Steam Methane Reforming Market

Steam Methane Reforming Market Size (2024 - 2029):

The Global Steam Methane Reforming Market size was valued at USD 691.67 million in 2023 and is projected to reach USD 1004.13 million by 2029, growing at a CAGR of 6.41% during the forecast period 2024 to 2029.

Market Overview:

The growing hydrogen production industry has become a key driver of the worldwide steam methane reformer market as steam methane reforming remains the most economical method of producing hydrogen. Steam reforming of methane mainly involves two reactions: the water gas shift reaction and the reforming reaction. In the latter case, natural gas is generally steam-stripped and then heated to a very high temperature to extract hydrogen and carbon monoxide. Hydrogen is employed in a variety of applications ranging from chemical processing, fuel cells, oil recovery, and refining to metal production. Of these, hydrogen call is highest in the oil refinery and ammonia production segments. The transportation industry also promises enormous expansion opportunities for the market, as it is predicted to become one of the main consumers of hydrogen in the coming years.

Market Trends:

Taking into account the expansion observed in these segments and the industrialization in emerging countries, the future of the world steam methane reform market looks very positive. In addition, the use of fuel cells has increased dramatically in recent years, accelerating sales opportunities in the steam methane reforming market. As industries turn to smaller portable products, the call for steam methane reformers is predicted to increase even further in the future.

Market Drivers:

Escalatingcall around the world is a determining factor for the segment, as steam reforming of methane is the most economical method for hydrogen production. The call for clean green fuel is predicted to increase exponentially in the coming years, with escalating levels of pollution coupled with escalating government regulations to control and reduce the sulfur content of fuels. This factor should stimulate the market. The United States is among the world's early adopters of clean energy solutions for industries such as power generation, manufacturing, and transportation. The US Department of Energy (DOE) and the Department of Transportation (DOT) submitted a hydrogen posture plan in December 2006. The purpose of this plan was to improve R&D and validate technologies that can be used. employed to establish a hydrogen infrastructure. In addition, this plan provided for the deliverables established by the federal government to support the development of the hydrogen infrastructure in the country. The plan has been developed in accordance with the National Hydrogen Energy Vision and Roadmap. Hydrogen producers in the United States are looking to expand their geographic reach and target countries such as Vietnam, Indonesia, South Africa, and other developing countries, to increase their income. US-based market players such as Praxair Inc. and Air Liquide are looking to expand their businesses in countries where hydrogen call is escalating, as part of their strategic expansion plans. The North American market for hydrogen production has been growing for several years, at a sustained rate thanks to the contributions of each application and technology. The application of hydrogen in the production of methanol and the production of ammonia is developing at a high rate in the area.

Market Opportunities:

The rising application of hydrogen in various industries is likely to be the main driving factor. Hydrogen is produced using many resources such as natural gas, biomass, coal, and various other renewable and non-renewable energy sources. Currently, natural gas is the main source of hydrogen production, and steam methane reformers using natural gas are employed primarily for production. However, in recent years the adoption of more recent technologies such as electrolysis and pyrolysis production has been encouraged.

Market Recent Developments:

• Shell introduces "blue" hydrogen technology. SHELL Catalysts & Technologies licenses technologies and brings the capacity to the industry, has introduced the Shell Blue Hydrogen Process.

STEAM METHANE REFORMING MARKET REPORT COVERAGE:

Market Segmentation:

Steam Methane Reforming Market - By Technology:

• Coal Gasification
• Steam Methane Reforming

Steam methane reforming is a method of producing hydrogen, along with other gases, including carbon monoxide and carbon dioxide. It is a mature and advanced technology in hydrogen production. Growing call around the world is a determining factor for the segment, as steam reforming of methane is the most economical method for hydrogen production.

Steam Methane Reforming Market - By Systems:

• Merchant
• Captive

Merchants emerged as the dominant segment in terms of revenue in 2019. However, the Captive Systems segment is predicted to grow at the highest CAGR in terms of revenue over the outlook period. Socio-economic developing regions, particularly North America and Europe, have large-scale penetration of this technology given the ease of adoption. Captive hydrogen generation is defined as on-site generation that eliminates various problems associated with hydrogen transportation and distribution. Therefore, the market is supposed to experience substantial expansion. For small industries, on-site hydrogen production has gained popularity with new technologies that are offered at reasonable costs compared to the distribution channels provided.

Steam Methane Reforming Market - By Application:

• Methanol Production
• Ammonia Production
• Petroleum Refinery

Methanol production has become the dominant segment in terms of revenue in 2019 and is determined to grow at the fastest CAGR over the forecast period. Methanol is recognized as a useful chemical and a promising component for the production of more complex chemical compounds such as methyl tert-butyl ether, acetic acid, dimethyl ether, methylamine, and others. Methanol is the simplest alcohol and appears as a transparent liquid with a distinctive odour.

Market Regional Analysis:

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa 

Regionally, Asia-Pacific currently holds the majority share of the worldwide steam methane reforming market. With the escalating number of petrochemical complexes and refineries in the region, the steam methane reforming market is predicted to accelerate in Asia-Pacific in the coming years. In addition, the large populations of the major economies in Asia and the Pacific also support the call for hydrogen and thus methane reformers in various sectors.

In the coming years, Europe is expected to become a lucrative market for steam methane reformers. However, experts find that the call profiles in the Eurasian countries and in Europe are very different from each other. Although Russia has a huge petrochemical capacity and large refineries, the refinery industry in Europe is slowly declining. On the other hand, in Europe, the transport sector should continue to be a large consumer of hydrogen and, therefore, of steam methane reforming. Because the market is almost mature in North America, it is projected to show slower expansion in the region.

Impact of COVID-19 on the Steam Methane Reforming Market:

In 2019, large capacity additions and slower call expansion resulted in a decline in the industry value pool. This decline was further boosted in the year 2021 by the coronavirus pandemic. The effect of this virus on the call for petrochemicals has not been even across value chains, with automotive and building applications showing very high declines, and calls for packaging remaining at the peak. Reasons for the latter include warehousing, an increase in delivery services, and increased activity focused on healthcare, all in response to the pandemic. Despite the closure of some factories in some geographies, industry players have coped well with the short-term shock and are now planning for the medium term.

Market Key Players:

1. CB&I Company
2. Linde AG
3. Chevron Lummus Global LLC
4. Axens
5. Foster Wheeler
6. DuPont
7. KBR Inc
8. Haldor Topsoe
9. GTC Technology
10. Shell Global Solutions
11. Flour Corporation
12. Exxon Mobil
13. UOP