This review critically examines hydrogen energy systems and focuses on their ability to transform the global energy framework and mitigate climate change. Hydrogen exhibits a high energy density of 120 MJ/kg, making it a powerful alternative to fossil fuels. If implemented at scale, it could reduce global CO2 emissions by up to 830 million tons per year. Despite its potential, the inefficiency and high production costs of current electrolysis methods are constraining the expansion of hydrogen technology. Currently, electrolysis efficiencies are in the range of 60% to 80%, and hydrogen production costs are approximately $5 per kilogram. Strategic advances are needed to reduce these costs to less than $2 per kilogram and increase efficiency to more than 80%. Additionally, hydrogen storage presents unique challenges, requiring conditions of up to 700 bar or temperatures below -253 °C. Such storage conditions require advanced materials development and infrastructure improvements. The results of this study highlight the need for comprehensive strategic planning and multidisciplinary efforts to maximize the role of hydrogen as a sustainable energy source. Overcoming these technical and infrastructure challenges, supported by a strong regulatory framework, is essential to strengthening the economic viability and market integration of hydrogen. This comprehensive approach allows hydrogen energy to make a significant contribution to a sustainable, low-carbon future.