The Global Blue Hydrogen Market was valued at USD 1.7 Billion in 2022 and is projected to reach USD 4.3 Billion by 2030, registering a CAGR of 13.80% for the forecast period 2023-2030.
Market Definition
Blue Hydrogens is produced mainly from natural gas, by the use of procedure known as steam reforming, which produce steam by heating natural gas and water. Hydrogen is the result, however as a byproduct carbon dioxide also created, The growing government initiative to decarbonize chemical manufacturing and the growing need for blue hydrogen in chemical production are driving growth in this industry. The move to low carbon fuels and the government programs that encourage it are driving growth in the blue hydrogen market. Due to its application in hydrogen fuel cell vehicles, the transportation industry in particular represent a significant growth opportunity for blue hydrogen. Moreover, the requirement for government to achieve net zero goals by 2050 may lead to rise in blue hydrogen funding. Furthermore, hydrogen is required by stringent government laws to reduce the amount of greenhouse gas emission they produce different industrial process. Many economies however are stepping up their decarbonization initiative by establishing energy and carbon footprint targets, technology development in carbon capture, utilization, and storage system are predicted to drive the growth of blue hydrogen production.
Market Size:
- 2022: USD 1.70 Billion
- 2030: USD 4.30 Billion
- CAGR (2023-2030): 13.80%
Drivers : Utilizing hydrogen in fuel cell electric vehicles is becoming more common
Although hydrogen has long been acknowledged as a potential low carbon transportation fuel, it has proven difficult to use in the mix of fuel for transportation. It has an advantage over fossil fuel, which are running out and getting more expensive every day as a result. In the aerospace sector hydrogen are highly sought after for use in rocket and fuel cell electric cars. Truck manufacturers primary focus is lowering the price of hydrogen provided, but fuel cell cost and recharging stations also play a significant role in how competitive hydrogen fuel cell cars in the transportation sectors. There is an opportunity for the hydrogen-based fuel as there aren’t many low carbons fuel option for aircraft and ships. Globally, hydrogen fuel cell is commonly employed in lightweight vehicle like bicycle, cars, buses, train, boats, ships, and commercial airplanes as well as in marine vessels, auxiliary power unit aircraft and specialist vehicle like forklifts. The introduction of fuel cell vehicle should be complemented by the contemporaneous building of supporting infrastructure. Overall, the factors driving the growth of blue hydrogen market.
For instance, in May 2023, Kenworth today announced it will begin production of its Class 8 zero emissions T680 hydrogen fuel cell electric vehicle (FCEV), powered by Toyota fuel cell technology. Initial customer deliveries are planned for 2024 with serial production planned in 2025. Kenworth dealers in the United States and Canada are now accepting deposits for the first of these T680 FCEV builds.
Rising demand of blue hydrogen in chemical production:
The increasing demand in this sector due to blue hydrogen is generated from natural gases using carbon capture and storage, which has various advantage in chemical manufacturing. There are various environmental standard and emission targets related to chemical manufacture. Chemical producers can full fill this obligation and lessen their environment impact by using blue hydrogen. Blue hydrogen fins extensive application in several chemical process, including methanol synthesis, synfuel synthesis, ammonia synthesis, and petroleum refineries, in addition to lowering carbon emission and increasingly energy efficiency, the use of blue hydrogen in chemical manufacturing facility the chemical industry shift to more ecologically friendly and sustainable process. One of the main sources of greenhouse gas emission is the chemical sector, without comprising its ability to produce, the chemical industry may cut it carbon emission with the aid of blue hydrogen. Globally, government are endorsing the advancement and application of blue hydrogen, this assistance takes the form of financial rewards, tax exemption, financing for research and development, as a result, this factor fueling the growth of blue hydrogen market.
For instance, in February 2023, Linde Plc. announced today that it has signed a long-term agreement to supply clean hydrogen and other industrial gases to OCI’s new world-scale blue ammonia plant in Beaumont, Texas.
Recent Developments
In August 2022, Air Products Inc., a world leader in the supply, distribution, and dispensing of hydrogen, today announced that it will build, own and operate a 10 metric ton per day facility to produce green liquid hydrogen in Casa Grande, Arizona. The zero-carbon liquid hydrogen facility is expected to be on-stream in 2023 and its product will be sold to the hydrogen for mobility market in California and other locations requiring zero-carbon hydrogen.
In February 2023, Linde will build, own and operate an on-site complex which will include autothermal reforming with carbon capture, plus a large air separation plant. The new complex will be integrated into Linde’s extensive Gulf Coast industrial gas infrastructure. It will supply clean hydrogen and nitrogen to OCI’s 1.1 million ton per annum blue ammonia plant, the facility will also supply atmospheric and rare gases to existing and new customers. Linde's total investment will be approximately $1.8 billion and the project is expected to start up in 2025.
In April 2022, Uniper has signed an agreement with Shell to progress plans to produce blue hydrogen at Uniper’s Killing Holme power station site, in the East of England. The hydrogen produced could be used to decarbonize industry, transport and power throughout the Humber region.
Restraint : Energy lost in the process of producing hydrogen:
One artificial energy carrier is hydrogen, hydrogen is produced by water electrolysis using electrical energy, in addition, to producing hydrogen, tough, the medium, must also be compressed, liquified, transported, transferred, or stored, using high grade electrical energy. It takes energy to generate hydrogen. There should be an optimum much between the energy input and energy content of synthetic gas. All process that involves the creation of hydrogen, such as electrolysis and reforming involve the transformation of energy. Hydrogen can be created from electrical energy to form the chemical energy of hydrocarbon, sadly energy losses are a constant part of producing hydrogen. There is an energy loss throughout the whole hydrogen production value chain, at the manufacturing stage, around 30% of the energy needed for electrolysis is lost. An additional 10 to 25% is lost during the conversion to other forms, green hydrogen delivery requires energy input, which might come from pipeline or car fuel, there is an increase waste of energy while using hydrogen in fuel cells, overall, this factor hindered the growth of blue hydrogen market.
For instance, in July 2023, 70% of the energy requirement for dedicated hydrogen production was met with natural gas and around 30% with coal (mostly used in China, which alone accounted for 90% of global coal consumption for hydrogen production)
Challenges : Hydrogen integration with natural gas network
As a stopgap measure until specialized hydrogen transport lines created, integrated hydrogen into gas network can encourages the early implementation of low carbon hydrogen and lead in cost saving for low carbon hydrogen generating technology. Even though a few pilots program have recently been launched, blending still faces numerous legal and technology barriers. Because some end users, particularly industrial clients, have strict requirement regarding hydrogen purity, integrating hydrogen might be challenging. Additionally, subsequent modifications to the gas’s physical properties may impact specific processes, such as metering. Hydrogen blending will necessitate closer cooperation between nearby gas markets to prevent interoperability problems brought on by the changing quality of gas.
Opportunities : Increasing attention on reaching the 2050 goal of net zero emission
In the case of net zero emission, there is revolutionary shift in hydrogen production never seen before, 70% of world H2 will come from low carbon technology by 2030, when a global a global H2 production reaches 200mt. by 2050, 500mt H2 of hydrogen will have been produced mostly due to low carbon technologies. Several technologies will need to be used to change the energy system in order to achieve net zero emission by 2050. Energy efficiency, behavioral modification, electricity, renewable energy, carbon utilization, and storage and hydrogen are expected to be the primarily pillars for the decarbonization the global energy system. Hydrogen fuel is crucial for reducing greenhouse emissions in hard-to-decarbonize industries, including heavy industries, heavy-duty road transport, shipping, and aviation, where direct electrification is challenging. Strong demand for hydrogen and the development of greener production methods will enable to hydrogen and hydrogen base fuel to prevent up to 60Gt of CO2 emission in 2021-2050 or 6.5% of total cumulative emission reduction in the net zero emission scenario. Increasing attention on net zero emission is the major opportunity for blue hydrogen market.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 1.70 Billion |
| Market Forecast in 2030 | USD 4.30 Billion |
| Compound Annual Growth Rate (CAGR) | 13.80 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Technology, By Transportation Mode, By Application & By Region |
| By Technology |
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| By Transportation Mode |
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| By Application |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Blue Hydrogen Market
The Blue Hydrogen Market is segmented by Technology, Transportation Mode, Application and region.
