Global Steam Methane Reforming Market Overview
As per MRFR analysis, the Steam Methane Reforming Market Size was estimated at 80.04 (USD Billion) in 2022. The Steam Methane Reforming Market Industry is expected to grow from 83.62(USD Billion) in 2023 to 123.9 (USD Billion) by 2032. The Steam Methane Reforming Market CAGR (growth rate) is expected to be around 4.47% during the forecast period (2024 - 2032).
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Steam Methane Reforming Market Trends Highlighted
The global Steam Methane Reforming (SMR) market is witnessing significant growth due to the rising demand for hydrogen and the need for cleaner energy sources. Key market drivers include increased usage of hydrogen in fuel cell vehicles, chemical production, and power generation. Additionally, SMR is being adopted with rising concerns about climate change and environmental regulations because it uses natural gas to produce hydrogen with less carbon emissions as compared to other methods.
Green hydrogen production technologies using renewable energy sources such as solar or wind power present opportunities for expansion in the market. Recent trends have shown a growing move towards decentralized hydrogen production through SMR, allowing on-site generation of hydrogen to reduce transportation costs.
Steam Methane Reforming Market Drivers
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Rising Demand for Hydrogen in Various Industries
There is a growing interest in hydrogen as a clean source of energy, and steam methane reforming is expected to be adopted in the coming years. Steam methane reforming is an economically effective procedure for the production of hydrogen through natural gas. As a result of the growing demand for hydrogen as an energy source in the area of transportation and power generation, as well as in refining, more steam methane reforming technologies are expected to be used.
Government Initiatives and Regulations Promoting Cleaner Energy Sources
Worldwide, governments are rolling out strict regulations to cut down emissions of greenhouse gasses, and to augment the adoption of renewable energy sources. This is creating a beneficial environment for clean hydrogen production technologies including steam methane reforming. To induce investment in hydrogen infrastructure and production facilities, governments are also offering incentives such as tax credits and subsidies. All these initiatives are expected to facilitate the adoption of steam methane reforming technology and simultaneously foster the growth of the Global Steam Methane Reforming Market Industry.
Advancements in Steam Methane Reforming Technology
Current research and development are related to the improvement of a steam methane reforming process in terms of advancements, efficiency, and production costs. Innovative catalysts and process optimization may result in a more sustainable usage of this technology. Also, the process of developing carbon capture and storage technologies is becoming commonly applied in combination with SMR plants, which may allow producing low-carbon hydrogen.
Steam Methane Reforming Market Segment Insights
Steam Methane Reforming Market Feedstock Insights
OPEC – Why OPEC Production Cuts Support US Shale Producers The Global Steam Methane Reforming Segmentation by by Feedstock includes Natural Gas, Liquified Natural Gas, Methanol and Coal. Natural Gas is the most used feedstock for the production of Steam Methane Reforming due to its easy availability, low cost and easy transportation. The Natural Gas-based Global Steam Methane Reforming Market revenue accounts for $ 67.89 billion, and it is estimated to increase at the rate of 4.2% by 2024.
Another significant feedstock, Liquified Natural Gas, accounted for $ 18.36 billion for the year 2024 and is estimated to grow at the rate of 4.9%.Methanol and Coal are other feedstocks used in Steam Methane Reforming, but their market share is less than that of Natural Gas and LNG. The Global Steam Methane Market report estimates the revenue on account of Methanol as $ 6.23 billion by the year 2024. The Coal-feedstock based Global Steam Methane Market is the lowest and is assessed at $ 3.72 billion for 2024. The growth of the market for all these feedstocks is influenced by the availability and comparative cost of feedstocks and the stringent environmental standards.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Steam Methane Reforming Market Conversion Technology Insights
Steam Reforming, Autothermal Reforming, Partial Oxidation and Catalytic Partial Oxidation are the four principal conversion technologies utilized in Steam Methane Reforming. Steam Reforming is the most common technology, accounting for over 90% of Steam Methane Reforming capacity globally. Thus, it involves reacting methane with steam on a catalyst to form a synthesis gas. Autothermal Reforming is close to Steam Reforming, except it uses oxygen instead of steam to produce the heat, making the process more efficient in terms of energy.
