North America Steam Methane Reforming Market by Country, Competition, Forecast & Opportunities, 2020-2030F

The North America Steam Methane Reforming Market was valued at USD 3.24 Billion in 2024 and is projected to reach USD 4.38 Billion by 2030, rising at a CAGR of 5.15%. Steam methane reforming (SMR) is a widely adopted method for large-scale hydrogen production, utilizing high-temperature steam to extract hydrogen from methane, primarily derived from natural gas. This process is foundational to North America's hydrogen supply chain, especially in sectors such as oil refining, ammonia synthesis, and chemical manufacturing. The region’s abundant natural gas resources and established infrastructure make SMR an economically viable option for hydrogen production.

North American Steam Methane Reforming Market

Rising investment in low-carbon energy technologies and decarbonization initiatives is further boosting the SMR market, particularly through the adoption of carbon capture, utilization, and storage (CCUS), transforming conventional SMR into "blue hydrogen" production. With industrial hubs in the U.S. Gulf Coast and Canada’s Alberta region expanding hydrogen capabilities, SMR remains a core strategy for meeting clean energy targets and supporting the emerging hydrogen economy. Public-private partnerships and government-backed incentives are playing a key role in advancing SMR infrastructure across power generation, manufacturing, and transport sectors.

Key Market Drivers

Growing Hydrogen Demand in Industrial Applications Driving Steam Methane Reforming Adoption

The North America Steam Methane Reforming Market is witnessing strong momentum due to the growing need for hydrogen across a wide range of industrial applications. SMR continues to dominate hydrogen production due to its cost efficiency and integration within critical sectors such as refining, ammonia, and methanol production. In oil refineries, hydrogen is essential for hydrocracking and hydrotreating processes that remove sulfur and other contaminants from fuels, enabling compliance with emissions regulations. The sustained refining activity across North America, especially in the United States and Canada, supports ongoing SMR utilization.

Additionally, hydrogen is a crucial input in ammonia and methanol production - key components for fertilizer and chemical manufacturing. As agricultural demand and plastic production grow, so does the demand for hydrogen, reinforcing SMR’s role in industrial hydrogen supply. In the metals industry, hydrogen is increasingly used in processes such as direct reduced iron production, offering a lower-carbon alternative to conventional methods. As industrial sectors prioritize emissions reduction and energy efficiency, SMR paired with CCUS is gaining traction as a cleaner hydrogen production pathway.

Key Market Challenges

High Carbon Emissions Undermining Long-Term Viability of Steam Methane Reforming Technology

A major challenge facing the North America Steam Methane Reforming Market is the high level of carbon emissions associated with the process. Despite its economic viability and widespread use, SMR generates significant CO₂ emissions during both the reforming and water-gas shift reactions. As North American governments implement stricter environmental regulations and introduce carbon pricing, the sustainability of traditional SMR is increasingly questioned.

These policy changes raise operational costs and create uncertainty for companies considering future SMR investments, particularly for those unable to incorporate carbon capture and storage solutions. Retrofitting existing facilities with CCUS infrastructure is capital-intensive and complex, often only feasible for large operators with sufficient financial resources. Furthermore, the availability of suitable CO₂ storage sites varies by region, creating additional barriers for widespread CCUS adoption. As industries transition to cleaner energy sources, and with electrolysis powered by renewables gaining popularity, the long-term competitiveness of SMR without emission mitigation strategies is at risk.

Key Market Trends

Integration of Carbon Capture Technologies into Existing Steam Methane Reforming Facilities

An emerging trend in the North America Steam Methane Reforming Market is the growing integration of carbon capture technologies to reduce emissions and meet decarbonization goals. As regulatory bodies and industry sustainability commitments place pressure on producers to cut carbon output, hydrogen producers are incorporating carbon capture systems into SMR operations to produce low-emission or "blue" hydrogen. This shift allows companies to maintain the scalability and cost benefits of SMR while addressing environmental concerns.

Large-scale energy and industrial gas firms are leading the transition, supported by favorable government policies, funding initiatives, and tax incentives in both the U.S. and Canada. Recent improvements in carbon capture efficiency and the availability of more reliable infrastructure are also encouraging broader adoption. These advancements are helping reduce the economic burden of CCUS implementation, making it a more viable option for medium-scale producers. As demand grows for low-carbon hydrogen, SMR facilities with integrated carbon capture will be well-positioned to serve industries prioritizing sustainability, energy security, and regulatory compliance.

Key Players Profiled in this North America Steam Methane Reforming Market Report

Air Products and Chemicals, Inc.
Linde plc
BOC Limited
Shell International B.V.
Honeywell International Inc.
TechnipFMC plc
Worley Limited
McDermott International, Ltd.

Report Scope:

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

North America Steam Methane Reforming Market, by Distribution:

Pipelines
Cryogenic Tanks

North America Steam Methane Reforming Market, by End Use:

Transportation
Chemicals
Others