By Technology : The Steam Methane Reforming segment held the largest market share in 2022:
By Technology is sub segmented into steam methane reforming, gas partial oxidation, auto thermal reforming. The Steam Methane Reforming segment accounted for highest market share 60% in global blue hydrogen market for 2022. The method of extracting hydrogen from natural gas is called steam methane reforming. One of the least expensive ways to get industrial hydrogen is by this process. In order to further break down methane molecules into carbon monoxide and hydrogen, this procedure heating involve heating gases like methane in the presence of steam and a catalyst. Utilizing the in-house pressure swing adsorption purification technique, SMR is an economical and energy efficient method of creating high concentration of pure hydrogen, additionally, the rising use of methane to produce blue hydrogen using CCS technology to capture and store the carbon dioxide, the rising use of methane in steam methane reforming and auto thermal reforming for blue hydrogen production, and the growing availability of abundant feedstock for blue hydrogen production are expected to support the growth of this segment.
On the other hand, the auto thermal reforming segment has the significant market share over the forecast period, the rising need for hydrogen as a fuel in numerous applications, as well as the various strict regulations on emissions from automobiles and industrial plants, is contributing to the market growth in this category.
Additionally, the introduction of cutting-edge auto-thermal reforming technologies and the increasing cost of crude oil are projected to accelerate the market's expansion.
By Transportation Mode : The cryogenic liquid tanker segment was the leading segment in 2022:
By component, which is divided into pipeline, cryogenic liquid tankers. The cryogenic liquid tanker segment accounted for largest share 71% in global blue hydrogen market for 2022. This increase is explained by the vast amounts of gaseous blue hydrogen that are being moved via pipelines, which provide long distance, reasonably priced coverage. These pipes are typically found in areas with a high concentration of blue hydrogen users, such as chemical production facilities, refineries, power plants. It is used in countries like Brazil and India, where blue hydrogen production and consumption are comparatively low. Cryogenic liquid tankers are used for the distribution and transportation of liquid blue hydrogen. They are used to distribute hydrogen over large distance in places where it is not practical to build blue hydrogen distribution pipeline. The transportation and distribution costs of blue hydrogen through cryogenic liquid tankers to its end-use industries are lower than the transportation of blue hydrogen through pipelines. These factors further drive the demand for cryogenic liquid tankers as a blue hydrogen transportation mode.
On the other hand, the pipeline segment is anticipated to expand over the forecast period, the most economical method to moving big amount of blue hydrogen across long distance, and also having low accident rates, and high uptime. Blue hydrogen is directly transfer from production site to consumers through pipeline.
By Application : The power generation segment was the leading segment in 2022:
By Application, which is divided into Chemicals, Refinery, power generation, others. The power generation segment accounted for largest share 37% in global blue hydrogen market in 2022. The main companies in the power generation sector, including Equinor ASA, are responsible for this increase. Their goal is to decarbonize their power system by minimizing their dependency on fossil fuel and reducing the carbon dioxide produced by the use of hydrogen of power generation, low carbon hydrogen is causing various power plant systems to become less carbon initiative. Blue hydrogen is one of the key options utilized for converting renewable energy sources into fuels that can be stored and transported over long distances. In addition, it is used in coal-fired power stations and gas turbines to reduce carbon emissions from them, which further drives the demand for blue hydrogen in the power generation application segment.
Refinery segment is anticipated to register rapid growth in forecast period, hydrogen is used in the refineries for a number of purposes, including desulfurization, hydrocracking and hydrotreating, fuel like diesel is example of petroleum product whose quality is enhanced by this method. There are several advantages like they already have the infrastructure in place to produce and store hydrogen, they have large supply of natural gas, capture and stored carbon dioxide during blue hydrogen production.
Snapshot
| Attributes | Details |
| Global Blue Hydrogen Market | 2022 |
| Global Revenue (USD Billion) | 1.70 |
| Compound Annual Growth Rate (CAGR) | 13.80 % |
| Segment covered | By Technology, By Transportation Mode, By Application & By Region |
| Regions Covered | North America; Europe; Asia Pacific; Latin America; MEA |
| Country Scope | U.S.; Canada; Mexico; UK; Germany; France; Italy; Spain; India; Japan; China; Southeast Asia, Brazil; Argentina; GCC Countries, UAE, and South Africa. |
| Key Company Profiled | Key companies profiled in the Blue Hydrogen Market report include Linde plc, Shell Group of Companies, Air Liquide, Air Products and Chemicals, Inc., Engie, Equinor ASA, SOL Group, Iwatani Corp., INOX Air Products Ltd., Exxon Mobil Corp. and others. |
| Customization scope | Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope |
| Pricing and purchase options | Avail customized purchase options to meet your exact research needs. Explore purchase options |
Regional Analysis
North America occupied the largest market share in 2022:
North America has the largest revenue market share 40% in 2022, North America is anticipated to have a larger market share because of the growing industrialization and use of hydrogen for transportation. Large natural gas deposits exist in North America, which serve as a source of blue hydrogen. The region can produce blue hydrogen more easily and affordably thanks to the region's abundance of natural gas. A growing number of businesses are producing and distributing renewable energy alternatives, such as blue hydrogen. Profit growth in the market is anticipated to be driven by considerable government spending across multiple regional countries and technological advances. naturally occurring gas is widely available and is used as a raw material to make blue hydrogen. In the North American region, the two biggest suppliers of natural gas are Chevron Corporation and Exxon Mobil Corporation.
On the other hand, Asia Pacific accounted for the significant share over the forecast period, Asia Pacific is among the largest economies across the globe looking for alternatives for energy transitions, such as blue hydrogen, to curtail their GHG and carbon emissions to meet their climate goals. Several countries in the region, such as China, India, and Japan, have set targets for blue hydrogen generation to contribute to the growth of the region in becoming a key player in the energy transition.
Competition Analysis
- Linde plc
- Shell Group of Companies
- Air Liquide
- Air Products and Chemicals, Inc.
- Engie
- Equinor ASA
- SOL Group
- Iwatani Corp.
- INOX Air Products Ltd.
- Exxon Mobil Corp.
Segmentation Analysis of the Blue Hydrogen Market
By Technology
- Steam Methane Reforming
- Gas Partial Oxidation
- Auto Thermal Reforming
- Steam Methane Reforming
- Gas Partial Oxidation
- Auto Thermal Reforming
- Chemicals
- Refinery
- Power Generation
- Others
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Blue Hydrogen Market:
COVID 19 has severely impacted the global economy with devastating effect on global trade, which has simultaneously affected household , business, financial institution, industrial establishment and infrastructure companies. The new Corona Virus has stunted market expansion by affecting multiple economies and causing lockdown into numerous countries. The market for blue hydrogen declined as a result of an industrial producer closing their doors, which also caused a fall in demand for solar related equipment in the majority of world countries.
The epidemic reduction in power use in industrial facilities around the world has detrimental effect on the market growth. Lockdown cause a considerable initial drop in demand for hydrogen, additionally, since the majority of hydrogen created by reforming natural gas, the supply of hydrogen was hindered. Nonetheless, lockdown regulation has been loosened by government in number of different countries. As a result, the production process is increasing gradually.
