In 2022, the blue hydrogen market was worth around USD 17,654 million, and it is projected to advance at an 11.70% CAGR from 2022 to 2030, hitting USD 42,783 million in 2030, according to P&S Intelligence.
Blue hydrogen is commonly encouraged as a low-CO2 fuel for producing electricity, heating buildings, and powering automobiles, and a medium for storing power.
The high cost of crude oil instability and several taxes on diesel and gasoline have led to extensive growth in their price. Moreover, due to the increasing need and a lack of supply, crude oil costs have increased significantly. Crude oil transport prices are also mounting, which further creates gasoline and diesel dearer to the common people. Because of this, there is a rising demand for substitute fuels, like hydrogen.
In 2022, North America was the highest revenue generator, with a share of approximately 33%. The acceptance of improved production methods, huge expenditure in R&D, and the snowballing usage of hydrogen in the electric vehicle and aerospace sector in Canada and the U.S. drive the regional market's development.
The U.S., Saudi Arabia, the U.A.E., and Canada. have massive hydrocarbon reserves. The majority of such countries have a history of mounting the globe's power supply by leveraging their exclusive accessibility to cost-competitive natural fuels. When it comes to H2, such nations may potentially increase production through clean approaches. This could also boost the need for hydrogen power storage machinery, to utilize the gas for numerous determinations in times of high demand.
The petroleum refinery application in the blue hydrogen market is expected to produce a significant revenue share by 2030. Gas is the main chemical in the making of valuable items at plants. E&P and petrochemical businesses have been bound to restrict their CO2 footprints by government guidelines. Thus, for better-supportable operations, petroleum businesses are rapidly swapping conventional fuels with low-carbon and inexpensive substitutes.
The function of this chemical in fuel cell EVs is escalating. While H2 has long been known as a possible low-carbon transport fuel, mixing it into the mix of fuels has been verified as very complex. Furthermore, the high cost of the product is a key problem for truck builders, with the relative shortage of refueling pumps also hindering FCEV acceptance.
Though over the orthodox fossil fuels, which are rapidly exhausting, because this is becoming very costly, it has an edge. Apart from fuel cell EVs, the service is highly demanded in the aerospace industry, being a main rocket fuel.
Hence, the blue hydrogen industry is boosted by the increasing air pollution levels and government initiatives for net-zero carbon releases, such factors are driving the blue hydrogen industry.
