Methane catalytic pyrolysis is a promising solution for producing hydrogen and valuable carbon nanotubes (CNTs) from natural gas without the production of CO2 emissions. The microwave-enhanced methane catalytic pyrolysis was conducted in a hybrid fixed bed reactor that allows microwave heating and combined thermal microwave ″hybrid″ heating experiments. In the hybrid heating mode, the catalyst was heated to a temperature of 500 °C with hot air, and then the catalyst temperature was raised to the operating temperature utilizing microwave irradiation. The Ni–Pd/CNT catalyst was tested at 550–650 °C under hybrid or microwave-only conditions. Hybrid heating was found to have a higher methane conversion than microwave heating alone. The higher conversion was attributed to the more efficient utilization of the catalyst bed and temperature uniformity, as indicated by the thermal imaging results. The power required to maintain the reaction temperature was reduced in the hybrid heating mode by over 60% of what was initially needed under microwave heating only. XRD, Raman, TGA, and TEM were used to characterize the morphology of the carbon nanotube product formed. The CNTs formed were found to be more uniform under hybrid heating than microwave heating alone, as indicated by TGA oxidation temperatures. This work demonstrates the potential of utilizing industrial waste heat to lower the overall size of the microwave generator, increase catalyst utilization, and reduce input energy requirements, thus lowering capital and energy costs.