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Rising Demand For Low-Carbon Energy Fueling The Growth Of The Market Due To Emissions Reduction Goals: Strategic Insights Driving Chemical Blue Hydrogen Market Momentum in 2025
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.How Large Will the Chemical Blue Hydrogen Market Size By 2025?
The market size for blue hydrogen, a chemical compound, has been experiencing a significant increase lately. The sector is estimated to expand from its size of $0.85 billion in 2024 to become a $1.07 billion industry by 2025, with a 24.8% compound annual growth rate (CAGR). The considerable growth during the historical period was spurred by factors such as objectives for net-zero carbon emissions and decarbonization, carbon tax benefits and pricing, an increase in industrial processes with low carbon footprint, diversification of energy in geopolitical terms, and helpful government initiatives.
How Big Is the Chemical Blue Hydrogen Market Size Expected to Grow by 2029?
The blue hydrogen chemicals market is projected to undergo substantial expansion within the coming years, with predictions estimating its size to reach a staggering $2.56 billion by 2029, marking a compound annual growth rate (CAGR) of 24.5%. Key growth drivers contributing to this projection in the forecast period are regulations on carbon emissions, the widespread availability and affordable pricing of natural gas, increasing industrial hydrogen needs, rising local production rates, and a surge in demand for energy solutions with lower carbon footprints. Main trends expected in this forecast period consist of progress in carbon capture and storage technologies, advances in production methodologies, the adoption of transition fuels for decarbonization, strategic alliances and partnerships, and integration with sources of renewable energy.
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Which Key Market Drivers Powering Chemical Blue Hydrogen Market Expansion and Growth?
The progression of the chemical blue hydrogen market is set to be propelled by escalating demands for low-carbon energy solutions. Low-carbon energy entails energy sources that significantly minimize the emission of carbon dioxide (CO2) and other greenhouse gases compared to fossil fuels. The quest for low-carbon energy solutions is rising with governments, enterprises, and consumers eager to lower greenhouse gas emissions and fight global warming. Chemical blue hydrogen bolsters low-carbon energy solutions by offering a cleaner fuel alternative; it captures and stores CO2 emissions during production, diminishing the carbon footprint of industries dependent on hydrogen. For example, in March 2025, a report from the Department of Energy Security & Net Zero, a Government department based in the UK, stated that low-carbon sources contributed to 65.0% of the total electricity generation in 2024, setting a new record-a 4.7 percentage point increase compared to 2023. Consequently, the increasing demand for low-carbon energy solutions is fuelling the growth of the chemical blue hydrogen market.
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Which Fast-Growing Trends Are Poised to Disrupt the Chemical Blue Hydrogen Market?
Prominent businesses in the chemical blue hydrogen market are concentrating their efforts on the production of superior blue hydrogen technologies through Autothermal Reforming (ATR) and Partial Oxidation (POx) methods. These ATR and POx processes are employed at an industrial level for the creation of blue hydrogen, hydrogen derived from fossil fuels with carbon capture and storage (CCS), in order to mitigate greenhouse gas emissions. For example, in April 2023, a collaboration was established between Technip Energies NV, a France-based firm offering engineering and technology services majorly for the energy sector, and Casale Holding SA, a Swiss chemical manufacturing company. Their joint endeavor involves the development and licensing of advanced blue hydrogen technologies, with a focus on ATR and POx procedures. The objective of this partnership is to realize scalable and low-carbon hydrogen production with up to 99% carbon capture rates, facilitating the establishment of large-scale, economically viable blue hydrogen facilities. These firms provide a complete package composed of process design, proprietary equipment, and end-to-end plant solutions, thus propelling the global energy shift and assisting clients in achieving their decarbonization objectives.
What Are the Emerging Segments in the Chemical Blue Hydrogen Market?
The chemical blue hydrogen market covered in this report is segmented -
1) By Production Method: Steam Reforming, Coal Gasification, Water Electrolysis, Methane Pyrolysis
2) By Infrastructure: Production Facilities, Transportation Networks, Storage Systems, Distribution Channels
3) By End-Use Industry: Power Generation, Industrial Manufacturing, Chemical Manufacturing, Transportation
Subsegments:
1) By Steam Reforming: Natural Gas Steam Reforming, Autothermal Reforming (ATR), Partial Oxidation (POX)
2) By Coal Gasification: Integrated Gasification Combined Cycle (IGCC), Fluidized Bed Gasification, Entrained Flow Gasification
3) By Water Electrolysis: Alkaline Electrolysis, Proton Exchange Membrane (PEM) Electrolysis, Solid Oxide Electrolysis (SOEC)
4) By Methane Pyrolysis: Thermal Pyrolysis, Catalytic Pyrolysis, Plasma Pyrolysis
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Who Are the Global Leaders in the Chemical Blue Hydrogen Market?
Major companies operating in the chemical blue hydrogen market are Exxon Mobil Corporation, Shell plc, Uniper SE, TotalEnergies SE, BP p.l.c., Equinor ASA, Eni S.p.A., ENGIE SA, Iberdrola S.A., Suncor Energy Inc., thyssenkrupp AG, Linde plc, Mitsubishi Heavy Industries Ltd., Johnson Matthey Plc, Technip Energies N.V., Aker Solutions ASA, Petrofac Limited, Topsoe A/S, Aquaterra Energy Limited, Dastur Energy Private Limited
Which are the Top Profitable Regional Markets for the Chemical Blue Hydrogen Industry?
North America was the largest region in the chemical blue hydrogen market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the chemical blue hydrogen market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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