In 2025, the hydrogen economy will be vital in the global shift toward sustainable energy. This hydrogen economy outlook examines the quick changes in the business, including improvements in fuel cell, production, and storage technologies as well as large investments that drive scalability and innovation.
Executive Summary: Hydrogen Economy Market Outlook 2025
- Industry Growth Overview: The hydrogen market will grow from USD 22.38 billion in 2025 to USD 40.39 billion in 2029, at a compound annual growth rate of 15.9%. On a micro level, the hydrogen economy is growing at a 4.02% annual growth rate as per the Discovery Platform’s latest data.
- Manpower & Employment Growth: The market employs more than 1.4 million professionals worldwide, and it added 68 100+ new employees in the last year.
- Patents & Grants: With more than 2.25 million patents and 3470 grants, innovation continues to be at the core of the hydrogen economy. Although, the power sector experienced a 43% decline in hydrogen-related patent applications in Q2 2024.
- Global Footprint: Major hubs include the US, UK, India, Germany, and China, while cities like London, Houston, Melbourne, Singapore and Sydney drive regional innovation.
- Investment Landscape: The sector has had significant capital infusion, supporting expansion in production, storage, and fuel cell technologies, with major investors contributing a total of about USD 24.3 billion. There has been a seven-fold increase in investments for hydrogen projects reaching final investment decisions (FID), growing from 102 projects worth USD 10 billion in 2020 to 434 projects worth USD 75 billion in 2024.
- Top Investors: Leading investors such as the European Investment Bank, Japan Bank for International Cooperation, Société Générale, and more have invested around USD 24.3 billion.
- Startup Ecosystem: Five innovative startups, Green Hydrogen Technology (waste-to-hydrogen conversion), DeCarice (fleet decarbonization), FLEXERGY (hydrogen compression), HYDROLYX (sustainable hydrogen production), and TERRABARRIER (hydrogen permeation solutions), showcase the sector’s global reach and entrepreneurial spirit.
Methodology: How We Created This Hydrogen Economy Report
This report is based on proprietary data from our AI-powered StartUs Insights Discovery Platform, which tracks 25 million global companies, 20K+ technologies and trends as well as 110M patents and business reports. Our data includes detailed firmographic insights into approximately 5 million startups, scaleups, and tech companies. Leveraging this extensive database, we provide actionable insights on innovation, emerging technologies, and market trends.
For this report, we focused on the evolution of the hydrogen economy over the past 5 years, utilizing our platform’s trend intelligence feature. Key data points analyzed include:
- Total Companies working on the trend
- News Coverage and Annual Growth
- Market Maturity and Patents
- Global Search Volume & Growth
- Funding Activity and Top Countries
- Subtrends within the hydrogen economy
Our data is refreshed regularly, enabling trend comparisons for deeper insights into their relative impact and importance.
Additionally, we reviewed trusted external resources to supplement our findings with broader market data and predictions, ensuring a reliable and comprehensive overview of the hydrogen economy market.
What Data is Used to Create This Hydrogen Economy Market Report?
Based on data provided by the StartUs Insights Discovery Platform, we observe that the hydrogen market stands out in the following categories relative to the 20K+ technologies and trends we track.
These categories provide a comprehensive overview of the market’s key metrics and inform the future direction of the market.
- News Coverage & Publications: The hydrogen economy sector was one of the top industries examined, receiving over 1270 publications in the past year.
- Funding Rounds: The market is ranked among the top sectors due to the thriving financial activity that is represented in the 62 60+ funding rounds that we have recorded.
- Manpower: With over 1.4 million employees, the market has seen growth, with over 68 100 new employees in the past year alone.
- Patents: The hydrogen economy exhibits innovation and technological advancement with 2 251 500+ patents.
- Grants: The market is one of the top industries for financing support, having secured over 3470 grants. According to Hydrogen Europe’s report, in 2024, the EU Innovation Fund allocated around USD 5.28 billion to 85 innovative projects, with hydrogen initiatives comprising 30% of the total awards.
- Yearly Global Search Growth: Despite a -2.39% decline in yearly global search growth, the hydrogen economy remains a leading industry in awareness and interest.
Explore the Data-driven Hydrogen Economy Market Report for 2025
According to The Business Research Company, the hydrogen market will grow from USD 22.38 billion in 2025 to USD 40.39 billion in 2029, at a compound annual growth rate of 15.9%.
With a database of more than 11 600 companies overall and more than 840 startups, the market shows a vibrant entrepreneurial ecosystem.
Last year, the hydrogen economy market grew by 4.02%, highlighting a stable and continuous expansion.
As per the Hydrogen Council, the total announced investments in clean hydrogen projects are expected to rise to about USD 680 billion by 2030.
Credit: The Business Research Company
More than 2.25 million patents and 3470+ grants supporting technological breakthroughs show the market’s high level of R&D activity. The industry employs more than 1.4 million employees worldwide, and in the last year alone, there have been 68 100+ increase in manpower.
