Steam Methane Reforming Market Size, Share, Growth, and Industry Analysis, By Types (Steam Methane Reforming with PSA, Steam Methane Reforming with Amine Absorption) , Applications (Refinery, Chemical Industry, Others ) and Regional Insights and Forecast to 2034

Steam Methane Reforming Market Size

The Global Steam Methane Reforming market size was valued at USD 0.91 billion in 2024, is projected to reach USD 0.96 billion in 2025, and is expected to hit approximately USD 1.01 billion by 2026, surging further to USD 1.49 billion by 2034. This strong trajectory reflects a compound annual growth rate (CAGR) of 5.05% between 2025 and 2034, fueled by rising hydrogen demand, adoption of carbon capture technologies, and the expansion of refinery and chemical industry applications worldwide. Growing policy support for low-carbon hydrogen and technological innovation in efficiency improvements are also reinforcing this upward momentum.

In the United States, the steam methane reforming market holds a significant portion of North America’s ~30% share, driven by extensive refinery infrastructure, chemical sector demand, and growing blue hydrogen initiatives. With federal investments in carbon capture and storage (CCS), along with strong innovation from major energy companies, the U.S. is positioned as a key driver of SMR market expansion, setting global benchmarks for efficiency, safety, and emissions reduction in hydrogen production.

Key Findings

• Market Size: The global steam methane reforming market is valued at USD 0.96 billion in 2025 and is projected to reach USD 1.49 billion by 2034, showcasing steady long-term growth driven by hydrogen demand.
• Growth Drivers: Nearly 50% of demand is generated from refineries, 45% from the chemical industry, and around 35% of projects are linked directly to carbon capture and storage adoption.
• Trends: Pressure swing adsorption accounts for almost 60% of installations, amine absorption represents close to 40%, while 30% of plants now integrate digital monitoring and AI-based optimization tools.
• Key Players: The market is shaped by leading companies such as Air Products and Chemicals, Honeywell UOP, McDermott, Heurtey Petrochem, and KBR, which collectively control a large share of global capacity.
• Regional Insights: Asia-Pacific leads with approximately 40% of global market share, followed by North America at 30%, Europe at 20%, and the Middle East & Africa at 10%.
• Challenges: Around 25% of projects face delays due to rising costs, 20% face competition from electrolysis-based hydrogen, and 15% are affected by policy or regulatory barriers.
• Industry Impact: About 40% of blue hydrogen projects now rely on SMR-CCS integration, while catalysts and modular designs have delivered efficiency improvements of nearly 25% across recent installations.
• Recent Developments: Roughly 30% of new capacity added in 2024–2025 included CCS integration, 25% adopted AI-based plant optimization, and 20% benefited from cost reductions through modular SMR systems.

The steam methane reforming (SMR) market represents the dominant pathway for global hydrogen production, accounting for more than 60% of the worldwide supply of hydrogen used in refineries, fertilizers, petrochemicals, and fuel applications. The process involves reacting methane with steam under high pressure and temperature to produce hydrogen, carbon monoxide, and carbon dioxide. Owing to its efficiency, cost-effectiveness, and scalability, steam methane reforming continues to serve as the backbone of hydrogen production across industrial sectors. Rising investments in low-carbon hydrogen solutions, especially blue hydrogen projects that integrate carbon capture and storage (CCS), are transforming the market’s dynamics. More than 35% of planned hydrogen projects worldwide involve SMR with CCS integration, positioning it as a transitional technology toward decarbonization. The SMR market is characterized by innovation in catalysts, efficiency upgrades, and modular units designed to reduce costs, emissions, and operational risks. As governments push for clean energy adoption, SMR is set to remain a critical contributor to global hydrogen supply chains.

Steam Methane Reforming Market Trends

The steam methane reforming market is witnessing strong momentum as industries, governments, and energy companies align toward low-carbon hydrogen strategies. SMR accounts for around 70% of hydrogen production globally, cementing its role as the primary industrial hydrogen pathway. In recent years, over 40% of refiners and chemical manufacturers have upgraded or planned to upgrade their SMR units with carbon capture and storage (CCS) technologies, cutting CO2 emissions significantly. The chemical industry alone absorbs nearly 50% of SMR-produced hydrogen, primarily for ammonia and methanol production, while refineries consume approximately 45% for desulfurization and hydrocracking processes.

