Steam Methane Reforming Hydrogen Generation Market Size - By Application (Petroleum Refining, Chemicals, Power Generation, Transportation, Industry Energy) & Global Forecast, 2024 – 2032

Steam Methane Reforming Hydrogen Generation Market size

Steam Methane Reforming Hydrogen Generation Market was valued at USD 140 billion in 2023 and is anticipated to grow at over 6.4% CAGR from 2024 to 2032. Hydrogen as an element is available in abundance owing to its high chemical affinity. The product is produced from a wide variety of feedstocks using renewable and non-renewable processes.
 

The main technology utilized for hydrogen generation comprise of Steam Methane Reforming (SMR). It is a process where methane derived from natural gas is heated with steam along with a catalyst to produce a mixture of carbon monoxide and hydrogen utilized in organic synthesis. Swift shift from fossil fuels to renewable energy sources along with the extensive applications in industries including semiconductors will propel the SMR hydrogen generation market growth. Further, rising awareness toward clean energy coupled with greater focus toward utilization of renewable resources will drive the market share.
 

Increasing crude oil consumption along with surging investments toward the expansion of existing refining facilities across the developing economies will create significant market opportunities for various hydrogen manufacturers across the globe. Introduction of various policies aiming toward clean fuel adoption coupled with rising investments across the refining sector is set to stimulate the business scenario. Introduction of regulations of various incentive programs to limit the sulfur content in fuels comprising gasoline, diesel fuel, and motor oil is set to stimulate the steam methane reforming hydrogen generation market share. However, high production cost, safety concerns, slow infrastructure development, high amount of CO2 residual, coupled with transforming regulations limiting the SMR hydrogen generation adoption are some of the major concerns limiting the market growth.

COVID-19 Impact

The outbreak of corona virus has resulted in a pandemic which has adversely affected the global economy. It has affected the overall consumption pattern of hydrogen, thereby impacting the steam methane reforming hydrogen generation market growth. The delay of various construction projects including H? infrastructural development owing to lockdown enforcement in various economies will further impact the hydrogen demand. The requirement for massive investments to combat the pandemic along with the chronic imbalance between supply and demand may further challenge the market. However, the firms are adopting resourceful methods to recruit workforce to cope up with the upcoming production needs.
 

Steam Methane Reforming Hydrogen Generation Market Analysis

The steam methane reforming hydrogen generation market from transportation segment is projected to reach USD 9.5 Billion by the year 2032. Ongoing efforts toward utilization of hydrogen for decarbonizing transport sector along with involvement of key players in design, development & promotion of technology is set to drive the industry growth. For instance, METI plans to introduce a fleet of 900 refueling stations along with 1,200 buses by the year 2030. Key factors including access to hydro resources, low cost electricity, along with renewable energy matrixes will facilitate the hydrogen trade to other European and Asian markets thereby providing an impetus to its market growth.
 

The power generation segment will expand at 8% CAGR through 2032, due to growing demand for hydrogen based fuels for power generation along with its rising utility in the commercial buildings. For instance, the IEA, in 2030, estimates nearly 4 metric tonnes of blended hydrogen would be potentially used to heat the buildings. Infrastructural upgrades coupled with enhanced safety measures is set to enhance the direct use of hydrogen in boiler units, contributing to the commercial demand.
 

Others segment includes a variety of sectors including glass, agriculture, pharmaceuticals, semiconductors, among others. It holds a vast potential in the upcoming years owing to upcoming opportunities in buildings, power industry and the transport sector. Utilization of hydrogen beyond the traditional existing industrial applications will augment the market growth. Industries comprising aviation along with shipping have limited options in terms of low carbon fuel and thus hydrogen can support in addressing the environmental targets. Although, hydrogen based fuels have higher energy consumption along with higher costs but policy changes to achieve low carbon targets is set to substantially support the market revenue.
 

Asia Pacific steam methane reforming hydrogen generation market is estimated to observe around 6% CAGR during the forecast period, owing to rising energy demands. Growing refinery operations in countries including China and India is set to drive the market growth. According to IEA 2019, Japan and China are the largest LNG importers with the highest potential for hydrogen development. Growing funding from numerous research institutes and industry players along with rising government focus toward green hydrogen production technologies is set to significantly drive the industry growth.
 

For instance, the Government of China invested more than USD 200 million for research & development of fuel technology projects, to achieve the mass production of its vehicle fleet by end of 2020. In addition, ongoing pilot projects including the supply of hydrogen from natural gas for power plant use in Japan will support the hydrogen trade in the country. The manufacturers operating across the region are concentrating on international hydrogen trade to achieve the low carbon hydrogen economy.
 

North America, Asia Pacific and Europe jointly account for more than 80% of the hydrogen generation market share. High population density, presence of numerous manufacturing facilities along with substantial investments toward fuel cell development has made Asia Pacific one of the major stakeholders across the globe. Positive outlook toward the refining sector along with the government focus on the development of new industrial facilities including chemical, automotive, and power among others will foster the demand for SMR hydrogen generation units across the region.
 

Latin America SMR hydrogen generation market is set to witness substantial gains owing to reduced costs for various non-conventional renewable energy resources. Utilization of hydrogen for energy storage coupled with abundant availability of renewable & hydric sources at competitive production prices will augment the business growth. Several international partnerships focused on research and promotion of green hydrogen usage for production processes is set to increase the market share.
 

Steam Methane Reforming Hydrogen Generation Market Share

The players involved in the steam methane reforming hydrogen generation market include :

• Air Products and Chemicals, Inc.
• Linde plc
• Air Liquide
• Topsoe
• Messer
• Plug Power Inc
• CALORIC

The key companies operational across the industry are currently targeting at inorganic growth ventures including collaborations & acquisitions to achieve a competitive edge. Various merger & acquisitions aim at improving the profitability and capturing a larger proportion of the market share.
 

Steam Methane Reforming Hydrogen Generation Industry News

• In September 2022, Raven SR completed its successful trial for the Steam reformer producing hydrogen rich syngas from methane. Its non-combustion and catalyst free design will exceed the typical performance of the SMR process. The technology is set to come into operation by the first half of 2023.
   
• In April 2022, Wood unveiled its new SMR technology with the capability to achieve 95% of CO2 emissions reduction when compared to the tradition SMR unit. It is applicable to both brownfield and greenfield projects, thereby reducing the overall costs of the process for the operators.
   

This steam methane reforming hydrogen generation market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘USD Billion’ from 2023 to 2032 for the following segments:

Click here to Buy Section of this Report

Market, By Application

• Petroleum Refining
• Chemicals
• Transportation
• Power Generation
• Industry Energy
• Others

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

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Netherlands
  • Russia
• Asia Pacific
  • China
  • Japan
  • India
• Middle East & Africa
  • Saudi Arabia
  • Iran
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina
  • Chile