BLUE HYDROGEN MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Regional Analysis

To learn more about this report, Request sample copy

Dominating Region: North America

North America is projected to lead the blue hydrogen market in 2024 with 39.5% of the market share, driven by supportive government policies, subsidies, and pilot programs in the U.S. and Canada. The region's strong industrial sectors, including oil, gas, chemicals, and manufacturing, have also fostered the development of established hydrogen infrastructure and expertise.

Fastest-Growing Region: Europe

Europe exhibits the fastest growth in the blue hydrogen market owing to rising energy demands and investments in related technologies. Germany has emerged as a leader with ambitious targets for hydrogen utilization and fuel cell vehicles. Major companies like Iwatani, JXTG, and Kawasaki Heavy Industries are contributing to the hydrogen value chain.

Blue Hydrogen Market Outlook for Key Countries

Blue Hydrogen Market in China: Growth Driven by Energy Security and Emission Reduction Goals

The blue hydrogen market in China is growing due to the country's focus on sustainable energy and its large natural gas reserves. Blue hydrogen, produced through natural gas reforming with carbon capture and storage (CCS), supports China’s goals of energy security and reducing carbon emissions. In March 2022, China set a target to produce 100 metric tons of hydrogen by 2060, with a significant portion coming from blue hydrogen as part of its clean energy transition strategy.

Germany’s Role in the European Blue Hydrogen Market: A Key Player in the Energy Transition

Germany is a significant player in Europe's blue hydrogen market, driven by ambitious climate goals and a commitment to reducing greenhouse gas emissions. The country's strategy incorporates both green and blue hydrogen as essential components of its energy transition. Germany is investing heavily in hydrogen infrastructure, including production plants and carbon capture and storage (CCS) technologies, to support blue hydrogen production. In July 2023, Germany updated its National Hydrogen Strategy, doubling the target for domestic electrolyzer capacity from 5 GW to at least 10 GW by 2030. This expansion aims to bolster green hydrogen production, which, alongside blue hydrogen, is integral to the nation's energy transition.

The U.K.'s Hydrogen Strategy: Leveraging Blue Hydrogen for Industrial Decarbonization

The U.K. is positioning itself as a leader in the hydrogen economy, with a clear focus on decarbonizing its industrial sectors. The U.K. government has committed to a hydrogen strategy that includes blue hydrogen alongside green hydrogen. The U.K. benefits from an established natural gas infrastructure and significant offshore CO2 storage potential, which makes it well-suited for blue hydrogen production. Blue hydrogen is seen as a transitional solution in the U.K., helping to reduce carbon emissions from industries like chemicals, cement, and steel. In July 2021, the government has set a target to produce 10 GW of low-carbon hydrogen by 2030, with blue hydrogen contributing a substantial share.

Blue Hydrogen in the U.S.: Expanding Market Driven by Natural Gas and CCS Technology

In the U.S., the blue hydrogen market is rapidly expanding, driven by the country’s abundant natural gas reserves and significant interest in CCS technology. The U.S. government has outlined plans to increase hydrogen production through both blue and green hydrogen, with blue hydrogen playing a key role due to the low cost of natural gas and advanced CCS technologies. Federal incentives, such as the Hydrogen Production Tax Credit, are further supporting the development of blue hydrogen. The U.S. aims to position hydrogen as a key part of its energy future, particularly in decarbonizing heavy industries and transportation.

Canada Blue Hydrogen Market: Leveraging Natural Gas and CCS for a Net-Zero Future

Canada is well-positioned to develop a strong blue hydrogen market, owing to its vast natural gas resources and expertise in CCS technologies. For instance, according to Government of Canada, data reported in 2023, The federal government has committed US$1.5 billion through the Clean Fuels Fund to boost domestic clean fuel production, including hydrogen. As of October 2023, approximately 10 hydrogen production projects have been selected for support, totaling over US$300 million in investments.