PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1876136
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1876136
Blue Hydrogen Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032
Growth Factors of blue hydrogen Market
The global blue hydrogen market is gaining strong momentum as industries worldwide shift toward low-carbon energy alternatives to meet decarbonization goals. According to Fortune Business Insights, the global blue hydrogen market size was valued at USD 2.42 billion in 2024, is projected to reach USD 2.51 billion in 2025, and is expected to grow significantly to USD 4.31 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.04% during the forecast period. The North American region leads the global market, holding 80.99% of the market share in 2024, supported by vast natural gas resources, robust carbon capture infrastructure, and favorable government policies that accelerate low-carbon hydrogen adoption.
Market Dynamics
Rising Climate Policies and Net-Zero Goals Fuel Demand
The global commitment toward achieving net-zero carbon emissions is driving large-scale investment in blue hydrogen production as a viable transitional fuel. Blue hydrogen, produced from natural gas through Steam Methane Reforming (SMR) or Auto Thermal Reforming (ATR) combined with carbon capture and storage (CCS), provides a scalable and cost-effective low-carbon energy source. Governments in North America, Europe, and Asia Pacific are prioritizing hydrogen as a critical part of their energy transition strategies. The ability of blue hydrogen to capture and store up to 90% of CO2 emissions makes it an attractive solution for industries striving to comply with global emission standards.
Industrial Decarbonization Accelerates Market Expansion
Hard-to-abate industries such as refineries, steel manufacturing, and chemicals are adopting blue hydrogen to lower their carbon footprint. Hydrogen's high energy density and compatibility with existing infrastructure make it a practical choice for decarbonization. Industrial hydrogen demand continues to rise due to its role in hydroprocessing and desulfurization in refineries and as a feedstock for ammonia and methanol production in the chemical industry. The increasing adoption of blue hydrogen in these sectors supports its position as a key component of global industrial transformation.
Restraints - Shift Toward Green Hydrogen
Despite its advantages, blue hydrogen faces challenges from the rapid growth of green hydrogen, which is produced through renewable-powered electrolysis and considered a zero-emission fuel. Falling renewable energy costs and government incentives for green hydrogen production could limit long-term blue hydrogen adoption. Countries such as China, which currently produces around 99% of its hydrogen from fossil fuels, are investing heavily in renewable hydrogen projects to achieve carbon neutrality, creating competitive pressure on blue hydrogen producers.
Opportunities - Carbon Capture Expansion and Infrastructure Development
The scalability of carbon capture and storage (CCS) technology is central to blue hydrogen's success. Global investments in CCS facilities and hydrogen hubs are expanding, enabling the efficient capture and storage of CO2 produced during hydrogen generation. The integration of CCS with natural gas infrastructure enhances cost efficiency and supports blue hydrogen adoption for transportation, power generation, and heavy industries.
Challenges - High Energy Demand and Methane Leakage
Blue hydrogen production involves a high "energy penalty," consuming about 25% more natural gas than grey hydrogen. While CCS reduces emissions from hydrogen reforming, it does not address upstream emissions such as methane leakage during extraction and transportation of natural gas. These challenges underscore the need for ongoing innovation to improve process efficiency and minimize environmental impact.
Market Trends
Transition from Carbon-Intensive to Low-Carbon Hydrogen
Blue hydrogen is emerging as a bridge between grey and green hydrogen, offering a cost-effective, transitional pathway to full decarbonization. As the cost of renewable hydrogen remains high, blue hydrogen provides a near-term solution that leverages existing natural gas and pipeline infrastructure. Governments and corporations are increasingly viewing blue hydrogen as a strategic enabler for building the hydrogen economy while green hydrogen scales up globally.
Segmentation Insights
By Technology - Steam Methane Reforming (SMR) Leads Market
The Steam Methane Reforming (SMR) segment dominated the market in 2024 and is expected to maintain its lead through 2032 due to its proven reliability and scalability. The process is widely used for industrial hydrogen production and can capture more than 90% of CO2 emissions when integrated with CCS technology. The Auto Thermal Reforming (ATR) process is gaining attention for its efficiency in large-scale projects and combined heat management advantages, positioning it as an emerging alternative in the next decade.
