Hydrogen Energy Storage Market Outlook 2031:
The global hydrogen energy storage market size was valued at USD 15.36 Billion in 2022 and is projected to reach USD 22.83 Billion by 2031, expanding at a CAGR of 4.5% during the forecast period 2023 - 2031. The market growth is attributed to the rising need for massive electric energy, the rapid growth of efficient hydrogen energy storage, and the increasing adoption of hydrogen energy technology in vehicles.
Hydrogen energy storage ensures the safety and efficient reservation of hydrogen energy that is generally stored in a range of medium to highly-concentration containers. Hydrogen energy can be available in liquid, gas, and solid forms, which are widely used in various applications across several industries such as stationary power generation.
The storage of gas-based hydrogen primarily requires high-compressed or high-pressure tanks while the liquid form can be stored only under cryogenic temperature. One of the key aspects of the market expansion is the rising replacement of fossil fuel with renewable energy in industrial units for grid energy service and the rapidly increasing use of fuel cell technology for various commercial applications.
For instance, fuel-cell electric vehicles are powered by hydrogen using fuel-cell technology rather than using electricity from batteries. Moreover, the rapid introduction of several government subsidies and tax incentive schemes is projected to push market expansion further. For instance, an apex body of the US energy storage trade, Energy Storage Association introduced a series of tax incentives for renewable energy storage including hydrogen energy in June 2019.
COVID-19 Impact
The COVID-19 pandemic had adversely impacted the market due to the sharp decline in power consumption across industries worldwide, as a result of the prolonged shutdown of manufacturing units and travel restrictions.
The emergency lockdowns of governments across the globe, in a view to curb the virus spread, had forced to reschedule shipments of various components used in hydrogen energy storage. However, considering the rapid shift toward the use of environmentally friendly energy sources in industries, the market has massive potential to grow at a significant pace in the coming years.
Hydrogen Energy Storage Market Trends, Drivers, Restraints, and Opportunities
- Rising need for alternative energy sources to replace fossil fuel-based energy and increasing awareness regarding the benefit of using renewable power are key factors driving the market.
- Favorable government policies encouraging the use of hydrogen power storage to meet the rising demand for fuel-cell electric vehicles present another key driver of the market.
- Wide use of hydrogen energy storage in various applications including on-site stationary power generation and refueling stations is expected to boost the market during the forecast period.
- Lack of commercialization of hydrogen energy storage in developing countries acts as a major restraint that can hamper the market in the coming years.
- Technology advancements that result in the development of high volumetric storage density systems, hydride storage systems, and large capacity liquid hydrogen carriers are offering immense opportunities for market growth.
Scope of Hydrogen Energy Storage Market Report
The global hydrogen energy storage market research report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Hydrogen Energy Storage Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2021
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Historic Data
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2019–2020
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Forecast Period
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2022–2030
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Segmentation
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State (Liquid, Solid, and Gas), Applications (Transportation and Stationary Power), Technology (Compression, Material-based, and Liquefaction), and End-users (Industrial, Commercial, and Electric Utilities)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Linde plc; Air Liquide; FuelCell Energy, Inc.; Siemens Energy AG; Taiyo Nippon Sanso Corporation; Air Products and Chemicals, Inc.; ENGIE; Iwatani Corporation; Cummins Inc.; Nel ASA; ITM Power; Nedstack Fuel Cell Technology B.V.; GKN Sinter Metals Engineering GmbH; HyGear; Steelhead Composites Inc.; Hexagon Composites ASA; and Plug Power Inc.
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Hydrogen Energy Storage Market Segment Insights
Solid segment to register a steady growth rate
Based on state, the global hydrogen energy storage market is divided into liquid, solid, and gas. The solid segment held a major share, representing more than 43% of the market revenue in 2021, and is projected to register a steady growth rate in the coming years due to the increasing popularity of hydrogen storage in solid form and wide applications of the material across industrial units.
On the other hand, the gas segment is expected to expand at a robust growth rate during the forecast period owing to increasing demand for gas-based renewable energy, impacted by the low cost of storage.
