North America Steam Methane Reforming Hydrogen Generation Market Size & Share 2024 to 2032
Market Size by Application (Petroleum Refining, Chemicals, Power Generation, Transportation, Industry Energy).
Report ID: GMI9359
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Published Date: May 2024
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Report Format: PDF
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Authors:
Ankit Gupta, Srishti Agarwal
North America Steam Methane Reforming Hydrogen Generation Market
North America Steam Methane Reforming Hydrogen Generation Market size was valued at over USD 16.8 Billion in 2023 and is set to grow over CAGR 5.8% up to 2032. Majority of the hydrogen generation is from Steam Methane Reforming (SMR), wherein methane is derived from natural gas, heated with steam coupled with a catalyst to produce a mixture of carbon monoxide and hydrogen utilized in organic synthesis. Growing shift from fossil fuels to renewable energy sources coupled with the extensive utilization in industries comprising semiconductors will augment the market landscape.
North America Steam Methane Reforming Hydrogen Generation Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Growing awareness on clean energy, increasing crude oil consumption, along with enhanced focus toward renewable resources will drive the business scenario. Large scale investments toward expansion of the existing refining facilities in the developing countries is set to create significant opportunities for hydrogen manufacturers across the globe. Further, introduction of mandates and policies aiming toward clean energy adoption coupled with shifting focus toward onsite hydrogen generation will augment the product demand.
Growing investments in the refining sector, prevalence of the technology in the hydrogen along with rising demand for hydrogen in various industries, including transportation, power generation, and manufacturing, will augment the market landscape. Further, SMR is currently the most cost-effective method for large scale hydrogen production. Ongoing transition towards clean energy sources, will enable it to serve as a bridging solution, thereby leading to gradual decarbonization, thereby driving the industry scenario.
North America Steam Methane Reforming Hydrogen Generation Market Trends
Key factors comprising low cost electricity, access to hydro resources coupled with growing use of hydrogen in the renewable energy matrix will facilitate the hydrogen trade, thereby strengthening the market growth. Further, it is a cost-effective process, especially in areas with low natural gas prices. Its efficiency in converting natural gas into hydrogen coupled with economies of scale, will contribute to enhanced product demand across the region.
North America Steam Methane Reforming Hydrogen Generation Market Analysis
Based on application, the market is segmented into petroleum refining, chemical, power generation, transportation, industry energy and others. Transportation is anticipated to grow more than USD 2 Billion by the year 2032. Ongoing efforts to decarbonize the transport sector coupled with growing research and development activities amongst the industry manufacturers for hydrogen production methods will augment the industry landscape. For instance, in 2023, Ultra Safe Nuclear Corporation (USNC) of U.S. entered into a memorandum of understanding (MoU) with Hyundai Engineering and SK E&C for the commercialization of Hydrogen Micro Hubs in the coming five years.
Petroleum refining is expected to grow over 5% CAGR by the year 2032. involves hydro processing units such as hydrotreaters and hydrocrackers, which require hydrogen to remove impurities and upgrade hydrocarbon feedstocks. SMR provides a reliable and continuous source of high-purity hydrogen essential for these processes which will drive the business growth. Moreover, Sulfur Recovery Units (SRUs) recover elemental sulfur from hydrogen sulfide (H2S) present in the refinery off gases. A portion of the SMR derived hydrogen can be used to convert H2S into elemental sulfur, while the remaining is recycled for other refining processes contributing to the commercial demand.
Others segment consists of a variety of sectors such as agriculture, glass, pharmaceuticals, semiconductors, steel among others. It holds a vast potential to reduce greenhouse gas emissions and improve air quality in glass manufacturing. Ability to be blended with natural gas as a fuel for glass furnaces and reducing agent in direct reduction processes to convert iron ore into direct reduced iron (DRI) or sponge iron are some applications leveraging the use of SMR derived hydrogen, thereby impacting the product demand.
North America SMR hydrogen generation market is anticipated to grow more than USD 21 Billion by 2032 owing to availability of abundant natural gas resources, which serve as the primary feedstock for SMR. Extensive infrastructure for natural gas extraction, transportation and processing will drive the market growth. The existing infrastructure for SMR facilities, hydrogen pipelines, and storage facilities further reinforces its prevalence. In addition, the process can accommodate various feedstocks beyond natural gas, including biogas, propane, and naphtha. This further allows industries to adapt to changing market conditions and feedstock availability, thereby augmenting the product demand.
The U.S. accounts for more than 78% of the SMR hydrogen generation market share. Ongoing advancements in the technology, including the catalyst improvements and process optimization, continue to enhance efficiency, reduce emissions, and lower the operating costs. Further, supportive policies and incentive programs across the federal, state, and local levels will influence the product adoption. These include tax incentives, grants, loan programs, and regulatory frameworks promoting hydrogen use and emissions reduction efforts across the economy.
North America Steam Methane Reforming Hydrogen Generation Market Share
The key market players includes Air Products and Chemicals, Inc., Air Liquide, Linde plc, Messer, and CALORIC among others. Inorganic growth ventures including collaborations & acquisitions along with ongoing research and development efforts focus on improving SMR technologies, optimizing process efficiency will support the manufacturers to achieve a competitive edge. Additionally, various merger & acquisitions will enable the eminent industry leaders to capture a larger proportion of the market share.
North America Steam Methane Reforming Hydrogen Generation Market Companies
Some of the key market players operating across the North America SMR hydrogen generation industry are:
North America Steam Methane Reforming Hydrogen Generation Industry News:
North America Steam Methane Reforming Hydrogen Generation market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘USD Billion’ from 2021 to 2032 for the following segments:
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