Blue Hydrogen Market Size, Share, Growth Analysis, By Production Technology(Steam methane reforming (SMR), autothermal reforming (ATR), and partial oxidation (POX)), By Application(Transportation, power generation, industrial processing, and others), By Region - Industry Forecast 2024-2031

Blue Hydrogen Market size was valued at USD 16.27 billion in 2021 and is poised to grow from USD 18.2 billion in 2022 to USD 44.5 billion by 2030, growing at a CAGR of 11.9% in the forecast period (2023-2030).

Blue hydrogen is a type of hydrogen fuel that is produced from natural gas through a process called steam methane reforming (SMR), which is similar to the process used to produce gray hydrogen. However, in blue hydrogen production, the carbon dioxide (CO2) that is produced during the SMR process is captured and stored or utilized, rather than being released into the atmosphere as in gray hydrogen production. This process is known as carbon capture, utilization, and storage (CCUS). The CCUS process involves capturing the CO2 emitted during hydrogen production and either storing it underground in geological formations or utilizing it in other industrial processes. By capturing and storing or utilizing CO2, blue hydrogen production can significantly reduce greenhouse gas emissions compared to gray hydrogen production, which is a major source of carbon emissions. Blue hydrogen has the potential to be a low-carbon alternative to traditional fossil fuels, as it can be used in a variety of applications, such as power generation, transportation, and industrial processes. Additionally, blue hydrogen can be used in existing infrastructure and applications that are currently powered by natural gas or gray hydrogen, without significant modifications. While blue hydrogen is considered to be a cleaner alternative to gray hydrogen, there are still some environmental concerns associated with the production of blue hydrogen, such as the potential for leaks during transportation and the energy required for the CCUS process. Nonetheless, blue hydrogen is seen as a promising technology to help reduce greenhouse gas emissions and transition to a more sustainable energy future.

The global blue hydrogen market is expected to witness significant growth in the coming years, driven by the increasing demand for low-carbon hydrogen as countries seek to transition to a low-carbon economy. Blue hydrogen, which is produced from natural gas with carbon capture and storage (CCS), is seen as a key component of the energy transition strategy due to its low carbon footprint. One of the major drivers of the global blue hydrogen market is the increasing demand for hydrogen in industries such as steel, chemicals, and refining, which are difficult to decarbonize using other renewable energy sources. Blue hydrogen offers a low-carbon alternative to traditional hydrogen production methods, which rely on fossil fuels and emit significant greenhouse gas emissions. Another key driver of the global blue hydrogen market is the growing focus on reducing greenhouse gas emissions and promoting renewable energy sources. Governments around the world are setting ambitious targets for reducing emissions and investing in the development of low-carbon technologies, including blue hydrogen. For example, the European Union has set a target of reducing greenhouse gas emissions by 55% by 2030 and is investing heavily in the development of blue hydrogen as a key component of its energy transition strategy.

US Blue Hydrogen Market is poised to grow at a sustainable CAGR for the next forecast year.