Blue Hydrogen Market Research, 2031
The global blue hydrogen market size was valued at $0.9 billion in 2021, and blue hydrogen industry is projected to reach $3.5 billion by 2031, growing at a CAGR of 14.1% from 2022 to 2031.
Hydrogen produced from natural gas and supported by carbon capture and storage is known as blue hydrogen. The CO2 generated during the manufacturing process is captured and stored permanently underground. The result is low-carbon hydrogen that produces no CO2.
Various technologies are used presently to produce hydrogen, including steam methane reforming, partial oxidation of oil, coal gasification, and auto thermal reforming. Most of the hydrogen produced today is used in petroleum refineries and the manufacturing of fertilizers. Around 99% of it comes from fossil fuel reforming, as it has been the most economical method. However, this does not have any real climate benefits as CO2 is emitted in the process. Hydrogen has numerous applications, ranging from industrial feedstock to fuel cell vehicles and energy storage. However, the rapid development and innovations in the technology to develop green hydrogen will hamper the development of the market.
The presence of government initiatives to develop hydrogen economy will have positive impact on the market. The UK government announced a national bus strategy with a $3.7 billion investment in the public transport sector across England, established two fund worth over $22 million each for innovation hydrogen supply and storage. Furthermore, the government also announced its support for decarbonizing industrial clusters mission by investing $185 million. In addition, research over the feasibility of hydrogen for buildings and blending up to 20% hydrogen in its natural gas network. The presence of these initiatives in the UK will drive the blue hydrogen market growth.
South Korea enforced the world’s first hydrogen law from February 5, 2021. The government also launched the Hydrogen Economy Committee and declared the Green New Deal Policy to promote the transition to a hydrogen economy. It also aims to have 6.2 million fuel cell vehicles and 1,200 refuelling stations by 2040. Furthermore, it also announced a hydrogen economy roadmap with targets for 2022 and 2040. It set an ambitious goal to convert all commercial vehicles to hydrogen by 2025. The presence of these initiatives and lofty goals to achieve zero carbon targets will provide ample opportunities for the development of the market.
The blue hydrogen market forecast is segmented on the basis of technology, end use, industry and region. On the basis of technology, the market is divided into steam methane reforming, gas partial oxidation, and auto thermal reforming. On the basis of end use, it is classified into power generation, chemical, refinery, and others. On the basis of industry, the market is segmented into ammonia, methanol and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, North America accounts for the largest share of the market, followed by Europe and Asia-Pacific.
The major companies profiled in this report include ATCO Ltd, Linde Plc, Air Liquide S.A., Suncor Energy Inc., Royal Dutch Shell PLC, Air Products Inc, Cummins Inc., Siemens Energy (Siemens AG), Toshibha Energy Systems & Solutions Corp., Equinor ASA, CertifHy Canada Inc., Xebec Adsorption Inc, Uniper SE, Saudi Aramco, and Reliance Industries. Due to rapidly development of industrialisation, modernization and increase in awareness among the individuals regarding the environmental impact of fossil fuels has fuelled the demand for blue hydrogen. Additional growth strategies such as expansion of production capacities, acquisition, partnership and research & innovation in the green energy application which led to attain key developments in the global blue hydrogen market trends.
The steam methane reforming segment dominates the global blue hydrogen market. Steam methane reforming is a process of extraction of hydrogen from the natural gas (methane). This method is one of the cheapest sources of industrial hydrogen. This process consist of heating gases such as methane in the presence of steam and a catalyst to create endothermic reaction which will further breakup methane molecule into carbon monoxide and hydrogen. SMR is a cost-effective and energy efficient way of producing high levels of pure hydrogen that can be collected by employing the in-house pressure swing adsorption purification technology. This is expected increase its adoption and thus, drives the market growth during the forecast period.
The chemical segment dominates the global blue hydrogen market. Hydrogen is one of the core material used in various chemical industry and is widely used in the production of bulk chemicals, intermediates and specialty chemicals. It is a fundamental building block to manufacture ammonia, methanol, and various polymers. The increasing demand for various ammonia fertilizers all over the world is an important factor for the growth of hydrogen in this segment. This increase in demand will have positive impact over the large scale blue hydrogen production plants. The increasing population and need for various chemical raw materials in various industries are providing opportunities for the growth of blue hydrogen market in this sector. The presence of above mentioned advantages will drive the growth of the market.
The ammonia segment dominates the global blue hydrogen market. Ammonia is an inorganic compound composed which is widely used in agriculture, textiles, mining, pharmaceuticals, refrigeration, and other end-use industries. Ammonia is majorly used in fertilizers, and its usage has only been increasing through the years, which may drive its usage in the agriculture market throughout the forecast period. China accounts for approximately 7% of the overall agricultural acreage globally, thus feeding 22% of the world population. Hence, the demand for ammonia, which is used as a fertilizer, is rapidly increasing due to the large-scale agricultural activities in the country. The presence of above mentioned wide range of utilization of blue hydrogen panels in various industrial applications will provide ample opportunities for the market.
