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 compound annual growth rate (CAGR) of 47.10% during the forecast period of 2025-2033. The market growth is driven by Mexico's national decarbonization roadmap aligned with the Paris Agreement, investments in hydrogen production hubs like Sonora and Oaxaca, and government incentives enhancing renewable energy use and export potential.
Study Assumption Years
Base Year: 2024
Historical Years: 2019-2024
Forecast Period: 2025-2033
Mexico Green Hydrogen Market Key Takeaways
Current Market Size: USD 20.24 Million in 2024
CAGR: 47.10%
Forecast Period: 2025-2033
Mexico aims to integrate green hydrogen into its emission reduction targets to cut greenhouse gas emissions by up to 40% by 2030.
Strategic investments and cross-border partnerships support green hydrogen production hubs in regions such as Sonora and Oaxaca.
The market is boosted by government-backed incentives, renewable energy potential, and planned hydrogen export corridors.
The U.S. Inflation Reduction Act incentivizes low-carbon hydrogen, making Mexican producers competitive for North American off-take agreements.
Sample Request Link: https://www.imarcgroup.com/mexico-green-hydrogen-market/requestsample
Market Growth Factors
Government-Led Decarbonization Roadmap and Hydrogen Policy Framework
Mexico’s national energy strategy includes green hydrogen as a key element toward meeting its revised Nationally Determined Contributions (NDC) under the Paris Agreement. The country targets a 35% reduction in greenhouse gas emissions by 2030, up from 22% in earlier commitments, and is prepared to increase this to 40% contingent upon international financial and technological support. This initiative reflects an urgent push to decarbonize heavy industry, transportation, and diversify the energy mix. Abundant renewable resources, especially wind and solar capacity in Oaxaca and Sonora, support sustainable hydrogen production through electrolysis.
Private Sector Investments and Cross-Border Export Projects
Significant investments are being made by multinational companies and Mexican industrial conglomerates in pilot projects and feasibility studies for green hydrogen production. Key sectors include chemicals, mining, steel, and transport, with partnerships targeting export markets. For instance, a Memorandum of Understanding signed on February 17, 2025, between Aslan Energy Capital and Calyan XGH Inc. of California aims to supply 100,000 tonnes per year of sustainable hydrogen from Sonora. This reflects the strategic importance of Sonora as a production and export hub, fostering cross-border clean energy collaboration.
Export Ambitions Supported by Policy and Infrastructure Developments
Mexico aspires to become an export hub for green hydrogen and derivatives to the U.S. and Europe. The U.S. Inflation Reduction Act (IRA) offers generous subsidies to low-carbon hydrogen, positioning Mexican producers as cost-competitive suppliers. Proposed hydrogen corridors in northern Mexico aim to connect with U.S. markets, particularly California and Texas, including converting natural gas pipelines for hydrogen blending. Collaborations with logistics and port authorities at Lázaro Cárdenas and Ensenada ports are in progress to enable large-scale shipments of green hydrogen products.
