Blue Hydrogen Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025 - 2032)

Blue Hydrogen Market Dynamics

Rapid Market Growth Expected in Hydrocarbon-Rich Countries

• The U.S., Canada, Saudi Arabia, and the U.A.E. have enormous hydrocarbon reserves.
• They have a history of expanding the world's energy supply, by leveraging their exclusive access to price-competitive natural resources.
• When it comes to hydrogen, these countries might potentially scale up production via clean methods.
• This could also drive the demand for technologies, to use the gas for various purposes in times of high demand.
• Apart from their easy access to hydrocarbon resources, the competitive supply of H₂ from HRCs is expected to be fueled by the affordability of renewable energy, strong local demand, advantageous location, and a track record of supplying fuel to international energy markets.
• This way, OPEC members could become leading clean H2 providers; however, depending on how they use their resources, they may hold different positions in the industry.
• These countries have well-established petroleum refining, chemical production, and steel manufacturing industries, which are major consumers of consumer of hydrogen.
• Due to the rising environmental concerns across the globe, countries are targeting the reduction in greenhouse gas emissions, to mitigate the risk of climate change.
• As per the International Energy Agency, worldwide GHG emissions from energy production rose by 0.8% in 2024, reaching a new record of 37.8 Gt, while those from fuel combustion increased by 1% or 357 Mt.
• Many industries, such as steel production, chemical manufacturing, and oil refining, are adopting blue hydrogen over fossil fuels for numerous processes.
• Governments of many countries are providing subsidies and incentives for the development of low-carbon technologies, which is helping lower the initial investment required for blue hydrogen infrastructure development.
• In March 2025, Saudi ARAMCO completed the acquisition of a 50% stake in Blue Hydrogen Industrial Gases Company, to accelerate industrial carbon reduction and encourage the usage of hydrogen energy.
• The integration of carbon capture technologies into the steam–methane reforming (SMR) process helps in reducing emissions.
• In January 2023, Exxon Mobil Corporation was awarded a contract for blue hydrogen projects in the Baytown facility in Texas.
• The project aims to capture up to 10 million metric tons of CO₂ annually.

High Production Cost of Blue Hydrogen Is Restraining Market Growth

• The primary process involved in the production of blue hydrogen is SMR, which uses natural gas as the feedstock.
• It is becoming increasingly expensive due to the raw material supply chain disruption.
• The carbon capture and storage systems involved in the capturing of carbon emissions during the SMR process add to the total operational cost, making the production of blue hydrogen more expensive.
• Due to the high cost associated with the production of blue hydrogen, many businesses resist entering the market, thus driving down its growth potential.
• Moreover, businesses are preferring green hydrogen over blue hydrogen due to its decreasing prices due to improvement in the electrolysis technology and its overall higher eco-friendliness.

Blue Hydrogen Market Segmentation and Category Analysis

Technology Insights

The steam–methane reforming category held the largest market share of 75%, in 2024, and it is likely to expand significantly throughout the forecast period. The technique of in-house pressure swing absorption purification, which can be used to efficiently produce high volumes of pure H₂, is one of the main drivers propelling the expansion of the category. This procedure, which involves heating methane in the presence of steam and a catalyst, has grown immensely popular as an affordable means of industrial hydrogen production.

Additionally, because of its purity, the hydrogen produced by SMR can be used in fuel cells and industrial processes.

The auto-thermal reforming category is expected to grow in the forecast period. The rising need for hydrogen as a fuel in numerous applications, as well as the various strict regulations on emissions from automobiles and industrial plants, is contributing to the market growth in this category. Additionally, the introduction of cutting-edge auto-thermal reforming technologies and the increasing cost of crude oil are projected to accelerate the market's expansion.

Based on technology, the market has the following categories:

• Steam Methane Reforming (SMR) (Largest Category)
• Gas Partial Oxidation (POX)
• Auto Thermal Reforming (ATR) (Fastest-Growing Category)

End User Insights

Petroleum refineries are the largest category with 65% market share in 2024. This is due to the importance of hydrogen in refining processes, such as hydrocracking and desulfurization of crude oil. Additionally, the adoption of hydrogen for energy production in petroleum refineries helps the move toward emission reductions. n April 2024, Essar Group transitioned its Stanlow oil refinery in the U.K. to hydrogen power, replacing traditional fueling systems.

