Steam Methane Reforming Blue Hydrogen Market Size & Share 2026-2035

Steam Methane Reforming Blue Hydrogen Market Size

The global steam methane reforming blue hydrogen market was estimated at USD 2 billion in 2025. The market is expected to grow from USD 2.2 billion in 2026 to USD 4.7 billion in 2035, at a CAGR of 8.9% according to a recent study by Global Market Insights Inc.

Increasing demand for cost-effective low-carbon hydrogen production across heavy industries is significantly driving the adoption of SMR integrated with carbon capture solutions. Industries such as refining, ammonia, and methanol production are leveraging SMR due to its technological maturity, proven reliability, and compatibility with existing infrastructure. This enables efficient large-scale hydrogen production while reducing emissions, thereby strengthening business growth.

The increasing implementation of enabling government policies, carbon pricing, and financial incentives is also stimulating the development of SMR-based blue hydrogen projects worldwide. Carbon capture and storage technologies supportive policies are making the project economics more favorable and decreasing risks for the investors. This is encouraging companies to move to blue hydrogen production alternatives thereby boosting the market prospects.

Moreover, high emission reduction potential of SMR with carbon capture technologies is a key factor supporting its deployment in blue hydrogen projects. A 2025 research study shows that integrating carbon capture with SMR reduces emissions from 9–12 kg CO₂/kg H₂ to 2–3 kg CO₂/kg H₂, achieving over 75% reduction, thereby strengthening process adoption in low-carbon hydrogen production.

Growing advancements in carbon capture integration and process optimization technologies within SMR systems are enhancing operational efficiency and reducing overall carbon intensity. Innovations in capture rates, heat recovery, and system design are making SMR-based blue hydrogen more competitive with alternative clean hydrogen pathways. These developments are enabling broader industrial adoption and commercialization, thereby escalating process adoption.

Steam Methane Reforming Blue Hydrogen Market Trends

• The increase in the establishment of industrial clusters that integrate the hydrogen produced using SMRs along with carbon capture technology is setting the trend for the market. This approach allows centralization of hydrogen production, sharing of CO2 transport, and carbon storage facilities, leading to decreased total costs of projects. Moreover, governments and industries are prioritizing cluster-based approaches to accelerate decarbonization across refining and chemical sectors, thereby strengthening long-term market outlook.
• Increasing trends toward retrofits for existing grey hydrogen facilities, based on SMRs, with carbon capture solutions, are becoming a major trend. By adopting such solutions, companies will be able to decarbonize their operations, not having to construct new plants. Increasing carbon pricing and emission reduction mandates are encouraging such upgrades, thereby escalating adoption of SMR-based blue hydrogen processes.
• Rising focus on developing mega-scale hydrogen production facilities using SMR with carbon capture is driving market expansion, as industries seek economies of scale and reliable supply. Large projects are being designed to meet growing industrial and energy demand while lowering carbon intensity. These investments are positioning SMR as a cornerstone technology for future hydrogen supply chains, thereby strengthening business growth potential.
• For instance, Equinor’s H2H Saltend blue hydrogen project (600MW) received planning permission from the UK in February 2024, to substitute the current SMR unit with advanced reforming and CCS technology that will capture over 95% CO 2. The project will aid industrial decarbonisation.

Steam Methane Reforming Blue Hydrogen Market Analysis

Based on application, the industry is segmented into petroleum refinery, chemical, steel & metal processing, power generation and others. Petroleum refinery segment dominated the steam methane reforming blue hydrogen market, accounting for 55.5% in 2025 and is expected to grow at a CAGR of 6.8% through 2035.

• The growing consumption of hydrogen for processes in the petroleum refining sector including hydrocracking, hydrotreating, and desulfurization is the main driver for the growth of SMR based blue hydrogen. Refineries require a continuous and large-scale hydrogen supply, and SMR offers a reliable, established solution. In addition, the inclusion of CC enables the facility to satisfy emission standards without negatively impacting the operations efficiency; therefore, SMR is considered a promising technology route for the reduction of hydrogen consumption within the refinery.
• The rapid growth of retrofitting existing SMR units with carbon capture (CC) technology contributes to increasing adoption in the refinery sector where most facilities already employ SMR technologies for hydrogen production. This allows a smoother transition to CC without significant changes to the infrastructure. This minimizes both the capital costs and lead time, and allows the plant to continue to meet environmental standards, thus enhancing refinery decarbonisation outlook.
• The steel & metal processing is anticipated to expand at a CAGR of 20.2% by 2035. The growing demand for low-carbon steel production is augmenting SMR based blue hydrogen consumption in the steel & metal processing sector as the industry aims to lower its emission levels associated with conventional blast furnace based production processes. SMR based hydrogen production with carbon capture technology is an economically viable, dependable, and scalable source of hydrogen required for direct reduced iron (DRI) production processes. It facilitates decarbonization without impacting the productivity in the sector.