By Application - Refineries Remain the Largest End-Use Sector
In 2024, refineries held the dominant market share as hydrogen is extensively used in hydrodesulfurization to reduce sulfur in fuels. Blue hydrogen supports compliance with stricter emission regulations while improving refinery efficiency. The chemical industry is another major consumer, where hydrogen is essential for ammonia and methanol production. Increasing industrial applications, including steelmaking and synthetic fuel manufacturing, further strengthen blue hydrogen's industrial footprint.
Regional Insights
North America Dominates Global Market
North America accounted for 80.99% of the global blue hydrogen market share in 2024, supported by abundant natural gas resources and strong policy frameworks. The U.S. and Canada have launched federal hydrogen strategies emphasizing low-carbon hydrogen as a key pillar in achieving net-zero goals. The U.S. National Clean Hydrogen Strategy and Roadmap (2023) aims for a carbon-free electricity grid by 2035 and a net-zero economy by 2050, accelerating investment in blue hydrogen production facilities.
Europe - Expanding Hydrogen Infrastructure
Europe's focus on energy independence and sustainability is strengthening blue hydrogen deployment. The European Union's Hydrogen Strategy and RePowerEU plan promote low-carbon hydrogen to replace natural gas imports. Countries such as Germany, the U.K., and the Netherlands are building large-scale hydrogen projects equipped with Carbon Capture, Utilization, and Storage (CCUS) facilities.
Asia Pacific - Rapid Industrialization Driving Adoption
Asia Pacific is emerging as a fast-growing market due to rapid industrialization and increasing energy demand. Countries including China, Japan, and South Korea are integrating hydrogen into their decarbonization frameworks. China, the world's largest hydrogen producer, is investing heavily in CCS-integrated production, transitioning from grey to blue hydrogen for chemicals, steel, and refinery sectors.
Rest of the World - Gradual Progress
Regions in the Middle East, Africa, and Latin America are adopting blue hydrogen gradually, with investments focused on developing export-oriented hydrogen and ammonia projects. The TA'ZIZ Industrial Chemicals Zone in the UAE, for example, allocated USD 2 billion in 2024 for EPC contracts to develop a blue hydrogen-based ammonia export facility.
Competitive Landscape
The global market is moderately consolidated, with key players investing in R&D, partnerships, and new projects to enhance production efficiency and sustainability. Leading companies include:
- Shell (U.K.)
- ExxonMobil (U.S.)
- Technip Energies N.V. (France)
- Air Products and Chemicals, Inc. (U.S.)
- BP p.l.c. (U.K.)
- Honeywell (U.S.)
- Linde PLC (U.K.)
- Equinor (Norway)
- Aker Solutions (Norway)
- TOPSOE (Denmark)
Recent Developments:
- June 2025: Inpex Corporation began commissioning Japan's first integrated blue hydrogen and ammonia production project in Kashiwazaki City.
- September 2024: Mitsubishi Corporation partnered with ExxonMobil on a Texas-based facility expected to capture 98% of CO2 emissions.
- August 2024: Linde invested over USD 2 billion in a clean hydrogen plant to supply Dow's Fort Saskatchewan Path2Zero Project in Canada.
Conclusion
The global blue hydrogen market, expanding from USD 2.42 billion in 2024 to USD 4.31 billion by 2032, is positioned as a cornerstone of the global clean energy transition. As governments and industries pursue net-zero goals, blue hydrogen serves as a practical bridge fuel-balancing environmental benefits, cost efficiency, and scalability. Supported by advancements in carbon capture technology, strategic investments, and policy-driven initiatives, blue hydrogen is set to play a pivotal role in reshaping the future of global energy systems.