Technology advancements are reshaping the steam methane reforming market, with PSA-based purification dominating 60% of share due to its efficiency and reliability, while amine absorption is gaining nearly 40% share by offering enhanced CO2 capture performance. Approximately 25% of new SMR projects are being linked to renewable or hybrid systems to create low-carbon hydrogen. Asia-Pacific leads the market with around 40% of global share, fueled by industrial expansion in China and India, while North America follows at 30% with a strong base of blue hydrogen initiatives in the U.S. and Canada. Europe represents 20% share, underpinned by hydrogen transition policies and investments in clean fuels, and the Middle East & Africa hold about 10% share, supported by large-scale energy projects in Saudi Arabia and UAE. These regional patterns illustrate the market’s global reach and diversity in applications.

Trends also highlight innovations in modular SMR units that reduce capital costs by 20–25%, AI-driven process monitoring that increases efficiency by up to 15%, and catalysts that improve hydrogen yields by nearly 18%. The integration of SMR with renewable energy, electrified heat, and advanced CCS solutions is creating a pathway toward blue and low-carbon hydrogen. The growing role of SMR in powering hydrogen mobility, steel decarbonization, and energy storage projects positions the market as central to the hydrogen economy.

Steam Methane Reforming Market Dynamics

The steam methane reforming market is shaped by rising demand for hydrogen, clean fuel regulations, industrial expansion, and investments in decarbonization. Around 50% of hydrogen in refineries is derived from SMR, underscoring its critical role in the energy and industrial sectors. Market dynamics are influenced by cost advantages of SMR compared to other hydrogen production pathways, but also challenged by carbon emission concerns. More than 25% of global SMR operators are integrating carbon capture systems to maintain competitiveness and align with climate policies. High natural gas availability in North America and the Middle East strengthens SMR economics, while Asia-Pacific benefits from large-scale industrial demand. Consolidation among global players enhances competitiveness, while technological advancements in catalysts, purification systems, and modular units increase efficiency and reduce operational risks. However, challenges such as natural gas price volatility, emission regulations, and competition from electrolysis-based green hydrogen create constraints for SMR operators.

OPPORTUNITY

Expansion of blue hydrogen projects with CCS integration

Blue hydrogen is becoming a major opportunity for SMR, as CCS integration is deployed in more than 30% of new plants globally. Around 25% of announced hydrogen infrastructure investments are linked to SMR-CCS facilities, with Asia-Pacific and the Middle East leading these initiatives. Europe is pushing for nearly 40% of its hydrogen supply to come from low-carbon sources by 2030, providing fertile ground for SMR with amine absorption. Companies are introducing modular SMR-CCS plants that reduce emissions by more than 90% while optimizing costs. As governments increase subsidies and incentives for low-carbon hydrogen, SMR remains well-positioned to capture significant opportunities, particularly in emerging economies with high industrial demand and access to affordable natural gas.

DRIVERS

Rising global hydrogen demand and industrial expansion

Hydrogen demand is forecast to grow more than 40% in the next decade, positioning SMR as a key supplier. Approximately 50% of global hydrogen consumption in refineries is derived from SMR. Rapid growth in ammonia and methanol production accounts for nearly 45% of chemical sector hydrogen use, heavily reliant on SMR. Around 35% of announced global hydrogen capacity expansions involve SMR-based systems, reflecting the technology’s dominance. Urbanization, population growth, and demand for cleaner fuels further accelerate adoption of SMR across energy, chemical, and steel sectors. This rising demand drives long-term investment and ensures sustained reliance on SMR technology.

Market Restraints

"High emissions and natural gas dependency"

Traditional SMR processes generate around 65% of their emissions in the form of CO2, making them carbon-intensive without CCS. Emission regulations and penalties affect more than 40% of operators, particularly in Europe and North America. Rising natural gas prices have increased production costs by more than 20% in certain regions, reducing SMR’s competitiveness against renewable-based hydrogen. Approximately 25% of projects in developing markets have been delayed or canceled due to fuel price volatility. Without CCS integration, SMR faces strong headwinds from emission reduction targets and competition from electrolysis-based green hydrogen, limiting its growth in advanced economies.

Market Challenges

"High capital intensity and competition from green hydrogen"

SMR projects require large capital investments, with infrastructure and operational costs representing more than 50% of total expenses. Adding CCS can increase costs by up to 25%, challenging profitability for smaller players. Around 20% of SMR plants face delays due to financing constraints. At the same time, the rapid expansion of electrolysis and falling renewable energy costs create competition for SMR-based hydrogen. Approximately 15% of global hydrogen projects have shifted focus from SMR to electrolysis. Balancing energy intensity, carbon compliance, and cost competitiveness poses major challenges, even as SMR remains the dominant production pathway in the short to medium term.

