Mexico Green Hydrogen Market

Mexico Green Hydrogen Market Overview:

The Mexico green hydrogen market size reached USD 20.24 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 960.22 Million by ​2033​, exhibiting a growth rate (CAGR) of 47.10% during 2025-2033. The market is driven by the country's national decarbonization roadmap, which integrates green hydrogen into emission reduction targets backed by Paris Agreement commitments. Strategic investments in hydrogen production hubs, particularly in Sonora and Oaxaca, are supported by cross-border partnerships targeting U.S. and European off-take demand. Additionally, government-backed incentives, renewable energy potential, and proposed hydrogen export corridors are further augmenting the Mexico green hydrogen market share.

Mexico Green Hydrogen Market Trends:

Government-Led Decarbonization Roadmap and Hydrogen Policy Framework

Mexico is progressively incorporating green hydrogen into its national energy strategy as part of its broader climate commitments. Mexico's revised NDC under the Paris Agreement targets a 35% reduction in greenhouse gas (GHG) emissions by 2030, up from 22% in its 2020 submission. The government is prepared to elevate this goal further, committing to a 40% reduction by 2030 if adequate international financial and technological support can be mobilized. This target signals an increased urgency to decarbonize key economic sectors and diversify the national energy mix. Green hydrogen is gaining attention as a viable pathway to support these efforts, particularly due to its compatibility with Mexico's abundant renewable resources. As part of its decarbonization blueprint, the country is evaluating the role of green hydrogen in reducing emissions from heavy industry and transportation, while aligning with international benchmarks and climate finance mechanisms. This strategic positioning sets the groundwork for large-scale hydrogen development. Also, the country's significant wind and solar capacity, especially in states like Oaxaca and Sonora, creates a viable ecosystem for producing green hydrogen through electrolysis powered by renewables.

Private Sector Investments and Cross-Border Export Projects

Multinational companies and Mexican industrial conglomerates are investing heavily in pilot projects and feasibility studies for green hydrogen production. The key sectors showing strong interest include chemicals, mining, steel, and transportation. Mexican firms and multinational stakeholders are actively exploring partnerships to produce green hydrogen. These investments are often concentrated in regions with existing renewable infrastructure and export potential. For instance, on February 17, 2025, Aslan Energy Capital signed an MoU with Calyan XGH Inc. of California to supply 100,000 tonnes of sustainable hydrogen per year from Sonora, Mexico. The agreement promotes cross-border clean energy collaboration and is consistent with regional decarbonization objectives. This development establishes Sonora as a strategic location for green hydrogen generation and export to the United States. This, in turn, is contributing to Mexico green hydrogen market growth. A pivotal trend is Mexico's ambition to become an export hub for green hydrogen and derivatives to the United States and Europe. With the enactment of the U.S. Inflation Reduction Act (IRA) providing generous subsidies for low-carbon hydrogen, Mexican producers are positioning themselves as low-cost suppliers for North American off-take agreements. Several proposed hydrogen corridors linking northern Mexico with U.S. markets, especially California and Texas, are in development, including the use of existing natural gas pipelines for hydrogen blending. These export ambitions are prompting collaborative feasibility analyses with logistics firms and port authorities, particularly at the ports of Lázaro Cárdenas and Ensenada, to enable large-scale shipment of green hydrogen products.

Mexico 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 the 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

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes pipeline and cargo.

Regional Insights:

• Northern Mexico 
• Central Mexico 
• Southern Mexico 
• Others 

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern Mexico, Central Mexico, Southern Mexico, 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.

Mexico Green Hydrogen Market News:

• On December 2024, Helax, a subsidiary of Copenhagen Infrastructure Partners, announced that the construction of a USD 10 Billion green hydrogen project in Mexico will commence in 2026, with operations expected to begin in 2028. The company will build the 1.2GW facility in Oaxaca's Isthmus of Tehuantepec. The project is currently undergoing public assembly and indigenous consultations, in preparation for its informative phase and environmental evaluation.

Mexico Green Hydrogen Market Report Coverage:

Key Questions Answered in This Report:

• How has the Mexico green hydrogen market performed so far and how will it perform in the coming years?
• What is the breakup of the Mexico green hydrogen market on the basis of technology?
• What is the breakup of the Mexico green hydrogen market on the basis of application?
• What is the breakup of the Mexico green hydrogen market on the basis of distribution channel?
• What is the breakup of the Mexico green hydrogen market on the basis of region?
• What are the various stages in the value chain of the Mexico green hydrogen market? 
• What are the key driving factors and challenges in the Mexico green hydrogen market?
• What is the structure of the Mexico green hydrogen market and who are the key players?
• What is the degree of competition in the Mexico 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 Mexico green hydrogen market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Mexico 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 Mexico 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.