North America dominated the blue hydrogen market during the forecast period. Canada released its first hydrogen strategy report in December 2020, outlined its strategy at national and provincial levels. The reports claimed that clean hydrogen could deliver around 30% of the country’s end-use energy by 2050. In U.S, California toughens its rules to help reduce carbon by 2030 and encourages to get credits from low-carbon hydrogen. California Fuel Cell Partnership set targets to have 1,000 hydrogen refuelling stations and one million FCEVs by 2030. The above mentioned initiatives are major factor driving the growth of the market in this region during the forecast period.
COVID-19 analysis:
COVID-19 has severely impacted the global economy with devastating effects on global trade, which has simultaneously affected households, business, financial institution, industrial establishments and infrastructure companies. The novel coronavirus has affected several economies ad caused lockdown in many countries which has limited the growth of the market. The shutdown of industrial manufacturer led to the decline in the demand for solar related equipment in most of the countries across the world led to decline in the demand of the blue hydrogen market. The decrease in utilization of power in the industrial facilities across the globe during the outbreak has a negative impact on the development of the market.
At the initial stage, demand for hydrogen significantly declined due to lockdowns. Furthermore, the supply of hydrogen was hampered, as major portion of the hydrogen is produced from natural gas reforming. However, governments of various countries across the world have eased lockdown restrictions. Therefore, the manufacturing process is steadily rising. This is driving the demand for hydrogen in industrial applications. The trend is expected to continue during the forecast period.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the blue hydrogen market analysis from 2021 to 2031 to identify the prevailing blue hydrogen market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the blue hydrogen market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global blue hydrogen market trends, key players, market segments, application areas, and market growth strategies.
Blue Hydrogen Market Report Highlights
| Aspects | Details |
 By Technology |
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 By End Use |
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 By Industry |
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 By Region |
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 Key Market Players | Reliance Industries Ltd, Siemens AG, Saudi Aramco, Royal Dutch Shell Plc, Uniper SE, ATCO Ltd., Toshibha Energy Systems & Solutions Corp., Air Products Inc., Xebec Adsorption Inc., Linde plc, Equinor ASA, Cummins Inc., Suncor Energy Inc., CertifHy Canada Inc., AIR LIQUIDE S.A. |
Analyst Review
According to CXO Perspective, the global blue hydrogen market is expected to witness increased demand during the forecast period, due to rapid growth in awareness among the people regarding the advantages of blue hydrogen in transportation sector compared to conventional fuel.
Hydrogen is the cleanest form of fuel with zero-carbon emission, and upon combustion with oxygen, it provides the same energy as petrol or diesel, but with minimum pollution. Hydrogen fuel based internal combustion engines can be used in all types of vehicles. Blue hydrogen is hydrogen produced from natural gas by steam methane reforming, auto thermal reforming and other process.
The blue hydrogen market is growing rapidly due to rapid increase in prices of fuels, such as petrol and diesel. This is attributed to high volatility in crude oil process and various taxes. The rise in demand and inadequate supply has led to increase in crude oil prices significantly which has enabled Organization of the Petroleum Exporting Countries (OPEC) to decide price benchmarks for crude oil. In addition, the rise in cost of shipping crude oil is increasing prices and impacting the overall cost of fuels, including petrol and diesel. This is leading to increase in demand for alternative fuel sources, such as hydrogen, which is expected to drive the market growth.
Increase in government initiatives to shift toward clean energy sources is another factor which is expected to boost the market. However, blue hydrogen requires natural gas and the production of blue hydrogen from natural gas will produce low carbon emissions. This factor will hamper the development of the market.
Rising demand from chemical industries and hydrogen cell powered electric vehicles in various industries are the key factors boosting the Blue hydrogen market growth.
Ammonia industry is projected to increase the demand for Blue hydrogen Market
ATCO Ltd, Linde Plc, Air Liquide S.A., Suncor Energy Inc., Royal Dutch Shell PLC, Air Products Inc., Cummins Inc., Siemens Energy (Siemens AG), Toshiba Energy Systems & Solutions Corp., Equinor ASA, CertifHy Canada Inc., Xebec Adsorption Inc, Uniper SE, Saudi Aramco, and Reliance Industries
Increase in government initiatives to shift towards clean energy sources is the Main Driver of Blue hydrogen Market.
The blue hydrogen market is segmented on the basis of technology, end use, industry, and region. On the basis of technology, the market is divided into steam methane reforming, gas partial oxidation, and auto thermal reforming. On the basis of end use, it is classified into power generation, chemical, refinery, and others. In addition, on the basis of industry, the market is categorized into ammonia, methanol and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The market value of Blue hydrogen in 2031 is expected to be $3.5 billion
At the initial stage, demand for hydrogen significantly declined due to lockdowns. Furthermore, the supply of hydrogen was hampered, as major portion of the hydrogen is produced from natural gas reforming. However, governments of various countries across the world have eased lockdown restrictions. Therefore, the manufacturing process is steadily rising. This is driving the demand for hydrogen in industrial applications. The trend is expected to continue during the forecast period.
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