Top country hubs such as the US, UK, India, Germany, and China serve as the geographic anchors of the hydrogen economy, while major city hubs like London, Houston, Melbourne, Sydney, and Singapore are essential for promoting innovation and uptake.
The US hydrogen generation market was valued at USD 40.3 billion in 2024, with projections to reach USD 56.8 billion by 2033, reflecting a CAGR of 3.9% from 2025 to 2033.
According to IGEM’s news report, the UK government announced around USD 2.44 billion in investment in 11 green hydrogen projects across the country in 2024.
A Snapshot of the Global Hydrogen Economy Market
With a 4.02% yearly growth rate, the market is still growing rapidly due to a strong entrepreneurial ecosystem that includes more than 840 startups. More than 570 startups are in the early stages, indicating a pipeline of fresh ideas and new competitors.
As per Research and Markets, the global hydrogen market was projected to reach 101.97 million tons in 2024, with anticipated growth to 135.31 million tons by 2032, reflecting a compound annual growth rate of 3.6%.
Credit: Research and Markets
With more than 760 recorded mergers and acquisitions (M&A), the sector also shows a high level of consolidation activity.
As demonstrated by its 2 251 500+ patents and 2 34 600+ applicants, which show substantial R&D efforts, innovation is at the core of the hydrogen economy. However, annual patent growth has decreased by -0.95%, indicating that innovation pace needs to be maintained.
The worldwide competition for technological leadership in this field is highlighted by the fact that the US leads the world in patent issuance with 462 890+ patents, closely followed by China with 336 140+ patents.
Adding to this, H2Terminals Limited partnered with China National Energy Group’s subsidiary, Longyuan Environmental Protection Co. Ltd., and Yangzhou Pingbuqingyun Hydrogen Tech Ltd. to develop three major green hydrogen projects in China.
Explore the Funding Landscape of the Hydrogen Economy Market
With an average investment value of USD 72.1 million each round, the market has closed over 6260 funding rounds, demonstrating stakeholders’ tremendous trust in its expansion and potential.
The market has garnered major international interest, demonstrating widespread backing from a variety of investment groups, due to its network of more than 4400 investors.
Additionally, over 1790 startups have received investments, demonstrating the market’s appeal to investors and capacity to drive innovation and expansion across a range of business endeavors.
Who is Investing in the Hydrogen Economy Market?
Top investors have made major investments in the hydrogen economy, totaling more than USD 24.3 billion. An outline of the major investors, the number of businesses they have backed, and their investment commitments are mentioned below:
- The European Investment Bank invested USD 4 billion across 12 companies. It has also signed a USD 27.5 million venture debt facility with hydrogen refueling station developer Resato Hydrogen Technology.
- Japan Bank for International Cooperation contributed USD 3.2 billion to 3 companies. Further, JBIC announced an additional commitment to a fund investing in startups across central and eastern Europe (CEE).
- Societe Generale allocated USD 2.9 billion to 5 companies. Societe Generale is acquiring a 75% stake in Reed Management, an energy investment firm, for about USD 270 million.
- BNP Paribas supported 11 companies with investments totaling USD 2.6 billion. BNP Paribas also entered exclusive negotiations to acquire AXA Investment Managers for approximately USD 5.5 billion.
- UniCredit invested USD 2.6 billion across 3 companies. UniCredit launched a USD 11 billion bid to acquire Banco BPM, Italy’s third-largest financial group by assets.
- KfW IPEX-Bank backed 3 companies with USD 2.4 billion. Also, KfW IPEX-Bank, SEB, and HCOB provided a USD 110 million financing package to Auris Energia.
- ING contributed USD 1.8 billion to 3 companies.
- Swedish Export Credit invested USD 1.7 billion across 2 companies.
- Total Energies backed 2 companies with USD 1.6 billion. It also announced its entry as an investor in the Japan hydrogen fund at its first close, joining several major Japanese companies in this fund dedicated to developing the low-carbon hydrogen value chain.
- GIC funded 9 companies with USD 1.5 billion. Further, GIC partnered with EQT to acquire a majority stake in Calisen, a leading independent smart metering company in the UK, valued at approximately USD 5.1 billion.
Top Hydrogen Economy Innovations & Trends
Discover the emerging trends in the hydrogen economy market along with their firmographic details:
- Hydrogen Production is expanding due to the increased need for renewable energy alternatives. This trend shows a high employment increase, with 1100+ startups employing over 84 400 employees, including 7200 recruits in the past year. The domain’s critical role in expanding hydrogen technology to fulfill global energy needs is highlighted by its annual growth rate of 20.39%. As per IEA’s report, based on announced projects, low-emissions hydrogen could reach 49 million tonnes per annum by 2030.
