Steam Methane Reforming Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Feedstock (Natural Gas, Liquefied Natural Gas, Methanol, Coal), By Conversion Technology (Steam Reforming, Autothermal Reforming, Partial Oxidation, Catalytic Partial Oxidation), By Application (Petroleum Refining, Chemicals, Power Generation, Transportation, Industry Energy), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 95.11 Billion
CAGR (2026-2031)	5.27%
Fastest Growing Segment	Partial Oxidation
Largest Market	North America
Market Size (2031)	USD 129.44 Billion

Market Overview

The Global Steam Methane Reforming Market is expected to grow from USD 95.11 Billion in 2025 to USD 129.44 Billion by 2031 at a 5.27% CAGR. Steam methane reforming is a chemical process wherein methane from natural gas reacts with high-temperature steam in the presence of a catalyst to produce hydrogen, carbon monoxide, and a small amount of carbon dioxide. The primary drivers supporting the market's growth include the extensive demand for hydrogen as a critical feedstock in ammonia synthesis and petroleum refining operations. Furthermore, the economic efficiency of this method compared to electrolysis, combined with the established global infrastructure for natural gas supply, continues to solidify its position as the dominant technology for industrial hydrogen production.

However, the market encounters a significant challenge regarding its environmental impact, as the process inherently generates substantial greenhouse gas emissions that necessitate the costly integration of carbon capture technologies to comply with tightening regulations. This transition to lower-carbon operations presents considerable financial and technical hurdles for operators. According to the International Energy Agency, in 2025, the urgency of this transition was evident as the sector saw more than 200 committed investments finalized for low-emissions hydrogen production projects globally. This statistic underscores the immense capital mobilization currently required to align traditional reforming capabilities with evolving decarbonization mandates.

Key Market Drivers

The extensive requirement for hydrogen in petroleum refinery desulfurization and ammonia production remains the foremost force propelling the Global Steam Methane Reforming Market. As environmental regulations mandate lower sulfur content in fuels, refiners rely heavily on hydrogen produced via steam methane reforming to process heavy crude oils efficiently. This dependence is reinforced by the technology's scalability and current cost advantages over electrolytic alternatives, ensuring it remains the standard for large-scale industrial feedstock supply. According to the International Energy Agency, October 2024, in the 'Global Hydrogen Review 2024', global hydrogen demand reached a record 97 million tonnes in 2023, the vast majority of which was supplied through unabated fossil fuel-based production methods. This persistent industrial consumption ensures sustained operational activity for reforming facilities worldwide.

Simultaneously, the market is being driven by the strategic integration of carbon capture, utilization, and storage technologies to facilitate blue hydrogen production. This development allows stakeholders to utilize abundant natural gas feedstocks while mitigating the high carbon intensity typically associated with traditional reforming. According to the Global CCS Institute, October 2024, in the 'Global Status of CCS 2024' report, the CO2 capture capacity of facilities in the project development pipeline has grown to 416 million tonnes per annum, reflecting a surge in retrofitting conventional reformers. Furthermore, broader financial support is accelerating this infrastructural shift; according to the Hydrogen Council, in 2024, the pipeline of announced hydrogen projects represented a total investment value of USD 680 billion, signaling robust long-term capital commitment to the sector's evolution.

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Key Market Challenges

The primary challenge hampering the growth of the Global Steam Methane Reforming Market is the substantial environmental burden associated with the process, which forces the industry to grapple with the high costs of decarbonization. As governments enforce stricter emissions mandates, traditional reforming operations face existential pressure to integrate Carbon Capture, Utilization, and Storage (CCUS) technologies. This necessity fundamentally undermines the historical cost advantage of steam methane reforming, as the implementation of capture systems requires significant capital expenditure and increases ongoing operational complexity. Consequently, the financial viability of new and existing fossil-based hydrogen projects is increasingly questioned, leading to hesitation among investors and developers who are wary of long-term regulatory risks and potential asset stranding.

This uncertainty has resulted in a tangible slowdown in market expansion, evidenced by a contraction in the development pipeline. The inability to secure consistent policy support and the escalating costs of low-carbon compliance are directly causing project terminations. According to the Hydrogen Council, in 2025, approximately 52 clean hydrogen projects were publicly cancelled over an 18-month period, with 38% of these cancellations specifically attributed to policy and market uncertainty. This trend of project attrition highlights how the technical and economic hurdles of emissions abatement are actively restricting the growth of the steam methane reforming sector.

Key Market Trends

The market is witnessing a decisive structural shift from conventional steam methane reforming toward Autothermal Reforming (ATR) and hybrid architectures, primarily to overcome the carbon capture limitations of standard units. While traditional reformers produce diluted flue gas that is energy-intensive to decarbonize, ATR technology inherently generates high-pressure, concentrated CO2 streams, making it the preferred design for new, large-scale low-carbon hydrogen facilities. This architectural evolution is rapidly materializing in project pipelines where high capture rates are mandatory. According to the International Energy Agency, September 2025, in the 'Global Hydrogen Review 2025', the capacity of low-emissions hydrogen production projects that have reached Final Investment Decision is set to reach 4.2 million tonnes per annum by 2030, a growth largely underpinned by these advanced technologies.

