Market Overview
The Mexico Green Hydrogen Market size reached USD 20.24 Million in 2024 and is projected to reach USD 960.22 Million by 2033. It is expected to grow at a CAGR of 47.10% during the forecast period 2025-2033. The growth is driven by Mexico’s national decarbonization roadmap, strategic investments in hydrogen production hubs like Sonora and Oaxaca, government incentives, renewable energy potential, and expanding export corridors targeting the U.S. and European markets.
Study Assumption Years
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
Mexico Green Hydrogen Market Key Takeaways
- Current Market Size: USD 20.24 Million in 2024
- CAGR: 47.10% during 2025-2033
- Forecast Period: 2025-2033
- Mexico aims to reduce greenhouse gas emissions by 35% by 2030, possibly increasing to 40% with international support.
- Key hydrogen production hubs are developing in regions such as Sonora and Oaxaca supported by cross-border partnerships.
- The U.S. Inflation Reduction Act incentivizes low-carbon hydrogen, benefiting Mexican producers aiming at North American markets.
- Several hydrogen corridors linking northern Mexico with U.S. states like California and Texas are under development.
Sample Request Link: https://www.imarcgroup.com/mexico-green-hydrogen-market/requestsample
Market Growth Factors
Mexico’s green hydrogen market growth is strongly influenced by government-led decarbonization strategies. The country’s revised Nationally Determined Contribution (NDC) under the Paris Agreement targets a 35% reduction in greenhouse gas emissions by 2030, increased from 22% in 2020, with potential escalation to 40% if international financial and technical aid is mobilized. This framework accelerates efforts to decarbonize sectors such as heavy industry and transportation, positioning green hydrogen as a key component due to Mexico’s abundant wind and solar resources, notably in Oaxaca and Sonora.
Private sector investments and cross-border export initiatives are key growth drivers. Multinational and domestic firms are investing in pilot green hydrogen projects focused on chemicals, mining, steel, and transport sectors. For instance, the MoU signed on February 17, 2025, between Aslan Energy Capital and Calyan XGH Inc. aims to supply 100,000 tonnes of sustainable hydrogen annually from Sonora, enhancing cross-border clean energy collaboration and fulfilling regional decarbonization goals.
Mexico’s ambition to become a green hydrogen export hub further propels market expansion. The U.S. Inflation Reduction Act provides subsidies fostering low-carbon hydrogen imports from Mexico. Proposed hydrogen corridors connecting northern Mexico with U.S. markets like California and Texas, including hydrogen blending in existing natural gas pipelines, are progressing. Logistics and port authorities at Lázaro Cárdenas and Ensenada are conducting feasibility studies to enable large-scale export shipments.
Market Segmentation
Technology Insights:
- Proton Exchange Membrane Electrolyzer: Utilizes a membrane to efficiently produce high-purity green hydrogen through electrolysis.
- Alkaline Electrolyzer: Uses alkaline solutions in electrolysis, noted for cost-effectiveness and robustness.
- Others: Includes other electrolyzer technologies not classified under PEM or alkaline, catering to diverse production needs.
Application Insights:
- Power Generation: Green hydrogen as a clean energy source for electricity generation reducing emissions.
- Transport: Usage of green hydrogen fuel in transportation, especially for heavy-duty vehicles.
- Others: Miscellaneous applications beyond power and transport, including industrial and commercial use.
Distribution Channel Insights:
- Pipeline: Distribution via pipelines allowing direct delivery to end users.
- Cargo: Transportation by cargo methods such as shipping or trucking for flexible delivery.
Regional Insights
Northern Mexico, particularly Sonora, is a dominant region due to its renewable energy resources and geographical position favoring export. This region leverages cross-border partnerships with the United States, thus stimulating green hydrogen market growth. Other regions include Central Mexico, Southern Mexico (notably Oaxaca), and others, contributing to the national development of the green hydrogen sector.
Recent Developments News
In December 2024, Helax, a subsidiary of Copenhagen Infrastructure Partners, announced a USD 10 Billion green hydrogen project in Mexico to start construction in 2026 with operations expected by 2028. The project involves building a 1.2GW facility at Oaxaca's Isthmus of Tehuantepec. It is currently undergoing public and indigenous consultations ahead of environmental evaluation.
Ask an Analyst: https://www.imarcgroup.com/request?type=reportid=34631flag=C
Competitive Landscape
The competitive landscape of the industry has also been examined along with the profiles of the key players.
About Us
IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
Contact Us
IMARC Group,
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
Tel No: (D) +91 120 433 0800
United States: +1-201971-6302
