Hydrogen Storage Market - By Type , By Form , By Component , By Storage , By End-use Industry , By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030

Hydrogen Storage Market Overview

Hydrogen Storage market size is forecast to reach US$7.2 billion by 2030, after growing at a CAGR of 19.7% during 2024-2030. Hydrogen storage is a key enabling technology for the advancement of hydrogen and fuel cell technologies in applications including stationary power, portable power and transportation. The Hydrogen Storage market is driven by the increasing demand for clean energy to reduce greenhouse gas emissions, increasing adoption of fuel cells in automotive and transportation and increasing consumption of hydrogen in industrial applications such as rocket fuel and electricity generation. Additionally, operators of several natural gas-fired power plants are exploring hydrogen as a supplement or replacement for natural gas. To reduce the environmental issues caused by the widespread use of fossil fuels, energy storage and transfer require safe technologies. However, there have long been issues with hydrogen storage and transportation. Liquid organic hydrogen carriers, or LOHCs, were introduced as a solution for these problems, which is driving the growth of Hydrogen Storage market. Compared to traditional energy storage systems like liquefaction, high-pressure compression and adsorption and absorption methods, the hydrogen storage approach in LOHCs is more appealing. Liquid and semi-liquid organic molecules that have been hydrogenated to store hydrogen make up LOHCs. After being transported and stored, these hydrogenated molecules are dehydrogenated to liberate the necessary hydrogen for energy production. In December 2024, Japanese oil firm ENEOS announced plans to build a $129.9 million small-scale project in Australia that will produce green hydrogen for export to Japan. ENEOS plans to use methylcyclohexane (MCH), a liquid organic hydrogen carrier (LOHC). Another trend in the market is Power-to-Gas (P2G) which converts surplus renewable energy into hydrogen gas through PEM electrolysis technology are propelling the market growth. 

Hydrogen Storage Market - Report Coverage:

The “Hydrogen Storage Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Hydrogen Storage Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

• Due to COVID the hydrogen storage industry was heavily impacted. Lockdowns, travel restrictions, and employee shortages caused numerous hydrogen infrastructure projects to be postponed. Both new hydrogen storage facilities and improvements to already-existing infrastructure were impacted.
• The Russia-Ukraine conflict impacted the Hydrogen Storage market. The availability of essential materials and components for hydrogen storage devices was impacted by the war's disruption of global supply lines. Economic uncertainties caused by the conflict have led to increased costs for raw materials, transportation, and labor which resulted in overall cost of hydrogen storage and production. 

Key Takeaways 

Cylinders are the Largest Segment

Cylinders are largest segment in the Hydrogen Storage market, in terms of type due to the main reason for pressurizing hydrogen is that when it is pressurized its apparent volume becomes smaller, making storage and transportation more convenient. Storage of hydrogen as a gas typically requires high-pressure tanks (350–700 bar [5,000–10,000 psi] tank pressure), as per the U.S Department of Energy. As cylinders are manufactured and regulated to stringent safety standards, ensuring safe handling and storage of hydrogen the adoption of cylinders for several applications is increasing rapidly. Additionally, advancements in manufacturing materials are leading to stronger, lighter and more efficient hydrogen cylinders. A big challenge is to storage & transportation of hydrogen gas to filling station. Since it is the beginning of hydrogen era in many emerging countries it is not practically possible to lay the pipeline in all the places for transportation of Hydrogen to dispense. The best alternative of storage and transportation of hydrogen in cascades of Type IV composite cylinders. For instance, Time Technoplast Ltd, is the first company in India to receive final approval for the manufacturing and supply of Type-IV composite cylinders for hydrogen in 2024. Such advancements are propelling the growth of cylinders segment in the Hydrogen Storage market globally.  