Simultaneously, the industry is increasingly adopting renewable biomethane as a direct substitute for fossil natural gas, enabling the production of carbon-neutral "bio-hydrogen" within existing infrastructure. This trend allows operators to bypass the high capital costs of carbon capture systems by leveraging a biogenic feedstock that naturally offsets emissions, effectively decoupling hydrogen production from fossil fuel volatility. The scalability of this pathway is being secured by a surging global supply of upgraded biogas suitable for grid injection. According to the International Energy Agency, in the 'Biogases – Renewables 2025' report, global production of combined biogas and biomethane is projected to expand by 22% between 2025 and 2030, providing a critical feedstock foundation for this green reforming strategy.

Segmental Insights

The Partial Oxidation segment is emerging as the fastest-growing category in the Global Steam Methane Reforming Market. This expansion is primarily driven by the process’s ability to utilize heavy, low-cost feedstocks such as residual oils and coal, which are unsuitable for traditional catalytic reforming. As refineries upgrade heavy crude fractions, Partial Oxidation efficiently converts these residues into valuable hydrogen and synthesis gas. Furthermore, the segment benefits from rising demand for methanol, which requires the specific chemical ratios this technology produces. Stringent environmental mandates from the Environmental Protection Agency also reinforce the need for flexible hydrogen production solutions.

Regional Insights

North America maintains a dominant position in the Global Steam Methane Reforming market, primarily driven by the substantial availability of low-cost natural gas feedstock. The region benefits from established industrial infrastructure and strategic initiatives by the U.S. Department of Energy that support hydrogen production development. This regulatory backing encourages the adoption of reforming technologies, particularly those integrated with carbon capture systems to address environmental standards. Furthermore, consistent demand from the petroleum refining and chemical manufacturing sectors ensures steady market expansion, cementing the region as a central hub for hydrogen generation activities.

Recent Developments

• In February 2025, Linde reported that it had achieved a record number of new wins for its small on-site projects during the previous year. The company secured numerous long-term agreements to build, own, and operate on-site plants, driven largely by demand from the electronics and manufacturing sectors. These projects will utilize the company’s proprietary on-site supply solutions, which leverage steam methane reforming technology to ensure high efficiency and reliability. The announcement underscored the sustained commercial success of standardized steam methane reforming units in delivering critical industrial gases to diverse end markets.
• In November 2024, Honeywell UOP and Johnson Matthey entered into a strategic collaboration to offer an integrated solution for the production of sustainable fuels. The partnership combines Johnson Matthey’s syngas technologies, which include steam methane reforming capabilities, with Honeywell’s fuel upgrading processes. This joint initiative aims to reduce the operating costs and accelerate the deployment of projects producing sustainable aviation fuel and other low-carbon fuels from various feedstocks. By merging their respective expertise, the companies intend to provide a comprehensive, end-to-end technology suite for the evolving energy market.
• In October 2024, MAIRE announced that its subsidiary, NextChem, had secured a contract to design and supply a new hydrogen production unit for a refinery in Vietnam. Through its technology arm, the company will provide the process design package and proprietary equipment for the steam methane reforming system. This project is part of a larger expansion and upgrade initiative at the Dung Quat Refinery, aiming to enhance operational efficiency and capacity. The award highlights the continued demand for advanced steam methane reforming technology in the refining sector to meet growing hydrogen requirements.
• In February 2024, Air Liquide awarded a prize to a scientific research team for their innovative work on the electrification of steam methane reforming. The award, part of the company's Scientific Challenge, recognized a new reactor configuration that enables the efficient use of electric heating in the hydrogen production process. This breakthrough research addresses the challenge of decarbonizing the heat supply for the reforming reaction, which is traditionally powered by fossil fuel combustion. The development aligns with the industry’s broader efforts to reduce carbon dioxide emissions associated with large-scale industrial hydrogen generation.

Key Market Players

• Air Liquide S.A.
• Air Products and Chemicals, Inc.
• ALLY HI-TECH CO., LTD.
• Linde plc
• HyGear B.V.
• Mahler AGS GmbH
• The Messer SE & Co. KGaA,
• Plug Power Inc.
• Hyster-Yale, Inc.
• Hexagon Composites ASA

By Feedstock	By Conversion Technology	By Application	By Region
Natural Gas Liquefied Natural Gas Methanol Coal	Steam Reforming Autothermal Reforming Partial Oxidation Catalytic Partial Oxidation	Petroleum Refining Chemicals Power Generation Transportation Industry Energy	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Steam Methane Reforming Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Steam Methane Reforming Market, By Feedstock:

• Natural Gas
• Liquefied Natural Gas
• Methanol
• Coal

• Steam Methane Reforming Market, By Conversion Technology:

• Steam Reforming
• Autothermal Reforming
• Partial Oxidation
• Catalytic Partial Oxidation

• Steam Methane Reforming Market, By Application:

• Petroleum Refining
• Chemicals
• Power Generation
• Transportation
• Industry Energy

• Steam Methane Reforming Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE