Blue Hydrogen Market Share, Size, Trends, Industry Analysis Report, 2024 - 2032
Blue Hydrogen Market Share, Size, Trends, Industry Analysis Report, 2024 - 2032

Blue Hydrogen Market Share, Size, Trends, Industry Analysis Report, By Technology (Steam Methane Reforming, Gas Partial Oxidation, and Auto Thermal Reforming); By End-User; By Region; Segment Forecast, 2024 - 2032

  • Published Date:Jan-2024
  • Pages: 119
  • Format: PDF
  • Report ID: PM2900
  • Base Year: 2023
  • Historical Data: 2019-2022

Report Outlook

The global blue hydrogen market size was valued at USD 2090.00 million in 2023. The market is anticipated to grow from USD 2283.95 million in 2024 to USD 4675.98 million by 2032, exhibiting the CAGR of 9.4% during the forecast period.

The rise in a shift from carbon-neutral alternatives, which has significantly influenced the use of blue hydrogen in manufacturing activities, heavy industrial operations, and refining industries is a key factor influencing the growth and demand around the world.

Blue Hydrogen Market Size
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Moreover, increasing pollution levels due to the combustion of fossil fuels, heavily investing in R&D activities of cleaner alternatives of energy, and rising government favorable initiatives towards clean energy sources are likely to boost the adoption of blue hydrogen rapidly in the next coming years.

For instance, in March 2022, Unilever introduced a new low-carbon hydrogen capture project at their UK-based manufacturing facility. With this project, the site will have access to both 100% hydrogen & a blend of natural gas to easily fire a boiler. The project is striving for the transition of local industrial firms to blue hydrogen produced by the UK-based entity of Essar Oil.

However, loss of energy during the production process of blue hydrogen is a major factor expected to hinder the growth of the market during the projected period. In addition, various concerns associated with the high and effective utilization of carbon capture technology along with the lack of storage systems may also impede the market growth. The outbreak of the COVID-19 pandemic has significantly impacted the growth. The rapidly growing prevalence and spread of the deadly coronavirus around the world have resulted in lockdowns and many other restrictions. Due to this, various manufacturing units were temporarily closed and supply chains were highly disrupted, which had an adverse effect on the demand and supply of blue hydrogen over the pandemic period.

Blue Hydrogen Market Info 

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Industry Dynamics

Growth Drivers
Rapid growth in industrialization and globalization across the globe and especially in emerging economies such as India, China, South Korea, and Indonesia along with an extensive surge in the global chemical industry are major factors expected to drive the growth of the global market over the course of the projected period. Nearly, two-thirds of the world’s blue hydrogen is primarily used in the chemical industry for the cost-effective and environment-friendly synthesis of ammonia and methanol, which is augmenting the global market demand for blue hydrogen.

Furthermore, a rapid increase in the number of applications of hydrogen in fuel cell EVs, across the globe, is likely to be another key factor influencing the growth of the global market in the next coming years. Blue hydrogen is in enormous demand for use in fuel cell electric vehicles & rockets in the aerospace industry, as it provides clean transportation and can be utilized as an alternative to fossil fuels, which is positively impacting the growth of the market.

Report Segmentation

The market is primarily segmented based on technology, end-user, and region.

By Technology

By End-User

By Region

  • Steam Methane Reforming
  • Gas Partial Oxidation
  • Auto Thermal Reforming
  • Petroleum Refiners
  • Chemical Industry
  • Power Generation Facilities
  • Others
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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Steam methane reforming segment accounted for the largest market share

Steam methane reforming segment accounted significant market share in 2021 and is projected to grow at a significant growth rate over the anticipated period Cost-effectiveness, greater hydrogen output, and an efficient way of producing high levels of pure hydrogen, which can be collected by employing the technology of in-house pressure swing absorption purification are key factors driving the growth of the segment market. This process has gained huge popularity as one of the cheapest sources of industrial hydrogen, consisting of heating gases like methane in the availability of steam and a catalyst.

