The hydrogen market is expected to reach $410.6 billion by 2030, according to a new forecast from MarketsandMarkets. That’s a compound annual growth rate of 7.8% over the forecast period.

The new prediction comes as hydrogen energy is top of mind for clean energy leaders. It can be produced in large quantities, with various uses for different industries. Hydrogen is produced as a principle and as a byproduct across energy sources, including wind, solar, coal, natural gas, and nuclear.

Hydrogen is produced in bulk for value-added uses and chemical substances. Hydrogen fuel is also being embraced across the auto industry, even reaching commercial trucking, as businesses and regions aim to reduce greenhouse gas emissions.

Recently California announced its plans to bulk up its hydrogen market as the state moves closer to its net-zero emissions target.

Other reports, including one recently released by Deloitte, also recognize the growing hydrogen market. Deloitte predicted the green hydrogen market will surpass the value of the liquid natural gas trade by 2030.

With such a push to mitigate climate change and reduce emissions, the hydrogen market is predicted to be a winner, forecasters are betting.

Within the hydrogen market, the generation type segment is expected to hold the largest share during the forecast period, MarketsandMarkets predicted. 

“Governments and businesses are looking at low-carbon and zero-emission options as a result of the pressing need to slow down climate change and cut greenhouse gas emissions,” the report stated. “Since it generates no carbon dioxide when used, green hydrogen generation offers a workable answer to the problem of decarbonization.”

The mobility segment, which includes hydrogen fuel cell use, is expected to be the fastest-growing segment in the forecast period (2023-2030). Producing only water vapor as a byproduct hydrogen fuel cell technology is seeing a boom in demand that is likely to continue over the next several years, the forecasters said. Fuel cell electric vehicles have zero emissions, making them desirable to consumers and governments focused on reducing air pollution.

While the global market is expected to grow during the forecast period, North America is predicted to be the largest region in the hydrogen industry.