Segmentation Analysis

The steam methane reforming market is segmented by type and application, reflecting diverse adoption across industries. By type, SMR with Pressure Swing Adsorption (PSA) dominates with 60% share, widely preferred for hydrogen purification in refineries and chemical plants. SMR with Amine Absorption holds 40% share, gaining popularity in blue hydrogen projects for its strong CO2 capture capabilities. By application, refineries hold 45% share, driven by their heavy reliance on hydrogen for desulfurization and hydrocracking. Chemical industries represent 40% share, using hydrogen in ammonia, methanol, and petrochemical production. Other applications, including steel plants, energy storage, and hydrogen mobility, account for 15% but are growing rapidly as decarbonization drives adoption in new sectors.

By Type

Steam Methane Reforming with PSA

Steam methane reforming with PSA accounts for approximately 60% of the global market. PSA provides high-purity hydrogen and is widely adopted by refineries and chemical producers. It is valued for its operational reliability and scalability, making it the preferred option for large industrial applications.

SMR with PSA accounted for USD 0.58 Billion in 2025, representing 60% of the market. It is expected to grow at a CAGR of 5.2% from 2025 to 2034, supported by demand from refineries and chemicals.

Top 3 Major Dominant Countries in the SMR with PSA Segment

• United States led with USD 0.23 Billion in 2025, holding 40% share, driven by strong refinery and chemical industry presence.
• China accounted for USD 0.12 Billion, representing 20% share from expanding ammonia and methanol capacity.
• Germany held USD 0.09 Billion, with 15% share, supported by hydrogen transition policies.

Steam Methane Reforming with Amine Absorption

SMR with Amine Absorption holds 40% share and is increasingly used in blue hydrogen projects. This technology captures over 90% of CO2 emissions, making it critical for CCS-enabled plants. Growing adoption in Europe and Asia-Pacific supports its expansion.

SMR with Amine Absorption accounted for USD 0.38 Billion in 2025, representing 40% share. It is projected to grow at a CAGR of 4.8% from 2025 to 2034, driven by CCS and blue hydrogen demand.

Top 3 Major Dominant Countries in the SMR with Amine Absorption Segment

• United States led with USD 0.15 Billion in 2025, holding 39% share, supported by CCS integration projects.
• Japan accounted for USD 0.08 Billion, representing 21% share, focusing on hydrogen mobility and blue hydrogen policies.
• France held USD 0.05 Billion, reflecting pilot CCS-enabled hydrogen facilities.

By Application

Refinery

Refineries consume 45% of SMR hydrogen, used in hydrocracking, hydrotreating, and desulfurization. With rising fuel quality regulations, demand continues to grow.

Refineries accounted for USD 0.43 Billion in 2025, representing 45% share. This segment is expected to grow at a CAGR of 5.1%.

Top 3 Major Dominant Countries in the Refinery Segment

• United States led with USD 0.18 Billion in 2025, holding 42% share from large refining capacity.
• India followed with USD 0.08 Billion, representing 18% share from refinery expansions.
• Saudi Arabia held USD 0.05 Billion with 12% share, driven by downstream investments.

Chemical Industry

The chemical industry represents 40% of SMR demand, particularly in ammonia and methanol production. Hydrogen is critical for fertilizers, petrochemicals, and industrial gases.

Chemical industry accounted for USD 0.38 Billion in 2025, representing 40% share. It is expected to grow at a CAGR of 5.0%.

Top 3 Major Dominant Countries in the Chemical Industry Segment

• China led with USD 0.15 Billion in 2025, holding 39% share from chemical industry expansions.
• United States followed with USD 0.10 Billion, representing 26% share from petrochemical demand.
• Germany held USD 0.05 Billion, supported by industrial hydrogen integration.

Others

Other applications, including steel plants, mobility, and energy storage, account for 15% of SMR demand. These segments are emerging as new drivers of hydrogen adoption.

Others accounted for USD 0.15 Billion in 2025, representing 15% share. It is expected to grow at a CAGR of 4.9%.

Top 3 Major Dominant Countries in the Others Segment

• Japan led with USD 0.06 Billion, holding 40% share from steel and hydrogen mobility projects.
• South Korea accounted for USD 0.04 Billion, representing 26% share from pilot hydrogen initiatives.
• Brazil held USD 0.02 Billion with 13% share, driven by industrial hydrogen adoption.

Steam Methane Reforming Market Regional Outlook

The global steam methane reforming market was valued at USD 0.96 Billion in 2025 and is projected to reach USD 1.49 Billion by 2034, growing at a CAGR of 5.05%. Regional shares are distributed as follows: Asia-Pacific ~40%, North America ~30%, Europe ~20%, Middle East & Africa ~10%. These shares reflect industrial hydrogen demand patterns, with Asia-Pacific dominating due to chemical and refining industries, North America benefiting from CCS projects, Europe advancing blue hydrogen policies, and MEA focusing on refinery expansions.

North America

North America holds around 30% of the SMR market, led by refinery demand and blue hydrogen projects with CCS integration. The U.S. dominates with extensive refining capacity and hydrogen pilot projects.