Segmentation By Technology
- Steam Methane Reforming (SMR)
- Auto Thermal Reforming (ATR)
- Others
By Application
- Refinery
- Chemical
- Others
By Region
- North America (By Technology, Application, and Country)
- U.S. (By Application)
- Canada (By Application)
- Europe (By Technology, Application, and Country)
- Asia Pacific (By Technology, Application, and Country)
- China (By Application)
- Australia (By Application)
- Rest of Asia Pacific (By Application)
- Rest of the World (By Technology, Application and Region)
Table of Content
1. Introduction
- 1.1. Research Scope
- 1.2. Market Segmentation
- 1.3. Research Methodology
- 1.4. Definitions & Assumptions
2. Executive Summary
3. Market Dynamics
- 3.1. Market Drivers
- 3.2. Market Restraints
- 3.3. Market Opportunities
4. Key Insights
- 4.1. Key Emerging Trends - For Major Countries
- 4.2. Latest Technological Advancement
- 4.3. Insight on Regolatory Landscape
- 4.4. Porters Five Forces Analysis
- 4.5. Impact of Tariff on the Global Blue Hydrogen Market
5. Global Blue Hydrogen Market (USD Billion) Analysis, Insights, and Forecast, 2019-2032
- 5.1. Key Findings
- 5.2. Market Analysis, Insights, and Forecast - By Technology
- 5.2.1. Steam Methane Reforming (SMR)
- 5.2.2. Auto Thermal Reforming (ATR)
- 5.2.3. Others
- 5.3. Market Analysis, Insights, and Forecast - By Application
- 5.3.1. Refinery
- 5.3.2. Chemical
- 5.3.3. Others
- 5.4. Market Analysis, Insights, and Forecast - By Region
- 5.4.1. North America
- 5.4.2. Europe
- 5.4.3. Asia Pacific
- 5.4.4. Rest of the World
6. North America Blue Hydrogen Market (USD Billion) Analysis, Insights, and Forecast, 2019-2032
- 6.1. Key Findings
- 6.2. Market Analysis, Insights, and Forecast - By Technology
- 6.2.1. Steam Methane Reforming (SMR)
- 6.2.2. Auto Thermal Reforming (ATR)
- 6.2.3. Others
- 6.3. Market Analysis, Insights, and Forecast - By Application
- 6.3.1. Refinery
- 6.3.2. Chemical
- 6.3.3. Others
- 6.4. Market Analysis, Insights, and Forecast - By Country
- 6.4.1. S. Market Analysis, Insights, and Forecast - By Application
- 6.4.1.1. Refinery
- 6.4.1.2. Chemical
- 6.4.1.3. Others
- 6.4.2. Canada Market Analysis, Insights, and Forecast - By Application
- 6.4.2.1. Refinery
- 6.4.2.2. Chemical
- 6.4.2.3. Others
- 6.4.1. S. Market Analysis, Insights, and Forecast - By Application
7. Europe Blue Hydrogen Market (USD Billion) Analysis, Insights, and Forecast, 2019-2032
- 7.1. Key Findings
- 7.2. Market Analysis, Insights, and Forecast - By Technology
- 7.2.1. Steam Methane Reforming (SMR)
- 7.2.2. Auto Thermal Reforming (ATR)
- 7.2.3. Others
- 7.3. Market Analysis, Insights, and Forecast - By Application
- 7.3.1. Refinery
- 7.3.2. Chemical
- 7.3.3. Others
8. Asia Pacific Blue Hydrogen Market (USD Billion) Analysis, Insights, and Forecast, 2019-2032
- 8.1. Key Findings
- 8.2. Market Analysis, Insights, and Forecast - By Technology
- 8.2.1. Steam Methane Reforming (SMR)
- 8.2.2. Auto Thermal Reforming (ATR)
- 8.2.3. Others
- 8.3. Market Analysis, Insights, and Forecast - By Application
- 8.3.1. Refinery
- 8.3.2. Chemical
- 8.3.3. Others
- 8.4. Market Analysis, Insights, and Forecast - By Country
- 8.4.1. China Market Analysis, Insights, and Forecast - By Application
- 8.4.1.1. Refinery
- 8.4.1.2. Chemical
- 8.4.1.3. Others
- 8.4.2. Australia Market Analysis, Insights, and Forecast - By Application
- 8.4.2.1. Refinery
- 8.4.2.2. Chemical
- 8.4.2.3. Others
- 8.4.3. Rest of Asia Pacific Market Analysis, Insights, and Forecast - By Application
- 8.4.3.1. Refinery
- 8.4.3.2. Chemical
- 8.4.3.3. Others
- 8.4.1. China Market Analysis, Insights, and Forecast - By Application
9. Rest of World Blue Hydrogen Market (USD Billion) Analysis, Insights, and Forecast, 2019-2032
- 9.1. Key Findings
- 9.2. Market Analysis, Insights, and Forecast - By Technology
- 9.2.1. Steam Methane Reforming (SMR)
- 9.2.2. Auto Thermal Reforming (ATR)
- 9.2.3. Others
- 9.3. Market Analysis, Insights, and Forecast - By Application
- 9.3.1. Refinery
- 9.3.2. Chemical
- 9.3.3. Others
10. Competitive Analysis
- 10.1. Company Market Share Analysis, 2024
- 10.2. Company Profile
- 10.2.1. Shell
- 10.2.1.1. Business Overview
- 10.2.1.2. Function and Service Offerings
- 10.2.1.3. Recent Developments
- 10.2.1.4. Financials (Based on Availability)
- 10.2.1. Shell
11. Similar data will be provided for the below-listed companies
- 11.2. Honeywell
- 11.3. Lummus Technology
- 11.4. TOPSOE
- 11.5. Technip Energies N.V.
