Blue Hydrogen Market Forecasts to 2030 – Global Analysis By Technology (Steam Methane Reforming (SMR), Auto Thermal Reforming (ATR), Partial Oxidation (POX) and Other Technologies), Application (Transportation, Power Generation, Industrial Processing, Ref

Blue Hydrogen Market Forecasts to 2030 – Global Analysis By Technology (Steam Methane Reforming (SMR), Auto Thermal Reforming (ATR), Partial Oxidation (POX) and Other Technologies), Application (Transportation, Power Generation, Industrial Processing, Refining, Chemicals, Iron and Steel and Other Applications), End User (Ammonia, Methanol and Other End Users) and By Geography

According to Stratistics MRC, the Global Blue Hydrogen Market is accounted for $20.73 billion in 2023 and is expected to reach $51.55 billion by 2030 growing at a CAGR of 13.9% during the forecast period. Blue hydrogen is produced using the steam methane reforming (SMR) method from natural gas. Natural gas, extremely hot steam, and a catalyst are mixed together in this steam methane reforming process. In a subsequent chemical reaction, hydrogen and carbon monoxide are produced. Moreover, the carbon monoxide in this mixture is changed into carbon dioxide and more hydrogen when water is added. If carbon dioxide emissions are subsequently captured and buried, the process is regarded as CO2-neutral, and the hydrogen produced is referred to as blue hydrogen.

According to the Intergovernmental Panel on Climate Change (IPCC), emissions from fossil fuels is the dominant cause of global warming, and in 2018, 89% of global carbon dioxide (CO2) emissions came from fossil fuels and industries.

Market Dynamics

Driver

Infrastructure development for hydrogen

The development of the blue hydrogen market requires the expansion of hydrogen infrastructure, including hydrogen transportation pipelines and vehicle refueling facilities. The development of this infrastructure is being accelerated by both public and private investments, ensuring effective hydrogen distribution and use while encouraging broad adoption. Additionally, the seamless integration of blue hydrogen into the larger energy landscape is further facilitated by integration with existing energy systems, such as natural gas and energy grids.

Restraint

High price and economics

The high cost of carbon capture and storage (CCS) technology is one of the main barriers to the market for blue hydrogen. Although generating blue hydrogen with CCS can significantly cut carbon emissions compared to conventional hydrogen production techniques, setting up and maintaining CCS infrastructure requires a significant investment. Moreover, many projects may find it difficult to get off the ground due to the initial investment needed for the construction of CCS facilities and ongoing operational costs. In order for hydrogen to be widely used, its production costs must be competitive with those of other energy sources.

Opportunity

Integration of renewable energy

A necessary opportunity for a more sustainable energy landscape is provided by the synergistic combination of blue hydrogen production and surplus renewable energy. The carbon footprint of blue hydrogen can be further decreased, making it an even more environmentally friendly energy source, by using extra renewable electricity to produce hydrogen through electrolysis. Furthermore, as hydrogen can be stored and used when the production of renewable energy is low, this idea of green-blue hydrogen not only improves the environmental credentials of blue hydrogen but also fosters the flexibility of the energy system. A promising path to decarbonizing various industries while maximizing the use of renewable energy is the convergence of renewable energy and blue hydrogen production.

Threat

Advancements in green hydrogen

The blue hydrogen market is in danger due to the quick development of green hydrogen technologies. Green hydrogen production is becoming more economical and eco-friendly thanks to improvements in electrolysis efficiency, a decrease in the amount of energy needed, and new techniques for incorporating renewable energy. Moreover, the competitiveness of the green hydrogen market may outpace that of blue hydrogen as it continues to develop and mature, placing blue hydrogen in a less advantageous position relative to green hydrogen. The necessity of ongoing innovation and cost-cutting in the production of blue hydrogen is highlighted by this technological competition.

Covid-19 Impact

The COVID-19 pandemic had a wide range of effects on the market for blue hydrogen. At first, it resulted in supply chain disruptions, construction delays, and decreased investment as businesses and governments diverted funds to pandemic response efforts. Additionally, the economic viability of blue hydrogen projects was temporarily impacted by a drop in energy demand and a drop in natural gas prices following a drop in economic activity. However, a renewed focus on green and sustainable economic recovery resulted in increased interest and investments in clean energy solutions like blue hydrogen as economies recovered and governments implemented stimulus measures.

The Steam Methane Reforming (SMR) segment is expected to be the largest during the forecast period

The hydrogen production industry's steam methane reforming (SMR) segment is anticipated to hold the largest share. SMR is a widely used and well-developed hydrogen production technology, especially for commercial and industrial applications. It involves the high-temperature reaction of steam and methane (natural gas), which results in the production of hydrogen gas and carbon dioxide (CO2). Moreover, SMR is the preferred method for hydrogen generation globally because of its effectiveness, scalability, and affordability.

The Power Generation segment is expected to have the highest CAGR during the forecast period

During the anticipated period, power generation will experience the highest CAGR in the blue hydrogen market. The potential for producing clean energy using hydrogen as a fuel source was causing a noticeable increase in interest in and growth within the power generation industry. Particularly when used in hydrogen fuel cells and gas turbines, hydrogen has received increasing attention as a way to reduce the carbon footprint of electricity production. Moreover, when combined with renewable energy sources, these technologies provide a versatile and low-emission way to generate electricity. In order to reduce greenhouse gas emissions and achieve goals for the integration of renewable energy, utilities and governments were actively funding hydrogen-based power generation projects.

Region with largest share

The Middle East and Africa (MEA) region is predicted to hold the largest market share for blue hydrogen and has the potential to dominate the industry. The abundance of natural gas reserves that MEA possessed helped to make the company well-known by serving as the primary feedstock for the creation of blue hydrogen. Saudi Arabia and the United Arab Emirates are two nations in the region that have shown a strong interest in utilizing their gas resources to produce blue hydrogen through carbon capture and storage (CCS) and diversifying their energy portfolios. The strategic geographic location of MEA also offered opportunities for hydrogen export, taking advantage of the demand for cleaner energy sources around the world.

Region with highest CAGR

The blue hydrogen market was also expected to grow at the highest CAGR in the European region. The European Union (EU) had established challenging sustainability and emissions reduction targets, which prompted more investments and initiatives in the area of blue hydrogen production with carbon capture and storage (CCS). Furthermore, by utilizing their current infrastructure and energy industry knowledge, nations like Germany, the Netherlands, and Denmark were actively advancing blue hydrogen projects. Europe was positioned as a significant market for the growth of blue hydrogen due to its established regulatory framework, hydrogen infrastructure, and support for research and innovation.

Key players in the market

Some of the key players in Blue Hydrogen Market include Royal Dutch Shell PLC, Mitsubishi Heavy Industries Ltd., Xebec Adsorption Inc., Siemens AG, Exxon Mobil Corporation, Suncor Energy Inc., ATCO Ltd., Haldor Topsoe A/S, Royal Dutch Shell Plc, Air Liquide SA, Chart Industries Inc., Hydrogain Technology Inc, Aker Solutions, Reliance Industries Ltd, Uniper SE, Cummins Inc, Air Products and Chemicals, Inc, Toshiba Energy System and Solution Corp., Linde plc and Ballard Power Systems Inc.

Key Developments

In September 2023, Germany-based Siemens Mobility has signed a €5bn ($5.4bn) framework agreement with the Austrian Federal Railways company ÖBB for a huge rolling stock order. The agreement to provide up to 540 single-deck electric multiple-unit trains continues the manufacturer’s development of its Mireo brand and its healthy relationship with the Austrian operator.

In August 2023, Reliance Industries and Brookfield Asset Management have entered into an initial agreement with the aim of exploring opportunities for manufacturing renewable energy and decarbonisation equipment within Australia. The Memorandum of Understanding (MoU) seeks to accelerate as well as de-risk Australia's energy transition by enabling local production of clean energy equipment, including PV modules, long duration battery storage, and wind energy components, the Indian conglomerate said in a press statement.

In April 2023, Cummins Inc has entered into a definitive agreement with Tata Motors Ltd to manufacture a range of low-to-zero-emissions technology products in India. The two companies have established a new business entity, TCPL Green Energy Solutions Private Ltd (GES), a wholly-owned subsidiary under the existing joint venture, Tata Cummins Private Limited (TCPL) in India.

Technologies Covered
• Steam Methane Reforming (SMR)
• Auto Thermal Reforming (ATR)
• Partial Oxidation (POX)
• Other Technologies

Applications Covered
• Transportation
• Power Generation
• Industrial Processing
• Refining
• Chemicals
• Iron and Steel
• Other Applications

End Users Covered
• Ammonia
• Methanol
• Other End Users

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements