The global blue hydrogen market size was valued at $0.9 billion in 2021, and projected to reach $3.5 billion by 2031, with a CAGR of 14.1% from 2022 to 2031.
Blue hydrogen is hydrogen produced from natural gas with a process of steam methane reforming, where natural gas is mixed with very hot steam and a catalyst. A chemical reaction occurs creating hydrogen and carbon monoxide. Blue hydrogen is grey hydrogen with a difference - the CO2 is captured during the production process and stored safely, for example in depleted gas or oil fields. This process is called carbon capture and storage (CCS). It prevents CO2 from entering the earth's atmosphere or only doing so in very small quantities.
Hydrogen is also significantly used as a clean fuel alternative to electricity generation and propels vehicles. It is used as a fuel to curb harmful discharges and deliver water vapor and heat as the only output through fuel cells. Fuel cell manufacturers are continuously striving to introduce advanced systems with feasible integration in various applications. Furthermore, different methods such as steam methane reforming, gas partial oxidation, and auto thermal reforming are adopted across the industry to generate hydrogen to serve the increasing requirements in various applications.
The governments from different emerging as well as developed countries have shown significant interest in achieving carbon neutrality. In addition, the administrations have updated their strategies to include clean energy sectors in their future prospects fueling the expansion of hydrogen economy. For instance, in March 2021, India and the U.S. governments have decided to update their strategic energy partnership to include low carbon technologies such as hydrogen and bio fuels. The two nations have also agreed to boost the R&D activities with programs such as partnership to advance clean energy research for renewable energy.
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. 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), Toshiba Energy Systems & Solutions Corp., Equinor ASA, CertifHy Canada Inc., Xebec Adsorption Inc, Uniper SE, Saudi Aramco, and Reliance Industries. Rapid development of industrialization, modernization and increase in awareness among the individuals regarding the environmental impact of fossil fuels fuel the demand for blue hydrogen. Additional growth strategies such as expansion of production capacities, acquisition, partnership and research & innovation in the green energy application made way for key developments in the global blue hydrogen market trends.
COVID-19 impact analysis:
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.
Blue hydrogen is hydrogen produced from natural gas with a process of steam methane reforming, where natural gas is mixed with very hot steam and a catalyst. A chemical reaction occurs creating hydrogen and carbon monoxide. Blue hydrogen is grey hydrogen with a difference - the CO2 is captured during the production process and stored safely, for example in depleted gas or oil fields. This process is called carbon capture and storage (CCS). It prevents CO2 from entering the earth's atmosphere or only doing so in very small quantities.
Hydrogen is also significantly used as a clean fuel alternative to electricity generation and propels vehicles. It is used as a fuel to curb harmful discharges and deliver water vapor and heat as the only output through fuel cells. Fuel cell manufacturers are continuously striving to introduce advanced systems with feasible integration in various applications. Furthermore, different methods such as steam methane reforming, gas partial oxidation, and auto thermal reforming are adopted across the industry to generate hydrogen to serve the increasing requirements in various applications.
The governments from different emerging as well as developed countries have shown significant interest in achieving carbon neutrality. In addition, the administrations have updated their strategies to include clean energy sectors in their future prospects fueling the expansion of hydrogen economy. For instance, in March 2021, India and the U.S. governments have decided to update their strategic energy partnership to include low carbon technologies such as hydrogen and bio fuels. The two nations have also agreed to boost the R&D activities with programs such as partnership to advance clean energy research for renewable energy.
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. 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), Toshiba Energy Systems & Solutions Corp., Equinor ASA, CertifHy Canada Inc., Xebec Adsorption Inc, Uniper SE, Saudi Aramco, and Reliance Industries. Rapid development of industrialization, modernization and increase in awareness among the individuals regarding the environmental impact of fossil fuels fuel the demand for blue hydrogen. Additional growth strategies such as expansion of production capacities, acquisition, partnership and research & innovation in the green energy application made way for key developments in the global blue hydrogen market trends.
COVID-19 impact analysis:
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.
Key Market Segments
By Technology
- Steam Methane Reforming
- Gas Partial Oxidation
- Auto Thermal Reforming
By End Use
- Power Generation
- Chemical
- Refinery
- Others
By Industry
- Ammonia
- Methanol
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
- ATCO Ltd.
- Linde plc
- Suncor Energy Inc.
- Royal Dutch Shell Plc
- Air Products Inc.
- Cummins Inc.
- Siemens AG
- Toshibha Energy Systems & Solutions Corp.
- Equinor ASA
- CertifHy Canada Inc.
- Xebec Adsorption Inc.
