Malaysia Green Hydrogen Market

Malaysia Green Hydrogen Market Overview:

The Malaysia green hydrogen market size reached USD 23.94 Million in 2024. The market is projected to reach USD 664.79 Million by 2033, exhibiting a growth rate (CAGR) of 39.43% during 2025-2033. The market is gaining momentum as the nation leverages abundant renewable energy resources, such as solar, hydropower, and bioenergy, to drive a sustainable hydrogen economy. The National Hydrogen Economy and Technology Roadmap (HETR) and the National Energy Transition Roadmap (NETR) fueling domestic adoption and export ambitions, while encouraging innovation and investment across the value chain. Large-scale projects, supportive public‑private collaboration, and infrastructure development underscore the strategic shift toward cleaner energy, strengthening the outlook for Malaysia green hydrogen market share.

Malaysia Green Hydrogen Market Trends:

Strategic Direction Anchored in Policy Frameworks

Malaysia is taking deliberate steps to build a future-ready green hydrogen sector, guided by national energy transition planning. The country’s long-term strategy positions hydrogen as a key pillar of sustainable industrial development, aligned with broader decarbonisation and energy diversification goals. In May 2024, during the ASEAN Green Hydrogen Conference, Malaysia reaffirmed its intent to integrate hydrogen into its policy and infrastructure roadmap through coordinated action across ministries and agencies. The approach emphasizes a phased rollout over aggressive expansion, prioritizing system readiness, regulatory clarity, and capacity-building. Central to this strategy is the development of hydrogen within the National Energy Transition Roadmap (NETR), which links hydrogen adaptation to cleaner electricity generation, green mobility, and export readiness. This alignment is shaping how stakeholders from infrastructure developers to utility planners begin embedding hydrogen into project pipelines. Rather than positioning hydrogen as a long-term prospect, Malaysia is turning it into a structured policy objective with cross-sector relevance. As implementation unfolds, these efforts are expected to define the trajectory of Malaysia green hydrogen market trends over the coming years.

Clear Production Targets Define Market Potential

Malaysia is solidifying its commitment to hydrogen development through well-defined production goals, providing clarity and direction for stakeholders. In December 2024, the Ministry of Science, Technology and Innovation announced targets to scale hydrogen production progressively over the next decades. These targets establish a tangible framework that guides infrastructure development, investment decisions, and cross-sector coordination. The strategy emphasizes a phased approach, balancing immediate opportunities with longer-term sustainability ambitions. By setting clear production milestones, Malaysia is enabling more precise planning around capacity expansion and supply chain development, while aligning with the country’s broader energy transition objectives. This focus helps translate policy intent into measurable outcomes, fostering confidence among public and private sectors alike. The roadmap also highlights hydrogen’s role in diversifying energy sources, enhancing energy security, and supporting economic growth. As these goals gain momentum, they are expected to drive increasing activity across the sector, underpinning positive Malaysia green hydrogen market growth in both domestic and regional contexts.

Regional Cooperation Enhances Market Integration

Malaysia is strengthening its position in Southeast Asia’s clean energy landscape through active regional cooperation and innovative market mechanisms. In April 2024, the government launched Energy Exchange Malaysia (Enegem), a pilot initiative to facilitate cross-border trade in green electricity, particularly focusing on renewable energy exports to Singapore under the ASEAN Power Grid framework. This pioneering platform demonstrates Malaysia’s capability to manage complex energy transactions and certification processes, which are essential for scaling up green hydrogen production and trade in the future. While not directly linked to hydrogen yet, Enegem serves as a strategic foundation for integrating hydrogen into regional energy markets, supporting system interoperability and demand aggregation. The initiative highlights Malaysia’s intent to leverage regional collaboration to enhance energy security and sustainability. By building institutional frameworks that accommodate clean energy exchanges, Malaysia is preparing the groundwork for a more connected and resilient hydrogen economy across ASEAN. These efforts signal an important step towards fostering market confidence and facilitating the smooth rollout of hydrogen technologies within the broader Southeast Asian energy ecosystem.

Malaysia Green Hydrogen Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on technology, application, and distribution channel.

Technology Insights:

• Proton Exchange Membrane Electrolyzer
• Alkaline Electrolyzer
• Others

The report has provided a detailed breakup and analysis of the market based on technology. This includes proton exchange membrane electrolyzer, alkaline electrolyzer, and others.

Application Insights:

• Power Generation
• Transport
• Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes power generation, transport, and others.

Distribution Channel Insights:

• Pipeline
• Cargo

A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes pipeline and cargo.

Regional Insights:

• Selangor
• W.P. Kuala Lumpur
• Johor
• Sarawak
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Selangor, W.P. Kuala Lumpur, Johor, Sarawak, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Malaysia Green Hydrogen Market News:

• July 2025: Malaysia has established a cutting-edge Hybrid Hydro Floating Solar (HHFS) and Green Hydrogen Hub in Terengganu, which is another major advancement in the country’s energy transition ambitions. This collaborative partnership involves Tenaga Nasional Berhad (TNB), Petroliam Nasional Berhad (PETRONAS), and Terengganu Inc. The project incorporates renewable energy generation and hydrogen production, positioning Malaysia to be a regional leader in green energy. The development is aligned with the National Energy Transition Roadmap and constitutes a means of furthering sustainable socio-economic development in Terengganu.
• July 2025: FlexiH and ABA Gas have taken a crucial step forward to develop hydrogen-based energy in Malaysia. The partnership aims to produce clean hydrogen by converting biomethane from Palm Oil Mill Effluent (POME) facilities nationwide. This will make a significant dent in carbon emissions and ultimately facilitate carbon-neutral transport in Malaysia's hydrogen economy. FlexiH's advanced and innovative technology will facilitate the production of hydrogen, while ABA Gas will supply their knowledge of natural gas infrastructure. With both companies, the future of sustainable energy development in Malaysia looks promising.

Malaysia Green Hydrogen Market Report Coverage:

Key Questions Answered in This Report:

• How has the Malaysia green hydrogen market performed so far and how will it perform in the coming years?
• What is the breakup of the Malaysia green hydrogen market on the basis of technology?
• What is the breakup of the Malaysia green hydrogen market on the basis of application?
• What is the breakup of the Malaysia green hydrogen market on the basis of distribution channel?
• What is the breakup of the Malaysia green hydrogen market on the basis of region?
• What are the various stages in the value chain of the Malaysia green hydrogen market? 
• What are the key driving factors and challenges in the Malaysia green hydrogen market?
• What is the structure of the Malaysia green hydrogen market and who are the key players?
• What is the degree of competition in the Malaysia green hydrogen market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Malaysia green hydrogen market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Malaysia green hydrogen market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Malaysia green hydrogen industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.