Rising use in large business enterprises drives the stationary power segment
On the basis of applications, the market is bifurcated into transportation and stationary power. The stationary power segment held a dominant market share in 2021 and is expected to register a robust growth rate during the forecast period owing to the rising use of stationary power storage in various industries and commercial spaces.
Stationary hydrogen energy storage is widely used by large business enterprises as these organizations require a large volume of energy sources for their operations. Moreover, the rapid adoption of renewable and sustainable energy sources across stationary power systems of various corporate organizations further boosts the segment.
Compression segment to register a considerable CAGR
In terms of technology, the global hydrogen energy storage market is segregated into compression, material-based, and liquefaction. The compression segment represented around 41% share of the market revenue in 2021 and is projected to register a considerable CAGR during the forecast period owing to the high use of compressed forms of hydrogen in hydrogen filling stations, fuel cell vehicles, and on-site stationary power generation.
Moreover, the wide applications of the technology in various manufacturing units across industries. On the other hand, the liquefaction segment is expected to hold a large market share in the coming years due to the rising demand for a bulk supply of hydrogen energy across industries, especially the chemical and oil & gas industry.
Increasing need for power consumption boosts the industrial segment
On the basis of end-users, the market is segmented into industrial, commercial, and electric utilities. The industrial segment constituted a share of over 42.5% of the market revenue in 2021 and the trend is expected to continue in the coming years owing to the increasing need for power consumption across industries.
The rising demand for hydrogen energy storage from the chemical and transportation industry for various applications further drives the segment. On the other hand, the commercial segment is projected to exhibit significant growth during the targeted period owing to the wide adoption of renewable energy storage for the development of hydrogen refueling stations. Furthermore, the increasing installation of fuel cell-based energy storage for various commercial applications is likely to propel the segment further.
Asia Pacific to dominate the market
In terms of regions, the global hydrogen energy storage market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific accounted for a share of more than 35% of the global revenue in 2021 and the region is expected to dominate the market during the projected period.
The regional market growth is attributed to the increasing development of various renewable projects by the governments of major economies in the region including China, Japan, and India. Over the years, China has funded extensively to encourage the development of renewable energy and high spending on R&D programs by key players in the region further propels the regional market.
On the other hand, the market in Europe is anticipated to expand at a rapid pace during the forecast period owing to strict government regulations toward the use of renewable power sources across industries and the rapid development of fuel cell projects.
Segments
The global hydrogen energy storage market has been segmented on the basis of
State
Applications
- Transportation
- Stationary Power
Technology
- Compression
- Material-based
- Liquefaction
End-users
- Industrial
- Commercial
- Electric Utilities
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Linde plc
- Air Liquide
- FuelCell Energy, Inc.
- Siemens Energy AG
- Taiyo Nippon Sanso Corporation
- Air Products and Chemicals, Inc.
- ENGIE
- Iwatani Corporation
- Cummins Inc.
- Nel ASA
- ITM Power
- Nedstack Fuel Cell Technology B.V.
- GKN Sinter Metals Engineering GmbH
- HyGear
- Steelhead Composites Inc.
- Hexagon Composites ASA
- Plug Power Inc.
Competitive Landscape
Key players competing in the global hydrogen energy storage market are Linde plc; Air Liquide; FuelCell Energy, Inc.; Siemens Energy AG; Taiyo Nippon Sanso Corporation; Air Products and Chemicals, Inc.; ENGIE; Iwatani Corporation; Cummins Inc.; Nel ASA; ITM Power; Nedstack Fuel Cell Technology B.V.; GKN Sinter Metals Engineering GmbH; HyGear; Steelhead Composites Inc.; Hexagon Composites ASA; and Plug Power Inc.
Some of these players have adopted a series of business development strategies including merger and acquisition, entering into partnerships and collaboration, product launches, and production capacity expansion to expand their market share.
For instance,
- On January 28, 2022, an Ireland-based chemical company, Linde plc entered into an agreement with a Norway-based agricultural solution provider, Yara to a joint venture for the establishment of a 24 MW green hydrogen demonstration plant at Yara’s ammonia production facility at Herøya Industripark in Porsgrunn, Norway. The deal was aimed at producing ammonia-based renewable energy and its implementation in fertilizer production to reduce the impact of carbon dioxide.
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