- Uniper SE
- Saudi Aramco
- Reliance Industries Ltd
- AIR LIQUIDE S.A.
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: BLUE HYDROGEN MARKET, BY TECHNOLOGY
CHAPTER 5: BLUE HYDROGEN MARKET, BY END USE
CHAPTER 6: BLUE HYDROGEN MARKET, BY INDUSTRY
CHAPTER 7: BLUE HYDROGEN MARKET, BY REGION
CHAPTER 8: COMPANY LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, titled, “Blue Hydrogen Market," the blue hydrogen market size was valued at $0.9 billion in 2021, and blue hydrogen industry is estimated to reach $3.5 billion by 2031, growing at a CAGR of 14.1% from 2022 to 2031.Blue hydrogen is an industry term for hydrogen produced from natural gas and supported by carbon capture and storage. The CO2 generated during the manufacturing process is captured and stored permanently underground. The result is low-carbon hydrogen that produces no CO2. Blue hydrogen is touted as a low-carbon fuel that is used for generating electricity, heating buildings, and powering cars, trains, trucks, and others.
Hydrogen is used in the production of ammonia and methanol. Ammonia’s potential as a carbon-free fuel, hydrogen carrier, and energy store represents an opportunity for renewable hydrogen technologies to be deployed at an even greater scale. Hydrogen is typically produced on-site at ammonia plants from a fossil fuel feedstock. The most common feedstock is natural gas, which feeds a steam methane reforming (SMR) unit. Coal can also be used to produce ammonia via a partial oxidation (POX) process. Methanol is currently considered to be one of the most useful chemical products and is a promising building block for obtaining more complex chemical compounds, such as acetic acid, methyl tertiary butyl ether, dimethyl ether, and methylamine. Methanol is the simplest alcohol, appearing as a colorless liquid and with a distinctive smell, and can be produced by converting CO2 and H2, with the further benefit of significantly reducing CO2 emissions in the atmosphere.
Europe and Latin America regions are promoting the hydrogen economy. Governments around the world are announcing policy statements and releasing hydrogen strategies to support the hydrogen economy. Austria’s NECP plans to promote hydrogen to help increase the share of renewable energy in total energy consumption to 45-50% by 2030. The government outlined a national hydrogen strategy as part of its policy programme. Belgian encourages the development of hydrogen projects through subsidies and other legislative initiatives. It published its hydrogen roadmap in 2018, with long term goals for 2030 and 2050. It also allocated $70 million an investment plan for power-to-gas projects. The presence of above mentioned initiatives and applications will provide ample opportunities for the development of the market.
Blue hydrogen is generated from natural gas through steam methane reforming, gas partial oxidation, and auto thermal reforming process which generates minute quantity of greenhouse gases compared to the green hydrogen production process. Hence, this factor is anticipated to hamper the blue hydrogen market growth during the forecast period.
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. 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. Presently, North America accounts for the largest blue hydrogen market share, 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 Ductch 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. Rapid development of industrialization, 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 led to attain key developments in the global blue hydrogen market trends.
Key Findings of the Study
- On the basis of region, Asia-Pacific is projected to exhibit CAGR of 13.9% from 2022 to 2031.
- As per blue hydrogen market analysis, Japan is projected to exhibit CAGR of 13.3% from 2022 to 2031.
- South Korea is projected to exhibit CAGR of 14.1% from 2022 to 2031
- North America held dominant position in 2021 and would continue to maintain the lead during the forecast period.
- On the basis of technology, steam methane reforming technology segment accounted for the largest share in 2021.
- On the basis of end use, chemical end use segment is projected to be the most lucrative segment during the forecast period.
- On the basis of industry, ammonia based segment is projected to create abundant revenue opportunity till 2030.
COVID-19 Analysis
- 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.
Companies Mentioned
- Atco Ltd.
- Linde plc
- Suncor Energy Inc.
- Royal Dutch Shell plc
- Air Products Inc.
- Cummins Inc.
- Siemens AG
- Toshibha Energy Systems & Solutions Corp.
- Equinor Asa
- Certifhy Canada Inc.
- Xebec Adsorption Inc.
- Uniper Se
- Saudi Aramco
- Reliance Industries Ltd
- Air Liquide S.A.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 377 |
| Published | August 2022 |
| Forecast Period | 2021 - 2031 |
| Estimated Market Value ( USD | $ 0.9 billion |
| Forecasted Market Value ( USD | $ 3.5 billion |
| Compound Annual Growth Rate | 14.5% |
| Regions Covered | Global |
| No. of Companies Mentioned | 15 |