- 11.6. BP p.l.c.
- 11.7. ExxonMobil
- 11.8. Air Products and Chemicals, Inc.
- 11.9. Linde PLC
- 11.10. Emerson Electric Co.
- 11.11. Equinor
- 11.12. Johnson Matthey
- 11.13. Aker Solutions
- 11.14. Dastur Energy
List of Tables
- Table 1: Global Blue Hydrogen Market Revenue (USD Billion) Forecast, By Technology, 2019-2032
- Table 2: Global Blue Hydrogen Market Revenue (USD Billion) Forecast, By Application, 2019-2032
- Table 3: Global Blue Hydrogen Market Revenue (USD Billion) Forecast, By Region, 2019-2032
- Table 4: North America Blue Hydrogen Market Revenue (USD Billion) Forecast, By Technology, 2019-2032
- Table 5: North America Blue Hydrogen Market Revenue (USD Billion) Forecast, By Application, 2019-2032
- Table 6: North America Blue Hydrogen Market Revenue (USD Billion) Forecast, By Country, 2019-2032
- Table 7: U.S. Blue Hydrogen Market Revenue (USD Billion) Forecast, By Application, 2019-2032
- Table 8: Canada Blue Hydrogen Market Revenue (USD Billion) Forecast, By Application, 2019-2032
- Table 9: Europe Blue Hydrogen Market Revenue (USD Billion) Forecast, By Technology, 2019-2032
- Table 10: Europe Blue Hydrogen Market Revenue (USD Billion) Forecast, By Application, 2019-2032
- Table 11: Asia Pacific Blue Hydrogen Market Revenue (USD Billion) Forecast, By Technology, 2019-2032
- Table 12: Asia Pacific Blue Hydrogen Market Revenue (USD Billion) Forecast, By Application, 2019-2032
- Table 13: Asia Pacific Blue Hydrogen Market Revenue (USD Billion) Forecast, By Country, 2019-2032
- Table 14: China Blue Hydrogen Market Revenue (USD Billion) Forecast, by Application, 2019-2032
- Table 15: Australia Blue Hydrogen Market Revenue (USD Billion) Forecast, by Application, 2019-2032
- Table 16: Rest of Asia Pacific Blue Hydrogen Market Revenue (USD Billion) Forecast, by Application, 2019-2032
- Table 17: Rest of World Blue Hydrogen Market Revenue (USD Billion) Forecast, By Technology, 2019-2032
- Table 18: Rest of World Blue Hydrogen Market Revenue (USD Billion) Forecast, By Application, 2019-2032
List of Figures
- Figure 1: Global Blue Hydrogen Market Revenue Breakdown (USD Billion, %), by Region, 2024 & 2032
- Figure 2: Global Blue Hydrogen Market Value Share (%), By Technology, 2024 & 2032
- Figure 3: Global Blue Hydrogen Market Forecast (USD Billion), by Steam Methane Reforming (SMR), 2019-2032
- Figure 4: Global Blue Hydrogen Market Forecast (USD Billion), by Auto Thermal Reforming (ATR), 2019-2032
- Figure 5: Global Blue Hydrogen Market Forecast (USD Billion), by Others, 2019-2032
- Figure 6: Global Blue Hydrogen Market Value Share (%), By Application, 2024 & 2032
- Figure 7: Global Blue Hydrogen Market Forecast (USD Billion), by Refinery, 2019-2032
- Figure 8: Global Blue Hydrogen Market Forecast (USD Billion), by Chemical, 2019-2032
- Figure 9: Global Blue Hydrogen Market Forecast (USD Billion), by Others, 2019-2032
- Figure 10: Global Blue Hydrogen Market Value (USD Billion), by Region, 2024 & 2032
- Figure 11: Global Blue Hydrogen Market Value Share (%), by Region, 2024
- Figure 12: North America Blue Hydrogen Market Value Share (%), By Technology, 2024 & 2032
- Figure 13: North America Blue Hydrogen Market Forecast (USD Billion), by Steam Methane Reforming (SMR), 2019-2032