Physical Based Segment is Leading the Market 

Physical based segment is leading the hydrogen storage market, in terms of storage. Physical storage is suitable for a wide range of applications, including fuel cell vehicles, industrial processes, and energy storage. Rapid increase in global hydrogen demand is driving the growth of physical based segment growth in hydrogen storage market globally. For instance, as per International Energy Agency’s, Global Hydrogen Review 2024, global hydrogen demand reached 97 MT in 2023, an increase of 2.5% compared to 2022. Demand remains concentrated in refining and the chemical sector, and is principally covered by hydrogen produced from unabated fossil fuels. As in previous years, low-emissions hydrogen played only a marginal role, with production of less than 1 Mt in 2023. However, low-emissions hydrogen production could reach 49 Mtpa by 2030 based on announced projects, almost 30% more than when the Global Hydrogen Review 2023 was released. This strong growth has been mostly driven by electrolysis projects, with announced electrolysis capacity amounting to almost 520 GW. The number of projects that have reached a final investment decision (FID) is also growing: Announced production that has taken FID doubled compared with last year to reach 3.4 Mtpa, representing a fivefold increase on today’s production by 2030. Such increased demand mandates efficient storage and transportation methods to ensure a reliable supply of hydrogen. Thus, the physical based storage systems are propelling the growth of Hydrogen Storage market globally. 

North America Dominates the Market 

North America region occupies the largest share in the Hydrogen Storage Market, as the need to replace climate damaging fossil fuels grow. Hydrogen is becoming a viable option to decarbonize everything from transportation to energy generation. For instance, according to data from Fuel Cell and Hydrogen Energy Association (FCHEA), a coalition of major oil & gas, power, automotive, fuel cell, and hydrogen companies have come together to develop a Road Map to a US Hydrogen Economy in 2024. This Road Map shows how critically important hydrogen is to achieve a lower-carbon energy mix, and with the right actions now, can reinforce U.S. energy leadership and strengthen economy by generating $140 billion per year in revenue and 700,000 jobs by 2030, and $750 billion per year in revenue and 3.4 million jobs by 2050. Additionally, The U.S. heavily engaged in the hydrogen economy with hundreds of millions of dollars of public and private investment per year, and boasting more than half the world’s fuel cell vehicles, 25,000 fuel cell material handling vehicles, more than 8,000 small scale fuel systems in 40 states, and more than 550 MW of large-scale fuel cell power installed or planned. Such investments and advancements in this region are fueling the growth of Hydrogen Storage market. 

Increasing adoption of fuel cells in automotive 

The increasing adoption of fuel cells in automotive & transportation is driving the demand of Hydrogen Storage market globally. For instance, Fuel Cell Electric Vehicles (FCEVs) are fueled with pure hydrogen gas stored in a tank on the vehicle. Major automobile manufacturers are offering a limited but growing number of production FCEVs to the public in certain markets, which is fueling the growth of hydrogen storage market globally. For instance, Chinese government is targeting to build at least 1,200 hydrogen refueling stations for mobility across the country by 2025, according to a journal from emerging technology news. Additionally, China is forecast to have 12,000 to 18,000 fuel-cell vehicles (FCVs) plying its roads in 2024. This success in FCVs is generating demand for hydrogen refueling stations, and even the country's local governments have now begun to include in plans and regulations. As a result, Hydrogen Storage market is witnessing significant growth globally. 

Storage Density and Infrastructure Costs 

Hydrogen's low volumetric energy density poses a significant challenge for Hydrogen Storage market globally. Hydrogen needs around four times the volume of gasoline to hold the same amount of energy, even when it is liquid. For mobile applications where space is limited, this problem can be especially severe. Additionally, a significant amount of money is needed to build and maintain hydrogen storage facilities. Many companies may not be able to afford the infrastructure costs, which range from specialized tanks to cryogenic equipment for liquid hydrogen. These costs cover things like liquefiers, compressors, safety measures and monitoring apparatus. Economies of scale may eventually result from increased output. The high upfront cost, however, may deter lot of prospective consumers. 

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Key Market Players

Global Hydrogen Storage Market top 10 companies include:

1. American Element
2. Hexagon Purus ASA 
3. ENGIE 
4. Air Liquide
5. Linde Plc
6. H Bank Technology Inc
7. Cummins Inc.
8. Cella Energy Ltd.
9. Luxfer Holdings PLC 
10. NPROXX

Scope of the Report: 

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