Saudi Arabia Green Hydrogen Market

Saudi Arabia Green Hydrogen Market Overview:

The Saudi Arabia green hydrogen market size reached USD 15.66 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 498.10 Million by ​2033​, exhibiting a growth rate (CAGR) of 46.88% during 2025-2033. The market is driven the country’s push to diversify its economy through clean energy, with substantial state funding and policy support accelerating hydrogen infrastructure development. Strong solar and wind resources, combined with access to global shipping routes, are enabling cost-effective green hydrogen production for export. The integration of domestic electrolyzer manufacturing and strategic partnerships with global energy players is reinforcing supply chain resilience, further augmenting the Saudi Arabia green hydrogen market share.

Saudi Arabia Green Hydrogen Market Trends:

State-Backed Mega Projects Driving Market Development

Saudi Arabia is advancing large-scale green hydrogen initiatives as a central component of its post-oil economic diversification strategy. Notably, the NEOM Green Hydrogen Project, is a partnership among ACWA Power, Air Products, and NEOM. The facility is set to commence operations in 2026, and it is designed to manufacture 600 tons of carbon-free hydrogen per day, powered by 4 GW of renewable energy. With a capital investment of USD 8.4 Billion, the project exemplifies the Vision 2030 agenda, which seeks to position the Kingdom as a global leader in clean energy technologies. In addition to this, financial backing and policy support from the Public Investment Fund (PIF) are playing a critical role in de-risking the project and expediting development. These government-led initiatives provide market certainty and institutional continuity, encouraging both domestic and international stakeholders to participate in Saudi Arabia's emerging hydrogen economy.

Export-Focused Strategy and International Offtake Agreements

The country's green hydrogen development is strategically oriented toward export markets, with a particular focus on Europe and East Asia. The Kingdom benefits from significant solar and wind resources as well as access to major maritime trade routes, which enables competitive production and global distribution of hydrogen in the form of ammonia. Moreover, several memoranda of understanding (MoUs) have been executed with international partners demonstrating strong foreign interest, which is also providing a boost to Saudi Arabia green hydrogen market growth. These agreements span beyond intergovernmental engagements to include collaborations with industrial and technology consortia. Notably, on February 4, 2025, Saudi Arabia established a memorandum of agreement with Germany to supply 200,000 tons of green hydrogen annually to Europe by 2030. The agreement, involving Saudi ACWA Power and Germany’s SEFE Energy Company, aims to establish a hydrogen bridge between the two nations, supporting Europe’s transition to sustainable energy. This partnership forms part of Germany’s broader strategy to diversify energy sources amid the ongoing Russia-Ukraine conflict. Through long-term offtake contracts and robust logistics, the Kingdom is building a foundation to emerge as a key player in the global hydrogen economy.

Integration of Renewable Energy and Electrolyzer Manufacturing

Saudi Arabia is aligning renewable energy development with domestic manufacturing of critical hydrogen infrastructure, particularly electrolyzers. The country's vast solar and wind potential is utilized to power electrolytic hydrogen production with a minimized carbon footprint. In addition to this, the government is promoting the establishment of local manufacturing capabilities for electrolyzer components, reducing dependency on imports and supporting cost-efficiency. Furthermore, the Ministry of Energy and the National Industrial Development Center (NIDC) are providing regulatory support, facilitating skill development, and enabling industrial partnerships. The strategic integration of renewable power generation and localized manufacturing is positioning Saudi Arabia as both an energy producer and a hub for hydrogen technology and equipment, thereby reinforcing the foundation for a self-sustaining and export-capable green hydrogen economy.

Saudi Arabia 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 and Central Region 
• Western Region 
• Eastern Region 
• Southern Region 

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

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.

Saudi Arabia Green Hydrogen Market News:

• On February 10, 2025, Hysata announced a new agreement with ACWA Power to deploy its high-efficiency capillary-fed electrolzers in Saudi Arabia. The partnership aims to demonstrate the technology at commercial scale, supporting ACWA Power’s green hydrogen initiatives. The agreement, signed during ACWA Power’s Innovation Days, aligns with Saudi Arabia’s Vision 2030 to lead in green hydrogen innovation.

Saudi Arabia Green Hydrogen Market Report Coverage:

Key Questions Answered in This Report:

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