- Hydrogen Storage is essential for facilitating efficient energy distribution and consumption and it is continuously improving. 35 100+ employees are employed by 490+ startups in this segment, and 2400 new employment were generated in the last 12 months. Its 5.37% annual growth rate reflects rising investments and advancements in storage technologies.
- Hydrogen Fuel Cell Technologies provide clean power generation and mobility. This trend, which employs 147 800 employees across 1260+ companies, added 9900 new employees in the previous year. The domain’s widespread adoption indicates a strong and developed market for fuel cell solutions despite its slight annual trend growth rate of 1.97%. Moreover, as per Research And Markets, the hydrogen fuel cell vehicle market is valued at USD 8.31 billion in 2025 and is expected to grow at a CAGR of 19.78% over the forecast period to reach USD 20.49 billion in 2030.
Further, the global green hydrogen market was valued at approximately USD 7.98 billion in 2024 and is projected to grow at a CAGR of 38.5% from 2025 to 2030.
Spain’s second-largest oil company will start building a green hydrogen plant in Huelva this year, targeting 2 GW by 2030, with 400 MW online by 2027.
5 Top Examples from Hydrogen Economy Startups
The five innovative startups showcased below are picked based on data including the trend they operate within and their relevance, founding year, funding status, and more. Book a demo to find promising startups, emerging trends, or industry data specific to your company’s needs and objectives.
Green Hydrogen Technology converts Waste to Hydrogen
German startup Green Hydrogen Technology creates climate-neutral hydrogen from non-recyclable plastic waste using its technology.
It provides an environmentally friendly substitute by converting resources like plastic, wood waste, and sewage sludge into high-purity hydrogen without releasing CO₂.
The startup lowers expenses and environmental effects by enabling decentralized hydrogen generation which does not require substantial transportation infrastructure.
This further encourages the use of renewable energy by enabling businesses, utilities, and municipalities to manufacture hydrogen locally for industrial uses.
Additionally, Green Hydrogen Technology offers a scalable option for a circular economy while solving dual problems of waste management and the need for clean energy.
DeCarice enables Fleet Decarbonisation
Australian startup DeCarice creates a retrofit hydrogen-diesel system that aids in fleet decarbonization by adapting existing engines to operate with hydrogen fuel.
The technology combines dual-fuel direct injection to produce a hydrogen-diesel blend by integrating hydrogen gas injectors with existing diesel systems.
This method lowers carbon emissions as up to 90% hydrogen is used in place of diesel which offers environmental advantage without decreasing vehicle performance.
Additionally, the system eases conversion between diesel and hydrogen modes, giving heavy-duty fleets operational flexibility.
DeCarice’s retrofit solution provides a cost-effective decarbonization method for businesses that depend on diesel-powered machinery..
FLEXERGY provides a Hydrogen Compression Technology
UK-based startup FLEXERGY develops solutions for hydrogen compression, storage, and delivery to support the supply chain for hydrogen energy. Its H2 Compressor increases the reliability of green hydrogen plants by reducing downtime due to compressor maintenance.
Its H2 Storage Container utilizes a high-pressure hydrogen gas storage solution along with H2 Compressor which maximizes and compounds the energy efficiencies in systems.
These solutions improve system reliability and lower maintenance costs as high-performance compressors have fewer moving parts and minimize energy loss.
The startup’s storage systems offer quick filling and discharge to streamline hydrogen logistics and increase overall system efficiency. Moreover, FLEXERGY’s solutions lower hydrogen expenses and improve project results by combining these technologies.
HYDROLYX enables Sustainable Hydrogen Production
Turkish startup HYDROLYX uses renewable energy technology to produce sustainable green hydrogen. Its devices use solar and wind energy to electrolyze water, which separates it into hydrogen and oxygen without emitting any damaging greenhouse gases.
The startup offers systems that ensure reliable hydrogen generation to meet rising demands for clean energy while prioritizing efficiency and safety.
Further, HYDROLYX promotes affordable hydrogen production and supports the worldwide decarbonization movement.
TERRABARRIER offers Hydrogen Permeation and Embrittlement
Swedish startup TERRABARRIER creates a coating technology to solve embrittlement and hydrogen penetration in critical infrastructure.
It makes storage tanks, pipelines, and other hydrogen systems more resilient and long-lasting through its coatings, which create thick barriers that shield objects exposed to hydrogen.
The startup’s products are resilient to harsh environments and extended use. TERRABARRIER also improves the safety and dependability of hydrogen energy applications by reducing the dangers of hydrogen leakage and material deterioration.
Moreover, it allows industries to utilize hydrogen energy with lower risk and operating expenses with its coating technologies.
Gain Comprehensive Insights into Hydrogen Economy Trends, Startups, and Technologies
The hydrogen economy in 2025 will be a major force behind the worldwide transition to clean energy by providing solutions for energy security and decarbonization. Even though the market has advanced due to major investments and technological developments, issues including supply chain limitations and regulatory restrictions still exist. Solving these problems requires more innovation and cooperation.
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