Hydrogen Storage Market Size, Share, Growth & Industry Analysis, By Type (Cylinder, Merchant/Bulk, Onsite Storage, On-Board Storage), By Storage Form (Compressed Gas, Liquefied Hydrogen), By Application (Chemicals, Oil Refineries, Automotive & Transportation, Others), and Regional Analysis, 2024-2031

Hydrogen Storage Market Size

The global Hydrogen Storage Market size was valued at USD 1,520.0 million in 2023 and is projected to grow from USD 1,720.4 million in 2024 to USD 4,598.6 million by 2031, exhibiting a CAGR of 15.08% during the forecast period. Increasing investments in hydrogen infrastructure and growing adoption of hydrogen fuel cells in transportation are propelling the growth of the market.

In the scope of work, the report includes services offered by companies such as Iberdrola, S.A., Air Liquide, Linde plc, Hexagon Purus, National Composites Centre, Tenaris, Air Products & Chemicals, Inc., Eastman Chemical Company, NPROXX, ITM Power PLC, and others.

The rising development of hydrogen-powered aviation presents a substantial opportunity for the development of the hydrogen storage market. Hydrogen-powered aircraft, which utilize hydrogen fuel cells or direct hydrogen combustion, offer a zero-emission solution. The development of these technologies is progressing rapidly, driven by increasing environmental regulations and the aviation industry's commitment to reducing its carbon footprint. This development underscores the need for advancements in hydrogen storage solutions that are lightweight and capable of withstanding the rigorous demands of aviation.

• For instance, in November 2023, Universal Hydrogen announced a memorandum of understanding with Japan Airlines and JAL Engineering to introduce hydrogen-powered flights in Japan, following their March 2023 collaboration. This initiative aims to position JAL as a global leader in zero-carbon-emissions passenger aircraft.

High-density hydrogen storage systems, such as liquid hydrogen tanks and advanced composite materials, are being explored to meet these needs. Additionally, airports are commencing investments in the necessary infrastructure to support hydrogen refueling. The adoption of hydrogen in aviation holds promise for reducing emissions and stimulates growth and innovation in the hydrogen storage sector. This synergy between the aviation and hydrogen industries underscores the critical role of hydrogen storage technology in achieving a sustainable future for air travel.

Hydrogen storage refers to the methods and technologies used to store hydrogen in various forms for subsequent use in energy, industrial, and transportation applications. Hydrogen is stored as a gas, a liquid, or in solid-state materials. Gaseous hydrogen storage typically involves high-pressure tanks, which store hydrogen at pressures up to 700 bar. Liquid hydrogen storage requires maintaining cryogenic temperatures to keep hydrogen in its liquid state.

Although, highly energy-dense, this method demands significant energy input for liquefaction. Solid-state hydrogen storage involves materials such as metal hydrides and chemical hydrides, which absorb and release hydrogen through chemical reactions. Each form of hydrogen storage has its specific applications.

For instance, high-pressure gas storage is commonly used in hydrogen fuel cell vehicles due to its relatively straightforward technology and ease of refueling. Liquid hydrogen is often used in aerospace and industrial applications where high energy density is crucial. Solid-state storage is being explored for portable and stationary power applications due to its safety and potential for high storage capacities. The development and optimization of these storage methods are essential for the broader adoption of hydrogen as a clean energy carrier.

Analyst’s Review

The hydrogen storage market is witnessing robust growth, mainly driven by increasing demand for clean energy solutions and significant technological advancements. Companies in this sector are strategically focusing on expanding their product portfolios through extensive research and development. They are investing heavily in innovative technologies such as advanced composite materials for high-pressure tanks and novel solid-state storage solutions.

• For instance, in October 2023, National Composites Centre successfully tested its UK-designed and manufactured composite cryogenic storage tanks with liquid hydrogen. These tanks represent pioneer technology in the UK, marking a significant step in the company's efforts to support the nation's transition to a hydrogen economy.

