Steam Methane Reforming Hydrogen Generation Market Size

Steam Methane Reforming Hydrogen Generation Market Size

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.
 

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.