Furthermore, the auto-thermal reforming segment is expected to register a fast growth rate over the coming years. The growth of the segment market can be attributed to the increasing demand for gasoline in the automotive industry, various stringent government regulations on emissions from automobiles and industrial plants, and the increasing need for hydrogen as a fuel source in several end-use applications across the globe. In addition, the development and introduction of new and innovative auto thermal reforming technologies coupled with the rising prices of crude oil are likely to fuel the growth of the market at a significant rate.

Chemical segment held the largest market share in 2021

The chemical industry segment held the highest share of the global market in 2021 and is likely to grow at a considerable growth rate during the projected period. The growth of the segment market is mainly driven by increasing demand for various types of ammonia fertilizers around the world and high utilization for the synthesis of methanol and ammonia. Blue hydrogen is used in the chemical industry & widely used in the production of bulk chemicals, intermediates, & specialty chemicals, influencing the segment’s growth.

Moreover, the power generation segment is expected to register the fastest growth over the coming years. The high rate of urbanization in developing nations such as China, India, and South Korea, the increasing number of global consumers of electricity, and high investments in the development of existing power generation facilities are major key factors fueling the growth of the market. Additionally, the incorporation of highly advanced technologies such as machine learning and artificial intelligence with microgrid controllers in the power generation sector is also likely to propel the growth of the segment market.

Blue Hydrogen Market Seg

North America region dominated the global market in 2021

The North America region dominated the blue hydrogen market in 2021 with a holding of healthy market share and is expected to continue its dominance throughout the anticipated period. The regional market's growth can be attributed to the early adoption of advanced production facilities and high investment in the research and development sector coupled with the increased utilization of hydrogen in the aerospace and electric vehicle industry in countries like the United States and Canada. 

For instance, in August 2022, Marsh, introduced a new kind of insurance & re-insurance facility, providing insurance capacity for both existing & new blue hydrogen projects. It is developed in collaboration with Liberty Specialty & AIG, to provide up to USD 300 million of risk coverage for the start-up & construction phase of the hydrogen projects.

Furthermore, the Asia Pacific region is expected to emerge fastest over the study period due to an extensive rise in the demand for hydrogen from various end-use industries including fertilizers, chemicals, and refineries in countries like India, China, South Korea, and Malaysia. In the region, China holds the position of largest consumer and producer of any other country, with an annual consumption of hydrogen is over 24 million tonnes. In addition, rising government initiatives to ensure zero emissions in the region also propel the market's demand and growth.

Blue Hydrogen Market Reg

Competitive Insight

Some of the major players operating in the global market include ExxonMobil Corporation, Air Products and Chemicals, Aker Solutions, Dastur Energy, Topsoe, Shell Plc, Lindle Plc, Petrofac Limited, Technip Energies, Johnson Matthey, Thyssenkrupp AG, Xebec Corporation, Aquaterra Energy Limited, The State Atomic Energy, ENGIE Group, Toshiba Energy System, Uniper SE, and Hydrogain Technology.

Recent Developments

In October 2021, Air Products announced its USD 4.5 Bn blue hydrogen energy complex project in Eastern Louisiana. With the completion of this project, the company will be capable to produce more than 750 Mn standard cubic feet/day of blue hydrogen.

Blue Hydrogen Market Report Scope

Report Attributes

Details

Market size value in 2024

USD 2283.95 million

Revenue forecast in 2032

USD 4675.98 million

CAGR

9.4% from 2024 – 2032

Base year

2023

Historical data

2019 – 2022

Forecast period

2024 – 2032

Quantitative units

Revenue in USD million and CAGR from 2024 – 2032

Segments covered

By Technology, By End-User, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

Key companies

ExxonMobil Corporation, Air Products and Chemicals Inc., Aker Solutions, Dastur Energy, Topsoe, Shell Plc, Lindle Plc, Petrofac Limited, Technip Energies N.V., Johnson Matthey, Thyssenkrupp AG, Xebec Corporation, Aquaterra Energy Limited, The State Atomic Energy Corporation, ENGIE Group, Toshiba Energy System and Solution Corp., Uniper SE, and Hydrogain Technology Inc.