North America Market Size, Share and CAGR: ~30% in 2025, supported by CCS adoption and hydrogen mobility expansion.

Top 3 Major Dominant Countries in North America

• United States led with refinery-driven hydrogen demand.
• Canada followed with CCS-enabled SMR integration.
• Mexico contributed with refinery expansions and industrial demand.

Europe

Europe holds 20% of the market, supported by decarbonization targets and hydrogen transition policies. Germany, France, and the UK lead blue hydrogen adoption.

Europe Market Size, Share and CAGR: ~20% in 2025, supported by hydrogen policy frameworks and industrial integration.

Top 3 Major Dominant Countries in Europe

• Germany led with investments in hydrogen infrastructure.
• France followed with CCS-enabled SMR pilots.
• United Kingdom contributed with government-backed hydrogen projects.

Asia-Pacific

Asia-Pacific leads with 40% share, fueled by massive demand in China, India, and Japan for refining and chemical industries.

Asia-Pacific Market Size, Share and CAGR: ~40% in 2025, driven by ammonia, methanol, and steel sectors.

Top 3 Major Dominant Countries in Asia-Pacific

• China led with the largest hydrogen production capacity.
• India followed with refinery expansions and hydrogen initiatives.
• Japan contributed with steel decarbonization and mobility pilots.

Middle East & Africa

MEA represents 10% share, driven by refinery expansions and hydrogen economy investments in Saudi Arabia and UAE.

MEA Market Size, Share and CAGR: ~10% in 2025, supported by refinery and industrial hydrogen demand.

Top 3 Major Dominant Countries in Middle East & Africa

• Saudi Arabia led with refinery projects and hydrogen initiatives.
• United Arab Emirates followed with clean fuel and hydrogen hubs.
• South Africa contributed with industrial hydrogen adoption.

LIST OF KEY Steam Methane Reforming Market COMPANIES PROFILED

Investment Analysis and Opportunities

Investment in the steam methane reforming market is rising rapidly, with nearly 40% of global hydrogen infrastructure spending directed toward CCS-enabled SMR plants. Blue hydrogen projects dominate pipelines, especially in Asia-Pacific, North America, and the Middle East. Around 25% of all upcoming hydrogen projects involve SMR-CCS, making it a major investment opportunity. Private equity, sovereign wealth funds, and energy majors are investing in SMR due to its scalability and established infrastructure. Modular SMR units are attracting new investments, reducing upfront costs by 20% and enabling quicker deployment. Opportunities also exist in catalyst R&D, with performance improvements of 15–20% achievable, enhancing efficiency and profitability. Integration of SMR with renewable energy systems is creating new business models for hybrid hydrogen production. Long-term contracts with refineries and chemical producers are ensuring steady revenue streams for investors.

NEW PRODUCTS Development

Product development in the steam methane reforming market is focused on improving efficiency, reducing emissions, and integrating CCS. PSA systems with higher recovery rates now account for more than 30% of new installations. Amine absorption units capable of capturing up to 95% of CO2 emissions are gaining traction. Modular SMR units are being introduced, cutting installation costs and enabling faster deployment. Catalysts with longer lifespans are reducing operational costs by 15–20%. Digital monitoring tools and AI-based optimization systems are now part of nearly 25% of SMR upgrades, increasing plant efficiency. Energy majors are partnering with technology firms to launch SMR-CCS hybrid solutions, targeting blue hydrogen markets. Pilot projects for electrified SMR using renewable energy are underway in Europe and Asia. Together, these innovations reflect the market’s push toward low-carbon hydrogen.

Recent Developments

• 30% of new SMR capacity installed in 2024 integrated CCS technologies for blue hydrogen production.
• Air Products launched modular SMR plants reducing capital costs by 20% in 2025.
• Honeywell UOP introduced advanced catalysts with 15% higher efficiency in 2024.
• Air Liquide expanded SMR-based hydrogen plants with 90% CO2 capture in 2025.
• KBR announced hybrid SMR-electrolysis pilot projects in Asia-Pacific in 2025.

REPORT COVERAGE

This report covers comprehensive analysis of the steam methane reforming market, including size, growth forecasts, segmentation by type and application, regional breakdown, company profiles, investments, product development, and recent developments. The coverage emphasizes trends like CCS adoption, modular units, digital monitoring, catalysts, and hybrid solutions. It highlights investment opportunities across Asia-Pacific, North America, and the Middle East. Special attention is given to policy-driven growth in Europe and emerging opportunities in MEA. The report also includes an in-depth analysis of restraints, challenges, and risks such as carbon intensity, natural gas volatility, and competition from green hydrogen.