Blue Hydrogen Market Size, Share, By Technology (Gas Partial Oxidation (POX), Steam Methane Reforming (SMR), Auto Thermal Reforming (ATR), and Others), By Transportation Mode (Compressed Gas Cylinders, Pipeline, and Cryogenic Liquid Tankers), By End User (Power Generation, Chemical Industry, Petroleum Refineries, Transportation, and Others), and By Region - Trends, Analysis, and Forecast till 2034

Report Code: PMI566024 | Publish Date: October 2024 | No. of Pages: 189

Blue Hydrogen Market Overview

  • In 2023, Blue Hydrogen market was estimated to be worth USD 4.3 Billion.
  • By 2034, the target market is expected to grow to USD 28.2 Billion.
  • Target market is expanding at a CAGR of 19.4%

Market Overview:

Blue Hydrogen Market is driven by government initiatives aimed at reducing carbon, emissions increasing hydrogen production and the adoption of hydrogen as a cleaner alternative fuel. The growing need for carbon capture, utilizing and storage technologies also supports the target market growth.

Key Takeaways:

  • North America held the largest share of the market in 2024.
  • Asia Pacific is projected to be the fastest-growing market in the coming years.
  • By Transportation Mode, the pipeline segment accounted for the largest share of the Blue Hydrogen market in 2024.
  • The primary method for producing blue hydrogen is Steam Methane Reforming (SMR), which accounted for over 61% of global hydrogen production in 2022
  • By End User, the Petroleum Refineries segment dominated the market globally in 2024.

Blue Hydrogen Market Report

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Blue Hydrogen Market Drivers & Restraints

Key Drivers of Target Market:

Government Initiatives and Support:

Governments worldwide are implementing policies and providing financial incentives to promote the production and use of blue hydrogen.

  • For instance, in October 2023, the UK government announced a US$ 3.7 billion investment in public transport which includes funding for hydrogen initiatives help create a favorable environment for blue hydrogen development by encouraging investments and infrastructure improvements.

Increasing Demand for Low-Carbon Fuels:

As industries seek to reduce their carbon footprints the demand for low carbon fuels like blue hydrogen is rising. The transportation sector is increasingly adopting blue hydrogen particularly for hydrogen fuel cell vehicles (HFCVs) driven by regulatory pressures to cut greenhouse gas emissions. 

Restrains:

Dependence on Natural Gas:

Blue hydrogen production relies heavily on natural gas raising concerns about supply chain vulnerabilities and environmental impacts associated with gas extraction.

  • Counterbalance Statements: Though the generation of blue hydrogen is dependent on natural gas, developments in renewable energy technology have opened up to a more varied energy mix. 

Blue Hydrogen Market Segmentations & Regional Insights

The market is segmented based on Technology, Transportation Modes, End User and Region

By Technology

By Transportation Mode

By End User

  • Gas Partial Oxidation (POX)
  • Steam Methane Reforming (SMR)
  • Auto Thermal Reforming (ATR)
  • Others
  • Compressed Gas Cylinders
  • Pipeline
  • Cryogenic Liquid Tankers
  • Power Generation
  • Chemical Industry
  • Petroleum Refineries
  • Transportation
  • Others

 

Technology Insights:

On the basis of Technology, Blue Hydrogen Market is segmented into Gas Partial Oxidation (POX), Steam Methane Reforming (SMR), Auto Thermal Reforming (ATR), and Others. Steam Methane Reforming (SMR) is expected to dominate the target market growth due to its established role as the primary method for hydrogen production.

Transportation Mode Insights:

The Blue Hydrogen market by Transportation Mode is segmented into Compressed Gas Cylinders, Pipeline, and Cryogenic Liquid Tankers. Pipeline is expected to dominate the target market growth as for instance, in October 2024, One of Britain’s biggest gas companies has unveiled plans for a 60-mile “blue hydrogen” pipeline in the north of England amid a row with environmentalists over the technology.

End User Insights:

The Blue Hydrogen market by Rating is segmented into Power Generation, Chemical Industry, Petroleum Refineries, Transportation, and Others. Petroleum Refineries is expected to dominate the target market growth due to the extensive use of hydrogen in refining processes particularly for desulfurization and also other chemical reactions.

Regional Insights

North America: The increasing adoption of hydrogen in transportation and industrial applications along with government initiatives aimed at achieving net zero emissions are driving growth in this region.

Asia Pacific: This region is anticipated to be the fastest growing region for target market growth whereas countries like china, Japan and also South Korea are making significant investments in hydrogen infrastructure and technologies.

