India Green Hydrogen Market Size, and Growth Report, 2032

India Green Hydrogen Market Segmentation Analysis

Technology Insights

The alkaline electrolysis category holds the largest market share, of approximately 65%, in 2025, driven by its established technology base, lower capital costs, and suitability for large-scale hydrogen production. Alkaline electrolyzers are the most commercially mature technology with proven durability and the ability to produce high volumes of hydrogen. Many major Indian players have secured significant electrolyzer orders based on alkaline technology.

The polymer electrolyte membrane (PEM) electrolysis category is expected to register the highest CAGR, during 2026–2032, owing to its higher efficiency, compact design, and superior dynamic response characteristics that enable integration with intermittent renewable energy sources. PEM electrolyzers offer quick start-up times and can handle variable power loads effectively, making them suitable for coupling with solar and wind generation.

These technologies are covered:

• Alkaline Electrolysis (Largest Category)
• Polymer Electrolyte Membrane (PEM) Electrolysis (Fastest-Growing Category)
• Solid-Oxide Electrolyzer Cell (SOEC)

Distribution Channel Analysis

The cargo category accounts for the larger share, of approximately 80%, in 2025, primarily due to the nascent stage of dedicated hydrogen pipeline infrastructure in India. Transportation through tube trailers, liquid hydrogen tankers, and compressed gas cylinders dominates current distribution patterns. The infrastructure includes truck and rail loading facilities for local delivery and ship-loading facilities for export-oriented projects. India requires substantial investments in hydrogen storage tanks, trailers, and distribution networks to support the growing production capacity.

The pipeline category is set to witness the faster growth during the forecast period, supported by government initiatives to develop hydrogen-ready infrastructure. India has an authorized a natural gas pipeline network of around 33,000 km, with 24,000 km operational, providing potential infrastructure for hydrogen transport through blending. The Petroleum and Natural Gas Regulatory Board is assessing the feasibility of using existing natural gas pipelines for hydrogen transport. Studies conducted by Engineers India Limited and IIT Kanpur suggest that up to 3% green hydrogen can be safely blended into existing city gas distribution pipelines. Tata Steel became India’s first steel company to demonstrate capabilities to develop API X65 grade steel pipes compliant with hydrogen transportation requirements.

These distribution channels are covered:

• Cargo (Larger Category)
• Pipeline (Faster-Growing Category)

Renewable Energy Source Analysis

The solar energy category dominates the market with approximately 65% share in 2025, reflecting India’s abundant solar irradiance. India’s installed solar capacity reached approximately 97.86 GW as of January 2025, with strong growth driven by utility-scale installations in Rajasthan, Gujarat, and Tamil Nadu. Solar-powered green hydrogen projects benefit from competitive power costs, with on-site solar generation costs as low as INR 2.1 per kWh in favorable locations. The co-location of solar generation facilities with electrolyzer installations eliminates transmission costs and maximizes renewable energy utilization.

The wind energy category is projected to grow at the faster rate during the forecast period, supported by increasing hybrid solar-wind project development that ensures a more-stable power supply for hydrogen production. India’s installed wind capacity exceeds 48.16 GW, with Gujarat, Karnataka, and Tamil Nadu accounting for 98% of new capacity additions in 2024. Coastal and offshore wind resources offer particularly good conditions for continuous hydrogen production.

These renewable energy sources are covered:

• Solar (Largest Category)
• Wind (Fastest-Growing Category)
• Others

End Use Analysis

The industrial category has the largest share, of approximately 40%, in 2025, driven by substantial hydrogen demand from refineries, fertilizer plants, and steel manufacturers. India’s refining sector and fertilizer industry represent the primary consumption centers for hydrogen, with existing grey hydrogen demand providing a clear pathway for green hydrogen substitution. Indian Oil Corporation is developing green hydrogen plants at its refineries, including the Mathura facility with an investment of approximately INR 2,000 crore. The steel industry is exploring hydrogen-based direct reduced iron technology, with pilot projects underway at major facilities to reduce carbon emissions in steelmaking.

