Blue Hydrogen Market Report 2026

The blue hydrogen market size has grown exponentially in recent years. It will grow from $5.78 billion in 2025 to $8.23 billion in 2026 at a compound annual growth rate (CAGR) of 42.5%. The growth in the historic period can be attributed to growing energy transition initiatives, rising awareness of emission reduction needs, early hydrogen development programs, industrial fuel diversification efforts, expansion of natural gas-based hydrogen production.

The blue hydrogen market size is expected to see exponential growth in the next few years. It will grow to $48.02 billion in 2030 at a compound annual growth rate (CAGR) of 55.4%. The growth in the forecast period can be attributed to increasing CCS adoption, growing hydrogen infrastructure investments, rising demand in power generation, strengthening government decarbonization support, expanding industrial hydrogen applications. Major trends in the forecast period include increasing focus on low-carbon hydrogen production, rising investment in carbon capture and storage integration, growing adoption of hydrogen in industrial energy use, expansion of hydrogen supply infrastructure development, strengthening demand for cleaner transition fuels.

The increasing demand for chemical production is expected to propel the growth of the blue hydrogen market going forward. Chemical production is the industrial process of transforming raw materials into chemical products through chemical reactions and processes. The demand for chemical production is rising due to the expansion of industrial sectors and the growing need for innovative materials and solutions across multiple industries. Blue hydrogen is gaining traction in chemical production as a cleaner alternative to conventional hydrogen sources and is primarily used as a feedstock in processes such as ammonia production, where hydrogen is a critical input. For instance, in October 2023, according to the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, global ammonia production accounted for approximately 2% (8.6 EJ) of total final energy consumption, and ammonia production is projected to increase by nearly 40% by 2050. Therefore, the increasing demand for chemical production is driving the growth of the blue hydrogen market.

Major companies operating in the blue hydrogen market are advancing production technologies such as low-carbon hydrogen (LCH) technology to improve efficiency and reduce carbon emissions, aligning with global sustainability objectives. LCH technology for blue hydrogen production combines natural gas reforming with carbon capture and storage (CCS) to significantly lower greenhouse gas emissions. For instance, in October 2023, Johnson Matthey, a UK-based provider of sustainable technologies, entered into a licensing and engineering agreement with BP p.l.c., a UK-based oil and gas company, to deploy Johnson Matthey’s LCH technology at BP’s proposed H2Teesside low-carbon hydrogen facility in Teesside, England. The technology integrates a gas-heated reformer with an autothermal reformer and is capable of capturing up to 99% of carbon dioxide emissions, offering high natural gas efficiency and one of the lowest levelized costs of hydrogen among blue hydrogen technologies.

In March 2025, Aramco, a Saudi Arabia-based integrated energy and chemicals company, acquired a 50% stake in Blue Hydrogen Industrial Gases Company for an undisclosed amount. Through this acquisition, Aramco aims to accelerate industrial carbon reduction initiatives and expand its presence in the hydrogen economy by scaling the production of lower-carbon hydrogen. Blue Hydrogen Industrial Gases Company is a Saudi Arabia-based industrial gases company specializing in hydrogen production, including blue hydrogen derived from natural gas integrated with carbon capture and storage.

Major companies operating in the blue hydrogen market report are Saudi Arabian Oil Company (Saudi Aramco), Exxon Mobil Corporation, Royal Dutch Shell PLC, Uniper SE, TotalEnergies SE, BP Plc, Chevron Corporation, Mitsubishi Corporation, Equinor ASA, Reliance Industries Ltd., Repsol S.A., Engie SA, ConocoPhillips, Suncor Energy Inc., Linde Plc, Air Products Inc., Toshiba Energy Systems & Solutions Corp., ATCO Ltd., Air Liquide S.A., Siemens Energy (Siemens AG).

North America was the largest region in the blue hydrogen market in 2025. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the blue hydrogen market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the blue hydrogen market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The blue hydrogen market consists of revenues earned by entities by providing services such as hydrogen production, carbon capture, and storage (CCS) technologies. The market value includes the value of related goods sold by the service provider or included within the service offering. The blue hydrogen market also includes sales of hydrogen fuel cells, hydrogen storage systems, and equipment used in hydrogen production and carbon capture processes. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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