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The blue hydrogen market size is forecast to increase by USD 16.06 billion, at a CAGR of 13.75% between 2023 and 2028. The report includes historic market data from 2018-2022. The market is witnessing a growing demand for the growing adoption of fuel cell-powered vehicles, the development of regional hubs and clusters, and the growing investments by companies
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The growing adoption of fuel cell-powered vehicles is the primary trend in the market. Environmentally sustainable technologies such as fuel cells are finding high adoption in the transport sector. Fuel cell systems are emerging as a promising fuel solution in the transport sector and are being adopted widely by several EV and material-handling equipment manufacturers. In the transport sector, range extension and/or propulsive power to vehicles such as material-handling vehicles, FCEVs, trucks, buses, rails, and autonomous vehicles. Primarily, passenger cars and material-handling vehicles have been boosting the adoption in the transport sector.
For instance, in December 2018, Hyundai Motor Group announced a long-term roadmap FCEV Vision 2030 plan to produce 700,000 fuel cell units annually by 2030. In addition, the company has been exploring new business opportunities for supplying its fuel cell systems to manufacturers of automobiles, vessels, drones, rolling stocks, and forklifts. This is used to manufacture fuel cells for electric vehicles and heavy transport such as shipping. Therefore, the growing adoption of vehicles will increase the demand for blue hydrogen, which will thus drive the growth of the market in focus during the forecast period.
Steam methane reforming (SMR) is a process by which methane is produced from natural gas by heating it with steam, typically with a catalyst such as copper, nickel, and zinc. Carbon monoxide and additional water are products of the SMR process. The carbon monoxide is converted to carbon dioxide, resulting in more hydrogen, which is used as fuel.
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Further, SMR helps to produce blue hydrogen with low carbon dioxide emission and lower cost than that of gas partial oxidation and auto thermal reforming. However, auto thermal reforming (ATR) is estimated to gain full momentum by 2030 owing to its benefits over SMR, such as high decarbonization capacities and favorable funding scenarios. Thus, the market growth of the segment is projected to slightly slow down during the forecast period.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America's market is propelled by its adoption across industries like chemicals, refining, and transportation to curb emissions. The US and Canada lead this market, spurred by supportive government policies and incentives. In the US, initiatives like the Department of Energy's Hydrogen and Fuel Cells Program drive R&D and infrastructure development. Fuel cell deployment in stationary and mobile applications is bolstered by policies like the Federal Investment Tax Credit. Canada is also investing in infrastructure, with initiatives like funding fueling stations. Thus, such government support and technological advancements are poised to significantly boost the market in North America during the forecast period.
Increasing government focus is the key factor driving the market. Growing government initiatives and policies, such as the European Union's ambitious Hydrogen Strategy, are pivotal in shaping the trajectory of the market, providing crucial support and direction for its expansion. One notable example is the European Union's ambitious Hydrogen Strategy, which aims to establish a clean hydrogen market and facilitate the production of blue hydrogen using renewable energy sources. On the national level, Germany's National Hydrogen Strategy is a comprehensive plan to advance hydrogen technologies, with a focus on both domestic and international partnerships.
Similarly, in the US, the Biden administration's focus on clean energy has led to the inclusion of hydrogen in the American Jobs Plan. The plan allocates substantial funds for the development and deployment of such technologies, emphasizing their role in achieving climate goals and promoting job creation. Additionally, technological advancements such as reforming technology and partial oxidation are enhancing the efficiency of blue hydrogen production while reducing carbon emissions. These initiatives are driving the adoption of blue ammonia and cryogenic liquid tankers as a preferred transportation mode for hydrogen, meeting the growing demand blue hydrogen while minimizing thermal losses. Thus, the increasing government focus on boosting clean hydrogen generation is expected to drive the growth of the market in focus during the forecast period.
High costs associated with production is a major challenge that affects market expansion. The production costs associated with different hydrogen types, particularly green and blue hydrogen produced through renewable energy, remain relatively high. The current levelized cost of production ranges widely from USD 1 to 4 per kilogram, rendering it economically unviable. Similarly, in 2021, the cost of blue hydrogen in the UK was around 35%-40% higher than the expected price for the same year.
Further, the capital cost encompasses essential components such as the reformer unit, steam turbine, necessary balance of plant, and other units depending on the technology employed. CAPEX encompasses expenses related to the reactor units, essential balance of plant components, and electricity grid connection. On the other hand, OPEX includes costs linked to various variable and fixed parameters. Thus, the high costs associated with the production may impede the expansion rate of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market report also includes detailed analyses of the competitive landscape of the market and information about 17 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research and growth report forecasts market growth analysis by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Blue hydrogen, a synthetic energy carrier, emerges as a game-changer in the fossil fuel dominated market. Its potential spans diverse sectors, including transportation, aerospace, and material handling equipment. Fuel cell electric vehicles and commercial aircraft are swiftly integrating blue hydrogen due to its low-carbon footprint and compatibility with existing gas networks. However, challenges persist. Technological obstacles hinder mass adoption, while legal obstacles and interoperability problems stall progress.
Despite this, pilot projects showcase its viability, attracting industrial clients seeking low-carbon fuel options. Hydrogen refueling stations are burgeoning, but energy loss during water electrolysis remains a concern. The blue hydrogen market revolutionizes energy landscape with a focus on energy efficiency and behavioral modification, the value chain aims for net zero emission targets. The future hinges on overcoming hurdles and embracing low-carbon technologies for a sustainable energy system.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.75% |
Market Growth 2024-2028 |
USD 16.06 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
13.55 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 39% |
Key countries |
US, China, Germany, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Air Liquide SA, Air Products and Chemicals Inc., Ceres Power Holdings plc, CERTIFHY CONSORTIUM, Chart Industries Inc., Cummins Inc., Equinor ASA, Exxon Mobil Corp., Iwatani Corp., Linde Plc, Messer SE and Co. KGaA, Mitsubishi Corp., Nel ASA, Orsted AS, Shell plc, Siemens AG, and Uniper SE |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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