Furthermore, companies are increasingly focusing on scaling their production capacities to meet the growing demand from various sectors, including transportation, industrial, and power generation. The implementation of favorable government policies and financial incentives is further playing a crucial role in fostering market growth. Key players are leveraging these opportunities to enhance their competitive edge by ensuring compliance with regulatory standards and improving the safety and reliability of their storage solutions.

Hydrogen Storage Market Growth Factors

Rising investment in hydrogen infrastructure is a pivotal factor propelling the expansion of the hydrogen storage market. Governments and private enterprises are channeling substantial funds into the development of comprehensive hydrogen ecosystems, encompassing production, storage, and distribution facilities. This increase in capital flows is boosted by the global imperative to transition toward cleaner energy sources to mitigate climate change impacts.

National governments are implementing policies and incentives to stimulate hydrogen infrastructure projects, such as subsidies for building hydrogen refueling stations and grants for research and development of advanced storage technologies.

• For instance, in February 2024, Uniper Energy Storage planned to establish salt caverns in north-west Germany for storing large volumes of hydrogen. The initial storage capacity is expected to range from 250 to 600 GWh, with completion anticipated by the end of 2030.

Additionally, private sector investments are increasing significantly, with major energy companies and technological innovators collaborating on large-scale hydrogen projects. This robust financial support is facilitating the establishment of hydrogen corridors, where hydrogen fuel are produced, stored, and distributed efficiently, ensuring a reliable supply chain. The development of such infrastructure is crucial for enabling widespread adoption of hydrogen technologies across various sectors, including transportation, industry, and power generation.

The high capital cost associated with liquid hydrogen storage presents a significant challenge to the development of the hydrogen storage market. Liquid hydrogen requires cryogenic temperatures of -253°C for storage, which necessitates advanced and expensive cooling technologies. The infrastructure needed to maintain these low temperatures, including specialized tanks and handling equipment, involves substantial initial investments. This high cost is prohibitive, particularly for smaller companies and emerging markets, limiting the widespread adoption of liquid hydrogen storage solutions.

The energy-intensive process of liquefaction further adds to the operational expenses, making liquid hydrogen storage an economically challenging option. However, mitigating this challenge involves strategic approaches such as scaling up production capacities to achieve economies of scale, which help reduce per-unit costs.

Moreover, investing in research and development to improve the efficiency of liquefaction processes and develop cost-effective cryogenic materials play a crucial role. Additionally, fostering public-private partnerships provide the necessary financial support and share the investment burden, thereby accelerating the deployment of liquid hydrogen storage technologies. Overcoming these challenges is essential for leveraging the high energy density and other benefits associated with liquid hydrogen storage in the framework of hydrogen economy.

Hydrogen Storage Market Trends

The growing adoption of hydrogen fuel cells in transportation is a significant trend augmenting the expansion of the hydrogen storage market. Hydrogen fuel cells offer a zero-emission alternative to traditional internal combustion engines, making them an attractive option for reducing greenhouse gas emissions in the transportation sector. This technology is gaining significant traction in various modes of transportation, including passenger vehicles, buses, trucks, and even trains.

The efficiency and environmental benefits associated with hydrogen fuel cells are prompting governments and automotive manufacturers to invest in their development and deployment. Countries are implementing supportive policies, such as subsidies and tax incentives, to promote the adoption of hydrogen fuel cell vehicles (FCVs).

Additionally, major automotive companies are launching new FCV models and expanding their hydrogen refueling infrastructure. This trend is fueling the demand for hydrogen storage solutions that are compatible with fuel cell technology. High-pressure hydrogen tanks are being developed and optimized to provide safe, efficient, and compact storage for FCVs. The growing use of hydrogen fuel cells in transportation supports the reduction of carbon emissions and stimulates advancements in hydrogen storage technologies, thereby contributing to the growth of the hydrogen economy.

Segmentation Analysis

The global market is segmented based on type, storage form, application, and geography.

