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.