Asia Pacific Blue Hydrogen Market Size - By Technology (Steam Methane Reforming, Autothermal Reforming, Partial Oxidation), By Application (Petroleum Refining, Chemicals), Country Outlook & Forecast, 2024 – 2032

Asia Pacific Blue Hydrogen Market Size

Asia Pacific Blue Hydrogen Market was valued USD 340 million in 2023 and is anticipated to grow at 10% CAGR from 2024 to 2032. It refers to hydrogen that is created by the process of steam methane reforming (SMR), which uses natural gas as a feedstock. Blue hydrogen facilities use carbon capture and storage (CCS) technology to absorb CO2 emissions during production, preventing them from being released into the atmosphere.
 

Rising demand for hydrogen in key industries including fertilizers and refineries in China, India, and South Korea will augment the APAC blue hydrogen market growth. Government initiatives to promote the adoption of clean energy sources coupled with rising investments in the development of hydrogen infrastructure, will contribute to business expansion. Growing understanding and acceptance of the importance of decarbonization and mitigating climate change are impacting consumer choices and business strategies, thereby stimulating the growth opportunities.
 

Asia Pacific Blue Hydrogen Market Trends

Increasing adoption of fuel cells, particularly in transportation applications will accelerate the industry growth owing to the development of hydrogen infrastructure, including refueling stations and pipelines. Increasing adoption of blue hydrogen as a clean energy source by industries to decarbonize their operations, reduce their carbon footprint, and enhance their environmental credentials will augment the industry scenario.
 

Growing advancements in hydrogen production, storage, and distribution technologies in the region will drive down the costs and improve efficiency, making it more competitive with the conventional fuels, thereby improving the product penetration. Furthermore, significant investments in research and development of production technologies coupled with supportive government initiatives and regulations will escalate the business outlook.
 

Asia Pacific Blue Hydrogen Market Analysis

Based on technology, the steam methane reforming is estimated to reach more than USD 634 million by 2032, on account of its efficiency and scalability, making it a preferred choice for large-scale hydrogen production. SMR-based blue hydrogen projects can drastically cut carbon emissions by incorporating carbon capture and storage (CCS) technologies compared to conventional grey hydrogen production techniques, thereby leading to business expansion. Furthermore, its cost-effectiveness and efficient method for converting natural gas into hydrogen will propel the product adoption.
 

Based on application, the petroleum refinery segment is set to grow at a CAGR of over 10% through 2032.  Infrastructure investments in hydrogen and partnerships between producers, refiners, and tech companies will increase the fuel's integration, thereby enhancing the market penetration. Additionally, increasing crude oil consumption and favorable efforts towards the refurbishment of existing refining facilities will improve the business expansion.
 

China blue hydrogen market revenue to cross USD 595 million by 2032, owing to vast energy demand, constraints to long-distance transport of natural gas, and the potential for establishing intra region trade connections. Furthermore, the Chinese government is investing in clean source technology through its National Key Research and Development Programme, which includes a funding stream specifically for accelerating renewable energy and hydrogen energy technology. Additionally, the government is also promoting the use of the market in the light and heavy-duty transportation sectors by encouraging the adoption of fuel cell vehicles, thereby stimulating the country market growth.
 

The U.S. has shown significant growth driven by its large natural gas reserves and well-established pipeline infrastructure. Growing abundance of natural gas reserves, make it a cost-effective feedstock for hydrogen production thereby boosting the industry landscape. Further, government increased funding and support for the development of hydrogen hubs (H2Hubs) across the country, will uplift the growth trajectory.
 

Asia Pacific Blue Hydrogen Market Share

Eminent players are investing in advanced steam methane reforming (SMR) and carbon capture and storage (CCS) technologies. Growing investments in R&D enable key players to overcome technical challenges and optimize production methods, which will lead to market expansion. Growing focusing on strategic infrastructure investments to support the expansion of blue hydrogen production and distribution networks. This includes investments in storage facilities, pipeline networks, and refueling stations to ensure the reliable supply and distribution of blue hydrogen to end users throughout the region.
 

Asia Pacific Blue Hydrogen Market Companies

Eminent players operating in the Asia Pacific blue hydrogen industry are:

• Air Products Inc
• Air Liquide
• BP p.l.c.
• Bechtel Corporation
• Equinor ASA
• Exxon Mobil Corporation
• Eni SpA
• Johnson Matthey
• Reliance Industries Ltd
• Saipem
• Shell Plc
• thyssenkrupp Industrial Solutions AG
• TOPSOE
• Technip Energies N.V.
• Woodside
   

Asia Pacific Blue Hydrogen Industry News

• In March 2024, ExxonMobil, announced a revised version of its flagship blue hydrogen initiative in Texas. The company intends to export approximately 500,000 tonnes of blue ammonia to Japan. The updated agreement outlines a new scope for the Baytown hydrogen project, aiming to produce 900,000 tonnes annually of blue hydrogen and one million tonnes of low-carbon ammonia. This represents a significant modification from the project's original announcement in March, signaling the company's evolving strategy in response to changing market conditions.
   
• In February 2022, Reliance Industries Ltd. embarked on blue hydrogen production at a cost estimated between USD 1.2 to USD 1.5 per kg. The conglomerate plans to leverage its USD 4-billion gasification assets for this purpose. Initially, Reliance will utilize syngas from petcoke gasification to produce blue hydrogen at its Jamnagar complex in Gujarat, until the cost of green hydrogen becomes more competitive. This strategic move underscores Reliance's commitment to advancing hydrogen technology while ensuring cost-effectiveness in the transition towards cleaner energy sources.
   

This Asia Pacific blue hydrogen market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume and revenue in “MT & USD Million” from 2019 to 2032, for the following segments:

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Market, By Technology

• Steam methane reforming
• Autothermal reforming
• Partial oxidation

Market, By Application

• Petroleum refining
• Chemicals
• Others

The above information has been provided for the following countries:

• China
• Japan
• India
• Australia