Steam Methane Reforming Hydrogen Generation Market
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Steam methane reforming hydrogen generation market size was valued at USD 146.4 Billion in 2024 and is estimated to grow at a CAGR of 6.2% from 2025 to 2034. The SMR hydrogen generation process involves heating methane, sourced from natural gas, with steam and a catalyst. The result is a carbon monoxide and hydrogen mixture, which is then used in organic synthesis.
Developing economies are increasing crude oil consumption and investing in expanding refining facilities, creating significant market opportunities for hydrogen manufacturers worldwide. Policies promoting clean fuel adoption and increased investments in the refining sector are reshaping the business landscape. Regulations and incentive programs aim to reduce sulfur content in fuels like gasoline, diesel, and motor oil, boosting the market share for steam methane reforming hydrogen generation.
| Report Attribute | Details |
|---|---|
| Base Year: | 2024 |
| Steam Methane Reforming Hydrogen Generation Market size in 2024: | USD 146.4 Billion |
| Forecast Period: | 2025 – 2034 |
| Forecast Period 2023 - 2032 CAGR: | 6.2 |
| 2023 Value Projection: | USD 284 Billion |
| Historical Data for: | 2021 – 2024 |
| No of Pages: | 75 |
| Tables, Charts & Figures: | 38 |
| Segments Covered: | Application and Region |
| Growth Drivers: |
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| Pitfalls Challenges: |
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Expanding the use of hydrogen beyond its conventional industrial applications is poised to drive the market growth. Sectors like aviation and shipping, with their limited choices for low-carbon fuels, stand to benefit significantly from hydrogen in meeting environmental goals. While hydrogen-based fuels come with elevated energy consumption and costs, recent policy shifts aimed at achieving low-carbon targets are expected to bolster the market revenues considerably. The shift from fossil fuels to renewable energy sources, combined with widespread applications in industries such as semiconductors, will boost the market growth.
Rising demand for hydrogen-based fuels is driving the use of hydrogen generation in power generation and commercial buildings. For instance, the IEA projects that by 2030, nearly 4 metric tonnes of blended hydrogen will heat the buildings. Additionally, infrastructural upgrades and enhanced safety measures will increase the direct use of hydrogen in boiler units, boosting the commercial demand. Additionally, increasing awareness of clean energy and a heightened emphasis on utilizing renewable resources will enhance the market's share.
Based on application, the market is segmented into petroleum refining, chemical transportation, power generation, industry energy and Others. Transportation is set to grow over USD 11.5 Billion by 2034. Key players are actively designing, developing, and promoting hydrogen technology, driving the industry's growth as they work to decarbonize the transport sector. For instance, METI aims to roll out a fleet of 1,200 buses and 900 refueling stations by 2030. Key factors including access to hydro resources, affordable electricity, and a mix of renewable energy sources will not only bolster the hydrogen trade but also enable it to reach European and Asian markets, fueling further market expansion.
The U.S. steam methane reforming hydrogen generation market is anticipated to grow over USD 24.5 Billion by 2034. The positive outlook for the refining sector, along with government initiatives to develop new industrial facilities in chemicals, automotive, and power, will drive the product demand. Utilizing hydrogen for energy storage and leveraging the competitive production prices of abundant renewable and hydric sources will boost the business landscape. Additionally, international partnerships focused on researching and promoting green hydrogen in production processes will increase the market growth.
Refinery operations in countries like China and India will drive the market growth in Asia Pacific region. Increased funding from various research institutes and industry players, along with heightened government emphasis on green hydrogen production technologies, will propel the industry expansion. Manufacturers in the region are focusing on international hydrogen trade to achieve a low-carbon hydrogen economy.
Key companies in the industry are actively pursuing inorganic growth strategies, such as collaborations and acquisitions, to gain a competitive advantage. These mergers and acquisitions are primarily focused on enhancing profitability and securing a larger market share. Companies are also exploring new opportunities, such as producing hydrogen from renewable sources, in response to increasing demand for green hydrogen. Further, many companies are collaborating with governments and energy providers to advance hydrogen initiatives and develop infrastructure.
Eminent players operating in the steam methane reforming hydrogen generation industry are:
Market, By Application
The above information has been provided for the following regions and countries:
The transportation segment is expected to exceed USD 11.5 billion by 2034, driven by the decarbonization of the transport sector and advancements in hydrogen technology.
Major players in the industry include ALLY HI-TECH CO., LTD., Air Liquide, Air Products & Chemicals, Inc., CALORIC, HyGear, Linde plc, Mahler AGS GmbH, Messer, NUVERA FUEL CELLS, LLC, and Plug Power Inc.
The U.S. market is anticipated to surpass USD 24.5 billion by 2034, driven by a positive outlook for the refining sector and government initiatives in industrial development.
The market size for steam methane reforming hydrogen generation was valued at USD 146.4 billion in 2024 and is projected to reach USD 284 billion by 2034, driven by a CAGR of 6.2% from 2025 to 2034.