Blue Hydrogen Market

Global Blue Hydrogen Market:

The global blue hydrogen market size reached US$ 11.3 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 29.9 Billion by 2032, exhibiting a growth rate (CAGR) of 11.43% during 2024-2032. The rising adoption of cleaner energy sources, increasing product applications in transportation and power generation, and inflating sales of hydrogen-powered fuel cell vehicles worldwide represent some of the key factors driving the market.

Blue Hydrogen Market Analysis:

• Major Market Drivers: The augmenting demand for greener energy sources and clean hydrogen from numerous end-use industries, including chemical, petroleum refining, power generation, and transportation along with favorable government initiatives is driving the market growth. Moreover, the rising adoption of hydrogen-powered fuel cells as they are lightweight and pollution-free is acting as another growth-inducing factor.
• Key Market Trends: The rising production and sales of fuel cell electric vehicles coupled with the growing popularity of blue hydrogen to replace fossil fuels in electricity grids, natural gas in domestic and industrial applications, and oil in transportation is anticipated to propel the market demand.
• Competitive Landscape: Some of the leading blue hydrogen market companies are Air Liquide S.A, Air Products and Chemicals Inc., Aker Solutions ASA, Aquaterra Energy Ltd., Bp P.L.C., Dastur Energy, ExxonMobil Corporation, INEOS Group Limited, Johnson Matthey, Linde plc, Saudi Arabian Oil Co., Shell plc, Technip Energies N.V., and Uniper SE, among many others.
• Geographical Trends: According to the report, North America currently dominates the overall market. North American countries, particularly the United States and Canada, have been setting ambitious climate targets. Blue hydrogen is seen as a transitional fuel that can help these countries reduce their carbon footprint while they transition to fully renewable energy sources.
• Challenges and Opportunities: High cost associated with carbon capture and storage (CCS) technology, uncertain regulatory environment, and public concerns regarding safety are some of the challenges that the market is facing. However, the global push to reduce carbon emissions presents a significant opportunity for the growth of the blue hydrogen market.

Blue Hydrogen Market Trends:

Rising Adoption of Fuel Cell Vehicles

The increasing adoption of fuel cell vehicles is one of the significant factors driving the market growth.  With increasing awareness of climate change and air pollution, there is growing pressure to reduce greenhouse gas emissions and improve air quality. For instance, in 2023, the European Union adopted a set of Commission proposals to adapt the EU's climate, energy, transportation, and taxation policies to reduce net greenhouse gas emissions by at least 55% by 2030, relative to 1990 levels. FCVs offer a zero-emission alternative to traditional internal combustion engine vehicles, emitting only water vapor and heat as byproducts. For instance, according to an article published by the U.S. Department of Energy, FCEVs vehicles are powered with hydrogen and produce no harmful tailpipe emissions. Moreover, FCVs use hydrogen as fuel, which creates a direct demand for hydrogen. As the number of FCVs on the road increases, so does the demand for hydrogen fuel. For instance, according to data published by the International Energy Agency (IEA), there were over 72,000 hydrogen fuel cell electric vehicles (FCEVs) on the road worldwide in 2022, a 40% increase from 2021. Blue hydrogen, produced from natural gas with carbon capture and storage (CCS) technology, can meet this demand while offering a low-carbon alternative to traditional fossil fuels. These factors are further propelling the blue hydrogen market growth.

Growing Industrialization

As industrialization progresses, there is a growing demand for energy to power manufacturing processes, chemical production, and other industrial activities. For instance, according to an article published by the United Nations Industrial Development Organization in December 2023, the industrial sectors, which include waste management, mining, manufacturing, power, water supply, and other utilities, grew 2.3% globally. Blue hydrogen, produced from natural gas with carbon capture and storage (CCS) technology, can serve as a reliable and low-carbon energy source to meet this demand. Moreover, advancements in CCS technology and hydrogen production methods are making blue hydrogen production more efficient and cost-effective. As industrialization drives demand for low-carbon energy solutions, continued innovation in CSS technology is further supporting the market growth. For instance, in May 2024, C-Capture launched a carbon capture trial at Heidelberg Materials' Ketton cement factory in Rutland, as part of its national 'XLR8 CCS' project, which aims to accelerate low-cost carbon capture solutions in industries such as cement and glass. The trial used C-Capture technology, which uses a solvent to selectively capture CO₂ from emissions. This procedure does not require amines; hence it uses 40% less energy and costs less than standard processes.  These factors are further contributing to the blue hydrogen market share.

Increasing Government Initiatives

Governments worldwide are implementing policies aimed at reducing carbon emissions and promoting the adoption of renewable and low-carbon energy technologies. These policies often include incentives, subsidies, and mandates to support the adoption of FCEVs. For instance, according to an article published by the IRS, individuals can avail credit up to US$ 7,500 under Internal Revenue Code Section 30D, if they buy fuel cell electric vehicles from 2023 and 2032. Also, according to an article published by Science Direct, national government subsidies support approximately 32% of the HFCVs, while local government subsidies can support up to 21%. The increasing adoption of FCVs is driving the demand for blue hydrogen. Apart from this, governments often provide funding and investment support to accelerate the growth of the blue hydrogen market. This can take the form of grants, loans, or public-private partnerships to finance research, demonstration projects, and infrastructure development. For instance, in August 2022, the Russian government revealed a plan to manufacture blue hydrogen domestically. This strategy aimed to invest roughly US$ 127 million in the development of technology for blue hydrogen production, delivery, and storage in Russia. Similarly, in December 2021, the European Parliament stated including blue hydrogen created from natural gas in the EU's Renewable Energy Directive and Gas Package. These factors are positively influencing the blue hydrogen market value.

