The hydrogen market - Italy

Hydrogen is a key element in the global energy transition, with applications ranging from transportation to power generation and industrial processes. The global hydrogen market has experienced significant growth in recent years, reaching an estimated value of $174.97 billion in 2024 and with a projected compound annual growth rate (CAGR) of 10.2 percent through 2028. This development is fueled by the push toward more sustainable energy sources and the goal of drastically reducing greenhouse gas emissions. In particular, the role of green hydrogen is becoming increasingly central, thanks to investments in electrolysis technologies and growing demand in sectors such as transportation and industry. In Italy, the hydrogen market is in a phase of rapid expansion, supported by both government initiatives and private investment. By 2023, the green hydrogen market was worth $309.6 million, with projected growth to $3.4 billion by 2030, driven by an impressive compound annual rate of 41 percent. The transportation and power generation sectors are the main demand drivers, while the development of production and distribution infrastructure remains a crucial challenge. The Italian government has allocated significant resources, including €10 billion by 2030, to implement 5 gigawatts of electrolysis capacity, helping to position Italy as one of Europe's leaders in the sector. The national market structure is characterized by a limited number of players, but there are signs of consolidation and innovation, with the emergence of projects such as Hydrogen Valleys. On the supply side, Italy is focusing mainly on green hydrogen production, exploiting the potential of renewable sources to develop a sustainable supply chain. This context lays a solid foundation for the country to establish itself as a key player in the European energy transition.