04.11.2026 – Despite progress in infrastructure and regulatory development, the hydrogen ramp-up has stalled. The market remains sluggish, say representatives of industry and the energy sector in their annual analysis of the German hydrogen market since 2023. The so-called H2 Market Index stands at 41 out of 100 possible points in 2026, unchanged from the previous year.

Among the four main categories analysed, only Infrastructure Development has shown an increase in its evaluation, now standing at 36 points (2025: 35 points and 2023: 24 points). Some subcategories within the infrastructure index exhibit stronger upward trends. No change was observed in the Innovation Environment (55 points). On the other hand, the political-regulatory landscape dropped by 2 points to 36 points, and market development decreased by 2 points to 35 points.

Cross-party stakeholders consider appropriate political goals to be the most significant driver of the hydrogen ramp-up. However, respondents identified a notable decline in political will and a lack of market stimuli. Trust among market participants has significantly deteriorated (down 11 points from the previous year). Simultaneously, the business outlook for hydrogen has become increasingly pessimistic. In 2023, the corresponding index value was 53; over the past three years, it has fallen to 39 points. Within the Innovation Environment sub-index, technical regulations are viewed increasingly positively. The improvement compared to the previous year, an 11-point increase to a score of 60, marks an unprecedented rise. The assessment has steadily improved since 2023's 43 points.

To advance the hydrogen market in Germany, associations are calling for a reliable political course that facilitates investments and creates sustainable markets. Open technology frameworks, effective promotion (e.g., CfDs), and targeted demand impulses are essential for fostering climate-friendly transformation and strengthening industrial resilience and competitiveness.

Infrastructure Development (2026: 36 points, 2025: 35 points)

Infrastructure Development is the only main category in this year’s H2 Market Index that has shown improvement. Since 2023, the evaluation has consistently improved from 24 to 36 points. The subcategory Pipeline Infrastructure is particularly noteworthy. It has risen by 2 points compared to the previous year, and by 15 points since 2023, reaching 46 points this year. The other subcategories, Storage Infrastructure (31 points) and Import Infrastructure (30 points), have shown no changes compared to the previous year. A key factor in this overall positive development is the political decision on the hydrogen core network. Paid capacity reservations in the core network, rising from 3 GW to 6 GW within three months, have also sent an important signal for the ramp-up. Regarding import and distribution networks as well as storage infrastructures, stakeholders from industry and energy see pressing political action needed, particularly in financing. Although import routes and border crossing points are planned, most are yet to receive final investment decisions (FIDs). Similarly, commercial storage project implementation is faltering.

Innovation Environment (2026: 55 points, 2025: 55 points)

The Innovation Environment remains steady at 55 points, continuing to be the highest-rated area of the hydrogen market. Germany boasts a strong research and innovation landscape, but widespread industrial application remains challenging. Market participants see further development needed in hydrogen production, import technologies, and hydrogen utilisation. The technological development level, however, is assessed more cautiously compared to the previous year. On the positive side, technical regulations continue to evolve: As of August 2026, approximately 670 standards for hydrogen technologies were recorded. Notable growth in patent applications underscores the vibrancy of innovation. While technological advancements are plentiful, transforming these into economically viable applications and investments is vital. For this, reliable policies, competitive hydrogen prices, and increased demand are essential.

Political-Regulatory Landscape (2026: 36 points, 2025: 38 points)

The assessment of the political-regulatory framework has further deteriorated. This is most evident in the perceived political will, whose index value fell from 51 points in 2023 to 34 points in 2026. While the legal framework saw a slight improvement to 39 points, it remains negative. Overregulation is identified as the primary legal hurdle by 35 per cent of respondents. Complex and costly EU regulations for green hydrogen are particularly obstructive. An announced review of manufacturing criteria is still pending. Furthermore, the funding landscape is increasingly viewed negatively: Its index value has dropped from 40 points in 2023 to 34 in 2026. Although there are various national and EU-level funding programs, they appear overly fragmented and insufficient for developing a liquid hydrogen market.

Market Development (2026: 35 points, 2025: 37 points)

For 58 per cent of respondents, market development—supply, demand, and pricing—is the greatest challenge for hydrogen ramp-up. The perception of market dynamics has gradually worsened since the first survey in 2023 (49 points). While the decline to this year’s 35 points is moderate compared to 2025, market players rate the current state of the market development negatively at 29 points. Delays in electrolysis projects, limited supply amid weak demand, and high energy costs are cited as major factors. Expectations regarding hydrogen's appeal as a business sector have also dropped (2026: 41 points; 2025: 44 points; 2023: 55 points). Domestic production targets for 2030 are considered unattainable, increasing the importance of imports. The ramp-up is rated most critically (29–35 points) by industry as a potential consumer, while transmission system operators are more positive (51 points). Non-technological challenges, particularly economic feasibility, hinder the ramp-up. The cost of green hydrogen remains significantly higher than what buyers are willing to pay. To address this gap, associations call for straightforward, well-funded midstreamer instruments and CfDs, state-backed investment risk mitigation, pragmatic green lead markets, and interim Book-and-Claim systems.