Blue Hydrogen Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global blue hydrogen market, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on technology and end user.

Breakup by Technology:

• Steam Methane Reforming
• Gas Partial Oxidation
• Auto Thermal Reforming
   

Steam methane reforming dominate the market

The report has provided a detailed breakup and analysis of the blue hydrogen market based on technology. This includes steam methane reforming, gas partial oxidation, and auto thermal reforming. According to the blue hydrogen market report, steam methane reforming represented the largest segment.

Blue hydrogen is produced through steam methane reforming (SMR) of natural gas, which involves reacting methane (CH4) with high-temperature steam (H₂O) to produce hydrogen (H₂) and carbon monoxide (CO). In addition, steam methane is also used in power generation. Natural gas-fired power plants often utilize steam methane reforming to produce hydrogen, which can then be used in fuel cells for electricity generation. Moreover, governments, energy companies, and other stakeholders are investing in the development of hydrogen infrastructure, including production facilities, storage facilities, transportation networks, and end-use applications. This infrastructure development is crucial for scaling up the production and use of hydrogen, including blue hydrogen, and it drives demand for steam methane as a feedstock for hydrogen production. Rising mergers and acquisition activities are also supporting the demand for steam methane. For instance, in December 2023, PTT Global Chemical Public Company Limited (GC) signed a Memorandum of Understanding (MOU) with Mitsubishi Heavy Industries Asia Pacific Pt. Ltd. (MHI-AP) to collaborate on the technologies needed to develop a large-scale petrochemical complex to support Thailand's carbon neutrality by 2050. One of the primary goals associated with the agreement is to determine how CCS technology may be best utilized and optimized for the Steam-Methane Reforming (SMR) process.

Breakup by End User:

• Power Generation
• Chemical
• Refinery
• Others
   

Chemical accounted for the largest market share

A detailed breakup and analysis of the blue hydrogen market based on the end user has also been provided in the report. This includes power generation, chemical, refinery, and others. According to the report, chemical accounted for the largest market share.

The chemical industry is a major consumer of hydrogen as a feedstock for various processes. Hydrogen is used in the production of a wide range of chemicals, including ammonia, methanol, and various synthesis gases. These chemicals serve as building blocks for a plethora of products, such as fertilizers, plastics, and pharmaceuticals. Blue hydrogen, produced from natural gas with carbon capture and storage, provides a low-carbon alternative to traditional hydrogen sources, aligning with the chemical industry's sustainability goals. For instance, in November 2023, Air Products and Chemicals announced to build blue hydrogen plant in the Netherlands. The plant will be operational in 2026.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest blue hydrogen market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America was the largest market for blue hydrogen.

Some of the factors driving the North America blue hydrogen market included the shifting focus toward decarbonizing various industries, depleting fossil fuel resources, rising sales of fuel cell electric vehicles in the region, etc. Moreover, both federal and state governments in North America have set ambitious goals to reduce greenhouse gas emissions. Blue hydrogen, produced with carbon capture and storage (CCS) technology, offers a pathway to decarbonize sectors that are hard to electrify directly, such as heavy industry and transportation. As a result, policies aimed at reducing carbon emissions are driving investment in blue hydrogen production infrastructure. For instance, the United States has also set a goal for 100% clean electricity in 2035. Apart from this, the governments across various countries in North America are promoting FCEV, which is further proliferating the demand for blue hydrogen. For instance, in March 2021, the Canadian Minister of Natural Resources declared that USD 46,000 would be given to the Canadian Hydrogen and Fuel Cell Association (CHFCA) in order to support the promotion of the benefits of hydrogen fuel cell electric vehicles (FCEVs), which include fast refueling times that make them an excellent option for the trucking and bus industries.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global blue hydrogen market. Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the companies covered include:

• Air Liquide S.A
• Air Products and Chemicals Inc.
• Aker Solutions ASA
• Aquaterra Energy Ltd.
• Bp P.L.C.
• Dastur Energy
• ExxonMobil Corporation
• INEOS Group Limited
• Johnson Matthey
• Linde plc
• Saudi Arabian Oil Co.
• Shell plc
• Technip Energies N.V.
• Uniper SE
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Blue Hydrogen Market Recent Developments:

• May 2024: Mammoth, a carbon dioxide capture and storage facility, launched its operation in Volcano, Iceland.
• May 2024: Equinor, Centrica, and SSE Thermal collaborated for a number of low-carbon hydrogen projects along the Humber's north bank. Equinor and Centrica proposed a blue hydrogen production project.
• April 2024: Sulzer announced to supply two customized hydraulic power recovery turbines in order to support the blue hydrogen plant in Texas, USA, which would be operational in 2025.

Blue Hydrogen Market Report Scope:

Key Questions Answered in This Report:

• How has the global blue hydrogen market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global blue hydrogen market?
• What is the impact of each driver, restraint, and opportunity on the global blue hydrogen market?
• What are the key regional markets?
• Which countries represent the most attractive blue hydrogen market?
• What is the breakup of the market based on technology?
• Which is the most attractive technology in the blue hydrogen market?
• What is the breakup of the market based on the end user?
• Which is the most attractive end user in the blue hydrogen market?
• What is the competitive structure of the global blue hydrogen market?
• Who are the key players/companies in the global blue hydrogen market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the blue hydrogen market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global blue hydrogen market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the blue hydrogen industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.