The chemical industry will grow at the highest CAGR during the forecast period. This is due to the increasing demand for the hydrogen as a feedstock to produce ammonia, methanol, and other chemicals.

Based on end user, the market has the following categories:

• Petroleum Refineries (Largest Category)
• Chemical Industry (Fastest-Growing Category)
• Power Generation Facilities
• Others

Blue Hydrogen Market Geographical Analysis

North America was the largest market, with a share of around 40% of the global revenue, in 2024. The adoption of cutting-edge production techniques, significant investments in research and development, and the increasing use of H₂ in the aerospace and electric vehicle industries in the U.S. and Canada contribute to the regional market's growth.

Additionally, in the U.S., investments in blue hydrogen are expected to grow significantly in 2025. At least three large-scale projects are likely to move forward with final investment decisions, supported by favorable regulatory frameworks and incentives. Furthermore, the U.S. government has introduced a tax credit system that will benefit cleaner hydrogen producers, by reducing hydrogen costs.

For instance, Marsh created a novel insurance and reinsurance ecosystem in August 2022, offering coverage for both new and current blue hydrogen projects. It is designed in partnership with Liberty Specialty and AIG to offer risk coverage of up to USD 300 million for the startup and construction phases of such projects.

Europe will grow at the highest CAGR during the forecast period. Germany, France, and U.K. are investing heavily in blue hydrogen production to meet the global decarbonization goals. Additionally, governments of Germany and the Netherlands are providing financial support, subsidies, and tax incentives for hydrogen production.

Furthermore, the European Commission is investing heavily in the development of infrastructure for the transportation of blue hydrogen. In November 2023, European Commission announced subsidies for the development of a pipeline for the transportation of blue hydrogen from Norway to Germany. The total investment by the EU is approximated up to EUR 5.4 billion.

Moreover, due to a significant increase in the demand for this gas from numerous sectors, such as fertilizers, chemicals, and refining, in India, China, South Korea, and Malaysia, its production and sale in Asia-Pacific are expected to grow significantly during the forecast period. China is the greatest producer and consumer of this fuel in the region, consuming more than 24 million tonnes each year. The rising count of government attempts to ensure there are no emissions in the country is a key factor driving the market expansion.

Based on geography, the market has the following categories:

• North America (Largest Regional Market)
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe (Fastest-Growing Market)
  • Germany (Largest-Country Market)
  • U.K.
  • France (Fastest-Growing Country Market)
  • Italy
  • Spain
• Asia-Pacific
  • Japan (Largest Country Market)
  • China
  • India (Fastest Growing Country Market)
  • South Korea
  • Australia
• Latin America
  • Brazil (Larger Country Market)
  • Mexico (Faster-Growing Country Market)
• Middle East and Africa
  • Saudi Arabia (Larger-Country Market)
  • South Africa
  • U.A.E. (Faster-Growing Country Market)

Blue Hydrogen Market Share

The blue hydrogen market is fragmented due to the wide variety of players, including industrial gas suppliers, refineries, chemical producers, and utility companies. The market has both multinational companies and regional players, particularly in the MEA, North America, and Europe. Additionally, companies such as ExxonMobil, Shell, BP, and Air Liquide are forming partnerships to invest in large-scale blue hydrogen projects. This collaborative approach is helping companies get combined expertise in carbon capture, infrastructure development, and hydrogen production.

Blue Hydrogen Market Developments

• In September 2024, Exxon Mobil Corporation partnered with Mitsubishi Corporation on a green hydrogen project in Texas. Under the preliminary agreement, Mitsubishi will utilize ammonia from the Baytown facility for power generation, process heating, and other industrial applications in Japan.
• In February 2025, Air Liquide SA announced two large-scale electrolyzer projects to produce low-carbon hydrogen energy in Europe with a total investment of EUR 1 million. The project is aimed at reducing CO₂ emissions by up to 500,000 tonnes annually.
• In March 2023, BP plc and Equinor ASA partnered to develop a large-scale blue hydrogen production facility in the U.K.
• In January 2023, the European Union allocated EUR 5.4 billion for blue hydrogen projects under its REPowerEU initiative, with the goal of decreasing reliance on Russian fossil fuels and supporting the shift toward cleaner energy sources.