By Type

Based on type, the market is categorized into cylinder, merchant/bulk, onsite storage, and on-board storage. The cylinder segment captured the largest hydrogen storage market share of 46.35% in 2023, largely attributed to its widespread use and versatility in various hydrogen storage applications. Cylinders, especially high-pressure ones, represent a well-established technology that has been extensively developed and optimized for safely storing and transporting gaseous hydrogen.

Their robust design and material advancements make them suitable for a range of industries, including automotive, industrial, and medical sectors. In the transportation sector, hydrogen fuel cell vehicles (FCVs) predominantly use high-pressure cylinders to store hydrogen, providing a reliable and efficient storage solution.

Additionally, the growing adoption of hydrogen as a clean energy source in industrial applications, such as metal processing and electronics manufacturing, boosts the demand for hydrogen cylinders. The ease of handling and portability of cylinders make them highly suitable for decentralized hydrogen production and distribution, particularly in supporting small and medium-scale operations. Government incentives and regulatory frameworks that promote hydrogen usage further lead to the widespread adoption of cylinder storage systems.

By Storage Form

Based on storage form, the hydrogen storage market is classified into compressed gas and liquefied hydrogen. The liquefied hydrogen segment is poised to record a staggering CAGR of 15.61% through the forecast period, largely propelled by its high energy density and growing applications in various high-demand sectors. Liquefied hydrogen, which is stored at cryogenic temperatures, offers a compact and efficient method to store large volumes of hydrogen, making it particularly advantageous for industries that require substantial energy reserves. The aerospace industry, for instance, relies heavily on liquefied hydrogen for rocket fuel due to its superior energy-to-weight ratio.

Additionally, the transportation sector is increasingly exploring liquefied hydrogen for long-haul and heavy-duty applications, such as trucks, ships, and trains, where extended range and reduced refueling frequency are critical. The ongoing advancements in cryogenic technologies are reducing the costs and improving the efficiency of liquefied hydrogen storage, which makes it more economically viable. Moreover, significant investments in hydrogen infrastructure, including liquefaction plants and refueling stations, are facilitating the wider adoption of liquefied hydrogen. Government policies and initiatives aimed at decarbonizing the economy further support this growth, creating a conducive environment for the rapid expansion of the liquefied hydrogen segment.

By Application

Based on application, the hydrogen storage market is divided into chemicals, oil refineries, automotive & transportation, and others. The chemicals sector garnered the highest revenue of USD 613.3 million in 2023, propelled by the extensive use of hydrogen in various chemical processes and production. Hydrogen is a critical feedstock in the chemical industry, used in the production of ammonia, methanol, and other essential chemicals. Ammonia, for instance, is a key ingredient in fertilizers, with the growing global demand for agricultural products necessitating hydrogen in ammonia synthesis.

Moreover, methanol is widely used in the production of plastics, resins, and other industrial chemicals, with hydrogen playing a crucial role in its synthesis. The rising shift toward greener production methods is further promoting the use of hydrogen as a cleaner alternative to traditional fossil fuels in chemical processes. Additionally, the chemical industry's efforts to reduce carbon emissions and adhere to stringent environmental regulations are boosting the adoption of hydrogen. Increased investments in new hydrogen production facilities and rapid advancements in hydrogen storage and transportation technologies are further supporting the growth of the segment.

Hydrogen Storage Market Regional Analysis

Based on region, the global market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

The Europe hydrogen storage market share stood around 36.31% in 2023 in the global market, with a valuation of USD 551.9 million. This dominance is stimulated by Europe’s robust policy framework and substantial investments aimed at transitioning to a low-carbon economy. The European Union’s Hydrogen Strategy, part of the European Green Deal, plays a critical role by setting ambitious targets for hydrogen production and infrastructure development. This strategy is complemented by substantial funding from both public and private sectors, supporting research, development, and deployment of advanced hydrogen storage technologies.

Additionally, Europe’s commitment to reducing greenhouse gas emissions and achieving climate neutrality by 2050 propels the demand for hydrogen as a clean energy carrier. The large companies intend to focus on the partnerships and merger with the local players with an aim to expand the growth of the hydrogen industry.

