Blue Hydrogen Market Size 2024-2028

The global blue hydrogen market is poised to grow significantly, with a projected increase of USD 16.06 billion at a CAGR of 13.75% from 2023 to 2028. As industries turn to hydrogen as a cleaner alternative to traditional fossil fuels, the adoption of blue hydrogen is gaining momentum, driven by various environmental regulations and the increasing need for decarbonization.

For more details about the industry, get the PDF sample report for free

Market Segmentation

The blue hydrogen market is segmented by technology, end-user, and geography. Here are the key segments:

By Technology:

• Steam Methane Reforming (SMR): A dominant process for producing blue hydrogen, involving the conversion of natural gas into hydrogen with lower carbon emissions, enhanced by carbon capture storage (CCS) technology.
• Gas Partial Oxidation: Another method of hydrogen production, although less common than SMR.
• Auto Thermal Reforming: A more complex technique for hydrogen production.

By End-User:

• Petroleum Refinery: Using hydrogen in refining processes to produce synfuels, ammonia, and methanol.
• Chemical Industry: Utilizing hydrogen for a variety of chemical manufacturing processes.
• Power Generation: Using hydrogen for combined heat and power (CHP) systems and electricity production.
• Others: Including steel production and other industrial processes.

By Geography:

• North America
  • United States
• Europe
  • Germany
  • United Kingdom
  • France
• APAC
  • China
• Middle East and Africa
• South America

Market Dynamics - Drivers, Trends, and Challenges

Drivers:

• Government Initiatives: Increased governmental focus on adopting clean hydrogen, such as the European Union's Hydrogen Strategy and the establishment of the European Clean Hydrogen Alliance. This supports the growth of blue hydrogen as a low-carbon fuel alternative, especially for transportation and power generation.
• Industrial Demand: The need for decarbonization in industries like petroleum refineries, power generation, and transportation is driving blue hydrogen adoption.

Trends:

• Fuel Cell Vehicle Adoption: The growing use of fuel-cell electric vehicles (FCEVs) in sectors like transportation is helping reduce CO2 emissions, with hydrogen playing a pivotal role in this shift. This includes trucks, buses, and material-handling vehicles, particularly in the U.S.

Challenges:

• High Production Costs: The high cost of producing blue hydrogen, mainly due to significant capital expenditure required for the technology and infrastructure (like reformers, turbines, and CCS units), remains a challenge. In some regions, such as the UK, production costs are 35%-40% higher than anticipated.

Get more details by ordering the complete report

Key Players

Several companies are dominating the blue hydrogen market, including:

• Air Liquide SA
• Air Products and Chemicals Inc.
• Ceres Power Holdings plc
• CERTIFHY CONSORTIUM
• Chart Industries Inc.
• Cummins Inc.
• Equinor ASA
• Exxon Mobil Corp.
• Iwatani Corp.
• Linde Plc
• Messer SE and Co. KGaA
• Mitsubishi Corp.
• Nel ASA
• Orsted AS
• Shell plc
• Siemens AG
• Uniper SE

Recent Developments

• July 2020: The European Commission established the European Clean Hydrogen Alliance to promote clean hydrogen in various sectors and create a sustainable hydrogen market.

These players are focusing on expanding their market share through various strategies such as strategic alliances, mergers, acquisitions, geographical expansion, and the launch of new products and services.