Partial Oxidation employs methane and a limited amount of oxygen to form synthesis gas and hydrogen.Finally, Catalytic Partial Oxidation is a variety of Partial Oxidation with a catalyst added to the reactions to enhance its efficiency. Based on data acquired from the Global Markets for Steam Methane Reforming, the revenue of the Global Steam Methane Reforming Market is expected to reach 90.48 Billion USD in 2024 and grow with a CAGR of 4.68% during 2023–2032. The primary driving factor of the market growth is the increased demand for hydrogen and syngas in multiple industries, such as chemicals, fertilizers and power generation.
The Governments are also expected to bolster the market, by implementing various electrical power generation and chemicals production support programs.The Conversion Technology segment of the market is forecasted to be the largest in 2024 since it presently employs the most mature and cost-effective conversion technology in the form of Steam Reforming.
Steam Methane Reforming Market End-Use Industry Insights
End-Use Industry Segment Insight and Overview The global Steam Methane Reforming (SMR) market is segmented based on the end-use industry into petrochemicals, fertilizers, power generation, and hydrogen production. Among these, the petrochemicals segment accounted for the largest share of the market in 2023 and is projected to continue its dominance during the forecast period. The growing demand for plastics and other petrochemical products is driving the growth of this segment.
The fertilizers segment is also expected to witness significant growth due to the increasing demand for fertilizers to enhance crop yields. The hydrogen production segment is gaining traction owing to the growing focus on clean energy sources. Power generation is another key end-use industry for SMR, with natural gas being a major fuel source for power plants. As per industry data, the petrochemicals segment is estimated to account for around 42% of the Global Steam Methane Reforming Market revenue in 2024, demonstrating the significant market share it holds.
Steam Methane Reforming Market Scale of Operation Insights
The Global Steam Methane Reforming Market is segmented by scale of operation into large-scale plants and small-scale plants. Large-scale plants are typically owned and operated by large chemical companies and produce hydrogen for use in a variety of industrial applications, such as ammonia production, methanol production, and petroleum refining. Small-scale plants are typically owned and operated by smaller companies and produce hydrogen for use in on-site applications, such as fuel cells and power generation.
In 2023, the large-scale plants segment accounted for the majority of the Global Steam Methane Reforming Market revenue.This is due to the large volume of hydrogen produced by these plants and the high demand for hydrogen in industrial applications. The small-scale plants segment is expected to grow at a faster rate than the large-scale plants segment over the forecast period due to the increasing demand for hydrogen in on-site applications.
Steam Methane Reforming Market Regional Insights
The Global Steam Methane Reforming Market revenue is expected to witness a substantial rise in the future due to the increasing demand for cleaner energy sources. This growth is attributed to the rising concerns about carbon emissions and the need for sustainable energy alternatives, leading to a surge in the adoption of natural gas as a cleaner fuel source. The Asia-Pacific (APAC) region is expected to dominate the Steam Methane Reforming Market with a significant share due to the presence of numerous developing economies with rapidly growing energy demands.
China and India are projected to be key contributors to the regional market growth, driven by government initiatives to reduce carbon emissions and enhance energy efficiency. North America and Europe are also expected to witness significant market growth, primarily due to the stringent environmental regulations and the presence of well-established natural gas infrastructure. South America and the Middle East and Africa (MEA) regions are anticipated to experience moderate growth, with increasing investments in natural gas production and transportation infrastructure expected to drive market expansion.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Steam Methane Reforming Market Key Players And Competitive Insights
Major players in the Steam Methane Reforming Market have made investments in innovations and carried out research and development to increase the efficiency of steam methane reforming and make it economical. The leading competitors in the Steam Methane Market are trying to increase their market share by means of acquisitions, mergers and partnerships and also trying to serve the markets with a wider scope through the expansion of their products and services.
The Steam Methane Reforming Market is one of the areas that have significant improvements in terms of reforming technologies that showed examples of the use of novel catalysts and advanced process controls to enhance the efficiency of hydrogen production and minimize environmental impact. Air Products & Chemicals, Inc. is one of the leading players in the Global Steam Methane Reforming Market and has a considerable part of the market share. The company offers a wide range of technologies for steam methane reforming, both conventional and innovative types, with licenses. The company has a wide range of clients and provides them with technical and maintenance services.
The company serves all over the world with its global network of manufacturing facilities and technical services. The company is well known for also manufacturing the necessary equipment for steam methane processing. Air products is well recognized and has a strong position in the Steam Methane Reforming Market as a result of its innovative approaches and the global services to its clients.Haldor Topsoe is another leading player and a strong competitor in the Global Steam Methane Reforming Market.
