Energy and Power

Hydrogen Storage Market

Global Industry Analysis and Forecast 2023-2030

Pages : 120

Base Year : 2022

Released Year : October 2023

Format :Pdf Ppt Xls

Report ID:KR273

Author : Antriksh P.

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Base Year

2022

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Forecast Year

2023-2030

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Historical Years

2018-2021

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Market Value (2022)

USD 2.56 Billion

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Forecasted Value (2030)

USD 6.74 Billion

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CAGR (2023 – 2030)

14.80%

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Fastest Growing Region (2023 - 2030)

Asia Pacific

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Largest Region

Europe

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By Type

Cylinder, Merchant/Bulk, Onsite, On-Board

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By Storage Form

Physical Form, Material Based

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By Application

Industrial, Commercial, Residential


Hydrogen Storage Market Size

The global Hydrogen Storage Market size was valued at USD 2.56 billion in 2022 and is projected to reach USD 6.74 billion by 2030, growing at a CAGR of 14.80% from 2023 to 2030. The use of hydrogen technologies and initiatives is steadily gaining traction throughout the value chain, with notable advancements in the supply, transmission, and distribution of hydrogen to end users. Energy storage systems play a crucial role in integrating renewable energy sources into the energy infrastructure and ensuring grid security by offsetting the increased reliance on renewable energy. While hydrogen has long been utilized in industrial applications, the rising demand for low-emission hydrogen to meet climate commitments necessitates innovative approaches to expand the supply chain, including nascent technologies.

Analyst’s Review 

The utilization of hydrogen storage is gaining momentum, with its applications expanding within power grids. This technology enables the storage of renewable energy in large volumes for extended durations, bolstering the resilience of energy systems. By balancing supply and demand, renewable hydrogen contributes to enhanced energy efficiency across the European Union (EU). Noteworthy initiatives include Germany and Spain's joint investment plan of USD 9.82 billion in renewable hydrogen storage, aiming to achieve a hydrogen capacity of 5 GW by 2030 and 10 GW by 2040. The strategies of EU member states have increasingly prioritized the generation of renewable energy, as evidenced by the ambitious targets set by the European Union in March 2023 to significantly expand its use through 2030.

Market Definition

Hydrogen storage refers to the process of storing hydrogen gas for future use, enabling its deployment in various applications. It plays a crucial role in the integration of renewable energy into power grids by allowing excess energy to be stored and utilized during periods of high demand. There are several types of hydrogen storage methods, including compressed hydrogen gas, liquid hydrogen, and solid-state hydrogen storage.

Compressed hydrogen gas storage involves compressing hydrogen gas and storing it in high-pressure containers. This method is commonly used for small-scale applications and transportation purposes. However, solid-state hydrogen storage encompasses various materials, such as metal hydrides, that can absorb and release hydrogen gas. This method offers advantages in terms of safety, storage capacity, and controllability.

One prominent application is in the transportation sector, where hydrogen fuel cell vehicles utilize stored hydrogen to generate electricity and power the vehicle. Hydrogen storage is also utilized in power generation, where stored hydrogen can be used in fuel cells to produce electricity. Additionally, hydrogen storage plays a vital role in industrial processes, such as hydrogenation reactions in the production of chemicals and refining processes in the oil & gas industry.

Overall, hydrogen storage is a critical component of the hydrogen economy, enabling the efficient and effective utilization of hydrogen gas in various sectors. Advancements in storage technologies continue to expand the potential applications of hydrogen and contribute to the transition towards a sustainable energy future.

Market Dynamics

The government has set out strategic goals to develop and build cost-effective and energy-efficient hydrogen stations nationwide, which is projected to drive market growth in the United States. The market is expected to expand due to the growing utilization of hydrogen across multiple industries. Various applications of hydrogen, such as industrial processes in oil refineries, power generation through stationary fuel cells, fueling of fuel cell vehicles, and storage as cryogenic liquid, compressed gas, or hydride chemical compounds, contribute to this market expansion.

Hydrogen storage technologies can be associated with high capital costs, which can impact the adoption and scalability of hydrogen-based solutions. The cost analysis of hydrogen storage systems reveals that various factors contribute to these high capital costs. However, the availability of hydrogen refilling stations is a crucial factor in the widespread adoption of hydrogen fuel cell vehicles.

Segmentation Analysis

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

By Storage Form

Based on storage form, the hydrogen storage market is categorized into physical form and material based. The physical form segment accumulated the largest market share in 2022. The use of physical-based storage methods involves storing hydrogen in physical forms such as gas, supercritical fluid, adsorbate, or molecular inclusions. This method is particularly important for applications in transportation, where high-density storage is a challenge. The increasing demand for low-emission fuels and the growing need for hydrogen storage tanks in the transportation sector are driving the market growth for physical-based hydrogen storage. Additionally, research and development efforts are focused on improving physical hydrogen storage technology to meet the rising demand.

