Blue Hydrogen Market Size & Share, by Technology (Steam Methane Reforming, Gas Partial Oxidation, Auto Thermal Reforming); Transportation Mode (Pipeline, Cryogenic Liquid Tankers); End-User (Petroleum Refineries, Chemical Industry, Power Generation Facilities) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5688
  • Published Date: Feb 20, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024 -2036

Blue Hydrogen Market size is expected to surpass USD 8 Billion by the end of 2036, growing at a CAGR of 16% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of blue hydrogen was USD 2 Billion. The reason behind the growth is due to the growing production of hydrogen across the globe. Nowadays, commercial hydrogen production takes place as modern industrial consumers demand hydrogen, and also as we move toward a net-zero energy future, it is quickly replacing fossil fuels as the preferred low- or no-carbon fuel.

For instance, in 2023, global hydrogen production capacity reached to around 4 million tons per year, a 164% increase over 2022.

The growing need for carbon capture, utilization, and storage (CCUS) technologies is believed to fuel the market growth. By 2050, the demand for CCUS would be around two GTPA, over the current pipeline of projects as they have been anticipated by numerous industry professionals over the last thirty years as a necessary means of decarbonizing industries.


Blue Hydrogen Market
Get more information on this report: Request Free Sample PDF

Blue Hydrogen Sector: Growth Drivers and Challenges

Growth Drivers

  • Rising Usage in Petroleum Refineries – A vital component of many refining processes involved in the creation of cleaner diesel and gasoline products is blue hydrogen, which is also considered a more economical way to cut carbon emissions from the manufacturing of ammonia and oil refinement. For instance, more than 30 million tons of hydrogen are needed annually, and one of the biggest blue hydrogen market is oil refining.
  • Growing Greenhouse Gas Emissions- Blue hydrogen emits less emissions, by replacing fossil fuels such as natural gas in residential and commercial uses. For instance, global carbon dioxide (CO2) emissions from industrial processes and energy combustion increased by more than 320 Mt in 2022 to reach a record peak of 36 Gt.
  • Increasing Demand for Hydrogen Vehicles- Blue hydrogen is frequently promoted as a low-carbon fuel for powering automobiles, trucks, and trains, and is also used to generate electricity in fuel cell electric vehicles (FCEVs).

Challenges

  • Higher Global Warming Potential - At the moment, the majority of hydrogen is created by steam-reforming methane in natural gas, which has a global warming potential (GWP) of 27–30 over 100 years. Methane has a 28-fold higher potential for global warming over 100 years than carbon dioxide since it stores more heat per molecule. Many people consider it to be the second most significant greenhouse gas, following carbon dioxide (CO2), and is known as the principal cause of ground-level ozone, a dangerous air pollutant and greenhouse gas. For instance, since pre-industrial times, methane has contributed over 25% to global warming, and its abundance has increased more quickly than it has ever done.
  • The requirement of high initial investment for carbon capture and storage (CCS) infrastructure may increase the overall production cost
  • Stringent regulations can impact investment in blue hydrogen

Blue Hydrogen Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~16%

Base Year Market Size (2023)

~ USD 2 Billion

Forecast Year Market Size (2036)

~ USD 18 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
Get more information on this report: Request Free Sample PDF

Blue Hydrogen Segmentation

End-User (Petroleum Refineries, Chemical Industry, Power Generation Facilities)

The power generation facilities segment in blue hydrogen market is estimated to gain a robust revenue share of 45% in the coming years.  The term "blue hydrogen" refers to decarbonized hydrogen that is primarily made from natural gas by a procedure known as steam reforming, after which the CO2 is captured and either stored or used. Blue hydrogen is primarily used to generate power and when burned or turned into electricity, blue hydrogen emits no carbon since it is often touted as a low-carbon fuel. In general, blue hydrogen emits more greenhouse gases than green hydrogen, which can mitigate climate change and enhance energy security.

Technology (Steam Methane Reforming, Gas Partial Oxidation, Auto Thermal Reforming)

The steam methane reforming segment in blue hydrogen market is set to garner a notable share shortly. SMR, or steam methane reforming, is by far the most common method for producing hydrogen where methane from natural gas is heated during the process. Natural gas is converted to blue hydrogen via the method of steam methane reforming (SMR), which is a process that uses the interaction of hydrocarbons with water to produce syngas. Blue hydrogen generation primarily uses steam methane reforming whereby in the presence of a catalyst, methane and steam react to create hydrogen at pressures between 3 and 25 bar (1 bar, or 14.5 psi). For instance, the process of SMR produces more than 90% of the hydrogen produced worldwide. Particularly, in the US over 94% of the hydrogen produced in the US comes from steam methane reforming, which is the most extensively utilized method for producing bulk gas.