The company is well-recognized and has a considerable share of the market. The company has wide experience in developing and licensing a wide range of steam reforming technologies and catalysts. The innovative process of the company is highly efficient and reliable and has a considerable advantage in terms of price. The company serves its clients around the world through its offices and technical centers. The company is one of the leading competitors in the Steam Methane Reforming Market and manages to be so through its long experience and the strong research and innovative activities that resulted in innovative technologies developed by the company.
Key Companies in the Steam Methane Reforming Market Include
- Messer Group
- Infracore LTD
- Hexagon Composites ASA
- Worthington Industries
- Taiyo Nippon Sanso Corporation
- OXY
- Matheson TriGas Incorporated
- The Linde Group
- Air Products and Chemicals
- Airgas
- SHV Energy
- Air Liquide
- Praxair
- Gulf Cryo
- Linde
Steam Methane Reforming Market Industry Developments
The global steam methane reforming market is projected to reach USD 123.9 billion by 2032, exhibiting a CAGR of 4.47% during the forecast period. Rising natural gas production and increasing demand for hydrogen in various industries are key factors driving market growth. Recent developments include the construction of new steam methane reforming plants in the Middle East and Asia-Pacific regions. Additionally, advancements in catalyst technology are improving the efficiency and reducing the environmental impact of steam methane reforming processes.
Steam Methane Reforming Market Segmentation Insights
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Steam Methane Reforming Market Feedstock Outlook
- Natural Gas
- Liquefied Natural Gas
- Methanol
- Coal
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Steam Methane Reforming Market Conversion Technology Outlook
- Steam Reforming
- Autothermal Reforming
- Partial Oxidation
- Catalytic Partial Oxidation
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Steam Methane Reforming Market End-Use Industry Outlook
- Petrochemicals
- Fertilizers
- Power Generation
- Hydrogen Production
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Steam Methane Reforming Market Scale of Operation Outlook
- Large-Scale Plants
- Small-Scale Plants
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Steam Methane Reforming Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
80.04 (USD Billion) |
| Market Size 2023 |
83.62 (USD Billion) |
| Market Size 2032 |
123.9 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
4.47% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Messer Group, Infracore LTD, Hexagon Composites ASA, Worthington Industries, Taiyo Nippon Sanso Corporation, OXY, Matheson TriGas Incorporated, The Linde Group, Air Products and Chemicals, Airgas, SHV Energy, Air Liquide, Praxair, Gulf Cryo, Linde |
| Segments Covered |
Feedstock, Conversion Technology, End-Use Industry, Scale of Operation, Regional |
| Key Market Opportunities |
1 Growing demand for hydrogen in green energy applications2 Technological advancements in reforming processes3 Expansion of natural gas infrastructure4 Increasing use of SMR for power generation5 Support from government policies and incentives |
| Key Market Dynamics |
Increased natural gas demandGovernment initiatives to reduce carbon emissionsTechnological advancements in SMR processesGrowing adoption of hydrogen productionInvestment in hydrogen infrastructure |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Global Steam Methane Reforming Market is projected to reach USD 83.62 Billion in 2023 and is expected to grow at a CAGR of 4.47%, reaching USD 123.9 Billion by 2032.
The key drivers of the Steam Methane Reforming Market include the increasing demand for hydrogen for fuel cell applications, stringent emission norms, and rising natural gas production.
Asia-Pacific is expected to hold the largest market share in the Steam Methane Reforming Market due to the increasing demand for hydrogen in countries such as China and India.
The major applications of Steam Methane Reforming include hydrogen production, ammonia production, and methanol production.
The key competitors in the Steam Methane Reforming Market include Haldor Topsoe, Linde, Air Liquide, TechnipFMC, and Siemens.
The challenges faced by the Steam Methane Reforming Market include the high cost of hydrogen production, the availability of alternative hydrogen production methods, and the environmental impact of carbon dioxide emissions.
The growth opportunities for the Steam Methane Reforming Market include the increasing demand for hydrogen for fuel cell applications, the development of more efficient and cost-effective technologies, and the growing adoption of hydrogen as a clean energy source.
The key trends in the Steam Methane Reforming Market include the development of new technologies for hydrogen production, the increasing use of hydrogen in fuel cell applications, and the growing adoption of hydrogen as a clean energy source.
The Steam Methane Reforming Market is expected to grow at a CAGR of 4.47% from 2024 to 2032.
The key factors driving the growth of the Steam Methane Reforming Market include the increasing demand for hydrogen for fuel cell applications, the stringent emission norms, and the rising natural gas production.