The transportation category is expected to register the fastest growth during the forecast period, supported by government pilot projects and increasing focus on heavy-duty vehicle decarbonization. Five pilot projects for hydrogen-fueled buses and trucks have been launched across 10 key routes, with 37 hydrogen fuel cell and internal combustion engine vehicles being tested and nine refueling stations being implemented. NTPC’s green hydrogen mobility project in Leh operates hydrogen fuel cell buses capable of running up to 300 km on a single fill, expected to save 350 tonnes of CO₂ emissions annually. India targets the deployment of 500 hydrogen buses across major cities and 1,000 hydrogen trucks and buses by 2030.

These end uses are covered:

• Industrial (Largest Category)
• Transportation (Fastest-Growing Category)
• Power Generation
• Residential and Commercial Heating
• Others

India Green Hydrogen Market Regional Outlook

Gujarat Green Hydrogen Market Size

Gujarat holds the largest share, of approximately 40%, in the Indian green hydrogen market in 2025. The state’s dominance is attributed to its exceptional renewable energy resources, established industrial infrastructure, proximity to major ports, and proactive policy support. Gujarat benefits from favorable conditions for both solar and wind power generation, with the Khavda facility development targeting 30 GW of combined renewable energy capacity. The state hosts major green hydrogen initiatives, including Reliance Industries’ Green Energy Giga Complex in Jamnagar and the Adani Mundra Cluster, which is positioned to become one of the world’s largest integrated green hydrogen hubs with an initial production target of 1 MMT per annum by 2030.

Gujarat’s strategic advantages include the Mundra and Deendayal (Kandla) ports, which have been identified as Green Hydrogen Hubs under the National Green Hydrogen Mission. The state accounts for 9% of India’s GDP, 18% of industrial output, and handles 40% of the country’s cargo, providing substantial industrial demand for green hydrogen. Major companies, including NTPC, Torrent Power, and multiple international players have signed agreements for green hydrogen and renewable energy projects worth billions of dollars in the state.

Andhra Pradesh Green Hydrogen Market Size

Andhra Pradesh is expected to witness the highest CAGR, of approx. 12.0%, during 2026–2032, driven by the landmark NTPC Green Energy Limited Green Hydrogen Hub project at Pudimadaka near Visakhapatnam. This project, inaugurated in January 2025, represents India’s first Green Hydrogen Hub under the National Green Hydrogen Mission, with a total investment of INR 1.85 lakh crore. The project will develop 20 GW of renewable energy capacity to produce 1,500 tonnes per day (TPD) of green hydrogen and 7,500 tpd of green hydrogen derivatives, including green urea, sustainable aviation fuel, and green methanol, primarily targeted for export markets.

The state government has established supportive policies for green hydrogen development, including the Andhra Pradesh Renewable Energy Export Policy. Hindustan Petroleum Corporation Limited is developing a green hydrogen project in Visakhapatnam with an investment of INR 7,300 crore. NTPC Simhadri in Andhra Pradesh hosts a low-carbon desalination facility using waste heat from thermal power plants to produce hydrogen-grade water, addressing the significant water requirements for hydrogen production. Tata Power Renewable Energy Limited has announced investment of INR 49,000 crore for 7-GW green energy projects in the state.

These states are covered:

• Gujarat (Largest State Market)
• Andhra Pradesh (Fastest-Growing State Market)
• Rajasthan
• Tamil Nadu
• Maharashtra
• Karnataka
• Odisha
• Madhya Pradesh
• Uttar Pradesh
• Rest of India

India Green Hydrogen Market Share

The Indian green hydrogen market is fragmented with the presence of large conglomerates, public sector undertakings, and emerging specialized players. The competitive landscape is characterized by substantial capital investments from established energy companies diversifying into green hydrogen, strategic partnerships between domestic and international technology providers, and government-backed initiatives driving market participation. The market has witnessed intense activity in securing electrolyzer manufacturing capacity and green hydrogen production incentive.

Major players are pursuing integrated strategies spanning electrolyzer manufacturing, renewable energy generation, hydrogen production, and derivative manufacturing. Public sector oil and gas companies have joined to achieve a combined annual green hydrogen production capacity of 700,000 tonnes annually by 2030. The competitive intensity is expected to increase as production-linked incentives drive domestic electrolyzer manufacturing scaling and cost reductions across the value chain.