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India Green Hydrogen Industry to Grow at 11.1% CAGR Through 2035 - Explore Insights by Industry Research Future

01-28-2026 10:43 AM CET | Energy & Environment

Press release from: MRFR

India Green Hydrogen Industry

India Green Hydrogen Industry

According to Market Research Future, the India Green Hydrogen Industry was valued at USD 5.594 billion in 2024 and is expected to expand from USD 6.216 billion in 2025 to USD 17.84 billion by 2035, registering a CAGR of 11.1% during the 2025-2035 forecast period.

The India Green Hydrogen Market is rapidly emerging as a vital segment in the country's renewable energy landscape. Green hydrogen, produced via water electrolysis using renewable energy sources such as solar and wind, is a zero-carbon fuel capable of decarbonizing hard-to-abate sectors like steel, chemicals, power generation, and heavy transportation.

As India pursues its ambitious Net Zero by 2035 target, green hydrogen is positioned as a key enabler for sustainable industrial growth and energy security. With abundant renewable resources, government support, and growing corporate adoption, India is making strategic investments to become a significant player in the global green hydrogen ecosystem.

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Market Drivers

One of the main drivers of the India green hydrogen market is the government's focus on renewable energy integration and carbon reduction. Initiatives such as the National Hydrogen Energy Mission (NHM) aim to scale up green hydrogen production and create a domestic manufacturing ecosystem.

Another significant driver is the abundant solar and wind energy potential across India. Low-cost renewable electricity improves the economic viability of green hydrogen production and positions the country as a competitive exporter of clean hydrogen and hydrogen derivatives, such as green ammonia.

Rising industrial decarbonization demand is also fueling market growth. Sectors such as steel, cement, and refining are actively exploring hydrogen-based solutions to reduce carbon emissions and comply with evolving environmental regulations.

Additionally, the increasing global focus on clean hydrogen trade and cross-border collaborations provides an opportunity for India to establish itself as a green hydrogen hub for export to Europe, Japan, and other regions aiming to achieve energy transition goals.

Key Market Trends

One prominent trend in the India green hydrogen market is the rapid development of utility-scale hydrogen projects. Large electrolyzer installations powered by solar and wind are being planned to produce green hydrogen for both domestic use and export purposes.

Another trend is the adoption of green ammonia production. Ammonia, synthesized from green hydrogen, provides an efficient means of storing and transporting hydrogen for international markets.

Strategic collaborations between government entities, private players, and international technology providers are accelerating project execution and technological transfer. These partnerships are vital for reducing production costs and scaling up domestic capacity.

Additionally, sector coupling, where green hydrogen is integrated across power, transportation, and industrial sectors, is gaining traction. This approach enhances system efficiency and creates a more robust ecosystem for hydrogen adoption.

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Technology Advancement

Technological innovation is central to the growth of India's green hydrogen market. Advances in electrolyzer technologies, including proton exchange membrane (PEM) and alkaline electrolyzers, are improving production efficiency and reducing costs.

Research in high-efficiency renewable energy systems is also supporting green hydrogen deployment. Innovative solar PV panels, wind turbines, and hybrid renewable setups are providing stable electricity supply for continuous hydrogen production.

The emergence of long-duration energy storage and hydrogen blending technologies is enhancing grid stability and enabling integration with intermittent renewable energy sources.

Moreover, progress in transportation, storage, and fuel cell applications is expanding green hydrogen utilization beyond electricity and industrial feedstock, supporting mobility solutions such as fuel cell buses, trucks, and rail.

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Regional Insights

India's green hydrogen market is concentrated in regions with strong renewable energy infrastructure and industrial hubs. Western India, including Gujarat and Maharashtra, is emerging as a key center due to abundant solar and wind resources, industrial demand, and port infrastructure for potential hydrogen exports.

Southern India is another focus area, with states like Tamil Nadu and Karnataka leveraging renewable energy potential, industrial clusters, and research capabilities to advance green hydrogen projects.

Northern India is witnessing increasing activity in policy formulation, pilot projects, and public-private partnerships, particularly in hydrogen integration for industrial decarbonization.

The development of hydrogen hubs and infrastructure across multiple regions is helping create a nationwide network that supports both domestic utilization and export-oriented production.

Outlook

The India green hydrogen market is poised for strong growth as the country accelerates its renewable energy adoption and industrial decarbonization initiatives. Driven by abundant renewable energy resources, government support, technological innovation, and international collaborations, green hydrogen is becoming a cornerstone of India's energy transition strategy. With continued investment and policy support, India is well-positioned to establish itself as a global leader in sustainable hydrogen production, enabling low-carbon growth and energy security for decades to come.

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About Market Research Future:
Market Research Future® (Part of WantStats Research and Media Pvt. Ltd.) has specialized research analysts in the areas of Aerospace & Defense, Automotive, C&M, Energy & Power, F&B, Healthcare & Pharmaceutical, ICT, Industrial Equipment, Packaging Construction & Mining and Semiconductor. Market Research Future (MRFR) is a global market research company that takes pride in its services, offering a complete and accurate analysis with regard to diverse markets and consumers worldwide. MRFR's approach combines the proprietary information with various data sources to give an extensive understanding to the client about the latest key developments, expected events and about what action to take based on these aspects.

Contact
Market Research Future (Part of Wantstats Research and Media Private Limited)
99 Hudson Street, 5Th Floor
New York, NY 10013
United States of America
+1 628 258 0071 (US)

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