North America Steam Methane Reforming Hydrogen Generation Market Analysis

North America Steam Methane Reforming Hydrogen Generation Market Analysis

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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.