Steam Methane Reforming Hydrogen Generation Market Analysis

Steam Methane Reforming Hydrogen Generation Market Analysis

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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.