• For instance, in January 2024, Cygnet Texkimp supplied a four-axis filament winding machine to the National Composites Centre. This machine is slated for integration into a cutting-edge manufacturing and testing facility specifically dedicated to hydrogen transportation and storage technologies.

Industrial applications, including chemicals and refining, further contribute significantly to the regional market growth. Collaborative projects and cross-border initiatives further strengthens Europe’s position, thereby fostering innovation and scaling up hydrogen infrastructure across the region.

Asia-Pacific is poised to grow at the highest CAGR of 16.44% in the forthcoming years, boosted by significant advancements and increased investments in hydrogen technologies across the region. Countries such as China, Japan, and South Korea are leading this growth trajectory, with robust national strategies and substantial funding dedicated to developing hydrogen economies. Japan, for instance, has been a pioneer with its Hydrogen Society vision, focusing on hydrogen production, storage, and utilization across various sectors.

Moreover, South Korea’s Hydrogen Economy Roadmap aims to position the country as a global leader in hydrogen by promoting the adoption of fuel cell vehicles and expanding hydrogen infrastructure. China, with its vast industrial base and commitment to reducing carbon emissions, is investing heavily in hydrogen production and storage technologies.

• For instance, in January 2023, Iberdrola Australia and ABEL Energy jointly constructed a USD 1.19 billion facility for producing green hydrogen and green methanol. This initiative aligns with the Australian Government’s Powering Australia plan, aimed at advancing cleaner energy solutions and reducing emissions through significant investments in renewable energy projects totaling nearly USD 25 billion.
• In June 2024, GKN Hydrogen and ZYNP signed a memorandum of understanding for future collaboration to jointly provide hydrogen solutions for China's mobility infrastructure and promote GKN Hydrogen's storage solutions in the Chinese market. Both companies leverage their core competencies and anticipate significant opportunities in jointly developing China's hydrogen market.

The expanding automotive industry is increasingly adopting hydrogen fuel cell vehicles, highlighting the need for efficient storage solutions. Furthermore, Asia-Pacific's rapid industrialization and urbanization are leading to increased demand for clean energy alternatives, making hydrogen a critical component of the energy mix. Collaborative efforts between countries, bolstered by supportive government policies, and technological innovations are expected to sustain and accelerate this impressive growth trajectory.

Competitive Landscape

The global hydrogen storage market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Manufacturers are adopting a range of strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, to strengthen their market standing.

List of Key Companies in Hydrogen Storage Market

• Iberdrola, S.A.
• Air Liquide
• Linde plc
• Hexagon Purus
• National Composites Centre
• Tenaris
• Air Products & Chemicals, Inc.
• Eastman Chemical Company
• NPROXX
• ITM Power PLC

Key Industry Developments

• June 2024 (Collaboration): Voith and Weifu High Technology Group signed a strategic cooperation agreement to form two joint ventures focused on hydrogen storage systems. Voith is expected to oversee the global venture (excluding China) through Voith HySTech GmbH, while Weifu is anticipated to manage the joint venture targeting the Chinese market.
• April 2024 (Expansion): Hexagon Purus secured a USD 4.12 million order from HPS Home Power Solutions AG, Germany’s leading provider of year-round, green hydrogen-based energy storage systems for buildings.
• January 2024 (Partnership): Vallourec and H2V, a SAMFI-Invest group subsidiary, signed a partnership at Hyvolution to leverage each other's technical expertise, market knowledge, and development capabilities. The collaboration aims to integrate Vallourec’s Delphy storage solution with green hydrogen production in future projects.

The global hydrogen storage market is segmented as:

By Type

• Cylinder
• Merchant/Bulk
• Onsite Storage
• On-Board Storage

By Storage Form

• Compressed Gas
• Liquefied Hydrogen

By Application

• Chemicals
• Oil Refineries
• Automotive & Transportation
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America