• U.S. steam methane reforming blue hydrogen market is anticipated to grow over USD 1 billion by 2035. The growing focus in the U.S. on production of hydrogen with reduced carbon emissions through different programs including the Hydrogen Program initiated by the U.S. Department of Energy for developing and implementing technologies related to clean fuels is influencing the industry statistics. The availability of major energy companies along with natural gas infrastructure and low natural gas prices creates an opportunity for process implementation.
• Europe steam methane reforming blue hydrogen industry is anticipated to grow over USD 1.9 billion by 2035. Rising supportive regulatory frameworks and high carbon pricing mechanisms across Europe are driving the adoption of SMR-based blue hydrogen, as industries seek cost-effective ways to reduce emissions. Policies integrating carbon capture into low-carbon hydrogen definitions, along with carbon pricing under emissions trading systems, improve project economics and incentivize transition from grey hydrogen, thereby strengthening regional market outlook.
• Asia Pacific steam methane reforming blue hydrogen market is anticipated to grow at a CAGR of 8.7% by 2035. Growing number of policies backed by government for hydrogen across the Asia Pacific region is fueling demand for blue hydrogen produced through SMR technology as nations are looking to decarbonize their industries while also maintaining energy security. With favorable policies, subsidies, and investment, rapid adoption of hydrogen infrastructure along with reforming processes with CCS is leading to increased hydrogen production. For instance, June 2025, INPEX has begun commissioning Japan’s first blue hydrogen project, expected to produce ~700 tonnes per year with CCS, supported by government funding and policy initiatives.

Steam Methane Reforming Blue Hydrogen Market Share

Industry leaders are partnering with other companies, technology vendors and researchers to speed up technology deployment and market adoption. Leading players are investing in new, and in some cases, upgrading their existing, production capacity due to the expected growth in demand for low carbon hydrogen. In many cases, such expansions are helped by government support mechanisms and regulations facilitating clean hydrogen technology uptake.

Steam Methane Reforming Blue Hydrogen Market Companies

Eminent players operating in the steam methane reforming blue hydrogen industry are:

• Air Liquide
• Air Products & Chemicals
• Axens
• Casale
• Chevron
• Equinor
• HydrogenPro
• John Wood Group Limited
• KSB SE & Co. KGaA
• Linde
• Mahler AGS
• Nextchem
• Pyramid E&C
• Repsol
• Reset Energy
• Saudi Aramco
• Shell
• Suncor Energy
• TOPSOE
• Valero Energy

Steam Methane Reforming Blue Hydrogen Industry News

• In February 2026, Casale signed a strategic MoU with the Paralloy Group. Through the partnership they plan to co-commercialize sophisticated reformer tube technology with integration of material development and process design expertise. This synergy is intended to provide for greater SMR efficiency and capacity, fuel savings and reduced CO₂ emissions from syngas and hydrogen production processes.
• In November 2025, Inpex Corporation has assigned an integrated blue hydrogen and ammonia plant in Japan, designed to produce hydrogen from natural gas with capturing associated carbon emissions and with the hydrogen which was converted into ammonia for easier storage and transport. This plant will surge to produce around 700 tonnes of ammonia annually, supporting Japan’s efforts to develop a hydrogen-based energy supply chain and reduce industrial emissions.
• In November 2025, H2Teesside is planned to be one of the largest blue hydrogen plants in the UK and aims to have a capacity of 1.2 GW by 2030, using steam methane reforming combined with CCS to create low carbon hydrogen from natural gas for industrial de-carbonisation.

Steam methane reforming blue hydrogen market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue and volume in “(USD Billion & MT)” from 2022 to 2035, for the following segments:

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Market, By Application

• Petroleum refinery 
• Chemical
• Steel & metal processing
• Power generation
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • Oman
  • UAE
  • Kuwait
  • Qatar
  • South Africa
• Latin America