelerate the maturation of the industry further.
India Green Hydrogen Market Trends
The India green hydrogen market is fast-growing owing to India’s large demand for electricity and the government’s commitment to achieving carbon neutrality and reducing dependence on imported fossil fuels. The government’s proactive approach to manufacturing, through production linked incentive schemes (PLI) and mission mode initiatives, is attracting serious interest from domestic and foreign investors. Big conglomerate industries have already announced investments and partnerships for a bright future. The prices for technologies in renewable energy including solar and wind have been on the decline, making the process of generating hydrogen via electrolysis cheaper.
The industrial interest in green hydrogen is strongest in hard to abate sectors (steelmaking, petroleum refining, and fertilizer manufacturing), where decarbonization will be very difficult to accomplish with other means. In the transport sector, fuel cell vehicles are being demonstrated and deployed in commercial applications, the most prominent being heavy duty buses and trucks. Dedicated hydrogen corridors and clusters are being built, while increased efficiency of electrolyzers, supply chains and domestic production of components are further strengthening domestic supply chains.
Cooperation between the public and private sectors is increasing in the marketplace, leading to accelerated rollout. Broadly speaking, encouraging policies, advances in technology, and industrial demand position the country to become a global hub for green hydrogen production, mainly exporting to energy-heavy countries in Asia and Europe.
India Green Hydrogen Market Recent Developments & News
• January 2026: India announced a INR 100 crore funding program under the National Green Hydrogen Mission to support pilot projects for hydrogen production from biomass and alternative feedstocks, prioritizing TRL 5-6 technologies.
• January 2026: Andhra Pradesh CM declared Kakinada as the “Green Hydrogen Valley of India” during the launch of AM Green’s ₹15,600-crore green hydrogen and ammonia complex, positioning it as one of the world’s largest facilities.
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India Green Hydrogen Market Segmentation
Technology:
• Proton Exchange Membrane Electrolyzer: An emerging technology segment offering high efficiency.
• Alkaline Electrolyzer: Dominates with 46% market share in 2025 due to cost efficiency, maturity, and suitability for large-scale operations. Supported by domestic manufacturing and infrastructure compatibility.
• Others: Comprising alternative electrolyzer technologies with smaller market shares.
Application:
• Power Generation: Use of green hydrogen for cleaner electricity production.
• Transport: Largest segment with 40% share, driven by hydrogen fuel cell vehicles and government clean mobility programs.
• Others: Includes various industrial and commercial applications beyond core sectors.
Distribution Channel:
• Pipeline: Largest distribution mode with 55% share in 2025, leveraging existing natural gas pipelines for efficient hydrogen transport.
• Cargo: Includes road and other transport modes for hydrogen distribution.
Regional Insights
• North India: Dominates with a 28% share, supported by industrial zones and renewable resources.
• South India
• East India
• West India
North India leads due to proximity to demand centers, policy backing, and infrastructure development with a CAGR of 37.92% projected through 2034.
India Green Hydrogen Market Key Players
The report offers an in-depth examination of the competitive landscape, including market structure, key player positioning, leading strategies for success, a competitive dashboard, and a company evaluation quadrant.
Key Questions Answered in This Report
Q1. How big is the India green hydrogen market?
A1. The India green hydrogen market size was valued at USD 1,953.00 Million in 2025.
Q2. What is the projected growth rate of the India green hydrogen market?
A2. The India green hydrogen market is expected to grow at a compound annual growth rate of 37.92% from 2026-2034 to reach USD 35,265.29 Million by 2034.
Q3. Which technology held the largest India green hydrogen market share?
A3. Alkaline electrolyzer dominates the market with 46% market share in 2025, driven by its established technology base, lower capital costs, and proven suitability for large-scale hydrogen production applications.
Q4. What are the key factors driving India green hydrogen market growth?
A4. Key factors driving the India green hydrogen market include increasing investment in domestic electrolyzer manufacturing, cost control, and faster deployment. In 2024, Ohmium commissioned a 2 GW Bengaluru gigafactory, expandable to 4 GW, producing PEM electrolyzers with potential to abate about 4 million tons of CO2 annually.
Q5. What are the major challenges facing the India green hydrogen market?
A5. Major challenges include high production costs making green hydrogen two to four times more expensive than grey hydrogen, inadequate storage and transportation infrastructure, electrolyzer technology efficiency limitations, substantial capital requirements, and uncertainty regarding long-term demand signals.
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