Hydrogen Cylinder Market Outlook:
The global type 3 DOT hydrogen cylinder market was valued at USD 60,421.5 thousand in 2020, and is projected to reach USD 1,18,512.5 thousand by 2028, expanding at a CAGR of 9.8% during the forecast period. Significant focus on key players for development of innovative products is boosting the sales of the global Type 3 DOT Hydrogen Cylinder market.
A type 3 DOT hydrogen cylinder is made from composite material, fiberglass/aramid or carbon fiber with a metal liner of aluminum, steel, or others and is certified under DOT (Department of Transportation). Increasing demand from numerous end-user industries such as industrial gas & storage, automotive, and power coupled with the growing emphasis on hydrogen across the globe is expected to register growth opportunities for the market during the forecast period.
Hydrogen Cylinder Market Dynamics
Growing demand for electricity is anticipated to bolster the demand for fuel cells. These fuel cells primarily use hydrogen for producing electricity. The Paris Agreement, an international treaty to tackle climate change, was signed by more than 195 countries. Nations all over the world are aiming to cut down their carbon emissions and increase investments in clean sources of fuel such as hydrogen.
Moreover, fuel cells have a wide area of applications across multiple sectors such as commercial buildings, industrial buildings, residential buildings, and long-term energy storage for grid in reversible systems. Investments in research activities are being made for cutting down the costs of manufacturing fuel cells such as the alliance of the two companies, Bosch and PowerCell Sweden. This is expected to bolster the growth of the type 3 DOT hydrogen cylinders market, as fuel cells are one of the applications of these cylinders.
Type 3 hydrogen cylinders have hydrogen capacities four times that of type 1 and type 2 hydrogen cylinders. Moreover, they are light in weight, which makes them suitable for lightweight automotive applications that are highly emphasized upon by several governments of various nations. Moreover, type 3 hydrogen vessels do not leave any potential for electrostatic discharge caused by corona discharge or during gas pressure cycles, which gives it an edge over type 4 hydrogen cylinders.
Type 3 hydrogen cylinders have a metal liner, which gives them great thermal conductivity, allowing for more efficient fills and a safer failure mode than a type 4 hydrogen cylinder. These benefits associated with type 3 hydrogen cylinders are anticipated to drive the global type 3 DOT hydrogen cylinders market during the forecast period.
One of the applications of type 3 hydrogen cylinders is fuel cells. While the demand for these fuel cells is on the rise, high costs associated with their production is one of the restraints of the market. Moreover, as of now there is a major deficit in terms of hydrogen infrastructure for production, storage, and transportation. These factors in combination are restraining the growth of market.
Currently the drones industry is on a fast-paced track for growth in countries such as the US, Germany, Japan, and the UK. Hydrogen is commonly used to power drones. Unmanned aerial vehicle uses hydrogen fuel cells and typically have a hydrogen tank attached to it, typically a type 3 one. These drones have multiple applications such as delivery of medicines, food, commercial aerial surveillance, disaster relief, and others. This positive trend of the drones is expected to propel the growth of the Type 3 DOT Hydrogen Cylinder market during the forecast timeline.
Hydrogen Cylinder Segmental Outlook
In terms of capacities, the global type 3 DOT hydrogen cylinder market is segmented into below 100 L, between 101-200 L, between 201-300 L, and more than 300 L. The between 201-200 L segment holds a significant share of the market, due to high usage associated with the product in this range. The more than 300 L segment is expected to register growth opportunities, due to increasing industries inclining towards high capacity hydrogen cylinders.
By Liner Types
In terms of liner types, the global type 3 DOT hydrogen cylinder market is segregated into aluminum, steel, and others. Strength and durability associated with aluminum liners support significant share of the segment. Low cost associated with steel supports the significant growth of the segment in the global market. Moreover, increasing R&D pertaining to manufacture of Type 3 DOT Hydrogen Cylinders based on other types of liners is registering growth opportunities for the others segment.
By Pressure Levels
Based on pressure levels, the global type 3 DOT hydrogen cylinder market is classified into between 300 - 500 bar and more than 500 Bar. The more than 500 bar segment holds a significant share of the market, due to increasing preference of customers for compact cylinders in industries.
By End-use Industries
Based on End-use industries, the global Type 3 DOT hydrogen cylinder market is divided transportation, industrial gas and storage, and others. The industrial gas and storage segment holds a significant share of the market due to high demand of hydrogen in multiple industries. Moreover, increasing research & development pertaining to use of hydrogen cylinders in various new vehicles such as drones for transportation of passengers, is expected to boost the growth of transportation segment during the forecast period.
On the other hand, increasing application of type 3 DOT hydrogen cylinders in other industries such as security & surveillance, military, and healthcare is expected to register new growth opportunities for the others segment during the forecast period.
Region Wise Outlook
Based on regions, the global Type 3 DOT Hydrogen Cylinder market is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America holds a significant share of the market, due to high regulations in the region pertaining to use of DOT certified hydrogen cylinders and presence of key players in the region.
Asia Pacific is a promising region for the market. In terms of value, the region constituted 13.5% share of the global market in 2020. The market in this region held a significant share in 2020 and is expected to grow in the coming years, owing to rapid consumption of hydrogen in the region. In terms of value, the market in Asia Pacific is projected to expand at a CAGR of 14.8% during the forecast period.
Key Benefits for Industry Participants & Stakeholders
- In-Depth Analysis of Type 3 DOT Hydrogen Cylinder Market
- Historical, Current and Projected Market Size in Terms of Value
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Type 3 DOT Hydrogen Cylinder Market Performance
- Below 100 L
- Between 101-200 L
- Between 201-300 L
- More than 300 L
By Liner Types
By Pressure Levels
- Between 300 - 500 Bar
- More than 500 Bar
By End-use Industries
- Industrial Gas & Storage
- North America
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key players in the global Type 3 DOT Hydrogen Cylinder market include Worthington Industries, Steelhead Composites, INC., and AMS Composite Cylinders. These companies are considered as key producers of Type 3 DOT Hydrogen Cylinder based on their revenue, research & development (R&D) activities, regional presence, and supply chain management system.