Europe Steam Methane Reforming Hydrogen Generation Market Size & Share 2024 - 2032
Market Size by Application (Petroleum Refining, Chemicals, Power Generation, Transportation, Industry Energy), Country Outlook & Forecast.
Report ID: GMI9049
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Published Date: April 2024
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Report Format: PDF
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Authors:
Ankit Gupta, Srishti Agarwal
Europe Steam Methane Reforming Hydrogen Generation Market
Europe Steam Methane Reforming Hydrogen Generation Market was valued at USD 26.7 billion in 2023 and is anticipated to grow at a CAGR of 6.9% between 202 and 2032. Steam Methane Reforming (SMR) is a well-established and widely used method for large-scale production of hydrogen owing to its efficiency and cost-effectiveness. It is commonly employed in industries including petrochemicals, ammonia production, and refining, where hydrogen is utilized as a key feedstock or reactant. Additionally, SMR can be integrated with carbon capture and storage (CCS) technologies to mitigate greenhouse gas emissions by capturing and storing the CO2 produced during the process.
Europe Steam Methane Reforming Hydrogen Generation Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Positive outlook toward the expansion of the industrial base across developing economies along with growing demand for hydrogen as a fuel across chemical and refinery industries will continue to drive the business growth. Further, various policies encouraging the decarbonization of the energy system is set to influence the large-scale deployment of the systems and lead to cost reductions.
Evolution of hydrogen over the past decade is attributed to its longstanding potential as a clean energy solution. Introduction of H as an industrial feedstock in new application areas comprising the metal & semiconductor market will enhance the potential of it becoming a low carbon technology option. Moreover, mandates to curb the overall emission levels in the industries coupled with ongoing initiatives by the respective government toward utilization of low emission fuels will boost the product demand.
Europe Steam Methane Reforming Hydrogen Generation Market Trends
SMR offering competitive production costs compared to alternative hydrogen production methods comprising electrolysis in line with favorable economic conditions incentivizing investments in such systems will enhance the business statistics. For instance, in 2022, the hydrogen generation through Steam Methane Reforming (SMR) levelized production cost of was accounted for about 6.23 USD/kg in Europe. Additionally, streamlining the existing manufacturing processes to reduce the carbon footprint will augment the industry landscape.
Europe Steam Methane Reforming Hydrogen Generation Market Analysis
Based on application, the petroleum refining SMR hydrogen generation market is projected to surpass USD 20 billion by 2032. Rising investments to desulfurize the petroleum products along with the upgradation and expansion of refineries to comply with the clean energy targets will stimulate the business outlook. Augmented demand for fertilizers in other application areas including agriculture combined with the existing policy framework will further strengthen the industry dynamics.
Chemical steam methane reforming hydrogen generation witnessed a market share of over 37% in 2023. Advancements in catalyst technology, process optimization, and plant design coupled with higher demand for onsite generation by various industries will fuel the product penetration. Moreover, growing investments & incentive programs including loan guarantees & tax credits by the state government will strengthen the industry outlook.
Russia steam methane reforming hydrogen generation market is estimated to reach USD 9 billion by 2032. Rising energy demand from various end user segments along with increasing cross border & sector strategic partnerships will complement the business scenario. Evolving regulatory landscape across the country combined with large scale adoption of energy efficiency targets provide a foundation for the national development of net zero carbon pathway. For instance, Russia aims to reach its net zero emissions target by 2060. Additionally, rretrofitting of conventional fuels with CCUS methods will support the adoption of carbon negative fuel, thereby enhancing the industry potential.
Growing investments & incentive programs including loan guarantees & tax credits by the state government combined with significant developments in charging & fueling infrastructures in the U.S. will boost the product adoption. Furthermore, rising fuel cell deployments primarily in California along with introduction of various federal tax incentives will sway the business trends.
Europe Steam Methane Reforming Hydrogen Generation Market Share
Air Liquide, Air Products & Chemicals, Inc., ALLY HI-TECH CO., LTD., CALORIC, HyGear, and Linde plc are some of the major industry players. Collaborative efforts lead to the development of innovative technologies, improved process efficiency, and cost reductions in steam methane reforming. Manufacturers of steam methane reforming equipment, catalysts, and other essential components play a pivotal role in the market. Furthermore, their ability to innovate, produce high-quality products, and meet the evolving needs of hydrogen producers influences the competitiveness and efficiency of SMR facilities.
Europe Steam Methane Reforming Hydrogen Generation Market Companies
Major key players operating across the Europe steam methane reforming hydrogen generation industry include:
Europe Steam Methane Reforming Hydrogen Generation Industry News
This Europe steam methane reforming hydrogen generation market research report includes an in–depth coverage of the industry with estimates & forecast in terms of revenue in ‘USD Billion’ from 2021 to 2032, for the following segments:
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Market, By Application
The above information has been provided for the following countries:
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