Blue Hydrogen Market Report Scope:

Attribute

Details

Market Size 2024

USD 5.6 Billion 

Projected Market Size 2034

USD 28.2 Billion

CAGR Growth Rate

19.4% (2024-2034)

Base year for estimation

2023

Forecast period

2024 – 2034

Market representation

Revenue in USD Billion & CAGR from 2024 to 2034

Regional scope

North America - U.S., Canada

Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe

Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific

Latin America - Brazil, Mexico, Argentina, Rest of Latin America

Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels, analyzing industry trends and opportunities across sub-segments from 2024 to 2034. It segments the market by Technology, Transportation Mode, End User, and Region.

Segmentation:

By Technology:

  • Gas Partial Oxidation (POX)
  • Steam Methane Reforming (SMR)
  • Auto Thermal Reforming (ATR)
  • Others

By Transportation Mode:

  • Compressed Gas Cylinders
  • Pipeline
  • Cryogenic Liquid Tankers

By End User:

  • Power Generation
  • Chemical Industry
  • Petroleum Refineries
  • Transportation
  • Others

By Region:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East & Africa

Blue Hydrogen Market Competitive Landscape & Key Players

The key players operating in the Blue Hydrogen Market include Matheson Tri-Gas, Inc., Shell plc, Linde GmbH, Air Liquide S.A., Air Products and Chemicals Inc., Uniper SE, ATCO Ltd., Suncor Energy Inc., Equinor ASA, Saudi Arabian Oil Co., Aker Solutions ASA, Topsoe A/S, Technip Energies N.V., Ivys Adsorption Inc., Woodside Energy Group Limited, and ExxonMobil Corporation.

Blue Hydrogen Market Key Players

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Blue Hydrogen Market Recent News

  • In September 2024, Linde has announced the launch of a $2 billion blue hydrogen project that will be constructed in the Canadian province Alberta, combining the production of H2 using natural gas with carbon capture and storage technology. The goal is to position the location as a low-carbon hydrogen export hub.
  • In October 2024, According to a study by the University of Texas at Austin, blue hydrogen projects that use fossil gas from Texas are probably going to be more than twice as polluting as those that use gas from the US east coast. They also wouldn't even come close to being eligible for 45V clean H2 production tax credits if real-life observed data was used.
  • In July 2024, Zurich Insurance Group (Zurich) and Aon have introduced an innovative insurance facility for clean energy, offering extensive coverage worldwide for blue and green hydrogen projects costing up to USD 250 million. Zurich leads as the insurer with Aon serving as the exclusive broker.
  • In July 2024, Aramco, a prominent global integrated energy and chemicals corporation, has finalised agreements to purchase a stake in the Blue Hydrogen Industrial Gases Company (BHIG), situated in Jubail. BHIG is a fully-owned subsidiary of Air Products Qudra (APQ). Options for Aramco to offtake hydrogen and nitrogen are also included in the deal, which is subject to customary closing conditions.

Analyst View of Blue Hydrogen market:

The industry for Blue Hydrogen is expected to increase significantly due to a combination of government initiatives, technological improvements and also rising demand for low carbon energy sources. The increased production of hydrogen worldwide and the pressing need for carbon capture utilization and storage technologies to satisfy decarburization targets are the main causes for target market expansion.

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Blue Hydrogen Market Company Profile

  • Matheson Tri-Gas, Inc.
  • Shell plc
  • Linde PLC
  • Air Liquide S.A.
  • Air Products and Chemicals Inc.
  • Uniper SE
  • ATCO Ltd.
  • Suncor Energy Inc.
  • Equinor ASA
  • Saudi Arabian Oil Co.
  • Aker Solutions
  • Topsoe A/S
  • Technip Energies N.V.
  • Ivys Adsorption Inc.
  • Woodside Energy Group Limited
  • ExxonMobil Corporation

FAQs

Blue Hydrogen Market Size was valued at USD 5.6 Billion in 2024 and is expected to reach USD 28.2 Billion by 2034 growing at a CAGR of 19.4%

The Market is segmented into Technology, Transportation Mode, End User and Region.

The Market is segmented by region North America, Asia Pacific, Europe, Latin America, the Middle East, and Africa. North America is expected to dominate the Market.

The key players operating in the Blue Hydrogen Market include Matheson Tri-Gas, Inc., Shell plc, Linde GmbH, Air Liquide S.A., Air Products and Chemicals Inc., Uniper SE, ATCO Ltd., Suncor Energy Inc., Equinor ASA, Saudi Arabian Oil Co., Aker Solutions ASA, Topsoe A/S, Technip Energies N.V., Ivys Adsorption Inc., Woodside Energy Group Limited, and ExxonMobil Corporation.