By Application

Based on application, the hydrogen storage market is bifurcated into industrial, commercial, and residential. The industrial segment held the lion's share in the industry in 2022. Hydrogen energy is experiencing rapid growth as an environmentally friendly and sustainable energy source. Industries across various sectors are increasingly adopting hydrogen energy for numerous applications, including rocket fuel, ammonia production, and more. Operators of natural gas-fired power plants are actively exploring the potential of incorporating hydrogen as a complementary or alternative fuel source. The versatility of hydrogen is a key advantage in industrial applications, offering a wide range of potential implementations.

Hydrogen Storage Market Regional Analysis

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

Europe dominated the market in 2022 due to large-scale hydrogen energy storage initiatives being undertaken in the region, which is leading to a significant surge in product demand. Moreover, the presence of regulatory bodies, like the energy storage association, actively promoting the application of hydrogen energy, will propel market growth. The automotive sector in these regions is experiencing a noteworthy uptake of cutting-edge technologies and a growing utilization of hydrogen, further fueling market expansion.

In 2022, Germany's total hydrogen capacity amounted to 5.6 GW. However, within one year, this capacity experienced significant growth of 2.5 GW, resulting in a total capacity of 8.1 GW by 2023. This accounts for an increase of 28% in the hydrogen capacity in Europe. According to the German National Hydrogen Council, the government has anticipated the demand for hydrogen to range between 90 and 110 TWh by 2030. Notably, the current production of hydrogen in Germany is 57 TWh.

Competitive Landscape

The global hydrogen storage industry study will provide valuable insight with an emphasis on the global market and the market is highly fragmented. Major players are focusing on a few of the strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments are the major strategic initiatives. Industry players are investing extensively in R&D activities, building new manufacturing facilities, and supply chain optimization.

List of Key Companies in Hydrogen Storage Market

  • Iberdrola, S.A.
  • Air Liquide Energies
  • Siemens AG
  • Linde plc
  • Hexagon Purus
  • Abengoa
  • MAN Energy Solutions
  • Air Products & Chemicals, Inc.
  • Hydrogenious LOHC Technologies
  • NPROXX

Key Industry Developments 

  • May 2023 (Agreement): HGK Shipping, Hydrogenious LOHC Maritime, and Hydrogenious LOHC Technologies inked a memorandum of understanding (MoU) to create a scalable solution for widespread access to hydrogen as a renewable energy source. This technology utilizes liquid organic hydrogen carrier (LOHC) to store and transport hydrogen.
  • March 2023 (Launch): Linde made an announcement regarding the groundbreaking hydrogen-powered ferry in Norway, which is the first of its kind in the world. Linde will be providing clean hydrogen to Norled, the ferry operator, to fuel the MF Hydra, which operates using fuel-cell technology.
  • May 2022 (Collaboration): Hexagon Purus announced that its subsidiary, Wystrach GmbH, secured an order for hydrogen storage systems from HPS Home Power Solutions GmbH. HPS is a German company that specializes in providing green hydrogen-based electricity storage solutions for residential and commercial properties, making it the world's first provider in this market segment.

The Global Hydrogen Storage Market is Segmented as:

By Type

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

By Storage Form

  • Physical Form
  • Material Based

By Application

  • Industrial
  • Commercial
  • Residential

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
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CUSTOMIZATION OFFERED
  • Check Icon Additional Company Profiles
  • Check Icon Additional Countries
  • Check Icon Cross Segment Analysis
  • Check Icon Regional Market Dynamics
  • Check Icon Country-Level Trend Analysis
  • Check Icon Competitive Landscape Customization
  • Check Icon Extended Forecast Years
  • Check Icon Historical Data Up to 5 Years
Frequently Asked Questions (FAQ's)
The global market is projected to reach USD 6.74 billion by 2030, growing at a CAGR of 14.80% from 2023 to 2030.
The global market was valued at USD 2.56 billion in 2022.
The government has set out strategic goals to develop and build cost-effective and energy-efficient hydrogen stations nationwide.
Top manufacturers of hydrogen storage market are Iberdrola, S.A., Air Liquide Energies, Siemens AG, Linde plc, Hexagon Purus, Abengoa, NPROXX, MAN Energy Solutions, Air Products & Chemicals, Inc., Hydrogenious LOHC Technologies, and others.
Asia Pacific is expected to be the fastest growing region in the hydrogen storage market over the forecast period.
By type, cylinder will hold the maximum share in the hydrogen storage market with the revenue value by 2030.
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