In addition, the main goal of partial oxidation (POX), a particular kind of chemical reaction, is to create hydrogen. Compared to steam reforming (SR), partial oxidation of methane (POX) has greater potential for producing syngas and is extremely adaptable, having been used with lignite, bituminous materials, natural gas, propane, butane, and various petroleum distillates and residues.

Furthermore, combining the partial oxidation reaction with the steam reforming reaction is known as auto thermal reforming which is the process of creating hydrogen by using less energy than other methods since it produces syngas, which is a mixture of hydrogen, carbon monoxide, and carbon dioxide.

Our in-depth analysis of the global market includes the following segments:

          Technology

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

          Transportation Mode

  • Pipeline
  • Cryogenic Liquid Tankers

          End-User

  • Petroleum Refineries
  • Chemical Industry
  • Power Generation Facilities

Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.

Customize this Report

Blue Hydrogen Industry - Regional Synopsis

North American Market Forecast

The blue hydrogen market in North America is predicted to account for the largest revenue share of 42% by 2036 impelled by the growing government initiative to utilize hydrogen. Over USD 5 billion has been set aside by the US government to aggressively support the construction of hydrogen hubs, or H2Hubs, around the nation that will employ several production techniques, denoted by colors such as pink, blue, and green hydrogen. Besides this, to spur the US clean hydrogen market, the use of clean hydrogen to power heavy industries such as aluminum and steel is being emphasized.

In addition, nearly all hydrogen produced commercially in the US is created via steam-methane reforming where natural gas is the main methane source for hydrogen synthesis. Moreover, large central plants that reform natural gas create more than 90% of the hydrogen produced in the United States today. For instance, the United States produces over 9 million metric tons of hydrogen yearly, or slightly more than 1 quadrillion BTUs.

European Market Statistics

The European blue hydrogen market is estimated to be the second largest, during the forecast period. led by the growing focus on sustainability. Numerous efforts to support sustainable development and enterprises have been put into place as a result of the new EU growth strategy's emphasis on sustainability, such as the European Green Deal, which seeks to achieve carbon neutrality for the EU by 2050. The EU has set high goals to boost the use of renewable energy sources and cut greenhouse gas emissions, has also made significant investments in environmentally friendly transportation, and has instituted laws and programs to bolster companies that are dedicated to sustainability.

Research Nester
Blue Hydrogen Market size
Get more information on this report: Request Free Sample PDF

Companies Dominating the Blue Hydrogen Landscape

top-features-companies
    • Linde Plc
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Air Liquide
    • Shell Group of Companies
    • Air Products and Chemicals, Inc.
    • Engie
    • Equinor ASA
    • SOL Group
    • Iwatani Corp.
    • INOX Air Products Ltd.
    • Exxon Mobil Corp.

In-the-news

In The News

  • Linde Plc announced to supply clean hydrogen and captured carbon dioxide to Celanese, from its state-of-the-art carbon monoxide and hydrogen production facility that will be used to create methanol with a lower carbon intensity or its Fairway Methanol LLC joint venture with Mitsui & Co., Ltd.
  • Air Liquide intends to start using its patented Cryocap carbon capture technology to collect emissions from other industrial processes by using the network.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 5688
  • Published Date: Feb 20, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The growing production of hydrogen across the globe and the growing need for carbon capture, utilization, and storage (CCUS) technologies are the major factors driving the growth of the market.

The market size of Blue Hydrogen is anticipated to attain a CAGR of 16% over the forecast period, i.e., 2024-2036.

The major players in the market are Air Liquide, Shell Group of Companies, Air Products and Chemicals, Inc., Engie, Equinor ASA, SOL Group, Iwatani Corp., INOX Air Products Ltd., Exxon Mobil Corp., and others.

The power generation facilities segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North American region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Blue Hydrogen Market Report Scope
  GET A FREE SAMPLE

FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.

 Request Free Sample Copy

Have questions before ordering this report?

Inquiry Before Buying