India’s Energy Transition is Accelerating — and Green Hydrogen is at the Center of IT

India is entering a defining decade in its energy transition journey. As the world accelerates toward decarbonization, green hydrogen is emerging as a cornerstone of India’s long-term energy security, industrial transformation, and export competitiveness strategy.

Backed by strong policy direction and expanding renewable capacity, the India Green Hydrogen Market is transitioning from pilot-scale deployments to large industrial ecosystems.

Market Overview

The India green hydrogen market was valued at approximately USD 4.88 billion in 2025 and is estimated to rise to nearly USD 5.61 billion in 2026, before reaching around USD 19.52 billion by 2035, expanding at a CAGR of 14.8% during 2026–2035.

Growth is primarily driven by:

  • National Green Hydrogen Mission implementation
  • Renewable energy capacity expansion
  • Industrial decarbonization mandates
  • Export-oriented green ammonia strategies
  • Production Linked Incentive (PLI) support for electrolyser manufacturing

India’s ambition to capture a significant share of the global hydrogen demand—expected to exceed 100 million metric tons by 2030—positions the country as a future hydrogen production and export hub.

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Market Dynamics

Key Market Trends

The industry is undergoing structural transformation toward large-scale electrolyser-based production integrated with renewable power assets.

Major trends include:

  • Rapid adoption of alkaline and proton exchange membrane (PEM) electrolysers
  • Domestic manufacturing expansion supported by PLI schemes
  • Integration of hybrid renewable systems for round-the-clock supply
  • Development of hydrogen hubs and export-oriented ammonia facilities
  • Increasing digitization and automation in hydrogen systems

These developments are reshaping competitive positioning and improving long-term cost optimization.

Growth Drivers

1. Strong Policy Framework

The National Green Hydrogen Mission and the Strategic Interventions for Green Hydrogen Transition (SIGHT) program provide clear production targets, fiscal incentives, and demand aggregation mechanisms.

2. Renewable Energy Expansion

India’s aggressive solar and wind capacity additions ensure low-cost renewable power supply—critical for competitive hydrogen production.

3. Industrial Decarbonization

Refineries, fertilizer plants, steel manufacturers, and chemical producers are shifting toward green hydrogen to meet emission reduction targets and reduce fossil fuel dependency.

4. Export Potential

Green ammonia exports to Europe and Asia-Pacific markets present a high-value opportunity, supported by port infrastructure in western and southern India.

Market Challenges

Despite strong growth fundamentals, the market faces structural constraints:

  • High capital expenditure for electrolyser systems and storage infrastructure
  • Dependence on imported critical components
  • Limited skilled technical manpower
  • Long commissioning timelines for large-scale projects

These factors may influence near-term scalability, particularly for early-stage developments.

Market Opportunities

Significant opportunities exist across:

  • Large-scale industrial decarbonization projects
  • Integrated renewable-to-hydrogen facilities
  • Domestic electrolyser manufacturing
  • Hydrogen mobility corridors
  • Biomass and alternative feedstock-based hydrogen technologies

Technology providers offering efficiency optimization, digital monitoring, and automation solutions are positioned to gain competitive advantage.

Segment Analysis

By Technology

  • Alkaline Electrolysis – ~57% market share in 2025 due to commercial maturity and lower capex
  • Proton Exchange Membrane (PEM) – ~33% share, fastest-growing segment (~24% CAGR)
  • Solid Oxide Electrolysis – ~10% share, emerging for high-efficiency applications

By Energy Source

  • Solar-based production – ~46% share
  • Wind-based production – ~29% share
  • Hybrid renewable systems – ~25%, growing at ~23% CAGR

By Distribution Channel

  • Captive consumption – ~64% share
  • Merchant distribution – ~36%, expected ~22% CAGR

By End User

  • Refining – ~35%
  • Fertilizers – ~26%
  • Chemicals & Steel – ~22%
  • Mobility & Power – ~17%, fastest-growing (~25% CAGR)

Regional Insights

West India – Market Leader (~34%)

Driven by strong renewable capacity concentration, port infrastructure, and industrial hubs in Gujarat and Maharashtra.

South India – Emerging High-Growth Region (~26%)

Supported by proactive state policies, grid-connected renewable expansion, and industrial demand.

North India (~17%)

Growth supported by fertilizer demand, refining capacity, and solar potential in Rajasthan.

Other Regions (~23%)

East and North-East India are witnessing gradual adoption through pilot projects and infrastructure expansion.

Competitive Landscape

The market is moderately competitive with strong participation from domestic and international players focusing on scale, integration, and technology localization.

Key players include:

  • Reliance Industries Limited
  • Adani New Industries Limited
  • NTPC Limited
  • Indian Oil Corporation Limited
  • Bharat Petroleum Corporation Limited
  • Hindustan Petroleum Corporation Limited
  • GAIL India Limited
  • Larsen & Toubro Limited
  • ACME Group
  • ReNew Energy Global Plc
  • Greenko Group
  • Tata Power Renewable Energy Limited
  • JSW Energy Limited
  • Ohmium International India Pvt. Ltd.
  • Cummins India Limited
  • Siemens Energy India Limited
  • Thyssenkrupp Uhde India Pvt. Ltd.

Strategic focus areas include:

  • Electrolyser manufacturing localization
  • Integrated renewable-to-hydrogen projects
  • Long-term offtake agreements
  • Export-focused green ammonia plants
  • Technology partnerships and joint ventures

Recent Developments

  • January 2026: Andhra Pradesh announced a ₹15,600-crore green hydrogen and ammonia complex in Kakinada under the National Green Hydrogen Mission.
  • January 2026: A new INR 100 crore funding program was launched to support pilot-scale hydrogen production from biomass and alternative feedstocks.

Strategic Outlook

India’s green hydrogen ecosystem is shifting from policy formulation to industrial execution. Over the next decade:

  • Industrial hydrogen substitution will accelerate
  • Export-driven capacity will scale
  • Domestic electrolyser manufacturing will strengthen
  • Integrated hydrogen hubs will redefine energy infrastructure

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