- Figure 14: North America Blue Hydrogen Market Forecast (USD Billion), by Auto Thermal Reforming (ATR), 2019-2032
- Figure 15: North America Blue Hydrogen Market Forecast (USD Billion), by Others, 2019-2032
- Figure 16: North America Blue Hydrogen Market Value Share (%), By Application, 2024 & 2032
- Figure 17: North America Blue Hydrogen Market Forecast (USD Billion), by Refinery, 2019-2032
- Figure 18: North America Blue Hydrogen Market Forecast (USD Billion), by Chemical, 2019-2032
- Figure 19: North America Blue Hydrogen Market Forecast (USD Billion), by Others, 2019-2032
- Figure 20: North America Blue Hydrogen Market Value (USD Billion), by Country, 2024 & 2032
- Figure 21: North America Blue Hydrogen Market Value Share (%), by Country, 2024
- Figure 22: Europe Blue Hydrogen Market Value Share (%), By Technology, 2024 & 2032
- Figure 23: Europe Blue Hydrogen Market Forecast (USD Billion), by Steam Methane Reforming (SMR), 2019-2032
- Figure 24: Europe Blue Hydrogen Market Forecast (USD Billion), by Auto Thermal Reforming (ATR), 2019-2032
- Figure 25: Europe Blue Hydrogen Market Forecast (USD Billion), by Others, 2019-2032
- Figure 26: Europe Blue Hydrogen Market Value Share (%), By Application, 2024 & 2032
- Figure 27: Europe Blue Hydrogen Market Forecast (USD Billion), by Refinery, 2019-2032
- Figure 28: Europe Blue Hydrogen Market Forecast (USD Billion), by Chemical, 2019-2032
- Figure 29: Europe Blue Hydrogen Market Forecast (USD Billion), by Others, 2019-2032
- Figure 30: Asia Pacific Blue Hydrogen Market Value Share (%), By Technology, 2024 & 2032
- Figure 31: Asia Pacific Blue Hydrogen Market Forecast (USD Billion), by Steam Methane Reforming (SMR), 2019-2032
- Figure 32: Asia Pacific Blue Hydrogen Market Forecast (USD Billion), by Auto Thermal Reforming (ATR), 2019-2032
- Figure 33: Asia Pacific Blue Hydrogen Market Forecast (USD Billion), by Others, 2019-2032
- Figure 34: Asia Pacific Blue Hydrogen Market Value Share (%), By Application, 2024 & 2032
- Figure 35: Asia Pacific Blue Hydrogen Market Forecast (USD Billion), by Refinery, 2019-2032
- Figure 36: Asia Pacific Blue Hydrogen Market Forecast (USD Billion), by Chemical, 2019-2032
- Figure 37: Asia Pacific Blue Hydrogen Market Forecast (USD Billion), by Others, 2019-2032
- Figure 38: Asia Pacific Blue Hydrogen Market Value (USD Billion), by Country, 2024 & 2032
- Figure 39: Asia Pacific Blue Hydrogen Market Value Share (%), by Country, 2024
- Figure 40: Rest of World Blue Hydrogen Market Value Share (%), By Technology, 2024 & 2032
- Figure 41: Rest of World Blue Hydrogen Market Forecast (USD Billion), by Steam Methane Reforming (SMR), 2019-2032
- Figure 42: Rest of World Blue Hydrogen Market Forecast (USD Billion), by Auto Thermal Reforming (ATR), 2019-2032
- Figure 43: Rest of World Blue Hydrogen Market Forecast (USD Billion), by Others, 2019-2032
- Figure 44: Rest of World Blue Hydrogen Market Value Share (%), By Application, 2024 & 2032
- Figure 45: Rest of World Blue Hydrogen Market Forecast (USD Billion), by Refinery, 2019-2032
- Figure 46: Rest of World Blue Hydrogen Market Forecast (USD Billion), by Chemical, 2019-2032
- Figure 47: Rest of World Blue Hydrogen Market Forecast (USD Billion), by Others, 2019-2032
- Figure 48: Company Market Share Analysis (%), 2024
