The European hydrogen market in 2025 is experiencing significant developments in terms of small-scale Final Investment Decisions (FIDs), policy shifts, and challenges faced by technology providers. GreenH's 20MW Bodø hydrogen project signifies progress in the market, highlighting the importance of securing FIDs even for smaller-scale projects. Despite financial challenges for technology providers like Elogen, Nel, and Johson Matthey, innovative solutions such as performance insurance for electrolysers are emerging. Policy shifts in Germany and the EU towards supporting renewable and low-carbon hydrogen production show promising signs for the industry. The Competitive Compass initiative by the European Commission aims to boost industrial competitiveness and could accelerate hydrogen growth. Despite hurdles, including financial instability, the European hydrogen market continues to advance, driven by evolving policy frameworks, strategic investments, and a commitment to sustainable hydrogen production.