Chemical transformations at incomplete methane oxidation in the air medium were studied experimentally at reaction activation on the wall of an annular microchannel. Methane was oxidized incompletely on a rhodium catalyst deposited on an inner wall of the channel. Concentrations of the products of chemical transformations were measured in the outlet gas mixture for different reactor temperatures and stay times. We have determined the range of channel wall temperatures and stay times of the mixture corresponding to an increase in the portion of hydrogen and carbon dioxide indicating transition from predominant methane combustion to cascade chemical reactions with activation of steam and carbon dioxide methane conversions. It is shown that the kinetic model of chemical transformations of methane in the air medium depends significantly on the temperature of channel walls and stay time of the mixture. The effect of outer diffusion deceleration on the rate of chemical transformations at incomplete methane oxidation under the strained conditions is determined.