Blue Hydrogen Market Size - By Application (Petroleum Refining, Chemical and Others), By Technology (SMR, ATR, Partial Oxidation), Regional Outlook & Forecast, 2024 – 2032

Blue Hydrogen Market Size

Blue Hydrogen Market was valued at USD 2 billion in 2023 and is anticipated to grow at a CAGR of over 9.8% during 2024 to 2032. refers to hydrogen produced from natural gas using a process called steam methane reforming (SMR) or auto-thermal reforming (ATR), combined with carbon capture and storage (CCS) technology to reduce the carbon emissions associated with the production process. It significantly reduces CO? emissions, making it a cleaner alternative and can be scaled up relatively quickly using existing natural gas infrastructure, providing a bridge solution towards a low-carbon economy.
 

The adoption of blue hydrogen is gaining momentum globally, driven by supportive government policies, investments, technological advancements, and the need for sustainable and low-carbon energy solutions. Governments across various countries are providing financial incentives, subsidies, and grants to support the development and deployment of blue hydrogen projects, thereby augmenting the industry landscape.
 

Regulatory frameworks that set emission reduction targets and carbon pricing mechanisms encourage the adoption of blue hydrogen. Carbon taxes and cap-and-trade systems will make low-carbon hydrogen more competitive which will stimulate process adoption. Furthermore, significant investments from both public and private sectors are being directed towards blue hydrogen projects contributing to the business growth.
 

Blue Hydrogen Market Trends

Advancements in carbon capture and storage technologies are making blue hydrogen production more efficient and cost-effective. Innovations in capture methods, storage solutions, and utilization processes are key to reducing overall costs. Development of integrated systems that combine hydrogen production with CCS and renewable energy sources to optimize efficiency and reduce emissions. Furthermore, expanding and upgrading the infrastructure for transporting and storing both hydrogen and captured CO? is critical for scaling up blue hydrogen production will improve the business growth.
 

Blue Hydrogen Market Analysis

Based on application, the petroleum refinery segment is projected to surpass USD 2.5 billion by 2032, as refineries seek to balance production efficiency with environmental responsibility. Ongoing advancements in CCS technology, supportive regulatory frameworks, and increasing pressure to reduce emissions will drive the adoption of blue hydrogen in the refining sector. Additionally, partnerships and investments in hydrogen infrastructure will play a critical role in scaling up these initiatives.
 

Based on technology, the ATR is segment estimated to grow by more than 16% CAGR through 2032. ATR combines partial oxidation and steam reforming in a single reactor, which can improve the efficiency and reduce the complexity of the hydrogen production process. It is well-suited for integration with carbon capture and storage (CCS) technologies. The higher concentration of CO? in the ATR process off-gas makes CO? capture more efficient and cost-effective compared to other reforming methods. In addition, Significant investments from governments, energy companies, and industrial players are directed towards ATR-based blue hydrogen projects, facilitating technological development and scaling up production capacities.
 

North America blue hydrogen market is likely to exceed USD 1.5 billion by 2032. Introduction of several initiatives to promote hydrogen as part of its broader climate goals coupled with tax incentives for low-carbon hydrogen production will drive the product demand. Investments in hydrogen pipelines and storage facilities to support the transport and distribution of blue hydrogen along with development of hydrogen hubs, where production, storage, and utilization are co-located, will augment the business landscape. Moreover, major energy companies comprising Shell, ExxonMobil, and Chevron are investing in blue hydrogen projects, thereby leveraging their expertise in natural gas and CCS.
 

Blue Hydrogen Market Share

Ongoing collaborative efforts across various sectors along with partnerships from various stakeholders, including energy companies, technology providers, financial institutions, and government bodies will drive the business scenario. These partnerships help to pool resources, share risks, and leverage the diverse expertise needed to overcome the technological and economic challenges associated with blue hydrogen production and deployment.
 

Blue Hydrogen Market Companies

Eminent players operating in the blue hydrogen industry are:

• Air Products Inc.
• Air Liquide
• Bechtel Corporation
• BP p.l.c.
• Eni
• Exxon Mobil Corporation
• Equinor ASA
• John Wood Group PLC
• Johnson Matthey
• MaireTecnimont Spa
• Saipem
• SK E&S CO.LTD.
• Shell plc
• Technip Energies N.V.
• TOPSOE
• thyssenkrupp Industrial Solutions AG
• Woodside
   

Blue Hydrogen Industry News

• In November 2023, Air Products and Chemicals, Inc. announced plans to build and operate a newgeneration carbon capture and CO2 treatment plant on its existing hydrogen production plant in Rotterdam, Netherlands. The plant operations are expected to begin in 2026, with blue hydrogen production to be delivered to ExxonMobil’s Rotterdam refinery and customers through its pipeline network system. Moreover, the plant being connected to the Porthos System, which is a consortium for forming a system of transport and storage of carbon dioxide, will further strengthen the company’s product portfolio in the industry.
   
• In December 2023, SK E&S CO. LTD. signed a global MoU at COP28 to build the largest low-carbon hydrogen plant in South Korea along with its local government and international partners. The aim is to produce low-carbon hydrogen in mass and establish a domestic hydrogen ecosystem. The company will be significantly contributing to carbon neutrality and strategically solidifying its position across the globe.
   

This blue hydrogen market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “(USD Billion & MT)” from 2021 to 2032, for the following segments:

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Market, By Application

• Petroleum Refinery 
• Chemical
• Others

Market, By Technology

• SMR
• ATR
• Partial Oxidation

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • Oman
  • UAE
  • Kuwait
  • Qatar
  • South Africa
• Latin America